The IPOX® Update 7/20/24

U.S.

WeRide Targets $200M-$300M U.S. IPO by Late August

Chinese autonomous driving startup WeRide is planning a U.S. IPO aiming to raise between $200 million and $300 million by late August, before its regulatory approval expires. The company received IPO approval from China's Securities Regulatory Commission (CSRC) on August 25 last year. JP Morgan, Morgan Stanley, and CICC are leading the transaction. Founded in 2017, WeRide has obtained driverless permits and currently operates in over 30 cities across seven countries. The company boasts strategic investors including Renault Nissan Mitsubishi, Bosch, and Nvidia, as well as financial backers such as The Carlyle Group, Mubadala Investment Company, and IDG Capital. WeRide's move comes as rival Pony.ai also received CSRC approval for a U.S. IPO in April, with plans to raise up to $500 million. This development highlights the growing interest in autonomous driving technology and the increasing number of Chinese startups seeking listings on U.S. exchanges. (Source)

BlackRock-Backed 401(k) Provider Human Interest Raises $267M, Eyes Future IPO

Human Interest, a U.S.-based 401(k) plan provider backed by BlackRock, has raised $267 million in Series E funding, setting the stage for a potential future IPO. The funding round included investors such as Marshall Wace and Baillie Gifford, with BlackRock participating as a minority investor. This latest investment brings Human Interest's total financing to $700 million, with the company surpassing $100 million in annual recurring revenue. Forecasting 70% revenue growth in 2024, Human Interest is preparing for a public offering when market conditions are favorable. To bolster its IPO readiness, the company has made strategic hires with public company experience, including CFO Tripp Faix and Chief Accounting Officer Jeff Buckley. Additionally, Leslie Stretch and Roxanne Oulman, both experienced in IPOs, have joined the board. Human Interest currently supports over one million employees on its 401(k) platform. (Source)

Europe

Klarna Selects Lead Advisers for Potential 2025 IPO

Swedish buy-now-pay-later firm Klarna has chosen Morgan Stanley, JPMorgan, and Goldman Sachs as lead advisers for a potential IPO in the first half of next year. This development comes as Klarna aims to capitalize on an anticipated recovery in the IPO market by 2025. The company was last valued at $6.7 billion in 2022, a significant decrease from its $46 billion valuation in 2021. Klarna has posted five consecutive annual losses amid a costly expansion plan. The company's major backers include Sequoia Capital, SoftBank, Bestseller Group, and Mubadala. Klarna's business model allows customers to delay payments or divide them into instalments via short-term, interest-free loans.  (Source)

Asia-Pacific

Manycore Tech Inc. Plans $200 Million Hong Kong IPO

Manycore Tech Inc., a Hangzhou-based company specializing in 3D design software, is planning to file for a Hong Kong IPO to raise up to $200 million this year. The company, which operates the Kujiale and Coohom platforms, is working with CCB International Holdings and JPMorgan Chase on the listing. This move comes after Manycore abandoned a U.S. IPO plan in 2021 following Didi Global Inc.'s problematic New York debut. The shift to Hong Kong aligns with a broader trend among Chinese firms favoring local IPOs. Manycore was loss-making in 2020, as indicated in previous U.S. listing documents. This IPO plans come amid a challenging environment for new listings in Hong Kong, which have raised $2.26 billion this year, a 14% drop from the same period last year. (Source)

Bank of America Expands Presence in South Korean IPO Market

Bank of America (BofA) is expanding its presence in the South Korean IPO market, marking a significant move in the country's financial sector. BofA is set to lead K Bank's IPO, its first management of a Korean IPO. The bank will also co-lead the IPOs of Megazone Cloud Corp. and DN Solutions Co. K Bank, valued at around 5 trillion KRW ($3.9 billion), previously attempted an IPO in 2022 but withdrew due to lack of investor interest. Megazone Cloud is valued at 6 trillion KRW ($4.7 billion), and DN Solutions at 4 trillion KRW ($3.1 billion). To bolster its IPO team, BofA has recruited junior talents from Korea Investment & Securities. (Source)

South Korean Digital Educational Publisher i-Scream Media Plans KRX IPO

South Korean digital educational publisher i-Scream Media is planning a W99bn (USD 71.5m) IPO on the Korea Exchange (KRX). The company is offering 2.46m primary shares, representing 18.8% of the enlarged share capital, with shares priced between W32,000 and W40,200. Sigong Tech, a KRX-listed exhibitions company, holds a 32.8% stake in i-Scream Media before the IPO. The company will allocate 70%-75% of shares to institutional investors and 25%-30% to retail investors. The bookbuilding process is scheduled to run from July 31 to August 6, with pricing set for August 8. i-Scream Media, which was spun off from Sigong Tech, provides multimedia educational content for preschool and elementary students. (Source)

