Top 3 of the Largest IPOs Scheduled for August 2023
6 minutes for reading
The top three largest IPOs in terms of market capitalisation, set to occur in August 2023, comprise the forthcoming stock offerings of companies like Gamer Pakistan Inc., Fitell Corp., and Vitro Biopharma Inc.
Today, we will share with you the distinctive aspects of these issuers' business models, the specifics of their planned initial public offerings, the potential of the target market, delve into the financial standings of these firms, and outline their strengths and weaknesses.
1. Gamer Pakistan Inc. IPO – 115 million USD
Year of registration: 2021
Registered in: the US
Headquarters: Henderson, Nevada
Sector: technology
Date of IPO: 10.08.2023
Exchange: NASDAQ
Ticker: GPAK
Gamer Pakistan Inc. organises esports tournaments in Pakistan, primarily involving college and university students. According to the issuer, approximately 36.8 million people in Pakistan play video games, and the number is projected to reach 50.9 million by 2026.
Gamer Pakistan Inc. plans to hold 18 competitions this year. At this stage, the company does not collaborate with advertisers and has no revenue stream. It is anticipated that as the tournaments gain popularity, the issuer will be able to generate revenue from advertising sales.
Investments raised (as at 31.03.2023) amount to 0.54 million USD.
The main investors are Angyalfy Family Trust, Sports Industry of India, Razor Legacy Investments LP, and Bradshaw Capital LLC.
The outlook for Gamer Pakistan’s target market
According to a report by Niko Partners, the global esports market was valued at 1.3 billion USD in 2022. Pakistan’s regional market is in the early stage of development and lacks major players. Its expansion is driven by the increasing number of owners of smartphones and gaming consoles in the country.
Financial performance of Gamer Pakistan
Revenue for 2022: none
Net loss for 2022: 0.31 million USD
Net cash flow (as at 31.03.2023): none
Cash and cash equivalents (as at 31.03.2023): 0.23 million USD
Liabilities (as at 31.03.2023): 0.35 million USD
Strengths and weaknesses of Gamer Pakistan
Strengths:
- A promising target market
- Experience in organizing a series of esports championships
- Favourable market conditions
- Low level of competition
Weaknesses:
- Lack of revenue
- Presence of losses
- Dependency on Pakistan’s regulatory authorities
- Absence of dividend payment plans
Details of the Gamer Pakistan IPO
Underwriter: WestPark Capital, Inc.
Volume of IPO offering: 3.99 million ordinary shares
Average price: 4.5 USD
Gross proceeds: 17.9 million USD, excluding the sale of options by the underwriter
Expected amount of capitalisation at the time of the IPO: 115 million USD
Potential P/S ratio: none
Average P/S value in the industry: 2.12
2. Fitell Corp. IPO – 61.2 million USD
Year of registration: 2007
Registered in: Australia
Headquarters: Taren Point, Australia
Sector: consumer cyclical
Date of IPO: 08.08.2023
Exchange: NASDAQ
Ticker: FTEL
Fitell Corp. is a retailer of sports goods and gym equipment for fitness centres, distributing both its own and third-party branded products. It has its own training platform and provides turnkey solutions for opening fitness centres. The company has a customer base of over 100 thousand regular clients.
Investments raised (as at 30.06.2022) amount to 1.5 million USD.
The main investor is SKMA Capital and Investment Ltd.
The outlook for Fitell’s target market
According to Global Market Insights, the global fitness equipment market was valued at 10 billion USD in 2020 and could reach 20.8 billion USD by 2027. The compound annual projected growth rate from 2021 to 2027 inclusive is 11%.
Financial performance of Fitell Corp.
Revenue for 2022: 8.2 million USD, +17.4%
Net profit for 2022: 0.01 million USD, −98.5%
Net cash flow (as at 30.06.2022): −0.18 million USD
Cash and cash equivalents (as at 30.06.2022): 0.72 million USD
Liabilities (as at 30.06.2022): 3 million USD
Strengths and weaknesses of Fitell Corp.
Strengths:
- A promising target market
- Patented products and technologies
- Favourable market conditions
- Increasing revenue
Weaknesses:
- Intense competition
- Decreasing net profit
- Absence of dividend payment plans
Details of the Fitell IPO
Underwriters: Revere Securities LLC and R.F. Lafferty & Co. Inc.
Volume of the IPO offering: 3 million ordinary shares
Average price: 5.5 USD
Gross proceeds: 16.5 million USD, excluding the sale of options by the underwriter
Expected amount of capitalisation at the time of the IPO: 61.2 million USD
Potential P/S ratio: 7.5
Average P/S value in the industry: 1.2
3. Vitro Biopharma Inc. IPO – 36.8 million USD
Year of registration: 1986
Registered in: the US
Headquarters: Denver, Colorado
Sector: healthcare
Date of IPO: 11.08.2023
Exchange: NYSE
Ticker: VTRO
Vitro Biopharma, Inc. develops medical treatments based on stem cells. The company plans to conduct clinical trials by the end of the year for two treatments targeting post-COVID syndrome and Pitt-Hopkins syndrome.
Investments raised (as at 30.04.2022) amount to 26.5 million USD
The major investors are Christopher Furman and Jack Zamora.
The outlook for Vitro Biopharma’s target market
According to a report by Science Daily, it is extremely difficult to value the market of medicines for the treatment of Pitt-Hopkins syndrome. Since its discovery in 1978, about 500 cases have been officially registered. The potential patient count for this syndrome in the US could reach 10,000 people. However, the issuer notes that its treatment might also be effective for other more common genetic disorders.
Financial performance of Vitro Biopharma
Revenue for 12 months (as at 31.10.2022): 3.3 million USD, +151.2%
Net loss for the same period: 6.9 million USD, +51.7%
Net cash flow (as at 31.10.2021): −0.98 million USD
Cash and cash equivalents (as at 30.04.2022): 2.2 million USD
Liabilities (as at 30.04.2022): 4.1 million USD
Strengths and weaknesses of Vitro Biopharma
Strengths:
- A promising target market
- Proprietary pharmacological developments
- Approval for clinical trials
- Increasing revenue
Weaknesses:
- Intense competition
- Presence and increase of net loss
- Absence of dividend payment plans
Details of the Vitro Biopharma IPO
Underwriter: ThinkEquity LLC
Volume of IPO offering: 1.8 million ordinary shares
Average price: 5.5 USD
Gross proceeds: 9.9 million USD, excluding the sale of options by the underwriter
Expected amount of capitalisation at the time of the IPO: 36.8 million USD
Potential P/S ratio: 11.15
Average P/S value in the industry: 11.29
Summary
Gamer Pakistan Inc., Fitell Corp., and Vitro Biopharma Inc. intend to go public in August. Their IPOs have the potential to become the largest placements in terms of expected market capitalisation for the month. The first corporation is in the technology sector, the second one is categorised under consumer cyclical, and the third is in healthcare.
