Last week microcap IPOs slowed as the stock market closed early for Independence Day.
This week brings increased microcap IPO activity with five companies on the calendar.
“The pipeline has enough deals to produce a solid July, but we’ll need more public filings to maintain this modest pickup into the fall,” said Bill Smith of Renaissance Capital.
Investors also await Wednesday’s release of the June CPI report with the latest update on inflation in the United States.
Upcoming microcap IPOs include two tech companies, a warranty marketing company in Japan, a demo and construction company in Hong Kong, and an Asian food and merchandise retailer in Los Angeles.
Extended Warranties for Marketable Data
Warrantee (WRNT) has an estimated IPO date of July 14 and seeks to raise $11 million at about a $91 million market cap. Founded in 2013 and based in Japan, the company connects corporate sponsors and campaign participants by offering extended warranties on healthcare benefits or durables sponsored by the sponsors.
Warrantee provides extended warranties in exchange for obtaining marketable consumer data based on its patented sponsored product insurance model in return for a sponsorship fee. The company booked $2 million in sales for the year ended Sept 30, 2022. The sole bookrunner on this deal is Prime Number Capital.
Hong Kong Demolition and Construction
Chi Ko Holdings (CKHL) has an estimated IPO date of July 14 and intends to raise almost $8 million at about a $58 million market cap. Founded in 1981 and based in Hong Kong, the company provides a full range of construction services in Hong Kong, focusing on foundation and site formation and specializing in demolition.
Chi Ko Holdings has been a general building contractor from the Buildings Department of Hong Kong since 1999 and a demolition specialist since 2006. The company booked $68 million in revenue for the year ended Sept. 20, 2022. EF Hutton is sole bookrunner on the deal.
Mortgage and Tech Fusion in Canada
Pineapple Foundation (PAPL) has an estimated IPO date of July 14 and seeks to raise about $6 million at a nearly $38 million market cap. Founded in 2015 and based in Canada, the Pineapple Foundation is a mortgage brokerage and technology company offering services to mortgage agents, brokers, sub-brokers, brokerages, and consumers.
The company provides cloud technology, back-office services, and pre-underwriting support for residential and commercial mortgage opportunities exclusively in Canada. The Pineapple Foundation is approved to operate in 11 provinces and territories, with two pending. The company booked $20 million in revenue for the year ended Feb. 28. The sole bookrunner on the deal is EF Hutton.
Asian Food and Merchandise in Los Angeles
Maison Solutions had an original estimated IPO date of June 14, intending to raise $15 million at a $79 million market cap. The company now has an estimated IPO date of July 14 and still seeks to raise $15 million at a $79 million market cap. Founded in 2019 and based in the United States, Maison Solutions is a specialty grocery retailer offering traditional Asian food and merchandise.
Maison Solutions has four Los Angeles locations with plans for satellite locations. The company booked almost $42 in revenue for the year ended April 20, 2022. The sole bookrunner on the deal is Joseph Stone Capital.
Tech-Fueled Fitness Options
Fitell (FTEL) had an estimated IPO date of May 26, intending to raise $15 million at an almost $56 million market cap. The company now has an estimated IPO date of July 21 and still wants to raise $15 million at a nearly $56 million market cap. Founded in 2007 and based in Australia, Fitell is a technology-based online gym and fitness equipment retailer. The company has three proprietary brands under Gym Direct, including Rapid Motion, FleetX, and Muscle Motion, with three new business verticals launched in 2021, including an AI-powered platform. Fitell booked $6 million in revenue in 2022. The joint bookrunners on the deal are R.F. Lafferty & Co. and Revere Securities.
