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Infinity Natural Resources (INR.US) announced the terms of its IPO, which will issue 13.3 million shares of stock to raise $258 million.

American oil and gas producer Infinity Natural Resources (INR.US) announced the specific terms of its initial public offering (IPO) on Tuesday. The company is headquartered in Morgantown, West Virginia, and primarily engages in the production of oil and natural gas in the Utica and Marcellus shale regions. According to the plan, Infinity Natural Resources will raise $258 million by issuing 13.3 million shares at a price range of $18 to $21 per share. Based on the midpoint of the pricing range, the company's valuation will reach $1.1 billion. Infinity Natural Resources focuses on acquiring, operating, and developing oil and gas assets in the Utica shale (Ohio and Pennsylvania) and Marcellus shale (Pennsylvania). As of June 30, 2024, the company's net acreage reserves are approximately 90,000 acres, with a daily average production of 25,000 barrels of oil equivalent (Mboe/d) in the second quarter of 2024, with 29% being oil and 48% being liquid natural gas. As of December 31, 2023, the company's total proven reserves estimate is 141,587 thousand barrels of oil equivalent (MBoe), of which 48% have been developed. Infinity Natural Resources was founded in 2017 and recorded revenues of $262 million in the 12 months ending September 30, 2024. The company plans to list on the New York Stock Exchange (NYSE) under the ticker symbol INR. The joint bookrunners for this IPO include Citigroup, Raymond James, Royal Bank of Canada Capital Markets, Bank of America Corp Securities, Capital One Securities, and Truist Securities. The IPO pricing is expected to be completed during the week of January 27, 2025.

21/01/2025

Smithfield Foods, Inc. (SFD.US) plans to issue 34.8 million shares The total market value of the company may reach 10.7 billion US dollars

Smithfield Foods (stock code SFD.US) launched its initial public offering (IPO) roadshow on Tuesday, planning to publicly issue 34,800,000 common shares with an expected price range of $23 to $27 per share. At the high end of the valuation, the company's total market value will reach $10.7 billion. The IPO includes 17,400,000 common shares issued by Smithfield Foods and 17,400,000 common shares sold by existing shareholders as mentioned in the company's registration statement. In addition, the underwriters will have a 30-day option to purchase up to an additional 5,220,000 common shares at the initial offering price (minus underwriting discounts and commissions) from the selling shareholders. It is important to note that Smithfield Foods will not receive any proceeds from the sale of shares by existing shareholders. Founded in 1936, Smithfield Foods is headquartered in Smithfield, Virginia and is one of the world's largest pork producers and processors. The company owns over 500 farms in the United States and has partnership agreements with 2,000 independent farms. In 2013, Chinese multinational corporation WH Group acquired Smithfield Foods for $4.72 billion. Currently, the company processes approximately 27 million hogs per year, producing over 6 billion pounds of pork. Its product line includes packaged meats, bacon, sausages, hot dogs, and deli meats, with brands such as Eckrich, Nathan's Famous, and Farmland. With 50,200 employees worldwide, the company generates annual revenue of $14 billion and has production facilities in Mexico, Poland, Romania, Germany, Slovakia, and the UK. In its recent filing with the Securities and Exchange Commission, Smithfield Foods stated that its packaged meat business is its core, with the profitability of value-added products more than doubling since 2014. Key competitors of Smithfield Foods include Tyson Foods, Inc. Class A (TSN.US), Hormel Foods Corporation (HRL.US), JBS USA (JBSAY.US), Pilgrim's Pride (PPC.US), Cargill, Conagra (CAG.US), and General Mills, Inc. (GIS.US). For the 12 months ending December 31, 2023, Smithfield Foods achieved sales of $14.6 billion. As of September 29, 2024, the company's net debt to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio for the most recent 12 months was 1.4 times, and the debt to ongoing net income ratio was 4.5 times.

21/01/2025

Chinese heavy-duty truck autonomous driving company TuSimple plans to go public in the United States for a fundraising of $100 to $200 million.

