Exchange Listing LLC

We are incredibly proud to announce that our client NeurAxis, Inc., successfully completed their initial public offering and NYSE American listing. NeurAxis, Inc., is a medical technology company focused on neuromodulation therapies to address chronic and debilitating conditions in children and adults. Alexander Capital, L.P. L.P. acted as sole book-running manager for the offering. Lucosky Brookman LLP served as counsel to NeurAxis. Carmel, Milazzo & Feil LLP served as counsel to the underwriters. Brian Carrico and his team worked tirelessly to make this outcome a reality and we are so excited to see what the future holds for NeurAxis. #clientsuccess #business #ipo #capitalmarkets #exchangelisting

The role of employees in CEO selection is an intriguing and often overlooked topic. Traditionally, employees have had little to no input in choosing their CEOs or senior leadership, but recent instances such as the OpenAI case, where employees protested to reinstate Sam Altman as CEO, demonstrate that employees' voices are becoming more influential. Another case in point is Apple, where employee backlash against a top executive due to controversial past comments led to his departure. But what if employees were involved in the CEO selection process from the beginning? Would it lead to better leadership and company culture? Opponents argue that employees lack the knowledge or loyalty needed to make such critical decisions. However, this perspective might miss the bigger picture. Employees working on the ground have valuable insights, as they are closer to customers and more in tune with the company's challenges and needs. Their input can be crucial in assessing whether they would rally behind a new leader or not. Moreover, involving employees in the process can foster a sense of ownership and drive commitment to company goals. In industries where employees have a voice, such as cooperatives like Crédit Agricole or Land O'Lakes, CEOs often have stronger direct relationships with their teams. This creates an alignment between leadership strategies and employee engagement, which can be beneficial for long-term success.

Biotech IPO Surge: Three Startups Raise Over $700M Three biotechnology companies recently made headlines by collectively raising more than $700 million in IPOs, marking a surge in activity following a relatively quiet summer in the biotech space. Leading the way was Bicara Therapeutics, which secured $315 million, the third-largest IPO in the sector this year, focusing on cancer treatments. Zenas BioPharma, specializing in autoimmune diseases, followed closely with $225 million, while MBX Biosciences raised $163 million for its work on metabolic conditions, including obesity. This wave of IPOs is notable, especially considering the slower pace of public offerings in recent years. While some biotechs struggle with market conditions, later-stage companies like these, with drugs already in human trials, seem to have found their stride. Their success signals potential momentum for future biotech IPOs. Exchange Listing has a dedicated life science group and is committed to the sector with the applicable resources to support small-, micro-cap life science IPOs for companies interested in going public.

Hong Kong’s Largest IPO in 3 Years Midea Group, a leading Chinese home appliance manufacturer, has launched its largest share offering in over three years on the Hong Kong Stock Exchange, seeking to raise approximately HK$26.97 billion ($3.46 billion). The company, already listed in Shenzhen, plans to issue around 492.1 million shares, priced between HK$52 and HK$54.80 each, reflecting a discount of up to 25% compared to its Shenzhen-listed shares. This offering marks Hong Kong's biggest listing since JD Logistics raised $3.16 billion in 2021, eclipsing even CALB's $1.3 billion IPO in 2022. Cornerstone investors, including Cosco Shipping Holdings and UBS Asset Management Singapore, have committed $1.25 billion to Midea’s shares. Midea’s shares will trade under the stock code 0300 on the Hong Kong Exchange, with trading expected to begin on September 17, 2024. Dealmakers are optimistic that this high-profile listing will boost Hong Kong's lagging IPO market, which has raised only $2.5 billion in 2024, a far cry from the $22.1 billion raised in 2021.

