A cannabis micro-cap broke the IPO market’s month-long dry spell this past week and became the latest small issuer to soar in its debut, popping 163% on its first day. One SPAC also priced in the slowest week for blank check IPOs since August. The pipeline saw a bit of activity, with two IPO and four SPACs submitting initial filings.
Akanda (AKAN) raised $16 million at a $116 million market cap. The company plans to supply medicinal-grade cannabis products to wholesalers in international markets, with cultivation facilities in Southern Africa. Its operations are still early stage, and it has generated minimal revenue to date. Akanda traded down after its first day, finishing up 85%.
SPAC Goldenstone Acquisition (GDSTU) raised $50 million to acquire growth-oriented businesses with enterprise values between $150 million and $500 million.
Two IPOs submitted initial filings. Chinese toner cartridge maker Planet Image International (PLIM.RC) filed to raise $27 million, and diagnostics and PPE provider Virax Biolabs (VRAX) filed to raise $17 million.
Four SPACs filed led by tech-focused Israel Acquisitions (ISRLU) and energy-focused VIKASA SPAC Series I Acquisition (VSSAU), which both filed to raise $200 million.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/17/2022, the Renaissance IPO Index was down 27.3% year-to-date, while the S&P 500 was down 7.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO Index was down 23.9% year-to-date, while the ACWX was down 7.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.
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