In 2022, the global volume of IPOs was slashed to almost half the 2021 value, with overall proceeds decreasing even more. It’s also worth noting that the US and European markets contributed only 30% of the cap, with Asia Pacific carrying the other 70%.
Tens of factors gathered like a perfect storm and shaped that dismal economic scene. The whole year witnessed postponed or canceled IPOs.
However, some optimistic voices, like Adena Friedman, the President of Nasdaq, believe that 2023 will be a good year. After all, the pipelines are filled to the brim with delayed prospects from the past two years.
If you’d like to see where the trends are going, here’s the IPO results for January 2023.
Many investors and corporations are stepping into the first quarter of 2023 with evident caution. This is clear in the huge amount of IPOs that companies shelved throughout 2021 and 2022.
EY Global IPO Trends 2022 report gives some brilliant insights, that also explain the slow start of 2023.
The following are 12 IPOs that we saw throughout January. There’s nothing too surprising about the caps, brands, and technologies. Even the absence of the most anticipated IPOs for 2023 doesn’t raise any eyebrows.
Many reasons contribute to the volatility of the market. The combination of increased interest rates, low household income, new regulations, and inflation is definitely scaring away many prospects. The prolonged geopolitical standoffs, and the lingering effects of the pandemic, aren’t helping either.
On a more positive note, there are some signs of recovery in the stock market, and the economy wants to recover after a slump that lasted for too long. These forces could just as well drive the market forward.
“We are focused on the acquisition, development, optimization, and exploitation of oil, natural gas, and natural gas liquid reserves in North America”. That’s how TXO Energy Partners see their business.
Besides the huge capital assets this company has, its biggest asset is the people behind the brand. The upper management includes experts who have been in the oil and gas business for almost half a century.
Among these, is the CEO, Bob Simpson. He has been a dominant figure in the oil and gas industry for the last 45 years.
It was Mr. Simpson who founded Cross Timbers Oil company in 1986. Later on, it was rebranded as XTO Energy. In 2010 XTO was sold to ExxonMobil Corporation for $41 billion.
The company has vast amounts of leaseholds reaching 370,000 acres. These assets are mainly in the Permian and San Juan basins. According to the latest figure in the IPO, the company’s total estimated reserves were approximately 130 MMboe. 37% of these are oil and 82% are proven developed
The current TXO Energy IPO is an attempt to increase the cash flows available for the company’s operations, and provide better investment opportunities for their partners and shareholders. The offering amounts to $100 M, with share prices at $20.
The first thing you’d see on the Brera Holdings website is a good question: Why invest in Brera?
And they answer it right away; “We intend to show a path for a more sustainable approach to professional football, through the use of unconventional routes and undiscovered markets with the aim to unleash their full potential, all while having access to the rich history of football in Milan, Italy.”
Another statement that would catch your eye is their slogan, which vows to go from local to global, and from Milan to the rest of the world. They add that theirs is a “new idea of football”.
The Irish company, which is currently operating from Dublin, started its activities in 2000. Their focus is mainly on acquiring sports clubs and talent from untapped areas.
They prefer working with fringe athletes rather than engaging with the mainstream football model. The one that’s been around for more than a century. The prospects for this playfield were estimated at around $1.8 billion in 2019. The projected gains are expected to reach approximately $3.8 billion by 2027.
Their offering isn’t too earth-shattering, as it amounts to $8,525,000, with $5 shares. Brera Holdings plans to acquire top-division football teams in Africa, Eastern Europe, and South America, in addition to other emerging markets. They want to introduce these teams to the bigger global market.
Biotech is among the sectors that demonstrated steady growth throughout the past decade, and they keep on showing great promise.
Genelux Corp headquarters is in the Los Angeles region, quite close to an emerging biotech hub. They have other facilities in San Diego, where they perform the bulk of their R&D operations.
Their stated mission is “to develop immunotherapeutics that deliver the full complement of tumor neo-antigens with the power to stimulate a personalized immune system response to fight cancer, individual by individual.”
The company is rather new in the market, as it was founded in 2001. They signed a major agreement with Newsoara BioPharma Co. Ltd in September 2021, which allowed Newsoara an exclusive license for their flagship product Olvi-Vec in China, Taiwan, Hong Kong, and Macau.
The latest IPO is for $15 M, with $6 shares. This should support the company’s clinical trials, negotiations with the FDA, and future expansion plans.
Sonu Cheema, the Executive Director of High-Tech Metals, states that “The world needs more high-quality cobalt mines and High-Tech is committed to begin work to realize the potential of Werner in a sustainable and responsible manner to ensure strong outcomes for all stakeholders.”
