Is SaverOne 2014 Ltd IPO a Good Buy?

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Contributor, Benzinga
May 25, 2022
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  • Distracted driving has long been a problem on the road, made worse in recent years because of digital device addictions.
  • Unfortunately, the gradual return to normal from the COVID-19 pandemic has sparked myriad incidents on the road, exacerbating an already vexing challenge.
  • Advanced technology companies are fighting fire with fire, leveraging digitalization to prevent its more problematic residual impacts.

One of the most ironic new listings to hit the public equities market, SaverOne 2014 Ltd., is on a mission to save drivers and passengers from the residual consequences of digitalization through digitalization. Since the introduction of the cellphone and later smart mobile devices, modern societies have found themselves dependent on their incredible functionalities and conveniences. Unfortunately, every innovation carries pros and cons, particularly when developments clash.

Several decades ago, the introduction of the interstate freeway system enabled unprecedented personal freedoms, empowering social mobility and greater connectivity between various jurisdictions. But the speed with which people and commerce could travel placed stronger pressures on response times as performance expectations elevated. Soon, the introduction and proliferation of mobile devices catalyzed a new danger: distracted driving.

According to data from the U.S. Department of Transportation, distracted driving claimed 3,142 lives in 2020. What makes this statistic so sobering is the unnecessary nature of the losses of life. Per the Insurance Institute for Highway Safety (IIHS), 38,824 deaths occurred from 35,766 fatal motor accidents in 2020. That means 8% of traffic fatalities resulted from distracted driving, an unacceptable allocation.

Even worse, during the pandemic, road fatalities increased while transit ridership decreased, per the U.S. Government Accountability Office. To prevent social tragedies and wider economic costs associated with distracted driving, SaverOne aims to put a hard stop by preventing the use of mobile devices during driving, enabling people to concentrate on the road.

What Does SaverOne 2014 do?

A technology firm based in Petah Tikva, Israel, SaverOne 2014 specializes in electronic systems that block cellphone and smart device use while driving. The beauty of the company’s solution is that it addresses the problem of distracted driving at its root, blocking any signals tied to incoming calls and texts. This mechanism immediately censors the nexus between stimuli and enticement, allowing the driver to completely focus on the critical task at hand.

Moreover, the SaverOne system is organic. When the solution-integrated vehicle’s engine is turned off, drivers will then be alerted to any missed calls and messages. Back on the road, the system automatically engages, requiring no input from the driver (assuming no telecommunication service disruptions or impediments). Again, this feature keeps drivers’ attention focused on the road as opposed to secondary concerns that can wait.

Specifically, SaverOne’s solution commands the following advantages:

  • Hands-free operation: Although governmental and private agencies have evangelized the importance of concentrating exclusively on the road when operating a motor vehicle, distractions are inevitable. SaverOne understands this, which is why it introduced an automated system that removes the temptation of device-driven distractions, thus keeping honest people honest.
  • Targeted response: What distinguishes SaverOne’s platform from similar solutions is its targeted nature, preventing drivers from using their mobile devices while not impeding passengers. As well, SaverOne enables fleet operators to determine which non-distracting applications can stay on, thus facilitating modularity for individual commercial needs.
  • Value-added services: Beyond the potentially lifesaving mechanism of its core application, the SaverOne platform also offers several value-added services, including driver behavior analytics (with real-time alerts), event analysis and driver scoring databasing to bring about greater operational improvements.

Finally, the SaverOne system is flexible, featuring the ability to integrate with fleet management systems. Therefore, enterprise-level clients don’t need to overhaul their existing management infrastructures, allowing them to quickly realize the gains of integration.

When is the SaverOne 2014 IPO Date?

Though one of the smaller new listings to launch an initial public offering (IPO) — or the first time a private firm distributes its equity shares to retail investors — SaverOne is among the most compelling. Unlike the many aspirational businesses that enter the public arena, SaverOne’s service is immediately sensible and is relevant right now.

Barring any unusual circumstances, SaverOne should hit the IPO calendar on May 25, 2022. Under the updated terms of the deal, the company plans to raise $13 million through the distribution of 2.5 million units at a price of $5.16. Each unit consists of one share and one warrant, which is exercisable at 125% of the IPO price.

