IPO Outlook: NA, NEOV, NCPL, VRAX, WRNT

By Duncan Ferris

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The IPOs that we’re focusing on for the week ahead are Nano Labs, NeoVolta, Netcapital, Virax Biolabs Group and Warrantee.

Initial Public Offerings (IPOs) have been thin on the ground over recent weeks amid poor market conditions. However, the week ahead is expected to see a number of new faces joining the NASDAQ.

Here are the IPOs in focus for the week ahead:

Nano Labs (NASDAQ: NA)

This business is expected to list on the NASDAQ on Tuesday. It plans to offer potential investors 1.77 million shares with the price seen as sitting between $11.35 and $11.51 per share. This is fewer shares than in a previously mooted listing where around 3.5 million shares would have been listed.

What Does Nano Labs Do?

Nano Labs is a Chinese fabless IC design company, dedicated to the development of HTC (High Throughput Computing) chips, HPC (High Performance Computing) chips, distributed computing and data storage solutions, and other solutions.

The company says that its self-defined floating point unit architecture maintains the reusability and iterability of semiconductor intellectual property cores which is able to meet the needs of high-performance and high-throughput computing.

Who is Leading the Nano Labs IPO?

According to the company’s filings with the SEC, the listing’s underwriters are AMTD, Maxim Group and Tiger Brokers.

Use of NA IPO Proceeds

The company has a mixture of aims for the proceeds of any IPO. For starters, just under half of the proceeds are expected to go towards research and development initiatives for more advanced ASIC chips, smart-NICs, vision computing chips and its Metaverse computing network platform.

Further proceeds will go towards the establishment of the company’s manufacturing plant, as well as the establishment of dual headquarters in Singapore and the United States in order to encourage international sales. Further additional proceeds may be used for general working capital purposes.

NeoVolta (NASDAQ: NEOV)

This company’s stock is currently listed on the OTCQB Marketplace, but it has applied to list on the NASDAQ. The company is selling 1.1 million units of stock at $4 each, with the IPO date expected to be Wednesday 13 July.

The company has estimated that the net proceeds from this offering will be approximately $3.87m or approximately $4.491m if the underwriters exercise their over-allotment option in full, based on a public offering price of $4.00 per unit.

What Does NeoVolta Do?

NeoVolta is a California-based business which designs, manufactures, and sells energy storage systems in the United States. It offers NV14 and NV 24 energy storage systems to store and use energy through batteries and an inverter at residential or commercial sites.

The company markets and sells its products directly to certified solar installers and solar equipment distributors.

Who is Leading the NeoVolta IPO?

The sole book-running manager of NeoVolta’s IPO is Maxim Group LLC.

Use of NeoVolta IPO Proceeds

The company intends to use $2m of the proceeds to increase production, while a further $1.5m is intended to go towards research and development, marketing, property and equipment.

Any remaining funds will be used for general working capital purposes.

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Netcapital (NASDAQ: NCPL)

This fintech business is set to IPO on Wednesday 13 July and is aiming to raise $6m by selling its stock at $7.65 each.

What Does Netcapital Do?

Boston-based fintech outfit Netcapital offers a scalable technology platform that allows private companies to raise capital online from accredited and non-accredited investors.

It also provides various services, including a fully automated onboarding process, automated filing of required regulatory documents, email marketing to its proprietary list of investors and ongoing support services.

In addition, the company offers advisory services, such as incubation of technology start-ups, investor introduction, digital marketing and technology consulting services.

Who is Leading the Netcapital IPO?

ThinkEquity is the bookrunner for Netcapital’s upcoming IPO.

Use of Netcapital IPO Proceeds

The company says it intends to use the net proceeds of the IPO for research and development activities including development of a mobile app, as well as sales and marketing and for general working capital purposes and potential acquisitions of other companies, products or technologies, though no such acquisitions are currently contemplated.

In addition, up to $1m is earmarked for the retirement of indebtedness with an interest rate of 8% and a maturity date of April 30, 2023.

Virax Biolabs Group (NASDAQ: VRAX)

This holding company is planning to sell 1,350,000 shares for $5 each when it joins the NASDAQ, with the IPO date looking like Thursday 14 July. Succesfully offloading the shares at this price should see the company raise almost $7m.

What Does Virax Do?

Virax is a holding company incorporated as an exempted company under the laws of the Cayman Islands. The business conducts operations in the United Kingdom and Hong Kong with operating subsidiaries in Singapore, China and British Virgin Islands and has been operating since 2013.

The business is a biotechnology group that primarily engages in sales, distribution and marketing of diagnostics test kits and med-tech and Personal Protective Equipment products for the prevention, detection, diagnosis and risk management of viral diseases with a particular interest in the field of immunology.

Who is Leading the Virax IPO?

Boustead Securities is acting as the underwriter for Virax’s IPO.

Use of VRAX IPO Proceeds

Virax says it plans to use around 40% of the proceeds for research and development purposes, obtaining certification across the European Union, Canada and UK, as well as for establishing distribution networks. 

The remaining proceeds will be dedicated towards expanding staff levels, marketing and advertising, general working capital and more.

Warrantee (NASDAQ: WRNT)

This Japanese marketing and market research specialist estimates that it will receive approximately $11.58m in net proceeds from the sale of 2,142,857 American depository shares offered.

The shares are expected to sell for between $6 and $8 when the company joins the NASDAQ index later this week.

What Does Warrantee Do?

Warrantee is a Japanese marketing and market research technology company which aims to help corporate sponsors unlock value through targeted marketing campaigns.

Meanwhile it provides the corporate sponsors’ potential customers with extended warranty coverage on durables or certain healthcare benefits sponsored by our corporate sponsors.

The company, which was founded in Japan in 2013, has focused on developing a suite of specialized marketing and market research services through campaigns for enterprises, which it refers to as its corporate sponsors or sponsors in campaigns.

Who is Leading the Warrantee IPO?

Network 1 Financial Securities, Inc is acting as the primary underwriter for Warrantee’s upcoming IPO.

Use of WRNT IPO Proceeds

The company said it intends to use the net proceeds for hiring additional employees including sales and marketing personnel, conducting promotional activities, including outbound marketing, expansion of agency network referrals.

Additionally, some funds will be used for general advertising and promotion, associated with expanding corporate sponsors and attracting participant users for our campaigns, and working capital and other general corporate purposes.

Want to keep up with the latest trending stocks? Read about why ADTX and IINN have been in the news lately!

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Topics:
IPO

Author: Duncan Ferris

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Duncan Ferris does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Duncan Ferris has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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