The Australian company focuses on mining and recycling cobalt. It goes into many industries such as batteries and electronics. In addition to producing superalloys and hard metals.
High tech Metals finalized the acquisition of the Werner Lake Cobalt Project concurrently with its latest offering. The IPO raised around $5 M, with the issuance of 23,590,000 shares, priced at $0.20 each.
The project is located in the Kenora Mining District, Ontario, and it was previously owned by Global Energy Metals and Marquee Resources.
The Chinese company has its headquarters in Beijing, and from there they run all of its online educational services. QuantaSing Group’s stated mission is “to improve people’s quality of life and well-being by providing them lifelong personal learning and development opportunities.”
QuantaSing Group is considered among the largest online learning platforms in China. Their main focus is on adult learning.
The company launched a hugely successful financial literacy learning program in July 2019. In 2021 the company had a market share of 36.9% in terms of revenue. Soon, QuantaSing expanded its services to include various other personal interest courses.
In June 2022, the Group launched an enterprise talent management program to assist their users with online talent assessment and development. This move broadened the customer base to include companies alongside individuals seeking better learning opportunities.
It’s worth mentioning that in August 2022, Li Peng, the founder of QuantaSing Group, was elected as the new executive member of the Beijing Federation of Industry and Commerce.
By November 30, 2022, QuantaSing Group had around 75 million registered users, which is a huge increase from the 17.0 million users they had at the end of June 30, 2021. The company intends to expand its services even more, and that explains the decision to go public.
The QuantaSing Group IPO totals $40,625,000, as they offered 3250000 shares, priced at $12.50.
MGO Global is a new-age enterprise that specializes in design, development, manufacturing, sales, marketing, and distribution. The main branches are in New York, Miami, and London.
Maximiliano Ojeda and Virginia Hilfiger founded the company in 2018. The headquarters is in Florida, but there are overseas operations in various parts of the globe. The nature of the business allows it to keep remote employees working in London, New York, and Latin America.
MGO directors believe that their competitive edge lies in the capability to respond in an agile manner to the market. Coupled with that is their understanding of how to position a brand in the best possible way.
They mostly work in the apparel sector, especially on accessories and footwear within the affordable luxury niche. Their business employs the Business to Business (B2B), as well as, the Direct to Consumer (D2C ) models.
The leadership team has certifiable experience in fashion design, brand development and management, sourcing and manufacturing, and licensing. Additionally, they’re heavyweights in IT protection, corporate finance, consumer engagement, and e-commerce.
It’s worth noting that various members of the board have worked with fashion industry titans including Tommy Hilfiger, Burberry, GUESS, Brooks Brothers, and True Religion. Their cooperation generated billions of dollars in retail sales throughout the past 30 years.
MGO Global’s IPO is for $7,500,000, where they offer 1500000 shares, priced at $5. They’re expected to widen their base of operations even more at this stage.
The Texas-based insurance company is a niche enterprise that offers specialty insurance, mainly for commercial property and casualty products, also known as P&C products.
Skyward Specialty Insurance Group handles general liability, excess liability, professional liability, commercial auto, property, and workers’ compensation. In addition to that, the company also caters to group accidents and health. The business includes both E&S and admitted markets.
The company started in 2014 as a partnership between Westiam and Houston International Insurance Group (HIIG). In 2020, the company was rebranded as Skyward Specialty Insurance Group after an offering of $100 M, which kept Westiam as a 44% shareholder.
The current CEO is Andrew Robinson, and the board of directors includes some of the biggest names in the sector, like Byron Way, who is the CEO of the Accidents and Health Division; and Kirby Hill, the president of industry solutions, captives, and programs.
Skyward Insurance has a number of subsidiaries including Houston Specialty Insurance Company, Imperium Insurance Company, Oklahoma Specialty Insurance Company, and Great Midwest Insurance Company.
In September 2022, the stockholders’ equity was around $400 M. In less than a year, the net income generated was approximately $19 M, while the operating income reached $50 M. The January IPO for Skyward amassed $134,285,745, with the shares priced at $15.00.
The most interesting feature of the start of Q1 is that the tech industry isn’t ruling the IPO scene. Instead, there’s a balanced assortment of various industries giving out their offerings.
The remarkable entry of mining, insurance, sports, distance learning, and branding companies is also noteworthy.
Unlike the Silicon Valley hibernation, the Biotech hub companies seem to be quite perky and up for business. This isn’t surprising since the pharmaceutical business is already huge and still expected to get bigger.
Energy also seems to be doing well, and it’s gearing up for more action in the upcoming quarters.
The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interests in any of the Companies discussed on this website/app.
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