Categories IPO, Others, Technology
IPO News: What to look for when Nano Labs debuts on Nasdaq
The company plans to list the stock on the Nasdaq Global Market under the ticker symbol NA
It is estimated that the size of the global fabless IC design market increased to $170 billion in the past four years, representing a compound annual growth rate of about 14%. The trend is expected to continue in the coming years, creating a favorable operating environment for fabless chip designers like Nano Labs Ltd.
China-based Nano Labs, which is focused on cryptocurrency mining technology, recently downsized its planned initial public offering. As per a revised SEC filing, the company intends to offer 1.77 million shares in the range of $11.35-$11.51 per ADS. It has applied to list the stock on the Nasdaq Global Market under the ticker symbol NA.
The Offering
The book-runners on the deal are AMTD Global Markets, Maxim Group, and Tiger Brokers. In an earlier regulatory filing, the company had stated it would offer around 3.5 million American Depositary Shares for $9.5-11.5 per ADS.
Reborn Coffee scales down IPO size. Here’s what you need to know
Nano Labs, which was founded in 2019, pursues the mission of providing ubiquitous computing power to the metaverse computing network with its fabless logic-memory integrated circuits. As part of its efforts to expand operations in the overseas market, the company last year established IPOLLO PTE. LTD, an indirect wholly-owned subsidiary, in Singapore.
Tailwinds
The rapid growth of the global IC design market — thanks to the emergence of advanced technologies like artificial intelligence, blockchain, and IoT — bodes well for chip designers. Moreover, the favorable policies adopted by the Chinese government, with regard to the fabless IC design business, have created a conducive atmosphere for companies to thrive.
The tech firm expects to gain an edge over competitors by leveraging its innovative Cuckoo series, which is one of the first near-memory HTC chips available in the market with high bandwidth. Similarly, the FPU architecture and superior supply-chain management capabilities come in handy for achieving efficiency in areas like time-to-market.
Road Ahead
The management’s key growth strategies include enhancing research and development capabilities, international expansion, and ramping up supply chain management. However, such initiatives require heavy investment and that would weigh on margins. As far as the company’s entry into the U.S market is concerned, the strict regulatory environment back home can lead to uncertainties. Also, high exposure to cryptocurrency makes it vulnerable to the volatilities in the crypto market. It is worth noting that Nano Labs is a loss-making company.
IPO News: Treasure Global is set to go public next week; here’s what to know
For the fiscal year ended December 2021, the company generated around $6.19 million in revenues, representing a multi-fold increase from the prior year. This time, revenues came entirely from product sales. However, Nano Labs incurred a wider loss of $27.4 million due to a sharp increase in operating expenses.
_________________________________________________________________________________________________________________
Stocks you may like:
International Business Machines Corp. (IBM) Stock
_________________________________________________________________________________________________________________
Most Popular
These fast-food stocks can strengthen your portfolio this year. Here’s why
For American restaurant chains, the early months of the pandemic were a challenging period. But soon things changed for the better as people started ordering their favorite food items online
What to expect when McCormick & Company (MKC) reports Q1 results next week
Shares of McCormick & Company, Incorporated (NYSE: MKC) were up over 2% on Friday. The stock has dropped 12% year-to-date. The condiments manufacturer is scheduled to report its first quarter 2023
KB Home (KBH) Earnings: 1Q23 Key Numbers
KB Home (NYSE: KBH) reported total revenues of $1.38 billion for the first quarter of 2023 which was relatively flat compared to the same period last year. Net income of