Second Time's a Charm! EEW Renewables Ltd, a UK-based renewable energy developer, has announced its plans to go public through a merger with Compass Digital Acquisition Corp as a SPAC. The deal is valued at $300 million pre-money, with a pro forma enterprise value of $386 million, offering EEW $25 million in gross cash proceeds to fund future projects. Founded in 2012, EEW has focused on Europe and Australia, initially in solar energy before expanding into battery energy storage and green hydrogen projects. The company has successfully developed 1.5 GW of renewable energy projects and currently has a pipeline of 9 GW under development. With this merger, EEW aims to transition from a pure-play developer to an independent power producer (IPP), enabling it to generate recurring revenue through managing and operating select projects. CEO Svante Kumlin said the merger will accelerate EEW’s growth and leverage its existing project pipeline. Expected to close in Q1 2025, the transaction will also see the combined entity listed on Nasdaq, with EEW’s existing shareholders owning 79% of the post-merger company. Notably, EEW previously attempted a SPAC merger in 2021, which was eventually terminated last year. However, the company remains committed to its public market ambitions, with Kumlin and the current management team set to lead the business post-merger.

We are greatly interested in AoChuang Holdings' IPO, as it presents a unique entry point into the EV sector. With a relatively modest $6 million raise and a float of just 3.5%, this offering stands out from the larger deals typically seen in the space. The company seems to be taking a more strategic, measured approach—raising capital without heavily diluting equity or flooding the market with shares. As a diversified retailer of popular local EV brands like Geely Geometry and Ora, AoChuang is tapping into the booming Chinese EV market, but what sets it apart is its full-service dealership model. Covering all aspects of the EV lifecycle, from sales to after-sales service, financing, and insurance, it creates a more stable revenue stream compared to the often volatile manufacturing sector. We are particularly intrigued by the regional focus—operating just four dealerships in Haikou, China. This approach makes AoChuang a compelling regional player in the fast-growing EV landscape, offering investors exposure to the booming demand for electric vehicles without the direct risks associated with large-scale manufacturing. As the EV sector becomes more crowded, we are watching to see if AoChuang can scale its operations and boost profitability in an increasingly competitive environment. Its measured growth strategy and diversified offerings could position it as a resilient player in this rapidly evolving market.

Nasdaq, long recognized as a leader in stock trading, is increasingly positioning itself at the forefront of financial crime prevention. The exchange operator has diversified its traditional business by acquiring Verafin, a financial technology company known for its advanced tools used by banks to detect financial crimes such as payment fraud and money laundering. With financial crime being a growing global concern—an estimated $480 billion lost to bank fraud schemes and scams in 2023 alone—Nasdaq Verafin's role is crucial. The United Nations Office on Drugs and Crime estimates that up to $2 trillion is laundered each year, highlighting the massive scale of the challenge. Nasdaq’s broader financial technology unit offers services such as risk management and regulatory compliance, and the company has made strategic moves to cross-sell among its business lines. The firm's share-price multiple will likely benefit as Nasdaq continues to demonstrate strong financial technology growth and leverage artificial intelligence, particularly through tools like Verafin's generative AI for alert review. This positions Nasdaq not just as a stock exchange operator but as a key player in the future of financial security.

NYSE's New IPO Policy and Luda Technology Group's Market Debut The NYSE has introduced a new policy requiring a minimum of $10 million in gross proceeds for IPOs, emphasizing the importance of scale in today’s market. In line with this, Luda Technology Group, a Chinese manufacturer of stainless and carbon steel flanges and fittings, has revised its IPO terms to meet this threshold. Luda Technology Group was founded in 2004 and booked $51 million in sales for the 12 months ended December 31, 2023. Luda plans to raise $10 million by offering 2.5 million shares at $4 each, boosting its anticipated proceeds by 14% and aiming for a $90 million market cap. This move reflects the company’s commitment to listing on the NYSE American under the symbol LUD.

Friendly reminder that Mickey Freeman will be talking to Atlantic FinTech about IPOs and the Capital Markets- a chance to learn more about the microcap space and the road to an IPO. Hope to see you there!

This a reminder to sign up for this exciting webinar, hosted by Atlantic FinTech and Mickey Freeman! This is an exciting opportunity to learn more about the IPO industry and insights into the Capital Markets.