The IPOX® Update 4/15/24

CVC Capital Partners Plans €1.25 Billion Amsterdam IPO

European private equity firm CVC Capital Partners is reviving its plans for an initial public offering in Amsterdam, aiming to raise at least €1.25 billion ($1.3 billion). The buyout giant will sell €250 million in new shares, while existing shareholders will also offload a portion of their holdings. CVC's assets under management total €186 billion, including stakes in luxury watchmaker Breitling and beverage brand Lipton Teas. The company, valued at around $15 billion, intends to use the IPO proceeds for growth initiatives, acquisitions, and securing a majority stake in infrastructure investor DIF Capital Partners. CVC's listing is expected in the coming weeks, subject to market stability and geopolitical conditions in the Middle East. The move comes as European IPO activity picks up, with other private asset managers like General Atlantic and HPS Investment Partners also pursuing public listings. (Source)

Rubrik Seeks to Raise Up to $713 Million in IPO

Data security and cloud management company Rubrik Inc. is planning to raise as much as $713 million in its upcoming IPO. The Palo Alto-based firm, backed by Microsoft Corp., will offer 23 million shares priced between $28 and $31 each. Founded in 2013, Rubrik launched its first product in 2016 and now serves over 6,100 customers, including major financial institutions like Goldman Sachs, Barclays, and Citigroup, as well as clients in government and education sectors. Despite revenue growth to $628 million in the fiscal year ending January 31, the company reported a net loss of $354 million. Rubrik plans to list under the ticker symbol "RBRK." The IPO comes as investor appetite for new tech listings shows signs of recovery. (Source)

Israeli Smart Glass Maker Gauzy Files for Nasdaq IPO

Gauzy, an Israeli manufacturer of smart glass and vision control technologies, has filed for an initial public offering on the Nasdaq stock exchange under the ticker symbol "GAUZ." The company serves diverse sectors and boasts a global client base that includes aerospace giant Boeing and automakers Honda, Mercedes, and BMW. Gauzy's product portfolio ranges from smart glass for architectural applications to advanced driver-assistance systems. In 2023, the company's revenue rose to $77.9 million from $49.0 million the previous year, although its net loss widened to $79.3 million. Gauzy generates significant revenue from key markets such as the United States, Europe, and France. The IPO proceeds will be used for working capital and general corporate purposes as the company continues to expand its presence in the growing smart glass industry. (Source)

Zopa Bank Reports First Annual Profit, Plans IPO

London-based digital bank Zopa has achieved a significant milestone by reporting its first annual profit of £15.8 million in 2023, a marked improvement from the £26 million loss incurred in the previous year. The bank's customer base has surpassed 1 million, with expanded product offerings contributing to its growth. Zopa's deposits grew 14.9% to £3.4 billion, while lending increased by 27% to £2.7 billion. CEO Jaidev Janardana emphasized the bank's focus on sustainable growth, attributing its success to more than just higher interest rates. Zopa plans to introduce current accounts to its customers and further expand its offerings in the coming year. The company's recent executive hires aim to strengthen its readiness for an initial public offering, although market uncertainties persist. Zopa's profitability comes just three years after securing its banking license in 2020. (Source)

Japan's Jera Co. Considers IPO to Fund Renewable Energy Expansion

Jera Co., Japan's largest utility company, is exploring the possibility of an initial public offering to finance its ambitious renewable energy expansion plans. The company, a joint venture between Tokyo Electric Power Co. and Chubu Electric Power Co., aims to develop 20 gigawatts of renewable energy capacity by the fiscal year 2035. The investment required for this undertaking is estimated to be in the trillions of yen, with an IPO being one of several financing options under consideration. Jera has established a subsidiary, Jera Nex Ltd., in London to leverage European expertise in offshore wind development. The company has also made strategic acquisitions, including European offshore wind operator Parkwind and Japanese wind farm business Green Power Investment. Jera's green push aligns with global efforts to achieve net-zero emissions and combat climate change. (Source)

Salesforce in Talks to Acquire Informatica, Boosting Data Management Capabilities