Previously, SaverOne disclosed plans to offer 1.4 million shares at a price of $7.22. In the revised deal, the tech firm will raise 30% more in proceeds, though it will command a market value of $27 million, down 7% from the terms of the original deal. Shares will trade on the Nasdaq exchange under the ticker symbol SVRE. ThinkEquity represents the sole bookrunner.

Contrary to a typical IPO, SaverOne is a new public listing from the perspective of American investors. The company already trades in the Tel Aviv Stock Exchange (TASE), having made its debut there in June 2020. Therefore, SVRE isn’t an IPO in the purest sense of the term.

This fact may have some implications regarding its future performance on the Nasdaq exchange. Part of the danger of a true IPO is the risk of the unknown. Despite hours of research and due diligence, only free market forces will determine a recently listed stock’s trajectory — and that really is anyone’s guess.

With SVRE stock, investors can analyze its performance — under the ticker symbol SAVR — on the TASE to help gauge its risk-reward profile. While this process theoretically removes some ambiguity regarding SaverOne, that knowledge may also negatively impact SVRE’s upside potential. Remember, higher risk tends to yield higher rewards.

What Analysts are Saying About SaverOne 2014 IPO

As one of the smaller IPOs, SaverOne has not attracted major analyst opinions. However, some experts specializing in new listings have weighed in, noting the potential for the underlying system to improve operational efficiency while saving lives and money. Still, the company’s developmental stage and minimal revenue generation offset this advantage. Therefore, the consensus appears to be a “hold” until clarifying fundamentals are revealed.

Digging deeper into the issue, SaverOne’s Form F-1 disclosure with the U.S. Securities and Exchange Commission (SEC) notes that traffic accidents in the U.S. impose a total economic cost of over $850 billion each year. To put this figure into perspective, it’s about the size of Turkey’s GDP — the 17th biggest economy in the world.

As well, distracted driving specifically costs employers $60 billion, with the average settlement cost for a fatal accident involving a commercial fleet driver amounting to $11 million. Perhaps most alarmingly, the number of U.S. drivers that attempt to use their mobile devices at any given moment amounts to 660,000.

Because publicizing the critical importance of safe driving practices has not been as effective as it should be, it’s crucial that distractions be eliminated before they materialize. Fundamentally, this ethos is what drives the upside opportunity of SVRE stock.

But what can distract from this opportunity? Plenty, according to SaverOne’s own disclosures. First, prospective investors must realize that SaverOne is a development-stage firm, meaning it may have a long road toward fiscal viability.

Second, the company is largely dependent on the health of commercial fleet operators, a matter that cannot be controlled. Especially at the present juncture which incorporates global supply chain disruptions, workforce fluidity (conspicuously among truck drivers) and escalating geopolitical tensions, the segment that SaverOne is targeting is itself struggling for traction.

SaverOne 2014 Financial History

While the underlying concept is compelling, SaverOne’s main challenge is its financials. Certainly, if the company achieves developmental success with its system, SVRE stock could rise exponentially. For now, though, prospective IPO participants must take a leap of faith.

In 2021, the company generated $450,000 in revenue, which is a significant improvement of over 42% from the prior year’s result. However, it’s a pittance against what even small tech firms generate. As well, SaverOne suffered a net loss of $26.5 million last year, widening its losses from the prior year when it sank $13.6 million in the red. Thus, investors need to think carefully before moving forward.

SaverOne 2014 Potential

Despite the myriad laws banning hand-held device use while driving across much of the U.S. — and an almost total clampdown on texting while operating a motor vehicle — such distracted actions still occur. Scare tactics and other marketing tactics have failed to yield encouraging results, which is why SaverOne has strong potential because it takes the issue out of drivers’ hands.

Still, SVRE stock is hardly risk-free. Indeed, the performance of the stock on the TASE is disheartening, losing nearly 84% of market value in the trailing year leading up to its U.S. IPO.

Where to Buy SaverOne 2014 IPO Stock

If you want to participate in SaverOne 2014’s IPO, you’ll need to know how to buy stocks. But before you take that step, you must sign up for a brokerage account. Below is a list of best brokers to consider.

SVRE Restrictions for Retail Investors

Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t engage if you have privileged information.

SVRE Pre-IPO

Although no pre-IPO access exists for SVRE stock, those seeking early bird opportunities should consider opening an account with Freedom Finance.

About Joshua Enomoto

His distinct writing style of distilling convoluted data into relatable and compelling narratives has earned him recognition among several investment-related publications.