IPOs this week : Feb 14 - 18, 2022 (wk 7)

No IPOs are expected to start trading next week. 

IPO quiet period expirations

• NSTS Bancorp(NASDAQ:NSTS) on February 14. 

IPO lockup expirations

• Crescent Capital (NASDAQ:CCAP) on February 14, 
• Iris Energy (NASDAQ:IREN) on February 15, 
• Newlake Capital Partners (OTCQX:NLCP), Sweetgreen (NYSE:SG) and UserTesting (NYSE:USER) on February 16 and 
• CYNGN (NASDAQ:CYN) on February 17. 

The IPO lockups cover only certain blocks of shares. 

On the SPAC calendar, shareholder votes are set for the Roth CH Acquisition III Co. (NASDAQ:ROCR) deal to take QualTek public, the Astrea Acquisition Corp (NASDAQ:ASAX) deal to take both HotelPlanner and Reservations.com public, as well as the Healthcare Capital Corp. (NASDAQ:HCCC) deal to take Alpha Tau Medical public.

GlobalFoundries (GFS) began trading on the Nasdaq on Thur 28 Oct 21

GlobalFoundries, which was spun off from Advanced Micro Devices (AMD) in 2009, is the world’s third-largest foundry based on revenue. In 2020, the company reported revenue of $5.7 billion. As demand for chips surged in 2021, GlobalFoundries’ net revenue for the first half of the year was $3.04 billion, an increase of about 13% from a year earlier. Some of the company’s largest customers include several Nasdaq-listed companies, such as Qualcomm (QCOM), NXP Semiconductors (NXPI), AMD and Broadcom (AVGO).

GlobalFoundries Inc. is a multinational semiconductor contract manufacturing and design company incorporated in the Cayman Islands and headquartered in Malta, New York. 

Headquarters: Santa Clara, CA

CEO: Thomas Caulfield (Mar 9, 2018–)

Revenue: 6 billion USD (2020)

Number of employees: 15,000

Founded: March 2, 2009, Sunnyvale, CA

• IPO date: Oct. 28 
• Nasdaq’s largest U.S. IPO by proceeds raised in 2021 and the largest semiconductor IPO in its history.

=Olaplex (OLPX) began trading on the Nasdaq on Thu 30 Sept 21

 Olaplex Holdings Inc's (OLPX.O) shares opened more than 19% above their offer price in a strong market debut on Thursday, giving the hair products maker a market capitalization of $16.2 billion.

Stock of the company, owned by private equity firm Advent International, opened at $25 compared with their initial public offering (IPO) price of $21 per share.

Olaplex's products, which include shampoos, conditioners, treatments and oils, are popularly used for treating damaged hair and priced at around $28 each, with the bundles running up to as much as $196.

The company, founded in 2014 in a garage in California, sells its products in over 100 countries. LVMH-owned beauty chain Sephora (LVMH.PA), professional beauty products distributors SalonCentric (OREP.PA) and Sally Beauty Holding Inc's (SBH.N) Beauty Systems Group are among Olaplex's biggest customers.

Certain existing shareholders of Olaplex sold 73.7 million shares in the company's upsized IPO to raise $1.55 billion. The offering was priced above an earlier projected price range of $17 to $19 per share.

The company did not offer any shares in the IPO and will not receive any proceeds from it.

Advent, which acquired Olaplex in 2019, owns about 79.6% of the combined voting power in the company after the offering through investment funds associated with it.

Spirit Airlines (SAVE) to be acquired by Frontier Group (ULCC)

•  May 01, 11:55 :  Spirit Airlines preparing to shut down after $500 million government bailout talks collapse

Frontier Group (ULCC), the parent company of Frontier Airlines, announced Monday that it will buy discount rival Spirit Airlines (SAVE) to better compete with mainline carriers. 

The deal will create the No. 5 airline in the U.S., Spirit equity holders will receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own. That's equal to $25.83 as of Friday's close. The transaction values Spirit Airlines at $2.9 billion, but the deal is valued at $6.6 billion when accounting for the assumption of net debt and operating lease liabilities.

Frontier shareholders will own approximately 51.5% of the combined airline. Spirit shareholders will own approximately 48.5%. The new company is expected to have annual revenues of approximately $5.3 billion based on 2021 results.

The airlines said the deal will "create America's most competitive ultra-low fare airline for the benefit of consumers" and would offer travelers more destinations options in the U.S., Latin America and the Caribbean.

The merger should close in the second half of the year. A name for the airline and new branding will be determined prior to the deal's close.

Frontier Earnings

Frontier also announced fourth-quarter results Monday. The carrier reported a loss of 24 cents per share, less than the 32 cents-per-share loss FactSet analysts expected. Revenue was $609 million, under analyst expectations for $642.4 million.

Frontier operated an average of over 450 flights per day in Q4, up 10% vs. Q4 2019. Total revenue per passenger during the quarter was approximately $103.

The carrier ended 2021 with a total fleet of 110 aircraft. It has a massive Airbus (EADSY) order in the works with 91 additional A321neo aircraft are slated for delivery between 2023 and 2029.

Frontier and Spirit only fly Airbus jets, making it easier to combine operations.