IPOs to watch in October as race for stock listings continues

Highlights

  • NASDAQ saw 560 stock listings in the first three quarters of 2021.
  • In contrast, only 124 IPOs were launched in 2019.
  • Seven companies to launch IPOs in October.

NASDAQ saw a whopping 560 stock listings in the first three quarters of 2021, raising around US$136 billion combined. The listings included initial public offerings (IPOs), SPACs, and direct listings. In contrast, there were only 124 IPOs in 2019, compared to 147 listings alone in the third quarter of 2021. NASDAQ has been buzzing with listings since the beginning of this year, with an IPO win rate of nearly 73 percent.

Here we discuss seven upcoming IPOs in October.

  1. IHS Holding Ltd

IHS Holdings is a telecommunication company that provides communication infrastructure to companies and organizations for better connectivity and coverage in nine emerging markets.

The Victoria Street, London-based company has applied for IPO on NYSE.

Ticker symbol – IHS

Price Range – US$21.00 to US$24.00

Shares offered – 22,500,000 (Ordinary shares)

Shareholder shares offered – 4,500,000 (included in total shares offered)

Expected IPO date - October 14, 2021          

The underwriters may also execute their option to buy 3,375,000 shares in case of overallotment. Its underwriters are Goldman Sachs & Co., J.P. Morgan, and Citigroup and the book-running managers are RBC Capital, Barclays, and Absa Bank Ltd.

IHS Holdings had 2113 employees as of June 30, 2021. The company applied for IPO on Sep 17.


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Upcoming IPOs in October: IHS Holding Ltd, AEON Biopharma, Inc., Gitlab Inc., Healthcare Triangle, Inc., Catalyst Bancorp, Inc., AvidXchange Holdings, Inc., and Rose Hill Acquisition Corp.)

Source - pixabay

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  1. AEON Biopharma, Inc.

The company has applied for a NASDAQ Global listing. It is a biopharmaceutical company focusing on the neurology and gastroenterology markets. The company is headquartered in Newport Beach, California.

Ticker symbol – AEON

Price Range – US$14.00 to US$16.00

Shares offered – 5,000,000 (Common Stock)

Expected IPO date – October 14, 2021         

A total of 750,000 shares are available for underwriters on option when there is overallotment. Its representative underwriters are Wells Fargo LLC and Cantor Fitzgerald & Co.

The net loss per share diluted was US$0.45 for FY 2020 against net income per diluted share of US$1.21 in FY 2019. AEON had six employees as of June 6, 2021. The IPO filing date was Sep 17, 2021.

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  1. Gitlab Inc.

The San Francisco, California-based software company operates the DevOps Platform through a single codebase interface with unified data. The platform allows people to build software better and faster.

The company has applied for listing on NASDAQ Global.

Ticker symbol – GTLB

Price Range – US$55.00 to US$60.00

Shares offered – 10,400,000 (Common Stock)

Shareholder shares offered – 1,980,000 (included in total shares offered)

Expected IPO date – October 14, 2021         

A total of 1,040,000 shares are available for underwriters to be executed on option. The underwriters are Goldman Sachs & Co., J.P. Morgan, BofA Securities, among others. Its headcount was 1350 as of July 31, 2021.

It had 3,632 customers and more than 2600 contributors, as per the filing with SEC.

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  1. Healthcare Triangle, Inc.

Healthcare Triangle applied for listing on NASDAQ Capital. The company provides cloud services, data science, and professional and managed services in the healthcare industry.

Ticker symbol – HCTI

Price Range – US$4.00 to US$5.00

Shares offered – 4,626,991 (Common Stock)

Shareholder shares offered – 1,293,657 (included in total shares offered)

Expected IPO date – October 13, 2021         

Underwriters will have the option to purchase 500,000 shares in case of overallotment. EF Hutton, a division of Benchmark Investments, LLC, is the representative of underwriters.

The Pleasanton, California-based company had 69 employees as of September 30, 2021.       

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  1. Catalyst Bancorp, Inc.

Catalyst Bancorp was incorporated in February 2021 by St. Landry Homestead Federal Savings Bank. After the common stock offer, Catalyst Bancorp will convert St. Landry Homestead Federal Savings Bank to a stock saving bank from a mutual saving bank, and Catalyst will become the holding company. The Federal Reserve Board will then regulate the bank. The headquarters of the company is in Opelousas, Louisiana.

The company plans to get listed on NASDAQ Capital.

Ticker symbol – CLST

Price Range – US$10.00 to US$10.00

Shares offered – 4,600,000 (Common Stock), subject to increase up to 5,290,000 shares Expected IPO date – October 13, 2021       

It had 53 employees as of June 30, 2021. The minimum order is 25 shares, and the maximum for an individual buyer is 15,000. Piper Sandler & Co. is assisting the company as the sole manager for the syndicated offering.

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Upcoming IPOs in October: IHS Holding Ltd, AEON Biopharma, Inc., Gitlab Inc., Healthcare Triangle, Inc., Catalyst Bancorp, Inc., AvidXchange Holdings, Inc., and Rose Hill Acquisition Corp.

Source - pixabay

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  1. AvidXchange Holdings, Inc.

The company has applied for listing on NASDAQ Global Select. The technology company provides accounts payable (AP), automation software and payment solutions to the middle market business and suppliers. Its solutions are SaaS-based, an end-to-end payment platform for AP workflow.

Ticker symbol – AVDX

Price Range – US$23.00 to US$25.00

Shares offered – 22,000,000 (Common Stock)

Expected IPO date – October 13, 2021         

The Charlotte, North Carolina-based company is offering 3,300,000 shares for underwriters to execute options in case of overallotment. The underwriters are Goldman Sachs & Co., J.P. Morgan, and BofA Securities, among others.

The company had 1500 employees as of June 30, 2021.  

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  1. Rose Hill Acquisition Corp.

Rose Hill is a blank cheque company incorporated in March 2021. The company has applied for listing on NASDAQ Global.

Ticker symbol – ROSEU (units), ROSE (Class A Ordinary Shares), ROSEW (Warrants)

Price Range – US$10.00 to US$10.00

Shares offered – 12,500,000 units (each unit consists of one class A Ordinary share and ½

of one redeemable warrant

Expected IPO date – October 12, 2021         

It had five employees as of September 23, 2021. Underwriters have an option to purchase 1,875,000 units within 45-days from the date of the prospectus. Cantor Fitzgerald & Co. is the underwriter for the offering.

The Atlanta, Georgia-based company has no business combination target yet.  

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Bottomline

Better valuation and improvement in the covid situation are encouraging startups to go public by listing on the coveted exchanges. However, investors must carefully evaluate the companies before choosing to invest in the equity market.

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