These are the upcoming IPOs (initial public offerings) for the week of September 30 to October 4, 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.
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There are several advantages and disadvantages of a company going public. The positives 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.
With this background in mind, let’s quickly look at the upcoming IPOs for this week.
ZJK Industrial Co. Ltd.
ZJK Industrial specializes in manufacturing precision fasteners, structural parts and other precision metal parts products. Its products find application in the new energy vehicles, circuit boards, data centers, liquid cooling systems for high-speed computation and other AI (artificial intelligence) needs.
In addition to this, ZJK Industrial seeks to issue 1.25 million common shares on the estimated date of September 30, at an offering price between $4 and $6 apiece. Consequently, the stock is expected to be listed on the NASDAQ Capital Market exchange under the ticker symbol “ZJK.”
Furthermore, the company intends to raise $4.26 million in net proceeds (considering full overallotment by underwriters) from the offering, at the midpoint price of $5 per share. Notably, the net proceeds will be used for expanding its manufacturing facilities and sales network in North America, as well as for potential acquisitions in the field of fasteners and other general corporate purposes.
SAG Holdings Ltd.
Singapore-based SAG Holdings distributes spare automotive and industrial parts for motor vehicles and non-vehicle combustion engines.
In line with this, SAG Holdings is offering 1 million shares of its common stock for an offering price of $8 apiece. As a result, the shares are expected to be listed on the Nasdaq Capital Market exchange under the ticker symbol “SAG” on the estimated date of October 1.
Moreover, SAG Holdings expects to raise $5.8 million in net proceeds from the offering (considering full over-allotment by underwriters). Importantly, the company anticipates using the proceeds toward a variety of uses, including system upgrades, expansion and M&A activities, new business development, product development, and debt repayment.
StandardAero, Inc.
StandardAero is an independent maintenance, repair, and overhaul (MRO) service provider. Specifically, StandardAero offers services to commercial aviation, business aviation, military, and industrial power customers.
In this context, StandardAero seeks to issue 60 million of its common stock for an offering price between $20 and $23 a share. Notably, of this, 53,250,000 shares are a fresh issue, while the rest are being sold by the selling stockholders. Consequently, the company intends to list its shares on the New York Stock Exchange (NYSE) under the ticker symbol “SARO.”
Furthermore, the company hopes to raise $1.075 billion in net proceeds (considering full overallotment by underwriters) from the offering, at the midpoint price of $21.50 per share. Importantly, the net proceeds shall be used to redeem all of the $475.5 million aggregate principal amount of the Senior Notes outstanding. Additionally, the remaining funds will be used to prepay parts of 2024 Term B-1 Loans and 2024 Term B-2 Loans.
FrontView REIT, Inc.
FrontView operates as a real estate investment trust (REIT). FrontView is an internally managed net-lease REIT that owns, acquires, and operates primarily outparcel properties that are net leased on a long-term basis to diversified group of tenants.
Looking ahead, FrontView seeks to issue 13.20 million common shares on the estimated date of October 2, at an offering price between $17 and $21 apiece. As a result, the stock is expected to be listed on the NYSE under the ticker symbol “FVR.”
Moreover, the company intends to raise $267 million in net proceeds (considering full overallotment by underwriters) from the offering, at the midpoint price of $19 per share. To clarify, the net proceeds will be used to repay borrowings under the Revolving Credit Facility as well as the Term Loan Credit Facility. Any remaining funds could also be allocated toward general corporate purposes.