Chinese EV Company Huture to Go Public via SPAC Merger

Huture, a Chinese hydrogen-fuel-cell vehicle maker, has announced plans to go public through a SPAC merger with Aquaron Acquisition. The merger has an implied equity value of about $1 billion. Following the merger, Huture will operate under a Cayman Islands holding entity, Huture Group, and trade on the Nasdaq. This deal comes after Aquaron's previous agreement to merge with Bestpath IoT Technology in a $1.2 billion deal was terminated due to a reorganization. The boards of both companies have approved the merger, which is expected to close by year-end. (Source)

Timee's Tokyo IPO Priced at Top Range, Raising ¥46.8bn

Japanese gig job platform Timee has successfully priced its Tokyo IPO at the top of its range, raising ¥46.8bn ($300M). The international books were over 20 times covered, with 200 participating lines. The top 20 investors secured 70% of the international tranche, while 20% of investors received no allocation. The all-secondary float consists of 32.3M shares, marketed between ¥1,350–¥1,450, and includes an overallotment of 4.77M shares. Selling shareholders include CA Startups Internet Fund No.2, Cyber Agent, and CEO Ryo Ogawa. Notably, BlackRock subsidiaries committed to purchasing ¥6.5bn worth of shares in the international offering. Timee, founded in 2017, has 7.7M registered workers and 254,000 client accounts. (Source)

InMobi Plans 2025 India IPO, Targeting $10 Billion Valuation

Indian adtech startup InMobi is planning a 2025 IPO in India, aiming for a $10 billion valuation. The company intends to shift its domicile from Singapore to India before the listing. This IPO would be one of the largest by an Indian software startup. The offering will include InMobi's adtech arm and investments in Glance, a unicorn Android lockscreen platform. InMobi projects annual revenue to exceed $700 million by March 2025. Notably, Google is engaging with InMobi to lead a new funding round for Glance. Founded in 2007, InMobi serves major clients like Mastercard, Samsung, and Coca-Cola. (Source)

Hann Resorts Plans Up to $342 Million Philippines IPO

Hann Resorts, a Philippines-based casino-resort operator, is planning an IPO of up to $342 million early next year. This could potentially be the largest IPO in the Philippines since MREIT Inc's 2021 offering. Hann Resorts aims to use the funds for gaming expansion and luxury estate development. The company currently operates a casino-resort with 147 gaming tables and 868 slot machines. Hann Resorts' parent firm, Hann Philippines, is investing $2 billion in the Hann Reserve luxury estate. This IPO comes as the Philippine gambling sector is attracting high rollers from China, Japan, and South Korea. Notably, Travellers Group is the only other integrated casino-resort operator to have conducted an IPO in the Philippines. (Source)

MENA

Abu Dhabi National Hotels Hires Advisers for ADNH Catering IPO

Abu Dhabi National Hotels (ADNH) has hired Citigroup and First Abu Dhabi Bank for the IPO of its catering unit, ADNH Catering. The IPO could potentially raise between $300 million to $400 million. ADNH Catering provides food services, cleaning, and manpower supply in the UAE. While details on the IPO size and timing are preliminary and subject to change, this move aligns with a broader trend of listing state-owned businesses in the Persian Gulf. ADNH operates and manages 15 hotels, including the Ritz-Carlton and Park Hyatt in Abu Dhabi. In 2023, the company generated $444 million in revenue and $115 million in profit. (Source)

Dubai's Amanat Holdings Plans to List Its Education Platform

Dubai-listed Amanat Holdings has announced plans to IPO its education platform and is currently engaging with advisers. Amanat operates healthcare and education assets, including Middlesex University Dubai and Human Development Company. This move follows Amanat's consideration of listing options for its education platform in May. The planned IPO aligns with a trend of education-related listings in the region, including Taaleem Holdings and the recent listing of Alef Education. The Gulf Cooperation Council (GCC) region has seen significant IPO activity, with companies raising $3.6 billion in the first half of the year. The United Arab Emirates led GCC IPO proceeds last year, raising $6.07 billion from eight listings. (Source)

Al-Hokail Academy Cancels IPO on Saudi's Nomu Market

Al-Hokail Academy Specialized Digital Polyclinics Co. has announced the cancellation of its planned IPO on Saudi Arabia's Nomu parallel market. The company stated that this decision was made to ensure favorable conditions for listing and to protect investor interests. Al-Hokail Academy intends to enhance investor confidence in its business strength and sustainability before revisiting the market at a more opportune time. (Source)

Saudi Wealth Fund Plans IPO for Medical Procurement Firm Nupco

Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), is planning an IPO for medical procurement firm Nupco. JPMorgan Chase, Morgan Stanley, and SNB Capital have been appointed to manage the IPO. The PIF aims to raise close to $1 billion by selling a 30% stake in Nupco, the largest medical procurement firm in Saudi Arabia. The IPO could occur as soon as this year, depending on market conditions. This move is part of PIF's efforts to fund Crown Prince Mohammed Bin Salman's Vision 2030 agenda. PIF, valued at $925 billion, has already listed several portfolio companies and is an active debt issuer. (Source)

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