Top 3 Largest IPOs Scheduled for May
6 minutes for reading
Azitra Inc., MDNA Life Sciences Inc., and Strong Global Entertainment Inc. are on the Top 3 list of companies with the largest IPOs by market capitalisation scheduled for this May.
Today we will talk about the issuers' business models, their financial situations, and the outlook for their addressable markets. We will also list their strengths and weaknesses and look at the details of their IPOs.
1. Azitra Inc. IPO - 65 million USD
Year of registration: 2014
Registered in: the US
Headquarters: Branford, Connecticut
Sector: healthcare
Date of IPO: 18 May 2023
Exchange: NYSE
Ticker: AZTR
Azitra Inc. develops drugs for the treatment of dermatological diseases.
Its main drugs are:
- ATR-12 (Netherton syndrome) is at phase 1 of the clinical trials
- ATR-04 (cancer therapy-associated rash) is undergoing preclinical trials
- ATR-01 (ichthyosis) is undergoing preclinical trials
The amount of raised investment (as at 31 December 2022) is 33.7 million USD.
The main investors are BIOS Equity Partners LP, Bayer Healthcare LLC, and Connecticut Innovations Inc.
The outlook for Azitra’s addressable market
According to a Research and Markets report, the global Netherton syndrome treatment market in 2019 was valued at 19.6 million USD and is expected to reach 74.3 million USD by 2027. The compound annual growth rate (CAGR) is projected to be 20.3% from 2019-2027 inclusive.
According to Vision Research Reports, the global market of dermatological drugs was valued at 17 billion USD in 2021. The average annual expected growth rate from 2021 to 2030 inclusive is 8.8%.
Financial performance of Azitra
Revenue in 2022 amounted to 284 thousand USD, +158%
Net loss in 2022 was 10.7 million USD, +19%
Net cash flow (as at 31 December 2022): -8.4 million USD
Cash and cash equivalents (as at 31 December 2022): 3.5 million USD
Liabilities (as at 31 December 2022): 9.7 million USD
Azitra’s strengths and weaknesses
Strengths:
- High growth rate of its addressable market
- Revenue growth
- A well-established interaction mechanism with the US regulators
Weaknesses:
- Intense competition
- Increasing net loss
- No plans for paying out dividends even if the company is generating a net profit
Details of the Azitra IPO
Underwriter: ThinkEquity LLC
Offered stock volume: 2.4 million ordinary shares
Average price: 5 USD
Gross proceeds: 12 million USD, excluding the sale of options by the underwriter
Expected amount of capitalisation at the time of the IPO: 64.8 million USD
Potential P/S (capitalisation/revenues): 228.02
Average P/S value of diagnostic test producers: 9.64
2. IPO of MDNA Life Sciences Inc. - 52 million USD
Year of registration: 2014
Registered in: the US
Headquarters: West Palm Beach, Florida
Sector: healthcare
Date of IPO: 16 May 2023
Exchange: NASDAQ
Ticker: MLDS
MDNA Life Sciences Inc. develops and produces medical tests for diagnosing various diseases even in their early stages.
The amount of raised investment (as at 30 June 2022) is 28.7 million USD.
The outlook for the MDNA Life Sciences addressable market
According to a report by Grand View Research, the global medical diagnostic tests market was valued at 2.8 billion USD in 2019 and could reach 7.6 billion USD by 2027. The average annual projected growth rate from 2020 to 2027 inclusive is 13.2%.
Financial performance of MDNA Life Sciences
Revenue in the fiscal year that ended on 30 September 2022 amounted to 1.6 million USD, -56.9%
Net loss for the same period was 6.1 million USD, +102.2%
Net cash flow (as at 30 September 2022): -1.9 million USD
Cash and cash equivalents (as at 30 September 2022): 38.1 thousand USD
Liabilities (as at 30 September 2022): 25.4 million USD
Strengths and weaknesses of MDNA Life Sciences
Strengths:
- A promising addressable market
- Unique technology for diagnosing cancer at an early stage
- The universal character of the developed tests for various diseases
- A well-established interaction mechanism with the US regulators
- A flexible system of discounts meant for increasing sales
Weaknesses:
- Intense competition
- Increasing net loss
- Declining revenue
Details of the MDNA Life Sciences IPO
Underwriter: EF Hutton, a division of Benchmark Investments LLC
Offered stock volume: 2.5 million ordinary shares
Average price: 5.5 USD
Gross proceeds: 13.7 million USD, excluding the sale of options by the underwriter
Expected amount of capitalisation at the time of the IPO: 51.95 million USD
Potential P/S (capitalisation/revenues): 33.52
Average P/S of biotechnology companies: 3.04
3. IPO of Strong Global Entertainment Inc. - 38 million USD
Year of registration: 2021
Registered in: the US
Headquarters: Charlotte, North Carolina
Sector: technologies
Date of IPO: 16 May 2023
Exchange: NYSE
Ticker: SGE
Strong Global Entertainment Inc. produces cinema projection screens and is the leader in this market. The company has partnerships with AMC Entertainment Holdings Inc., IMAX Corporation, and Cinemark Holdings Inc.
The amount of raised investment (as at 30 June 2022) is 13.8 million USD.
The main investor is Strong/MDI Screen Systems Inc.
The outlook for Strong Global Entertainment's addressable market
According to an Insight Partners report, the global wide-screen cinema market was valued at 7.3 billion USD in 2020 and could reach 13.5 billion USD by 2027. The projected average annual growth rate from 2021 to 2027 inclusive is 9.6%.
Financial performance of Strong Global Entertainment
Revenue in 2022 amounted to 39.9 million USD, +53.5%
Net profit in 2022 reached 1.7 million USD, +107.1%
Net cash flow (as at 30 June 2022): 0.82 million USD
Cash and cash equivalents (as at 30 June 2022): 3 million USD
Liabilities (as at 30 June 2022): 14.4 million USD
Strengths and weaknesses of Strong Global Entertainment
Strengths:
- A promising addressable market
- Partnerships with large cinema chains
- Leadership in the segment
- Net profit growth
- Increasing revenue
Weaknesses:
- Intense competition
- Poor diversification of business
- Strong dependence on large clients
Details of the Strong Global Entertainment IPO
Underwriter: ThinkEquity LLC
Offered stock volume: 1.6 million ordinary shares
Average price: 5 USD
Gross proceeds: 8 million USD, excluding the sale of options by the underwriter
Expected amount of capitalisation at the time of the IPO: 38 million USD
Potential P/S (capitalisation/revenues): 0.95
Average P/S value for manufacturers of wide screens: 2.47
Potential upside (stock growth potential): 160%
Summary
Azitra Inc., MDNA Life Sciences Inc., and Strong Global Entertainment Inc. are scheduled to go public in May. Their IPOs might be the largest placements this month in terms of expected market capitalisation. The first two companies are from the healthcare sector, while the third one is from the technology sector.
* – Past performance is not a reliable indicator of future results or future performance.
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