IPO Outlook: PWM, MGOL

Here are two businesses which could IPO across the week ahead:

Prestige Wealth

This business is offering 2.5 million ordinary shares for an estimated listing price of between $5.50 and $6.50 each.

Prestige Wealth is joining the NASDAQ index with the ticker symbol PWM. While there is no confirmed date for the listing, some sources expect the company to join the NASDAQ over the coming week.

What Does Prestige Wealth Do?

Prestige is a wealth management and asset management services provider based in Hong Kong, with the majority of its subsidiaries’ operations in Hong Kong. The company says its subsidiaries assist clients in identifying and purchasing well matched wealth management products and global asset management products.

Clients are generally high net-worth individuals residing in Hong Kong or China.

The business claims that word of mouth has been its most effective marketing tool, leading its subsidiaries to expand their client referral network by actively maintaining client relationships, seeking referrals from existing clients and expanding their business network.

The company’s list of clients is small, having provided wealth management services to just two clients in the six months ended 31 March 2022. However, the business attributes this and a downturn in its number of clients to COVID-19 related travel restrictions which interfered with Chinese residents conducting business in Hong Kong.

However, with China relaxing strict COVID-19 containment measures the business will be hoping to benefit from the populations increased freedom of movement.

Who is Leading the PWM IPO?

The business’ IPO is being headed by Network 1 Financial Securities.

Use of PWM IPO Proceeds

Assuming net proceeds of around $12.1m, the company’s most recent SEC documents indicate that it intends to use the net proceeds of its listing for the following:

$3.0m for brand promotion.
$3.6m for hiring client relation managers and other additional employees.
$4.3m for expanding products and services.
$1.2m for general working capital.

MGO Global Inc

This business is offering 1.5 million shares of common stock through its IPO, with an assumed price of $5 per share.

It will join the NASDAQ index under the ticker symbol MGOL. The company’s IPO date is as yet unconfirmed, but some sources have given the company an expected listing date of Friday 6 January.

What Does MGO Global Inc Do?

In its own words, MGO is a lifestyle brand portfolio company focused on strategically leveraging the fame, celebrity power and global social media influence of world class athletes, entertainers and other cultural icons to create fresh, modern and compelling product and apparel brands.

While this sounds potentially wide-ranging, the company’s current operations primarily concern Lionel Messi. The superbly talented Argentine, who is heralded as one of the planet’s greatest footballers and has just won the FIFA World Cup as captain of his national team, boasts hundreds of millions of followers and is recognized by billions around the globe.

MGO signed a global licensing agreement with Messi in October 2018 to spearhead the creation of “The Messi Brand”, which it says is a premium line of functional and sporty casual wear, accessories and home décor inspired by the superstar’s persona and trend-setting fashion sense.

However, this license was later terminated and replaced by an agreement which the company describes as having “similar terms”. To this end, the business has a number of Messi-related brand collections catering for men, women and children.

The Florida-based company was founded in 2018 but has a remote workforce in New York, London and South America.

Who is Leading the MGOL IPO?

The listing is being headed by Boustead Securities and Sutter Securities.

Use of MGOL IPO Proceeds

The company says it expects to use the net proceeds of its IPO, which are estimated to stand at around $5.9m for two primary purposes. Around two thirds of the net proceeds, amounting to approximately $3.8m, for team expansion and marketing. The remaining 35%, or $2.1m, is slated for general and administrative corporate purposes, including working capital and capital expenditures.

Additionally, the company notes in its IPO prospectus that it intends to acquire other apparel businesses but has not identified or begun serious discussions with potential targets.