The IPOX® Update 1/18/2025

U.S.

Titan America SA Files for New York IPO, Aiming for $500 Million+

Titan America SA, the U.S. unit of Greek cement manufacturer Titan Cement, has confidentially filed for an IPO in New York. The offering will include newly issued shares from the parent company as well as existing shares held by controlling family members. In the nine months ending September 30, 2024, Titan America reported a net income increase of 18% to $129.5 million, with revenues reaching $1.24 billion during the same period. The IPO is anticipated to potentially raise at least $500 million, giving the company a valuation exceeding $2 billion. The parent company, Titan Cement, is based in Greece and has a current market capitalization of approximately €3.1 billion (USD 3.2 billion). Titan America intends to list its shares on the NYSE under the ticker symbol "TTAM". (Source)

eToro Confidentially Files for U.S. IPO, Targeting Over $5 Billion Valuation

eToro, an Israel-based trading platform that facilitates the trading of equities and cryptocurrencies, has confidentially filed for an IPO in the United States. The company is aiming for a listing in New York as early as the second quarter of 2025. The potential IPO could value eToro at more than $5 billion. In 2023, the company's valuation was $3.5 billion following a $250 million investment round. eToro had previously abandoned plans for a de-SPAC transaction in 2022, which would have valued the company between $8.8 billion and $10.4 billion. Prior to regulatory changes, eToro offered trading in various crypto tokens. The financial institutions reportedly involved in assisting with the IPO include Goldman Sachs, Jefferies, and UBS.

Klarna Loan Portfolio Sale and Stripe Partnership Precede Potential US IPO

Swedish financial technology firm Klarna is reportedly in the process of selling a portfolio of its U.S. "Pay in 4" loans. These loans are primarily held by subprime borrowers and carry a potentially higher risk of default. This move is intended to generate capital ahead of Klarna's anticipated IPO in the United States this year. Banks such as Citigroup and RBC are reportedly engaged in discussions to acquire Klarna's loan portfolio. In a separate development, Klarna has established a global payment partnership with U.S. technology firm Stripe to broaden the reach of its buy-now-pay-later (BNPL) service across 26 countries. This collaboration has already onboarded 100,000 new merchants to Klarna's platform. Klarna has confidentially filed for a U.S. IPO and could potentially achieve a valuation of $20 billion. Stripe reported a 172% increase in BNPL transaction volume on its platform in the past year. Previously, Klarna sold its UK BNPL portfolio to Elliott Management. (Source 1) (Source 2)

Trump's Policy Shift Could Benefit Venture Global's IPO Plans

A potential shift in U.S. policy under a Trump administration, which is expected to end the pause on approvals for new liquefied natural gas (LNG) projects, could provide a positive impetus for the IPO plans of Venture Global. Investors are closely monitoring the speed at which a Trump administration might act on approvals for LNG exports. The success of Venture Global's IPO could be influenced by these anticipated favorable policy decisions. Venture Global, a U.S.-based LNG company, has acknowledged the potential benefits that could arise from the expected policy changes under a Trump administration. The article notes the existing uncertainty surrounding the precise timing and ultimate impact of these potential policy shifts. Trump's established support for LNG exports aligns with Venture Global's core business operations. (Source)

Europe

HBX Group Announces IPO Size of Up to EUR 725 Million in Spain

HBX Group, a Spain-based travel technology company operating the website Hotelbeds, has announced its IPO size, aiming to raise up to EUR 725 million (USD 746 million). The IPO will involve a secondary offering of shares by some existing shareholders. HBX Group intends to utilize the proceeds from the IPO to reduce its outstanding debt. In 2024, the company reported a core profit of EUR 363 million and revenue of EUR 693 million. The shareholder base of HBX Group includes investment firms Cinven, EQT, and Canada's CPP Investments. (Source)

Doosan Skoda Power Plans Prague IPO, First Since 2020

Doosan Skoda Power, a Czech-Korean manufacturer of power generation turbines, is planning an IPO on the Prague Stock Exchange. This will be the first IPO on the exchange since 2020. The offering will consist of 21.5% to 26.5% of existing shares and potentially 5% to 10% of newly issued ordinary shares. Doosan Power Systems will retain at least 66.67% ownership of Doosan Skoda Power following the IPO. The IPO is being underwritten by Raiffeisen Bank and WOOD & Company. For the first nine months of 2024, Doosan Skoda Power reported revenue of 3.9 billion Czech crowns (USD 159 million) and a profit of 355 million Czech crowns (USD 14.46 million). South Korean industrial conglomerate Doosan acquired Skoda Power in 2009 for $662 million. (Source)

German Government Considers Options for Uniper Stake Exit, Including Partial Sale or IPO

The German government is exploring various options to divest its stake in the German energy firm Uniper. A partial sale or a re-IPO of approximately 25% of its shares is the government's preferred approach. However, a complete sale of its 99.12% stake in Uniper is also under consideration. Canadian investment management firm Brookfield is among the potential buyers that the government has approached. Any transaction is likely to occur after the European summer due to necessary legal adjustments. The German government nationalized Uniper in 2022 in response to the energy crisis. European Union regulations mandate that Germany reduce its stake in Uniper by 2028. (Source)

