The IPO Buzz: zSpace (ZSPC) Prices Tiny IPO at $5.00 Mid-Point – As Expected

zSpace (ZSPC), a California EdTech company that offers augmented reality (AR) and virtual reality (VR) learning experiences, priced its tiny IPO on Wednesday night, Dec. 4, 2024, at the $5.00 mid-point – as expected – and raised $9.38 million by selling 1.875 million shares, the number of shares in the prospectus. zSpace shares are expected to start trading Thursday, Dec. 5, 2024, on the NASDAQ. Roth Capital Partners and Northland Capital Markets acted as the joint book-runners. At pricing, zSpace had a market cap of about $112.3 million. San Jose-based zSpace said its proprietary hardware and its software platform provide “the unique ability to deliver an interactive stereoscopic 3D learning experience to our users without the need to utilize VR goggles or specialty glasses,” according to the prospectus. ‘Hands On’ for STEM & Skilled Trades The company, founded in 2006, is focused on both K-12 schools in the U.S. and the career and technical education markets, the prospectus said. “Our hands-on “learning by doing” solutions have been shown to enhance the learning process and drive higher student test scores, as evidenced by a study on the utility of 3D virtual reality technologies for student knowledge gains published in the Journal of Computer Assisted Learning in 2021,” zSpace said in the prospectus. “We allow students and teachers to experience learning in the classroom that may otherwise be dangerous, impossible, counterproductive, or expensive using traditional techniques. Our platform serves a broad range of critical educational tools designed for K-12 science, technology, engineering and math (STEM) lessons as well as training skilled trades in areas such as health sciences, automotive engineering/repair, Unity3D® software programming and advanced manufacturing.” On the road to going public, zSpace cut the number  of shares twice – settling on nearly 1.88 million shares – down from 2.0 million at an interim stage – and down from 3.0 million in the original terms filed in late July 2024. zSpace also changed the investment bank in the second position on its joint book-running team by naming Northland Capital Markets as a replacement for Craig-Hallum Group. zSpace is not profitable, according to the prospectus. The EdTech company reported a net loss of $21.87 million on revenue of $44.21 million for the 12 months that ended March 31, 2024. (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on the IPOScoop.com  website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.