Cloud-based software giant Salesforce, led by CEO Marc Benioff, is in advanced discussions to acquire data management firm Informatica Inc., which is a constituent of the IPOX® Indexes. The potential acquisition aims to enhance Salesforce's data management capabilities and could rank as the company's second or third-largest deal to date. Informatica, which went public for the second time in 2021 at $29 per share, has seen its stock price fluctuate, peaking at $39 and falling to near $14 last year. The company's largest shareholders are private equity firms Permira (47%) and CPPIB (29%). Informatica's fiscal year revenue is projected to increase by 6% to $1.7 billion. The acquisition talks come as Salesforce seeks to strengthen its position in the highly competitive cloud computing market. (Source)

11 Startups Most Likely to IPO in 2024, According to Analysts

As the IPO market shows signs of recovery, analysts have identified 11 startups that are most likely to go public in 2024. Leading the pack is cloud-based AI company Databricks, with a 91% IPO probability and a valuation of $43 billion. Gaming giant Epic Games, creator of the popular title Fortnite, has a 94% IPO probability and a valuation of $31.5 billion. Other notable contenders include rapid delivery startup Getir (91% probability, $2.5 billion valuation), clean energy battery maker Northvolt (97% probability), and drug discovery firm Generate: Biomedicines (95% probability). Fintech giants Klarna (92% probability, $6.7 billion valuation) and Stripe (96% probability, $50 billion valuation) are also strong IPO candidates. The list is rounded out by medical imaging company HeartFlow (94% probability), drone delivery service Zipline (97% probability, $4.2 billion valuation), pharmaceutical firm Rivus Pharma (93% probability), and healthcare administration platform Zocdoc (97% probability, profitable since 2020). (Source)

KKR Weighs Sale or IPO for IT Solutions Firm BMC Software

Global investment firm KKR is exploring exit options for Houston-based IT solutions provider BMC Software, which is valued at around $15 billion. While other private equity firms have expressed interest in acquiring BMC, KKR is said to favor taking the company public through an initial public offering. BMC has confidentially filed for an IPO, with Goldman Sachs serving as the lead underwriter for the potential listing. KKR's review of exit options comes amid a period of reduced IPO and mergers and acquisitions activity. The firm acquired BMC in 2018 for $8.3 billion, including debt. BMC provides software solutions for tech support to major companies like Transport for London and Carrefour. The potential sale or IPO of BMC highlights the ongoing interest in the IT solutions sector, as businesses continue to modernize their technology infrastructure. (Source)

Seven & I Holdings Considers IPO for Supermarket Unit Ito-Yokado

Japanese retail giant Seven & I Holdings, owner of the 7-Eleven convenience store chain, is considering an initial public offering for its supermarket unit, Ito-Yokado. The company aims to list Ito-Yokado "as soon as reasonably practicable" to grant the subsidiary financial independence in decision-making. Seven & I Holdings plans to establish a globally integrated convenience store management structure in Japan and North America while investing strategically in the convenience store segment and maintaining food-related collaborations. The company's Strategy Committee, which held 13 meetings focused on maximizing corporate value, has recommended accelerating North American convenience store acquisitions and investing in technology. By transforming its supermarket segment into a sustainable and profitable business, possibly through an IPO, Seven & I Holdings seeks to optimize its operations and adapt to changing consumer preferences in the highly competitive retail industry. (Source)

NYSE Courting Japanese Companies for US Listings

The New York Stock Exchange (NYSE) is actively seeking to attract Japanese companies to list on the US stock market, with a particular focus on firms in the technology and healthcare sectors. NYSE Vice Chairman John Tuttle has noted growing interest from "sizable" and rapidly expanding Japanese companies. The global investment community remains optimistic about Japanese stocks, buoyed by expectations of improved shareholder returns. While the weak yen has boosted the shares of Japanese exporters, it has also impacted US dollar-based returns. Increasingly, Japanese startups are opting for US listings to gain access to a broader pool of innovative technology investors and the prestige of having US dollar-denominated shares. The NYSE's efforts to court Japanese companies are part of a wider trend, with firms from South Korea, Indonesia, and Singapore also considering US listings as a means to tap into the world's deepest capital markets. (Source)

