The IPOX® Update 1/5/24

Amer Sports Files for Major US IPO

Amer Sports, known for its Wilson tennis rackets, has officially filed for a US IPO, with potential valuation up to $10 billion. The company, whose portfolio includes Louisville Slugger, Arc’teryx, and Atomic brands, plans to raise over $1 billion in this public offering. Amer Sports, boasting a revenue of $3.5 billion in 2022, is backed by significant players including China's Anta Sports, Tencent, and Chip Wilson. The IPO is managed by prestigious banks such as Goldman Sachs, Bank of America, JPMorgan, and Morgan Stanley. This move follows Amer Sports' acquisition by an Anta-led consortium for $5.2 billion in 2019. (Source)

German IPO Market Set for Uptick in 2024

Germany is poised for a revitalized IPO landscape in 2024, contrasting with the three notable IPOs of 2023 at the Deutsche Börse, totaling a volume of only 1.9 billion euros. Noteworthy companies such as Schott Pharma, Nucera, and Ionos marked 2023's IPO scene. The upcoming year could witness up to ten listings, including Douglas, Solaris SE, Personio, DKV Mobility, Flixbus, Techem, and Stada. Most IPOs are expected around Easter as the utilization of full-year business data is appealing to investors. This trend reflects a shift from the 2023 pattern, where political uncertainty and complex IPO preparations led to investor hesitancy. (Source)

Telix Pharmaceuticals Eyes US IPO on Nasdaq

Australian biopharmaceutical firm Telix Pharmaceuticals is considering a US IPO on Nasdaq, offering American Depositary Shares (ADS). This strategic decision aims to expand Telix's global market presence and enhance access to capital and a broader investor base. The company's ordinary shares will continue to trade on the Australian Securities Exchange. Specific details such as the number of ADSs, pricing, and offering schedule remain undisclosed. Telix Pharmaceuticals, with a market capitalization of AUD 3.09 billion (approximately USD 2.06 billion), recently experienced a stock price increase of over 1%. (Source)

Sodexo Gears Up for Pluxee Spin-Off IPO

Sodexo is preparing for the IPO of its rewards scheme unit, Pluxee, on Euronext Paris, set for February 1, 2024. Ahead of the IPO, a shareholder vote is scheduled for January 30, with Pluxee's strategic plan and 2024 targets to be unveiled on January 10. The focus has shifted to the Pluxee spin-off, following Sodexo's Q1 revenue rise, which reached EUR 6.29 billion, marking an 8.2% organic increase and 3.1% reported growth. Analysts, notably from Bernstein, anticipate the upcoming Capital Markets Day to significantly influence Sodexo's stock, potentially overshadowing the Q1 results. (Source)

BrightSpring Health Services Inc. Announces IPO

KKR-backed BrightSpring Health Services Inc. has filed for an IPO, the first major listing to list of 2024. The company aims to raise $1 billion, with Goldman Sachs, Jefferies, and Morgan Stanley among the lead underwriters. This move comes after a notably weak IPO market in 2023, which raised only $26 billion compared to 2021's $339 billion. BrightSpring, with a revenue of $6.45 billion, had previously delayed its IPO plans in 2021. The company reported a net loss of $150 million for the nine months ending September 30. The planned Nasdaq listing will happen under the symbol BTSG. (Source)

Dubai Establishes Parkin for Upcoming IPO

Dubai's ruler Mohammed bin Rashid has established Parkin, a parking operations manager, in preparation for an upcoming IPO. Parkin is tasked with the creation, planning, design, operation, and management of public parking. The Dubai government will retain a minimum of 60% ownership in Parkin during the IPO. This move is part of Dubai's broader strategy to privatize transport services and is in line with the monetization of government assets. The announcement follows the plans for RTA taxi and parking IPOs made in August. (Source)

Smith Douglas Homes Set for IPO

Real estate developer Smith Douglas Homes is planning an IPO, offering 7.69 million shares priced between $18 and $21 each. This offering aims to raise $150 million, based on the midpoint of the price range. JPMorgan, BofA Securities, RBC Capital Markets, and Wells Fargo Securities are serving as the book-runners for the IPO. The company reported a net income of $93.5 million and revenue of $547.3 million in the nine months ending September 30, compared to $99.14 million net income and $531.9 million revenue in the previous year. Founded in 2008 by Thomas L. Bradbury, who previously established and sold Colony Homes to KB Home in 2003, Smith Douglas Homes is poised for a significant step in its growth trajectory. (Source)

Vibrant South Korean IPO Market in January 2024

South Korea's IPO market is showing robust activity with nine companies set to debut in January 2024. Among these, Posbank Co., a kiosk machine manufacturer, Woojin Engineering & Technology Inc., specializing in nuclear power plant maintenance, and Hyundai HYMS Co., a shipbuilding equipment company. The venture capital firm HB Investment Inc. is looking to raise 75.2 billion won ($57 million). Additionally, INICS, a secondary battery safety parts maker, and COXEM Co., a scanning electron microscope company, are gearing up for their IPOs. Kweather Co., a weather big data platform, and APR Corp., a beauty tech company, are also in the lineup, with APR expected to be the largest IPO among the group. (Source)

Biotech M&A and IPOs Surge in 2023, Bright Outlook for 2024

The biotech sector witnessed a substantial increase in M&A activity in 2023, setting a high expectation for 2024. Significant acquisitions included AbbVie's $10 billion purchase of ImmunoGen and $8.7 billion for Cerevel Therapeutics. Bristol Myers acquired Karuna Therapeutics for $14 billion and RayzeBio for $4.1 billion. The total M&A deal size in the sector grew by 71% year-over-year, led by Pfizer's remarkable $43 billion acquisition of Seagen. Morgan Stanley predicts an upswing in M&A activity in 2024, with a normalization expected in the following years. Despite a cooler market, biotech IPOs succeeded in raising substantial funds in 2023. Barclays foresees a more constructive IPO market in 2024, driven by a backlog of companies and potentially lower interest rates. (Source)