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.

Championships organised by Gamer Pakistan Inc.
Championships organised by Gamer Pakistan Inc.

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

Financial performance of Gamer Pakistan Inc.
Financial performance of Gamer Pakistan Inc.

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

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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.

The business model of Fitell Corp.
The business model of Fitell Corp.

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%.

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Financial performance of Fitell Corp.

Financial performance of Fitell Corp.
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.

Current developments at Vitro Biopharma Inc.
Current developments at Vitro Biopharma Inc.

Investments raised (as at 30.04.2022) amount to 26.5 million USD

The major investors are Christopher Furman and Jack Zamora.

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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

Financial performance of Vitro Biopharma Inc.
Financial performance of Vitro Biopharma Inc.

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.

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