Portuguese Healthcare Provider Luz Saude Plans IPO

Luz Saude, a leading Portuguese healthcare provider, is planning an initial public offering on the Euronext Lisbon stock exchange, potentially marking Portugal's first IPO in three years. The offering will include new shares aimed at raising approximately €100 million ($109 million), as well as existing shares from its parent company, Fidelidade. Fidelidade, which is controlled by Chinese conglomerate Fosun, intends to retain a majority stake in Luz Saude following the IPO. The healthcare provider's listing is expected to energize Portugal's dormant IPO market and test investor appetite, particularly after the failed attempt by Portuguese shipping firm Berge. Luz Saude plans to use the IPO proceeds for general corporate purposes, including growth initiatives and acquisitions, as it seeks to achieve a valuation of €1 billion. The company, which was previously delisted in 2018 following Fosun's acquisition, operates 29 hospitals, clinics, and care homes across Portugal. (Source)

Smaller Companies Unlikely to Succeed in Current IPO Market, Investors Warn

Top technology investors are cautioning that smaller companies may struggle to succeed in the current IPO market, which has become "very selective." Companies with market capitalizations below $1 billion often regret going public in this environment, despite recent successful IPOs and filings that contrast with the overall restrained market conditions. Investors now expect firms to have at least $1 billion in revenue and a $10 billion market cap to consider an IPO, with fewer than 20 tech companies, particularly those in the AI sector, expected to go public this year. Mutual funds and exchange-traded funds (ETFs) typically require a minimum market value of $5-$10 billion for investment. As a result, the large inventory of private companies is expected to face a shakeout, with the current market better suited for larger, more established firms. This shift in investor expectations is leading to a consolidation in private markets and a reevaluation of IPO strategies. (Source)

Israeli Cybersecurity Firm Claroty Targets $3.5 Billion 2025 US IPO

Claroty, an Israeli cybersecurity company specializing in securing critical infrastructure such as power grids and refineries, is aiming for a US IPO in 2025 with a target valuation of $3.5 billion. Currently valued at $2.5 billion, Claroty is exploring listing options on either the Nasdaq or the New York Stock Exchange (NYSE). While the company has not formally begun the IPO process, it is actively developing its planning and timeline for going public. Claroty has raised a total of $735 million in funding, with a notable $100 million investment round completed last month. The firm's growth has been substantial, surpassing $100 million in annual recurring revenue in 2023. Early investors in Claroty include industry giants such as Rockwell Automation, Schneider Electric, and Siemens. The planned IPO reflects the growing demand for cybersecurity solutions as critical infrastructure increasingly becomes a target for cyber threats. (Source)

Indian Supermarket Chain Vishal Mega Mart Plans Mumbai IPO

Indian supermarket chain Vishal Mega Mart, owned by private equity firms Partners Group and Kedaara Capital, is planning an IPO on the Mumbai stock exchange. The company has selected investment banks Kotak, ICICI, and Jefferies to manage the IPO, which is expected to raise between $850 million and $1 billion. The listing is slated for the fourth quarter of this year and will allow the private equity owners to pare their stakes in the company. The selection of banks indicates that Vishal Mega Mart's IPO preparations are advancing, following Partners Group and Kedaara Capital's acquisition of the company from TPG Capital in 2018. Vishal Mega Mart specializes in private label products, fashion, general merchandise, and groceries. India's booming market continues to attract global investors, with various sectors eyeing IPOs in the coming year. (Source)

Spanish Beauty Group Puig Plans €1.25 Billion IPO

Spanish beauty and fashion group Puig is planning an IPO to raise €1.25 billion ($1.35 billion) through a secondary offering by its shareholders. The move comes amid a revival in the European IPO market, with Puig's listing expected to energize Spain's IPO landscape and test investor appetite following the failed attempt by Spanish shipping firm Berge. The IPO proceeds will be used for general corporate purposes, including refinancing and strategic investments. Founded in 1914, Puig owns premium brands such as Carolina Herrera and Jean Paul Gaultier. The company will list its Class B shares, which provide one vote each, while the Puig family will retain control through five-vote Class A shares. Goldman Sachs and JPMorgan Chase are serving as lead coordinators for the IPO, alongside other major banks. The offering is part of Puig's strategy to expand its global presence and capitalize on the growing demand for luxury beauty and fashion products. (Source)

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