Chinese heavy-duty truck autonomous driving technology developer Inceptio Technology is considering conducting its first public offering (IPO) in the United States as early as this year. According to sources familiar with the matter, the company also operates under the name Shanghai Inceptio Technology Co., Ltd., and plans to raise $100 million to $200 million through this IPO. Due to the involvement of internal company affairs, these sources refused to disclose their names and stated that discussions are still ongoing, and the transaction size and timetable may change. Inceptio Technology was founded in 2018, with shareholders including battery manufacturer Contemporary Amperex Technology, food delivery giant Meituan, and prominent investment firm Sequoia Capital Group (formerly Sequoia China). By the end of last year, commercial trucks equipped with Inceptio Technology's autonomous driving technology had traveled over 200 million kilometers in China. According to the company's website, its clients include S.F. Holding, ZTO Express (Cayman), Inc. Sponsored ADR Class A, and Nestle, among other large logistics companies. If this IPO is successful, Inceptio Technology will become another autonomous driving technology developer listed on the New York Stock Exchange, following in the footsteps of TuSimple (WRD.US) and Pony.ai (PONY.US). It is worth noting that since TuSimple's listing in October, its American Depositary Receipts (ADR) have fallen by about 15%, while Pony.ai's ADR has risen by around 5% since its IPO in November. Currently, a representative of Inceptio Technology has refused to comment on the matter.

20/01/2025

Biotechnology company Sionna Therapeutics (SION.US) has filed for an IPO on the US stock market to raise a planned $100 million.

Biotechnology company Sionna Therapeutics, which is developing a new therapy for cystic fibrosis, submitted its initial public offering application to the U.S. Securities and Exchange Commission last Friday, aiming to raise up to $100 million in funding. Sionna is working on a treatment to normalize the function of Cystic Fibrosis Transmembrane Conductance Regulator (CFTR) protein as a therapy for CF patients. The company's goal is to restore CFTR function as much as possible by directly stabilizing the nucleotide binding domain 1 (NBD1) of CFTR, in contrast to the CFTR modulator therapies currently marketed by Vertex Pharmaceuticals (VRTX.US). Currently, Vertex sells all five approved CFTR modulators, with projected sales of about $10 billion by 2023. Sionna emphasizes that their Chief Medical Officer previously served as Vice President of Cystic Fibrosis at Vertex. Currently, Sionna is conducting phase 1 trials for its two main NBD1 stabilizer candidate drugs, with phase 2a trials expected to start in the second half of 2025. The company is also conducting phase 1 and 2 trials of a range of complimentary CFTR modulators, some of which are licensed by AbbVie. Established in 2019, Sionna plans to list on the Nasdaq under the ticker SION. Sionna Therapeutics submitted its application confidentially on September 12, 2024. Goldman Sachs Group, Inc., TD Cowen, Stifel, and Guggenheim Securities are the joint book-running managers for this transaction. The company did not disclose the pricing terms.

20/01/2025

Enterprise identity security service provider SailPoint (SAIL.US) applies for listing in the United States, planning to raise 1 billion US dollars.

SailPoint (SAIL.US), which provides identity management software for businesses, filed for its initial public offering (IPO) with the U.S. Securities and Exchange Commission last Friday, with plans to raise up to $1 billion. SailPoint offers solutions for businesses to achieve comprehensive identity security, serving clients including many of the world's largest and most complex organizations, as well as large enterprises and governments in all major vertical industries. The company provides a range of solutions to meet different needs of clients in various deployment options, including the SaaS cloud solution Identity Security Cloud based on the unified platform Atlas and the customer-hosted identity security solution IdentityIQ. The company, headquartered in Austin, Texas, was founded in 2005 and reported revenue of $824 million for the 12 months ended October 31, 2024. The company plans to list on the NASDAQ under the ticker symbol SAIL. SailPoint filed its application in secret on September 12, 2024. Morgan Stanley and Goldman Sachs Group, Inc. are the joint book-runners for the transaction. The company has not yet disclosed the pricing terms.

20/01/2025

Biotechnology company Odyssey Therapeutics (ODTX.US) applies to be listed in the United States, planning to raise $100 million.

