After an initial second-quarter surge, microcap IPOs slowed nearly to a halt this week.
While larger IPOs dominate the calendar for the first time since early March, advancements in artificial intelligence (AI) are expected to fuel the microcap IPO market in the upcoming months.
Renaissance Capital reports the percentage of US IPOs referencing AI in prospectuses has grown steadily over the past six years, with a 54% jump year-to-date.
The banking crisis delayed IPO timelines, and SEC Chair Gensler’s controversial proposals could impact microcap stock trades.
Historically, the increasing number of AI and technology-based microcap IPOs could outperform other markets as interest rates rise, creating an environment for potential gains.
Parallel Luxury Filing
Cheetah Net Supply Chain Service (CTNT) announced terms for its IPO today and intends to raise $10 million. The company would command a market value of $93 million. Founded in 2016 and based in the United States, Cheetah Net Supply Chain Service sells parallel import luxury cars in China and the U.S. The company booked $55 million in sales for the year ended Dec. 31, 2022. The joint bookrunners on the deal are Pacific Century Securities and Maxim Group.
Cancer Detection and Technology
MDNA Life Sciences (MDLS) has an estimated IPO date of May 3 and seeks to raise over $13 million at a nearly $52 million market cap. Founded in 2002 and based in the United States, the company develops genetic tests to help guide the treatment of cancer and endometriosis using proprietary mitomic technology to detect cancer earlier, less invasively, and more accurately than traditional methods. MDNA booked $3 million in revenue for the year ended June 30, 2022. EF Hutton is the sole bookrunner on the deal.
