The IPOX® Update 1/8/24
Douglas Eyes IPO in Frankfurt with €7 Billion Valuation
German cosmetics retailer Douglas is planning an IPO in Frankfurt, potentially in March 2024. The company is targeting a valuation of up to €7 billion, with a primary objective of significantly reducing its debt. Douglas experienced a record year in 2022/23, generating over €4 billion in sales. This IPO could mark Germany's first major listing in 2024, signaling a recovery in the market. The success of the IPO hinges on the company's performance in the first quarter of 2023/24, including critical holiday sales. CEO Sander van der Laan is focused on enhancing profitability and logistics efficiency. A consortium comprising Rothschild, Goldman Sachs, Citigroup, Unicredit, Deutsche Bank, and UBS is organizing the IPO. (Source)
Australian IPO Market Set for Recovery in 2024
The Australian IPO market is poised for a rebound in 2024, following a 30-year low in 2023 where only $1 billion was raised. Despite high-profile companies like Virgin Australia staying private and major floats like Redox struggling post-IPO, investment bankers remain optimistic about the upcoming year. They anticipate a revival in the market with new listings, spurred by a potential recovery. The increase in interest rates and impacts of the pandemic had previously dampened IPO activities. Expectations for 2024 include a mix of smaller IPOs in the early part, with larger ones anticipated in the latter half. Improved market conditions are likely to encourage high-quality candidates to pursue IPOs. AirTrunk's potential IPO, valued at $10 billion, could be the largest since 2014. (Source)
Biotech Sector Set for a Positive Turn in 2024
Analysts are optimistic about the biotech sector's prospects in 2024, despite recent challenges. A market rally is expected to continue, buoyed by a possible easing of interest rates by the Federal Reserve. The sector saw an upturn in dealmaking in 2023, reflecting renewed investor interest. Although the number of IPOs declined, those that did go public demonstrated resilience, with several maintaining their value. The industry's adaptability is evident in its focus on funding from existing backers and strategic partnerships. The emergence of successful obesity drugs in 2023 has opened new avenues for innovation and growth. Biotechs with advanced drug candidates continue to attract significant acquisition interest, indicating a positive outlook for the sector. (Source)
Metagenomi Files for IPO
Gene editing biotech startup Metagenomi has filed for an IPO. Backed by healthcare and pharmaceutical giants including Novo Nordisk and Bayer, Metagenomi raised $275 million in Series B funding and has partnerships with Moderna and Ionis Pharmaceuticals. The company's focus on developing new CRISPR enzymes marks a significant step in biotechnology, although it has yet to advance any drug candidates into clinical trials. Metagenomi's collaborations span potential programs for a range of diseases including primary hyperoxaluria, transthyretin amyloidosis, heart disease, and hemophilia A. This IPO could set a trend in the sector, particularly as only 19 biotech firms went public in 2023. (Source)
CG Oncology Announces IPO Plans
California-based biotech firm CG Oncology has filed for an IPO, aiming to raise approximately $100 million. The specific terms of the IPO have not been disclosed, and the $100 million figure is likely a placeholder. CG Oncology plans to list on the Nasdaq under the symbol CGON, with Morgan Stanley, Goldman Sachs, Cantor, and LifeSci Capital as underwriters. The company specializes in bladder-sparing therapies for bladder cancer, with its lead drug candidate, cretostimogene, currently in Phase 3 testing. (Source)