The biotechnology company Odyssey Therapeutics submitted its initial public offering (IPO) application to the U.S. Securities and Exchange Commission (SEC) last Friday, planning to raise $100 million. The company plans to list on the Nasdaq under the stock symbol "ODTX." Odyssey Therapeutics focuses on patients with autoimmune and inflammatory diseases, developing drugs that target the pathology of diseases precisely. Its lead candidate drug, OD-07656, is a small molecule scaffolding inhibitor of receptor-interacting protein kinase 2. The company plans to begin a Phase 2a monotherapy trial for ulcerative colitis in the first quarter of 2025, and a Phase 2a combination therapy trial with vedolizumab in the first half of 2026. The company's pipeline also includes two preclinical projects: a small molecule scaffolding inhibitor of interleukin-1 receptor-associated kinase 4 and an excitatory protein therapy targeting tumor necrosis factor receptor 2. This company, headquartered in Boston, Massachusetts, was founded in 2021. In the 12 months ending on September 30, 2024, the company's collaboration revenue was $3 million.

20/01/2025

Hong Kong securities brokerage company Huatong Financial (WTF.US) IPO price is set at 4-6 US dollars per share, aiming to raise 25 million US dollars.

Securities brokerage and financial services company Huatong Financial (WTF.US), headquartered in Hong Kong, has announced the terms of its IPO. The company plans to issue 5 million shares at a price of $4 to $6 per share, raising $25 million. Based on the midpoint of the proposed offering price range, Huatong Financial's market value will reach $241 million. Huatong Financial primarily provides securities brokerage and financial technology services through its Hong Kong subsidiaries, Huatong Securities International (WSI) and Huatong Technology International (WTI). WSI focuses on providing brokerage services for securities listed on the Hong Kong Stock Exchange, as well as software licensing and related support. Meanwhile, WTI has been focusing on providing software licensing and related support services since September 2023, leveraging its expertise in operations and service areas to create value for clients. Founded in 1989, Huatong Financial had revenue of $11 million in the 12 months ending September 30, 2024. The company plans to list on the Nasdaq with the stock code "WTF". Guotai Securities is the sole bookrunner for this transaction.

20/01/2025

Analysis of US stock market IPOs | Huachan Technology (HCAI.US), which has transferred from the New Third Board to the Nasdaq and has high performance growth, has reduced the number of shares issued by 70%

