The IPOX® Update 1/16/24
Nasdaq CEO Anticipates Increase in IPO Activity in 2024
Nasdaq CEO Adena Friedman forecasts a busier year for IPOs, with 85 companies ready for public listing on Nasdaq. This anticipation signals a readiness in the market, following a slowdown in IPO activity since its peak in 2021. Friedman's strategy of diversifying Nasdaq's revenue sources has reduced its reliance on market volatility, with approximately 75% of revenue now derived from data and analytics, and 25% from markets. Despite this diversification, Nasdaq remains committed to its foundational role in the markets. For the expected increase in IPO activity in 2024, investor readiness is deemed crucial. (Source)
London's IPO Market Eyes Gradual Recovery
London's IPO market is showing signs of revival, although a full recovery is not expected until 2025. According to a KPMG report, the UK IPO market is set to lag behind Europe in 2024, with normalization anticipated in 2025. Despite promising initial UK IPOs in 2023, the market normalization remains a distant goal. Notable upcoming listings include Air Astana and The London Tunnels Plc. However, the UK market faces challenges such as valuation gaps, poor returns, and listings moving abroad, which have led to the UK IPOs raising only $1 billion in 2023, the lowest in decades. Despite these challenges, London continues to be a key destination for large international companies. (Source)
Saudi Arabia Experiences Surge in Startups Heading for IPO
Saudi Arabia is witnessing a significant uptick in startup IPO activities, with over 13 startups preparing to go public within the next two years. This marks a substantial increase from just two startups over the past two years. Key factors contributing to this growth include regulatory changes and a more supportive environment, particularly in the FinTech sector. Despite a 50% failure rate among startups, 30% have doubled their capital, and 10-20% have seen their capital increase by up to 30 times. This trend indicates a growing interest in sectors such as educational healthcare technology and alternative energy. (Source)
Saudi Online Retailer Nice One Prepares for IPO
Saudi Arabian online cosmetics retailer Nice One is planning an IPO, inviting banks to pitch for roles in the upcoming share sale. Established in 2016, Nice One is part of the expanding tech IPO trend in the Middle East, a region where stock exchanges are diversifying beyond traditional sectors. Other companies, such as online flower and gift company Floward, are also considering listings this year. This trend is consistent with the significant valuations and funding achieved by Middle East tech firms like Tamara and Tabby. Details regarding the size and timing of Nice One's IPO are still under discussion. (Source)
Asia Pacific Dominates Global IPO Landscape with India Leading the Way
The Asia Pacific region, led by India, is currently dominating the global IPO market. Of the 38 global listings in recent weeks, 34 have occurred in the Asia Pacific. India continues its record pace from 2023, capitalizing on high valuations and promising earnings prospects. Meanwhile, China is experiencing a gradual increase in IPO activities, fueled by economic recovery and regulatory changes. Citigroup's Udhay Furtado predicts significant billion-dollar IPOs in India for 2024. Notable listings include India's major e-scooter firm Ola Electric Mobility, planning to raise $664 million, and Jyoti CNC Automation, whose IPO was 38 times oversubscribed, raising 10 billion rupees. (Source)
Greece to Launch IPO for Athens International Airport
Greece's Hellenic Republic Asset Development Fund is launching an IPO for a 30% stake in Athens International Airport. German airport operator AviAlliance GmbH and the Copelouzos family offered to buy 10% and 1% stakes, respectively. The IPO is planned for early February, with investor meetings starting January 15. This move is a significant step in Greece's economic recovery and follows the country's return to investment-grade status. Athens International Airport, valued up to €1 billion in 2023, handled over 28 million passengers that year. Bank of America Corp. and Morgan Stanley are leading the IPO, with Deutsche Bank as the senior joint bookrunner. (Source)
Saudi Arabia's Fourth Milling Co. Sets Sights on Domestic IPO
Saudi Arabia's Fourth Milling Co. has appointed Riyad Capital for a domestic IPO, potentially occurring in the first half of this year, aiming to raise over $200 million. The company, previously sold to a consortium for 859 million riyals ($229 million) in 2021, is a part of Saudi Arabia's effort to privatize its flour milling industry, aligning with the Vision 2030 economic diversification plan. This follows the public debut of First Milling Co. in May with a $266 million IPO. Additionally, Modern Mills for Food Products Co. has been approved to list a 30% stake on the Saudi bourse. (Source)
Korean Investor Celltrion Holdings Announces Nasdaq IPO
Korean healthcare investor Celltrion Holdings has unveiled plans for a Nasdaq IPO, targeting either late this year or early next year. The move is part of a strategy to raise approximately 5 trillion won (~$4.3 billion) for a global healthcare fund. This step is aligned with the broader restructuring efforts of Celltrion Group, aimed at enhancing transparency and fostering international growth. The Nasdaq listing is a strategic initiative to help Celltrion Holdings expand its footprint as a healthcare investment company. A portion of the funds raised through the IPO is earmarked for supporting youth entrepreneurship, demonstrating the company's commitment to social responsibility. Chairman Seo Jung-jin highlighted the importance of Nasdaq for accessing global capital, underscoring the strategic significance of this move. Notably, Celltrion Holdings' IPO will mark a pioneering venture as the first major Korean company to be listed on Nasdaq. (Source)
Hefu-Noodle Aims for Hong Kong IPO, Targeting Up to $200 Million
Chinese restaurant chain Hefu-Noodle is preparing for a Hong Kong IPO, with an estimated target of $100 million to $200 million. Huatai International has been engaged as a working partner for this initiative, with plans to involve more banks in the process. Among its notable investors are Tencent Holdings and CMC Capital Partners, adding to the company's robust financial backing. In a related development, Yu Jian Xiao Mian, another noodle chain, is also in discussions for a Hong Kong IPO. Yu Jian Xiao Mian's potential listing could raise approximately $100 million, contributing to a combined target of $300 million for the two noodle houses. This move represents a significant stride in the expansion of Chinese culinary brands in the global market. (Source)
