The IPOX® Update 1/24/24

Anta Sports Announces Major Share Purchase in Amer Sports' IPO

Chinese sports equipment maker Anta Sports has declared its intention to acquire up to $220 million in shares of Amer Sports during its New York IPO. This announcement saw Anta's share price rise 4.4% to $8.50. Anta, already holding a 56% stake in Amer, a Finnish sports equipment firm, shows continued commitment. Amer aims to issue 100 million shares, priced between $16 and $18, targeting a $1.8 billion raise. The consortium, including Tencent, FountainVest, and Anamered, which acquired Amer in 2019 for $5 billion, will also participate in the IPO, with Anamered and Tencent subscribing for $220 million and $70 million, respectively. Amer, known for brands like Arc’teryx and Wilson, is forecasting a narrowed net loss and a 23% revenue rise. (Source)

Amer Sports Faces Short Interest Ahead of IPO

Amer Sports' IPO is attracting attention from short-sellers. Hedgeye has added Amer Sports as a short idea, valuing it closer to $5 per share. Amer aims to raise $1 billion at a $10 billion valuation, primarily to address its substantial debt of approximately $6 billion. Hedgeye analysts express skepticism about Amer's valuation, drawing comparisons to Birkenstock's recent IPO, where shares dropped 13% on the first trading day. The rapid growth and high valuation of Amer Sports are viewed as risky by Hedgeye. (Source)

Klarna Bank AB Eyes U.S. IPO

Swedish buy-now-pay-later fintech firm Klarna Bank AB may soon make its debut on the US stock market. CEO Sebastian Siemiatkowski hinted at an upcoming IPO, without specifying dates. With the US being Klarna's largest market, it emerges as a likely IPO venue. Speculations also include the UK and Sweden, especially following Klarna's recent UK company setup. Siemiatkowski views European markets as less favorable for fintech IPOs. Klarna, whose valuation had fallen to $6.7 billion last year, recovered to $7.85 billion in December, further buoyed by its first quarterly operating profit in four years amid cost-cutting measures. (Source)

Biotech Firm Kallyope Inc. Explores IPO for Weight-Loss Drugs

U.S. biotech firm Kallyope Inc., valued at $1.14 billion, is exploring an IPO to further its development of oral weight-loss drugs. Backed by influential investors like Bill Gates and Mubadala Investment, Kallyope is working with JPMorgan Chase & Co. as the lead underwriter for a potential 2024 listing. The company targets the growing market for obesity treatments and has two drugs in mid-stage trials. These treatments focus on stimulating hormones like GLP-1 to suppress appetite, aiming to offer oral alternatives to injectable obesity drugs, rivaling Novo Nordisk and Eli Lilly market leaders Ozempic/Wegovy and Mounjaro/Zepbound. This IPO is part of a broader trend reviving interest in biotech stock listings. (Source)

Shenzhen Gantang Mingshan Catering Eyes Hong Kong IPO

Shenzhen Gantang Mingshan Catering (GTMS), the operator of the popular grilled fish restaurant chain Tanyu, is considering a 2024 Hong Kong IPO. Advised by China International Capital Corp, GTMS seeks to raise several hundred million dollars, valuing the company between $975 million and $1.125 billion. The IPO reflects a trend of Chinese food and beverage firms listing in Hong Kong. GTMS, founded in 2009 and influenced by renowned food critic Chua Lam, operates four brands, including Tanyu with over 260 outlets globally, expanding rapidly in Singapore, Malaysia and 67 Chinese cities. (Source)

Indian Food Delivery Giant Swiggy Plans $1 Billion IPO

Indian food delivery firm Swiggy is gearing up for a $1 billion IPO, with a $600 million offer-for-sale from existing investors. Major stakeholder Prosus is likely to be listed as a promoter in the IPO, aiming to reduce its stake from 33% to below 26%. Under Indian regulations, a stake above 26% classifies a shareholder as a promoter, limiting share sale flexibility post-IPO. Prosus, having invested around $1 billion in Swiggy, faces valuation disagreements over stake dilution. This IPO comes amid similar promoter challenges faced by SoftBank with its investments in Oyo and FirstCry. (Source)

CG Oncology Increases IPO Share Offering

CG Oncology, a biotech firm focusing on bladder cancer therapy, has increased its IPO share offering to 17 million shares, a 44% rise from its initial plan. The company now targets $289 million in its IPO, priced at $16 to $18 per share. This increase comes as CG Oncology seeks more funds due to the expanded offering. The firm is developing cretostimogene, a therapy currently in a Phase 3 trial, with topline data expected by the end of 2024. Founded in 2010, CG Oncology is set to list on Nasdaq this week under the symbol CGON, with Morgan Stanley, Goldman Sachs, and Cantor Fitzgerald as joint bookrunners for the IPO. (Source)

ArriVent BioPharma Upsizes IPO to $150 Million

ArriVent BioPharma, a Pennsylvania-based biotech firm, has increased its IPO proposal to $150 million, up from the initial $100 million. Planning to offer 8.33 million shares, priced between $17 and $19, the company has also granted underwriters the option