These are the upcoming IPOs (initial public offerings) for the week of July 8 to July 12, based on TipRanks IPO Calendar. An IPO refers to the public market debut of a private company. Following the IPO, the company’s shares become available for trade (sale/buy) on the stock exchange.
There are several merits and demerits for a company going public. The merits include gaining the ability to raise capital, greater liquidity, and improved brand recognition. On the other hand, a publicly traded company faces stringent financial reporting norms, is constantly in the public eye and answerable to shareholders, and experiences high costs related to maintaining compliance with regulatory requirements.
The IPO market is gaining more traction this year, with challenges such as elevated inflation and interest rates showing signs of moderation. With this background in mind, let’s look at the upcoming IPOs for this week.
OS Therapies Inc.
OS Therapies is a clinical-stage biopharmaceutical company focused on identifying and developing lead candidates for treating Osteosarcoma (OS) and other solid tumors. The company currently has six drugs in its pipeline in different stages of clinical studies.
OS Therapies seeks to issue 2 million common shares on July 10 at an offer price of $4 apiece. The stock is expected to be listed on the NYSE American stock exchange under the ticker symbol “OSTX.”
The company intends to raise $7.84 million in net proceeds (considering full overallotment by underwriters) from the offering. OS Therapies will use roughly $4.2 million from the proceeds in the clinical development of its Osteosarcoma drug, OST-HER2. Another $1.2 million will be used for the advancement of OST-tADC for ovarian cancer. The remaining funds will be allocated toward identifying new drug candidates and general corporate purposes.
Primega Group Holdings Ltd
Primega Group Holdings operates through its Hong Kong-based subsidiary, Primega Construction Engineering Co. Ltd. The company specializes in soil and rock treatment. Primega’s main business operations include environmental protection transportation, construction works, and selling approved high-quality biodiesel for construction contractors.
Primega is offering a total of 1.75 million shares in the IPO, of which, 1.50 million is a fresh issue and 0.25 million is being offered by the selling shareholder. Primega is expected to list its ordinary shares on the Nasdaq Capital Market exchange on July 12, under the ticker symbol “PGHL.” The fresh issue of shares is being offered at a price range of $4 to $6 apiece. The fresh issue of shares will represent 6.25% of the company’s outstanding shares, while the selling shareholders’ stake will represent 1% of the outstanding shares.
Primega expects to raise net proceeds of $4.55 million (after deducting underwriting discounts and expenses) from the offering at the midpoint of $5 per share. Roughly 35% of the proceeds will be used to expand the existing business, 20% to upgrade the information technology systems, and the remaining toward working capital requirements.
