The IPOX® Update 3/4/24

ADQ Explores Etihad Airways IPO

Abu Dhabi's state-owned entity, ADQ, is considering the IPO of Etihad Airways, potentially marking the first listing for a Gulf hub carrier. The discussions with banks are exploring a possible deal as early as this year, weighing options between a traditional IPO and a direct listing. This strategic move underlines ADQ's ambition to capitalize on Etihad's market presence and financial recovery post-pandemic. Etihad Airways, known for its luxury services and strategic location in Abu Dhabi, serves as a critical connector in international air travel. The decision to consider public listing aligns with broader trends in the region towards privatization and market-driven financing. (Source)

Douglas Targets €1.1 Billion in Frankfurt IPO

European beauty retailer Douglas aims to raise €1.1 billion ($1.2 billion) in an upcoming Frankfurt IPO, seeking a valuation over €7 billion. Owned by CVC Capital, Douglas plans to utilize the proceeds to significantly reduce its debt. The IPO structure includes €800 million from new shares and a €300 million equity injection from its owners. With over 1,800 stores across 22 countries, Douglas stands as a leading player in the beauty retail sector. The offering, managed by top banks including Citigroup and Goldman Sachs, tests the waters for investor interest in a rebounding European market. (Source)

VW's PowerCo Eyes IPO Post Factory Openings

Volkswagen's battery subsidiary, PowerCo, may consider an IPO after its factories become operational and its standardized cell is widely in use. Targeting €20 billion in revenue by the end of the decade, PowerCo plans to have 80% of EVs use its uniform cell by 2025. With factories in Salzgitter, Valencia, and Ontario opening between 2025 and 2027, the company is gearing up for significant production capabilities. Volkswagen Technology Chief Thomas Schmall highlighted that while an IPO is a future option, investor interest is already high. (Source)

Karnell Group AB to Revitalize Sweden's IPO Market

The industrial technology group, Karnell Group AB, is set to end Sweden's IPO drought with a $24 million listing in Stockholm. Targeting expansion in the Nordic region, UK, and Italy, Karnell's portfolio spans 12 companies across manufacturing and tech sectors. This move comes as Sweden's IPO market shows signs of recovery, with an optimistic outlook for the second half of 2023. (Source)

Jim Cramer Cautions on Reddit IPO Impact

CNBC pundit Jim Cramer expressed concerns that a successful IPO for Reddit could disrupt the current bull market dynamics. With a targeted valuation of $7 billion and share prices between $31-$34, Reddit's IPO represents a significant test of investor appetite. Despite its long-standing presence and significant revenue, Reddit has yet to report a profit, relying instead on adjusted EBITDA. Cramer's caution stems from the potential for Reddit's IPO success to prompt a wave of public listings, potentially affecting market supply and demand balance. This commentary adds a layer of scrutiny to Reddit's public market debut, juxtaposing its unprofitable status with its substantial user engagement and revenue. (Source)

1Komma5° Considers 2025 IPO

Hamburg-based solar startup, 1Komma5°, is contemplating an IPO in 2025, following significant funding from a US pension fund and private equity firm Hamilton Lane. The company's strategy focuses on transforming customers and entrepreneurs into owners, underscoring a community-driven approach to business. With a foundation year of 2021, 1Komma 5°'s consideration of an IPO within four years of its inception highlights its rapid growth trajectory and ambition in the renewable energy sector. This move could potentially set a precedent for startups in the green technology space, illustrating the growing investor interest in sustainable and renewable energy companies. (Source)

PrimaryBid Announces Workforce Reduction

IPO retail investment platform PrimaryBid is set to reduce its workforce by approximately 25%, impacting over 40 roles across various divisions. This decision comes amid a slump in deal-making activity in Britain and aims to streamline operations while expanding into new markets such as the US and the Middle East. The cuts reflect broader challenges within the capital markets and IPO activities, highlighting the fluctuating demand for such platforms. PrimaryBid, known for facilitating retail access to major share sales, aims to adapt to the changing landscape by enhancing its efficiency and expanding its service offerings. (Source)

Egnyte Eyes New York IPO

Cloud storage provider Egnyte is planning an IPO in New York, potentially valuing the company at over $3 billion. With JPMorgan Chase and UBS Group as the underwriters, the IPO could take place as early as this year, depending on market conditions. Competing against giants like Box and Dropbox, Egnyte has distinguished itself in the cloud storage market, further propelled by the rising demand for cloud services. Founded in 2007, the company achieved profitability following a $75 million funding round in 2018, with key investors including Kleiner Perkins and GV. Egnyte's move towards going public underscores the growing significance of cloud services in the digital economy. (Source)