The IPOX® Update 2/28/24

Klarna Bank AB Plans US IPO Targeting $20 Billion Valuation

Swedish buy-now-pay-later giant Klarna Bank AB is reportedly planning a U.S. IPO that could potentially take place in Q3, aiming for a valuation of $20 billion. Once Europe's most valuable startup, Klarna experienced a valuation peak of $45.6 billion in 2021, before a significant drop to $6.7 billion in 2022 amid internal conflicts and a boardroom battle at Sequoia Capital. Despite these challenges, CEO Sebastian Siemiatkowski has hinted at an imminent U.S. IPO, noting the U.S. as Klarna's largest market. The company, which was founded in 2005, has returned to profitability in the U.S., boasting four consecutive profitable quarters. Klarna serves 150 million shoppers globally and handles 2 million transactions daily. (Source)

Stripe's Valuation Rises to $65 Billion in Share-Sale Deal

The valuation of Stripe, a leading payment processing company, has increased to $65 billion following a share-sale deal intended for employees. This deal has likely postponed any potential IPO until at least 2025 due to lukewarm investor interest. Stripe and investors, including Sequoia Capital, purchased over $1 billion of employee shares. Despite the increase, this valuation remains below its 2021 peak of $95 billion. Stripe continues to offer liquidity options to its employees through such deals, maintaining its significant client base that includes major companies like Ford and Best Buy. (Source)

Shein Considers London IPO Amid US Listing Challenges

Shein, the fast-fashion retailer based in Singapore, is considering a London IPO as it faces regulatory hurdles for a US listing. The company is exploring alternatives, including listings in Hong Kong and Singapore, due to the unlikely approval from the US SEC for a US listing. A London IPO could provide a significant boost to the UK market, especially after a historically low IPO year. Shein, which had previously aimed for an $80-90 billion valuation, is now valued at around $50 billion in recent trades. The move reflects the broader challenges faced by Chinese companies seeking US IPOs amidst heightened US-China tensions. (Source)

Modern Mills for Food Products Co. IPO Overwhelmed by Demand

The IPO for Modern Mills for Food Products Co., part of Saudi Arabia's privatization efforts in its flour milling industry, has received orders amounting to $40 billion, oversubscribing by 127 times. The company set its IPO price at 48 riyals per share, valuing it at 3.9 billion riyals ($1.04 billion). The offering includes a 30% stake with 24.5 million shares from Mada International, Al Ghurair Foods, and Masafi Co. Retail investor bidding is scheduled for March 5-6 for the $320 million IPO, with HSBC Holdings Plc, Emirates NBD Capital, and Moelis & Co. advising on the offering. (Source)

Dubai Government to Sell 25% of Parkin Company PJSC in IPO

In response to a population growth, the Dubai government plans to sell a 25% stake in Parkin Company PJSC through an IPO. The offering consists of 749.7 million shares, with subscription set from March 5-12 and trading expected to start on March 21. This move comes as part of Dubai's strategy to list 10 state companies, following a successful $315 million raise from a taxi business IPO. Parkin anticipates a 60% increase in public parking demand by 2033, planning a minimum dividend of 100% of profit or free cash flow for FY 2024. The company reported a 14% revenue growth in 2023, reaching 779 million dirhams ($212 million). (Source)

OrCam Plans Wall Street IPO, Spins Off Hearing Division

OrCam, founded by the creators of Mobileye, is planning a Wall Street IPO for its visual assistance devices, while also spinning off its hearing division. The company aims to raise $10 million independently for its hearing division, potentially attracting interest from major tech companies. OrCam will lay off 50 employees from the visual division, retaining 220 employees post-restructure. The OrCam Hear product, designed to aid the hearing-impaired in noisy environments, has received positive feedback from CES and the audiology industry. With $65M in 2023 revenue from its visual and dyslexic aid products, OrCam expects to reach $100M by 2025. (Source)

Vietnam Aims to Boost Stock Market with More IPOs

Vietnam is seeking to invigorate its stock market by encouraging more IPOs and share sales, including allowing foreign-owned businesses to list on the Vietnamese stock exchange. The Ministry of Planning and Investment is spearheading efforts to simplify trading processes for foreign companies. With a 33.5% increase in capital raised on Vietnam's stock market in 2023, reaching $17 billion, the State Securities Commission is focusing on diversifying financial products and enhancing public offerings. These efforts are part of Vietnam's ambition to achieve emerging market status by international rating organizations. (Source)

Olam Group's Dual IPO for Agri Unit Delayed

The dual IPO of Olam Group's agri unit in Singapore and Saudi Arabia has been postponed, not expected to occur in the first half of 2024 as previously planned. The company reported a 41% drop in annual underlying profit, attributed to high interest rates and lower contributions from Olam Agri. The delay highlights the challenges faced by Olam Group in navigating the current economic environment. (Source)

Shanghai Zhida Technology Plans Hong Kong IPO

Shanghai Zhida Technology Development, specializing in electric vehicle charging solutions, is planning a Hong Kong IPO to raise $128 million. Collaborating with Shenwan Hongyuan Group, Zhida aims for a listing in 2024. The company offers a variety of products including at-home charging systems, portable battery kits, and charging robots, serving over 1 million car owners and 70 car brands across China. This move places Zhida in the heart of China's booming EV market, alongside competitors like Star Charge, which is also considering a Hong Kong IPO. (Source)