The IPOX® Update 2/6/24

Lulu Hypermarket Plans $1 Billion IPO in Riyadh and Abu Dhabi

Middle East's largest supermarket chain, Lulu Hypermarket, is preparing for a significant dual listing on the Riyadh and Abu Dhabi stock exchanges, aiming to raise at least $1 billion. This move, expected in the second half of this year, marks a strategic effort to capitalize on the group's robust performance, with annual revenues reported at $8 billion. Lulu, which operates across 26 countries and employs over 70,000 individuals, initially postponed its IPO plans in 2022. The upcoming IPO, focusing on its core Gulf region operations, highlights Lulu's growth ambitions and its substantial valuation, which exceeded $5 billion in 2020 following an investment by Abu Dhabi's ruling family. (Source)

Reddit Selects NYSE for Upcoming IPO

Social media giant Reddit has chosen the New York Stock Exchange for its highly anticipated initial public offering, indicating a valuation target of at least $5 billion. The confidential IPO filing, made in 2021, is expected to be publicly unveiled soon, with a potential listing date as early as March. This decision represents a notable victory for NYSE in its competition with Nasdaq. Reddit, maintaining secrecy on IPO specifics, highlights the ongoing interest and speculation surrounding its market debut. (Source)

EQT Sets $20 Billion Valuation Goal for Galderma IPO

Private equity firm EQT is reviving the IPO plans for its skin treatment company, Galderma, targeting a valuation of $20 billion. Expected to be listed in Switzerland within the first half of this year, this move comes after a strategic delay due to banking sector uncertainties. Despite postponing its IPO, Galderma successfully raised $1 billion through private share sales. Acquired from Nestle in 2019 alongside investments from ADIA and PSP Investments, Galderma's IPO plans reflect EQT's confidence in the firm's financial health and market potential. (Source)

Oman's OQ SAOC Eyes IPOs for Exploration and Production, Methanol/LPG Units

Oman's state-owned energy company, OQ SAOC, plans to launch initial public offerings for its exploration and production, as well as its methanol and LPG units. These IPOs, part of Oman's broader privatization and market expansion efforts, aim to raise around $1 billion for the exploration and production unit alone. This strategic move follows Oman's record $749 million IPO for its gas pipelines business and aligns with the country's goal to attain emerging-market status and enhance state finances. (Source)

Renk Gears Up for IPO, Targeting €1.5 Billion Valuation

German tank gearbox manufacturer Renk is set to proceed with its IPO this Wednesday, offering up to 30% of its shares at €15 each, aiming for a valuation of €1.5 billion. The offering, primarily targeting institutional investors, has already attracted significant interest, including from Leopard Tank maker KNDS and Wellington Management as anchor investors. This IPO marks a significant step in Renk's growth strategy, following Triton's acquisition, and aligns with broader market trends towards energy transition. (Source)

Metagenomi Technologies Announces $87M IPO on NASDAQ

Metagenomi Technologies, a pioneering firm in gene editing backed by Moderna, is set to launch an $87M IPO, with trading expected to commence on February 9th on NASDAQ. The company, which collaborates with ModernaTX for in vivo genome editing, aims to address various diseases through cutting-edge technology. Joint book-runners for the IPO include J.P. Morgan and Jefferies, among others. Despite a net loss of $63.6M, Metagenomi reported $37.95M in collaboration revenue, underscoring the high potential of its innovative approaches in the biotech industry. (Source)

Hyundai Motor Explores $3 Billion IPO for Indian Subsidiary

Hyundai Motor is considering an initial public offering for its Indian subsidiary, aiming to raise $3 billion. In early-stage discussions, the company is evaluating a valuation between $25 billion and $30 billion. This strategic move is designed to unlock value and capitalize on the robust Indian capital markets, amidst Hyundai's operational shifts away from China and Russia. The focus on India, including plans for new electric vehicles and infrastructure expansion, signifies Hyundai's adaptation to competitive market dynamics, notably with Tesla's anticipated market entry. (Source)

Applied Nutrition Eyes £1bn London IPO This Autumn

Applied Nutrition, partially owned by JD Sports, is planning a London IPO this autumn with a target valuation of £1bn. The company, specializing in sports supplements and boasting partnerships across football and other sports, aims for £100m in sales this financial year. This move, with Deutsche Numis potentially involved in the discussions, follows significant growth, including expansion into the U.S. market. JD Sports Fashion's significant stake since 2021 highlights the firm's strategic positioning within the health and fitness sector. (Source)

Korean Big-Cap Stocks Eye 2024 IPO Revival

In South Korea, major companies are gearing up for a second attempt at going public in 2024, amidst a recovering IPO market. Kurly Inc. and K bank are leading the charge, with Kurly planning its IPO in the second half of 2024 and K bank advancing towards a listing with underwriter selection underway. This resurgence follows a recent uptick in IPO activity since December 2023, although skepticism about market support for large-scale IPOs persists. The upcoming IPO of APR Corp. is seen as a critical test for big-cap stock listings, with valuations and market dynamics playing a pivotal role in their success. (Source)

OceanaGold Philippines Sets $141M IPO for 20% Share Offering

OceanaGold Philippines, a subsidiary of Canada-listed OceanaGold Corp, plans a $141m IPO for a 20% share offering, aimed at optimizing and exploring its Didipio mine. Led by BDO Capital, the IPO is expected to be completed before July 2024. The Didipio mine, with significant gold and copper reserves, has a 10-year life span. This move comes as the Philippine IPO market shows signs of growth, with the PSE anticipating more listings in 2024, underscoring the region's investment potential. (Source)

Novartis in Advanced Talks to Acquire MorphoSys for $1.7 Billion

Pharmaceutical giant Novartis AG is in advanced discussions to acquire MorphoSys AG, a developer of innovative cancer treatments and IPOX® Europe Index member, for $1.7 billion. MorphoSys, known for its drugs treating rare cancers, including the key product Monjuvi, is seen as a strategic fit for Novartis, which is currently leading over Incyte Corp in the acquisition talks. Despite facing trial setbacks with potential drug Pelabresib, MorphoSys's focus on pioneering treatments aligns with Novartis's strategic interests in expanding its oncology portfolio. (Source)