The IPOX® Update 3/8/24

Intel-Backed Astera Labs Seeks $534 Million in IPO Amid AI Frenzy

U.S. semiconductor connectivity firm Astera Labs, founded in 2017 with a focus on AI and machine learning, aims to raise up to $534 million in its upcoming IPO. The company plans to offer 14.79 million shares, with an additional 3.01 million shares offered by investors, priced between $27 and $30 per share. The IPO, led by Morgan Stanley and JPMorgan Chase, is expected to commence trading on March 20, 2024, under the symbol ALAB on the Nasdaq. Astera Labs, valued at $3.15 billion in 2022, counts Intel's venture arm among its existing investors. The IPO is riding the wave of optimism in the tech sector, particularly for AI-related stocks like Nvidia, and follows successful recent listings such as Arm Holdings and the planned Reddit IPO. (Source)

Abu Dhabi's ADQ Selects Banks for Etihad Airways IPO

Abu Dhabi's sovereign wealth fund, ADQ, has selected HSBC, Citigroup, and First Abu Dhabi Bank to manage the potential IPO of Etihad Airways, with Rothschild & Co serving as an independent financial adviser. Initially considering a direct listing, ADQ is now exploring a traditional IPO for the airline, which has confirmed its profitability and readiness for a public offering. The move to list Etihad Airways is part of ADQ's strategy to diversify Abu Dhabi's economy and follows a growing trend of state-owned enterprises in the Middle East going public. The IPO's timing and details are yet to be finalized, but the selection of high-profile banks and advisers indicates the seriousness of the plans and the potential for a significant offering in the near future. (Source)

Hong Kong Sees Uptick in IPO Applications as Interest Rates Poised to Decline

The Hong Kong Stock Exchange (HKEX) has witnessed a 30% increase in IPO applications year-to-date, signaling growing market optimism amid expectations of declining interest rates. Bonnie Chan, the first female CEO of HKEX, highlights the market's rebound, citing increases in daily turnover and international investment. Despite stock market proceeds from new listings dropping to a 20-year low of $5.9 billion in 2023, the uptick in IPO applications suggests a potential turnaround. HKEX introduced a gender diversity rule in 2022, requiring at least one woman on the boards of new listing candidates, resulting in an 11 percentage point decrease in all-male boards among Hong Kong-listed companies over two years. (Source)

Luxury Sneaker Firm Golden Goose Plans Milan IPO, Targets €3 Billion Valuation

Italian luxury sneaker company Golden Goose, known for its celebrity-endorsed, weather-beaten design sneakers priced at $600, is planning an IPO on the Milan Stock Exchange in May or June 2024. The company, owned by private equity firm Permira, is targeting a valuation of €3 billion, with an expected free float of 30%-40% during the listing. Around a dozen banks competed for roles in the potential Milan listing, as Permira shifted its focus from selling to potentially listing Golden Goose. While the IPO preparations are in the early stages and details are subject to change, the move reflects the growing appetite for luxury and lifestyle brands in the public markets. Golden Goose's unique positioning and strong brand recognition could make it an attractive prospect for investors seeking exposure to the high-end fashion sector. (Source)

Razor Maker Harry's Inc Files Confidentially for IPO, Targets New York Listing

U.S. razor and personal care company Harry's Inc has confidentially filed for an IPO, targeting a listing on the New York Stock Exchange. The company, valued at $1.7 billion in 2021 and nearing $1 billion in annual revenue, has engaged investment banks Goldman Sachs, JPMorgan, Barclays, and Wells Fargo to prepare for the offering. Harry's Inc, backed by investors such as Bain Capital and Macquarie Capital, launched in 2013 as a direct-to-consumer brand and has since expanded into various personal care products. The company owns several brands, including Lumē, Mando, Flamingo, and Cat Person, and operates a German factory. In 2020, the Federal Trade Commission blocked a $1.37 billion acquisition of Harry's Inc by Edgewell Personal Care. While specific details of the IPO remain undisclosed, the confidential filing suggests that the company is moving forward with its plans to go public. (Source)

Bayer-Backed Boundless Bio Files for IPO, Aims to Trade on Nasdaq

U.S. oncology startup Boundless Bio, backed by Bayer and ARCH Venture Partners, has filed for an IPO, aiming to trade on the Nasdaq under the ticker "BOLD." The San Diego-based company, which focuses on a novel cancer treatment targeting DNA circles outside chromosomes, has raised approximately $250 million privately. Boundless Bio's first clinical trial, involving the CHK1 inhibitor BBI-355, began dosing patients in May, with early efficacy data expected this year. The company plans to present at the annual American Association for Cancer Research meeting next month. Preliminary data for its second oral candidate, BBI-825, aimed at treating KRASG12C mutant colorectal cancer, is expected in the second half of 2025. If successful, Boundless Bio could become the third cancer drug developer to go public this year, following CG Oncology and ArriVent. The IPO filing reflects the growing interest in innovative cancer therapies and the potential for significant returns in the biotech sector. (Source)