At the end of 2024, Chinese intelligent parking solution and equipment component provider Huachen Technology (HCAI.US) further pushed forward its process of going public in the US. After initially submitting an IPO application to the SEC on August 14th, Huachen Technology updated its prospectus twice on September 13th and December 31st. Compared to the prospectus updated on September 13th, the latest version has two significant differences. The first is a significant decrease in the number of shares issued. According to the latest prospectus, Huachen Technology plans to issue 1.5 million common shares at a price of 4 to 6 US dollars per share, raising up to 9 million US dollars. In the previous prospectus, the company planned to issue 5 million common shares, meaning that the number of shares issued has decreased by 70% in just three and a half months. The second difference is the update of financial performance in the latest prospectus. Data shows that Huachen Technology's revenue in the first half of 2024 increased by 184% to 29.913 million US dollars, with a net profit increasing by 157.35% to 2.4975 million US dollars. This significant improvement contrasts with the performance in 2023, where revenue grew but profits decreased significantly. It is worth noting that Huachen Technology was previously listed on the New Third Board and was officially delisted on April 12, 2022. However, even with a significant increase in performance, the company is reducing the number of shares issued by 70%, indicating potential challenges in market reception and the company's return to the capital market after two years. Equipment components business continues to surge with a "quantity over price" strategy Established in 2005, Huachen Technology is one of the early companies in China to manufacture parking equipment, accumulating years of experience in the intelligent parking industry. The company is dedicated to providing comprehensive smart parking solutions for customers and supplying complementary multi-level parking equipment to optimize the use of vertical and horizontal parking spaces, addressing the limited parking space issues faced by Chinese cities. Huachen Technology's smart parking solutions can be customized and cover intelligent multi-level parking garage design, equipment manufacturing, sales, installation, and maintenance. To meet various parking needs, the company employs multiple working principles such as lifting and shifting, convenient lifting, vertical circulation, vertical lifting, and multi-level circulation to produce various multi-level parking products. Currently, Huachen Technology's parking solutions customers include government agencies, hospitals, property management companies, real estate developers, institutions, residential communities, and other businesses with parking lots or garages. In addition to intelligent parking solutions, Huachen Technology also provides equipment structural components for customers, including conveyor belts, feeding system components, garage structural components, custom steel materials for multi-level parking equipment, weight-bearing materials, and railway accessories. According to the prospectus, the customers of Huachen Technology's equipment structural components are mainly industrial manufacturing companies, including producers of mining transporters, industrial conveyors, railway tracks, and other products. In terms of income structure, Huachen Technology's products and services mainly involve three sectors: multi-level parking garages, equipment structural components, and maintenance and repair services. However, the income proportions of each business have fluctuated significantly in recent years. In 2023, Huachen Technology's multi-level parking garage business and equipment structural components business were moving in opposite directions. The revenue of the multi-level parking garage business was severely affected by the downturn in the real estate industry, with its revenue halving to 8.012 million US dollars during the reporting period, compared to 16.9573 million US dollars in the same period of 2022, reducing its revenue share from 80.92% to 23.37%. Meanwhile, the revenue from equipment structural components surged to 25.5269 million US dollars, a 662.67% year-on-year increase, and its share of the total revenue increased from 15.97% to 74.47%. Driven by the surge in equipment structural components revenue, Huachen Technology's total revenue in 2023 grew by 63.58% to 34.279 million US dollars. The surge in equipment structural components was mainly due to the company actively lowering product prices during the reporting period to expand market share with a "quantity over price" approach. However, this approach had a noticeable side effect: the "quantity over price" model would decrease the company's profit level. Additionally, due to two parking garage businesses operating at a loss, the company's gross profit margin in 2023 dropped to 18%, a direct decrease of 23 percentage points. Operating expenses also significantly increased with the expansion of the equipment structural components business, further suppressing profit. As a result, Huachen Technology's net profit in 2023 plummeted by 63.4%. In the first half of 2024, Huachen Technology's multi-level parking garage business continued to shrink, with revenue dropping by 16.58% year-on-year to 3.1362 million US dollars, accounting for only 10% of total revenue. Meanwhile, the equipment structural components business continued its high growth, surging by 304.45% year-on-year, and its revenue share increased to 88.87%, driving Huachen Technology's total revenue to grow by 184% to 29.913 million US dollars in the first half of 2024. The renewed surge of the equipment structural components business further lowered Huachen Technology's gross profit margin. In the first half of 2024, the company's gross profit margin dropped to 13%, a 15 percentage point decrease from the same period in 2023. However, with the significant increase in total revenue, the company's gross profit still increased by 31% during the reporting period. Combined with a reduction in operating expenses and other expenditures, Huachen Technology's net profit surged by 157.35% to 2.4975 million US dollars in the reporting period. High customer concentration brings significant drawbacks While Huachen Technology's adoption of a "quantity over price" strategy for its equipment structural components business effectively offset the continuous decline of its multi-level parking garage business due to the real estate downturn, at least in terms of profits, the company's performance in the first half of 2024 showed improvement compared to the stagnation in revenue growth and profit decline in earlier years.High growth makes Huachen Technology's "face" more brilliant.However, the rapid development of the equipment structure business also comes at a cost. In fact, the market competition in the equipment structure business market where Huachen Technology is located is very fierce, with many market players. The explosive growth of this business by Huachen Technology was achieved through a proactive sales strategy of lowering prices, which is not the core competitiveness of the company. On the contrary, this may further intensify market competition. It is worth noting that while Huachen Technology's equipment structure business continues to explode, its customer concentration is also accelerating. According to the prospectus, by 2022, the revenue from Huachen Technology's top four customers accounted for 43.08%, but by 2023, this figure had significantly increased to 65.5%. The revenue from the largest customer accounted for a whopping 31.21%. In the first half of 2025, the revenue from Huachen Technology's top three customers accounted for 51%, and the revenue from the top two customers accounted for 39%, while in the same period in 2024, the revenue from the top two customers accounted for only 22%. Clearly, the high explosive growth of Huachen Technology's equipment structure business was achieved by shipping to a few customers at low prices. This type of growth model has significant drawbacks, as it limits Huachen Technology's bargaining power in the entire transaction, making it difficult to improve its profitability. In addition, high customer concentration can increase the likelihood of significant fluctuations in performance, and any decrease or loss of demand from key customers will directly impact Huachen Technology's business operations. Furthermore, the changes in the balance sheet also indicate the shortcomings of this development model. As of June 30, 2024, Huachen Technology's accounts receivable totaled $39.3449 million, accounting for 60% of the total assets of the company, compared to 48.38% on December 31, 2023. It is clear that the total amount of accounts receivable continues to soar. High accounts receivable not only significantly increase the risk of impairment provisions for bad debts but also significantly affect the company's cash flow, affecting cash flow turnover. Due to the delay in collecting accounts receivable, as of June 30, 2024, Huachen Technology had less than $20,000 in cash on hand, compared to less than $500,000 on December 31, 2023. It is evident that the pressure on Huachen Technology's fund turnover is already very high. In addition, after the delay in collecting large accounts receivable, Huachen Technology must borrow money or finance to accelerate expansion. This is also the reason why the debt ratio of Huachen Technology rose to 55.46% as of June 30, 2024, compared to 50.13% as of December 31, 2023, an increase of over 5 percentage points. It appears that although Huachen Technology achieved double growth in revenue and net profit in the first half of 2024, making the income statement look good "face", the foundation of the balance sheet is not solid. Relying too much on key customers has led to a surge in accounts receivable, depletion of cash reserves, and an increase in the debt ratio, with multiple indicators showing a deteriorating trend. This makes the profit statement seem like a "mirage". In addition, the short-term prospects for Huachen Technology's three-dimensional parking garage business due to the downturn in real estate also show no signs of recovery, increasing the challenges faced by Huachen Technology. Accelerating IPO fundraising to relieve pressure has become the most important issue for Huachen Technology.

