After an initial June surge, the microcap IPO flow began to ebb as investors await policy decisions from the Federal Reserve and European Central Bank on interest rates.
The Federal Reserve is expected to keep interest rates on hold. The ECB will likely increase interest rates by a quarter point.
The Fed starts a two-day meeting Tuesday, the same day the U.S. May inflation data will be released.
Niel Christensen, chief analyst at Nordea, stated, “FX markets should be subdued today because of the important meetings from the Fed and ECB on Wednesday and Thursday.”
Recent microcap IPOs have focused on technology and AI. This week’s offerings include a retail grocery company and luxury car seller.
Traditional Asian Fare in Los Angeles
Maison Solutions (MSS) has an estimated IPO date of June 14 and intends to raise $15 million at a $79 million market cap. Founded in 2019 and based in the United States, the company is a specialty grocery retailer offering traditional Asian food and merchandise like fresh meat, seafood, and produce. Maison Solutions operates four locations throughout Los Angeles and continues to open satellite locations.
The company booked nearly $42 million in revenue for the year ended April 30, 2022, and currently has 64 employees. Joseph Stone Capital is the sole bookrunner on the deal.
Cheetah Supplies Jaguars and More
Cheetah Net Supply Chain Service (CTNT) filed in May and has an estimated IPO date of June 29 to raise $10 million at about a $52 million market cap. Founded in 2016 and based in the United States, the company sells luxury cars in the U.S. and China, such as Jaguar, BMW, Porsche, and Bentley.
Cheetah Net Supply Chain Service booked $55 million in sales for the year ended Dec. 31, 2022. Maxim Group and Pacific Century Securities are the joint bookrunners on this deal.
Pixie Dust and Proprietary Personal Care Products
Pixie Dust Technologies (PXDT) announced terms for its IPO on June 7 and intends to raise $19 million at a nearly $143 million market cap. Founded in 2017 and based in Japan, the company creates consumer personal care products and spatial materials using mechanobiology, metamaterials, and core proprietary wave technology with light and sound waves.
Pixie Dust Technologies booked $4 million in revenue for the year ended Oct. 31, 2022. The sole bookrunner on this deal is Boustead Securities.