US Nasdaq Attracts Biotech IPOs, Challenging Swiss Exchange

The U.S. Nasdaq stock exchange is increasingly becoming the preferred venue for biotech IPOs, posing a challenge to the Swiss stock exchange. Investors in Switzerland are demonstrating a reduced appetite for the higher risk associated with biotech investments. Consequently, a majority of biotech firms are now opting for a Nasdaq listing for their IPOs. The larger U.S. investor base and greater availability of capital are driving this shift. European markets are perceived to lack the necessary scale compared to the U.S. market for biotech companies. As an example, Veraxa Biotech chose Nasdaq due to the potential for better valuation and access to a broader range of investors. While IPO costs in the U.S. are higher, these are considered to be outweighed by the perceived advantages. (Source)

Asia-Pacific

LG CNS to Raise USD 823 Million in South Korea's Largest IPO in Three Years

LG CNS, a South Korean IT services provider, has priced its IPO at the top of the initially indicated range, raising 1.2 trillion Korean won (USD 823 million). This marks South Korea's largest listing in three years. The final IPO price is set at 61,900 Korean won per share, with 19,377,190 shares being offered. Demand for the IPO has primarily originated from domestic South Korean investors. LG Corp retains a 49.95% stake, while a Macquarie Group private equity fund holds 35%. LG CNS intends to use the IPO proceeds for investments across its various businesses. Trading of LG CNS shares is expected to commence on February 4. (Source 1) (Source 2)

Guming Holdings Plans Hong Kong IPO to Raise $200-$300 Million

Guming Holdings, a Chinese milk tea chain operating under the brand "Good me," is planning an IPO in Hong Kong. The company aims to raise between USD 200 million and USD 300 million through the IPO. The offering is anticipated to launch in early February 2025. As of September 30, 2024, Guming had a network of over 9,700 stores. The company reported a profit of RMB 1.1 billion (USD 152 million) for the first nine months of 2024. Goldman Sachs and UBS are serving as the sponsors for Guming's IPO. (Source)

Shanghai Yuyuan Considers Hong Kong Listing, Potentially Raising Over $300 Million

Shanghai Yuyuan, a Chinese operator of jewelry retail and cultural tourism sites, is considering a secondary listing in Hong Kong. The potential share sale could raise in excess of $300 million. Shanghai Yuyuan is already listed on the Shanghai Stock Exchange. The company's operations originated from shops located within the Yu Garden in Shanghai. Shanghai Yuyuan is controlled by Chinese businessman Guo Guangchang through entities affiliated with Fosun International. There is an increasing trend of companies already listed on mainland Chinese exchanges exploring secondary listings in Hong Kong. Shanghai Yuyuan currently has a market capitalization of CNY 23.5 billion (USD 3.2 billion). (Source)

Privatisations Outstrip Listings in Hong Kong; Deloitte Forecasts $20 Billion in 2025

For the first time since 2000, the value of take-private deals surpassed the value of IPOs in Hong Kong during 2024. Take-private transactions in Hong Kong amounted to nearly $14 billion in 2024, while IPOs raised $11 billion. Fosun Tourism, a Hong Kong-listed company with a market capitalization of $1.2 billion, is planning to delist at HK$7.80 per share. This offer represents a 95% premium over the company's previous share price. Shareholders will have the option to exchange their shares for a stake in the unlisted entity. Fosun Tourism's parent company, Fosun International, is currently undergoing a restructuring process. Deloitte, a multinational professional services network, projects that Hong Kong listings will reach approximately $20 billion this year. However, a potential U.S. blacklist targeting Chinese battery manufacturer CATL introduces uncertainty into these IPO estimates. Bankers are hopeful for a better balance between IPOs and delistings in 2025. Deutsche Bank and JPMorgan were the top financial beneficiaries in 2024 from advising on large delisting transactions in Hong Kong. (Source)

Super Bank Indonesia Considers Jakarta IPO, Targeting $200-$300 Million

Super Bank Indonesia, a digital bank, is exploring the possibility of an IPO on the Jakarta Stock Exchange this year. The potential IPO could raise between $200 million and $300 million. Super Bank may seek a valuation in the range of $1.5 billion to $2 billion. The company's investors include Singaporean multinational ride-hailing corporation Grab Holdings, Singaporean telecommunications company Singtel, and South Korean internet bank KakaoBank. Super Bank Indonesia was originally known as PT Bank Fama International. The bank's parent company, PT Elang Mahkota Teknologi Tbk (Emtek), has a market capitalization of $1.9 billion. Super Bank is reportedly in the process of hiring banks to manage the potential share sale. (Source)

MENA

Riyad Bank Considers IPO for Riyad Capital, Targeting $2.5 Billion Valuation

Riyad Bank, a Saudi Arabian financial institution, is considering an IPO for its investment arm, Riyad Capital. The IPO of Riyad Capital could potentially take place as early as mid-2025. The anticipated valuation for Riyad Capital in the IPO is $2.5 billion. JPMorgan Chase & Co, a U.S.-based multinational financial services firm, has reportedly been approached to be involved in the IPO. The final size and timeline for the Riyad Capital IPO have not yet been determined. Saudi Arabia's Public Investment Fund (PIF) is a significant shareholder in Riyad Bank. Saudi Arabia anticipates a robust IPO pipeline, with an expected 56 IPOs over the next two years. (Source)

Disclaimer: News summaries may contain mistakes. The information does not constitute financial advice, endorsement or recommendation and should not be considered as such.