India Tightens Regulations on IPO Financing and Gold Loans, Impacting Shadow Banks and Fintechs

The Reserve Bank of India (RBI) has tightened regulations on IPO financing and gold loans, targeting shadow banks and fintechs such as JM Financial and Paytm affiliate. The RBI's scrutiny extends to equity market financing, with expectations of further regulatory steps to curb potential risks. Securities and Exchange Board of India (SEBI) Chairwoman has also raised concerns over IPO application inflation. The regulatory actions have led to a plummet in the shares of JM Financial and IIFL Finance, hinting at a broader market impact. Restrictions on shadow banks may dampen the booming IPO market, affecting funding and listing gains. The RBI's crackdown on gold loans and stock-backed lending is expected to have significant implications for shadow lenders. The move comes as India aims to maintain stability in its financial markets and prevent potential bubbles, while ensuring the growth of its thriving startup and fintech ecosystem. (Source)

Canada's IPO Market Faces Year-Long Drought, Contrasting with U.S. Trends

Canada's IPO market is experiencing a year-long drought, with no new listings on the Toronto Stock Exchange since Lithium Royalty Corp.'s C$150 million ($111 million) IPO in March of the previous year. Citigroup notes a lack of investor interest in Canada's primary sectors, contrasting with the resurgence of IPO activity in the United States. In 2023, Canada saw its lowest number of main exchange IPOs since 1993, with only one company debuting. While Canadian technology firms like Shopify and Constellation Software show promise, tech stocks remain underrepresented in the S&P/TSX Composite Index. Global IPO volumes hit a decade low in 2023, though signs of a market rebound are emerging in the U.S. and Europe. Bankers predict a potential IPO resurgence in Canada in the second half of 2024, led by larger offerings, as market conditions improve and investor sentiment shifts towards growth-oriented sectors. (Source)

German E-Mobility Company Elaris AG Plans IPO on Munich Stock Exchange

German e-mobility company Elaris AG is set to go public on the Munich Stock Exchange on March 14, 2024, with 12.1 million shares to be listed in the m:access segment. A listing on the Xetra exchange is planned for the near future. The German Federal Financial Supervisory Authority (BaFin) has approved the securities prospectus for the IPO, which includes a public offer of up to 10,000 shares from Elaris Holding GmbH's holdings. The offer period is limited to the IPO day, from 8:00 a.m. to 8:00 p.m. CET. Over 90% of the shares are owned by founder Lars Stevenson and his wife, with NEON EQUITY AG holding 5%. The free float at IPO will be just under 10%, counting shares held by NEON EQUITY AG. Elaris AG focuses on affordable e-mobility and cooperates with major Chinese EV manufacturers. The company plans to drive growth through market expansion, sales network enhancement, model range enlargement, and internationalization. (Source)

Japan's Pocketalk Interpreter Preparing for 2025 IPO in Tokyo

Tokyo-based Pocketalk, a developer of mobile translation devices, is planning a 2025 IPO on the Tokyo Stock Exchange, with a potential listing on the NASDAQ also under consideration. The company, spun off from Sourcenext in 2022, seeks a valuation of around 100 billion yen ($676 million) amid growing demand for its AI-powered devices that support 85 languages and offer real-time text and voice translation. Pocketalk has partnered with SoftBank to boost device sales and forecasts net sales of 50 billion yen by 2027. IPO proceeds will fund AI research and development, as well as sales channel expansion, with Mizuho Securities serving as the lead manager. Pocketalk's devices have gained popularity among tourists in Japan and are expanding into hospitals, schools, and offices abroad. The company competes with tech giants like Google and Microsoft in the mobile interpretation market. The IPO's momentum is influenced by Japan's recent stock market boom and the success of high-valued listings. (Source)

Panera Bread Reduces Animal Welfare and Clean Ingredient Standards Ahead of IPO

U.S. fast-casual restaurant chain Panera Bread has reduced its animal welfare and clean ingredient standards ahead of its planned IPO. The company will remove "No Antibiotics Ever" and similar claims from stores by March 27, allowing the use of some antibiotics in pork and turkey, as well as feed containing animal products for chicken and cattle. Panera describes this shift as an "evolution" of its policies, aiming to maintain high ingredient standards while facilitating growth. The move is expected to save the company an estimated $21 million annually. Panera, acquired by JAB Holdings in 2017 for $7.5 billion, announced plans for an IPO last May. The company's adjustments also involve reintroducing previously banned additives like phosphates, sorbic acid, and maltodextrin. The changes in standards come as Panera prepares to go public, potentially signaling a shift in priorities as the company seeks to attract investors and maximize profitability. (Source)