The IPOX® Update 3/19/24

Reddit's IPO Oversubscribed 4-5 Times, Targeting $6.5 Billion Valuation

Social media platform Reddit, known for its user loyalty and volunteer moderation model, has seen its IPO oversubscribed by 4-5 times, indicating strong investor interest. Lowering its valuation from $10 billion in 2021 to $6.5 billion, the company aims to raise up to $748 million with shares priced between $31-$34. Reddit has reserved 8% of IPO shares for its community, including users and moderators, highlighting its unique engagement strategy. However, the company has amended its S-1 filing after being accused by Nokia, the Finnish telecommunications giant, of patent infringement. Nokia Technologies, the licensing arm of Nokia, has issued claims against Reddit, which the social media platform is currently evaluating amidst its IPO preparations. The timing of Nokia's patent claim aligns with Reddit's goal to raise significant funds through its public debut, expected this week, adding to the major IPOs of the year. (Source) (Source)

Douglas, German Perfume Store Operator, Sets IPO Price at €26

German perfume store operator Douglas has set its IPO price at €26, targeting a raise of $991 million. The pricing comes at the lower end of the initially marketed range of €26 to €30. As part of the offering, Douglas will receive a $326 million (€300 million) equity injection from its existing owners, while the company seeks to raise $926 million (€850 million) from new stock. Existing shareholders will also sell $62 million (€57 million) worth of shares. Trading of Douglas stock is set to begin on March 21. Post-IPO, private equity firm CVC Capital Partners and the Kreke family will maintain their investment in the company. Douglas has expanded to over 1,800 stores in 22 countries and has been growing its e-commerce presence in Europe. (Source)

Galderma's IPO Expected to Top Range at $2.6 Billion

Swiss skincare company Galderma's IPO is expected to top its range at $2.6 billion, marking Zurich's largest offering in years. Shares are priced at 49 to 53 Swiss francs, with trading set to start on Friday. Investors placing orders under 53 francs may miss out on the allocation. The IPO signifies a significant recovery in Europe's IPO market. Private equity firm EQT acquired Galderma from Nestlé in 2019 for 10.2 billion Swiss francs. Known for its Cetaphil and Alastin brands, Galderma reported $4.1 billion in net sales in 2023. The IPO is being coordinated by Goldman Sachs, Morgan Stanley, and UBS. (Source)

British BNPL Firm Zilch Targets Profitability and IPO

British Buy now pay later (BNPL) firm Zilch expects to achieve monthly profitability by the next financial year, starting in April, as it targets an IPO in the coming year. CEO Philip Belamant aims to take the company public, with Nasdaq, NYSE, and LSE being considered as potential listing venues. Zilch, which serves 4 million customers with installment repayment options, was valued at $2 billion in a 2022 funding round. The company is diversifying its offerings and exploring longer-term loans. Zilch's IPO plans come amidst the growing popularity of BNPL services, which have seen increased adoption in recent years. Zilch mainly serves the British market, outpaced by competitor Klarna in customer numbers, which is also planning to list in the U.S. (Source).

Encyclopaedia Britannica Seeks $1 Billion IPO Valuation

Chicago-based education technology firm Encyclopaedia Britannica, which owns Merriam-Webster and Melingo AI, is seeking a $1 billion valuation in its upcoming IPO. The company confidentially filed for the offering in January and is possibly launching as soon as June. Encyclopaedia Britannica has been considering an IPO and private capital since 2022 as it aims to go public. The over 250-year-old company has shifted from print to digital and online education, with subsidiaries including Britannica Education and AI platform Melingo AI. Its products reach over 150 million students and generate 7 billion annual page views, showcasing its significant presence in the education sector. (Source)

Biotech Startup Contineum Files for IPO

Biotech startup Contineum, which originated from a Roche buyout, has filed for an IPO to advance its neurological and inflammatory drug pipeline. The company is developing small molecule medicines and has Phase 1 and mid-stage trials underway for multiple sclerosis, pulmonary fibrosis, and depression. Contineum's filing marks the fourth biotech IPO in March, indicating an uptick in sector activity. Founding investor Versant Ventures eyes a second cash-in opportunity through the offering. Contineum has raised about $194 million privately and has partnered with pharmaceutical giant Johnson & Johnson. Versant and J&J hold 32% and 10% equity stakes in the company, respectively. (Source)

Oman Wealth Fund Plans IPO for Logistics Giant Asyad Group

The Oman Wealth Fund is planning an IPO for logistics giant Asyad Group as part of the country's privatization drive. Banks have been solicited for pitches, although IPO details like valuation and timing have not yet been disclosed. Asyad, a $4 billion entity, benefits from $26 billion in government infrastructure investment. Its assets include ports, free zones, a fleet of over 80 vessels, and Asyad Express delivery. The IPO is part of Oman's strategy to bolster capital markets and raise funds through divestments, aligning with the country's trend of diversifying its economy and aiming for emerging-market status. Previous IPOs, such as OQ gas pipelines and Abraj Energy Services, have seen share price increases, highlighting the potential for successful offerings in the region. (Source)

Abu Dhabi Securities Exchange Partners with Eureeca for Enhanced Global IPO Access

The Abu Dhabi Securities Exchange (ADX) has partnered with investment platform Eureeca to enhance global access to IPOs. The collaboration aims to connect investors with growth and pre-IPO companies, focusing on improving international investor access to Abu Dhabi IPOs. This initiative is part of ADX's efforts to streamline the IPO access and investment process, making it easier for global investors to participate in offerings on the exchange. The partnership with Eureeca showcases ADX's commitment to attracting international capital and further developing its capital markets. (Source)