17/01/2025

Pomegranate Health Cloud's application for an IPO in the United States has been filed.

On January 17, the China Securities Regulatory Commission issued the "Notice on the Overseas Issuance and Listing Filing of POMDOCTOR LIMITED (Pomegranate Cloud Medical Co., Ltd.). Pomegranate Cloud Medical plans to issue no more than 1,007,113 common shares and list on the Nasdaq Stock Exchange in the United States.

17/01/2025

Oil and gas service provider Flowco Holdings (FLOC.US) priced its IPO at $24 per share, raising $427 million above the expected range.

Flowco Holdings (FLOC.US), a provider of equipment and services to optimize oil and gas well production, will be listed on the New York Stock Exchange on January 16th, Eastern Time, under the ticker symbol FLOC. The company issued 17.8 million shares at $24 each, raising $427 million, which is higher than the previously announced price range of $21 to $23. Flowco is the first large-scale public company to go public in 2025 and is also the largest energy sector IPO since May 2019; however, this title is expected to be short-lived as the liquefied natural gas producer Venture Global (VG.US) is expected to raise $2.2 billion in their IPO next week. Flowco is also the first major energy IPO to price above the range since 2018; the previous six deals all priced below the midpoint. Since its IPO in June 2024, Landbridge (LB.US) has had a breakthrough performance and become a notable winner in the field. Flowco was formed last year through the merger of Flowco Production Solutions, Estis Compression, and Flogistix. The company positions itself as a leading supplier of optimization solutions for the oil and gas industry, including artificial lift and methane emission reduction solutions. Their products and services enable energy producers to maximize profitability and the lifespan of active wells. Their core products include high-pressure gas lift, conventional gas lift, plunger lift, and steam recovery solutions, all covered by their proprietary digital system. Their offerings aim to optimize production and offset the natural decline in output that oil wells experience over time. Morgan Stanley, Jefferies, Piper Sandler, Evercore ISI, BMO Capital Markets, Pareto Securities, and TPH & Co. served as joint bookrunners in this transaction.

16/01/2025

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