A couple of new faces are set to join the NASDAQ in the week ahead, with biotech outfit Virax and online education specialist Jianzhi looking to commence trading in the coming days.
Here's the lowdown on these upcoming IPOs:
Virax Biolabs Group (NASDAQ: VRAX)
This holding company plans to sell 1,350,000 shares for $5 each when it joins the NASDAQ. This had been expected to take place last week, but the IPO date is now expected to be Thursday, 21 July.
Successfully 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 the 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 establishing distribution networks.
The remaining proceeds will be dedicated towards expanding staff levels, marketing and advertising, general working capital and more.
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Jianzhi Education Technology Group (NASDAQ: JZ)
Jianzhi is joining the NASDAQ by listing 5,000,000 American Depositary Shares (ADS), which each represent two of the company's ordinary shares. The price range for these ADS is expected to fall between $5 and $7.
The company has estimated that it will receive net proceeds from this offering of approximately $25.9m, or roughly $30.1m, if the underwriters exercise their option to purchase additional ADSs in full.
What Does Jianzhi Education Technology Do?
Jianzhi is a business incorporated in the Cayman Islands and says it is committed to developing educational technology and content to fulfill the "massive demand" for high-quality professional development training resources in China.
As such, the business provides educational content products and IT services to higher education institutions. The business has also begun providing products to individual customers, with acquisitions of companies in Shanghai and Guangzhou facilitating further expansion in the end-user market.
As of 31 December 2021, the company, along with its variable interest entities (VIEs), had an educational content library that consisted of more than 30,000 online videos and video courses totaling approximately 6,100 hours, of which more than 76.8% were self-developed.
The educational content database offers a wide range of professional development products, including employability skills and entrepreneurship guidance courses, professional skills training courses, skill improvement courses and professional certification quiz banks.
Who is Leading the JZ IPO?
Univest Securities and AMTD are acting as book-runners for the JZ IPO.
Use of JZ IPO Proceeds
Jianzhi says that approximately half of the funds raised are to be used for developing and producing new educational content and purchase educational content from third parties.
A further quarter has been earmarked for research and development expenditures in product developing and technology capabilities, while the remaining amounts are for sales, marketing, potential acquisitions, strategic investments and general working capital purposes.