The IPOX® Update 5/29/24

Senior UK Lawmakers Question Shein's Suitability for London Listing

Senior UK lawmakers are raising concerns about Chinese online retailer Shein's potential listing on the London Stock Exchange, following regulatory challenges in New York. U.S. lawmakers have criticized Shein for alleged labor malpractices and ongoing lawsuits. UK Finance Minister Jeremy Hunt has discussed the listing with Shein's Executive Chairman. However, Conservative MP Alicia Kearns opposes the listing over supply chain concerns, and Labour MP Liam Byrne calls for thorough parliamentary scrutiny before proceeding. Shein asserts that it is investing in governance and compliance improvements within its supply chain. (Source)

Sunrise Medical Plans Frankfurt Listing

Wheelchair manufacturer Sunrise Medical plans to list its shares on the Frankfurt Stock Exchange, with shares offered by owner Nordic Capital. The listing aims to reduce debt and leverage trends in aging populations and inclusion. Sunrise Medical will issue shares worth $261 million, with an additional undisclosed stake from Nordic Capital, targeting a free float of 30%-40%. The company’s net debt is expected to drop from 3.8 times EBITDA to below 2 times in the medium term. Sunrise reported FY2023 sales of $691.5 million with an adjusted EBITDA of $128.3 million. This move follows a wave of revitalized IPO activity in Europe, exemplified by recent listings of companies like Galderma and Puig. (Source)

Hyundai Motor Co. Expands Advisory Team for India Unit IPO

South Korean automaker Hyundai Motor Co. has added Kotak Mahindra Bank and Morgan Stanley as advisers for the potential $2.5-$3 billion IPO of its India unit, which aims to file in June 2024. Existing advisers include Citigroup, HSBC, and JPMorgan Chase. This IPO could be one of India's largest, rivaling the 2022 Life Insurance Corp. listing. Proceeds are intended to expand Hyundai's operations in India. The BSE Sensex index has surged 20% over the past seven months, reaching record highs, which could positively influence the IPO’s outcome. (Source)

Waystar Seeks $3.83 Billion Valuation in U.S. IPO

Healthcare payment firm Waystar aims to achieve a valuation of up to $3.83 billion through its U.S. IPO. The company plans to raise up to $1.04 billion by offering 45 million shares priced between $20 and $23 each. Notable cornerstone investors include Neuberger Berman and the Qatar Investment Authority, who may purchase $225 million worth of shares. Proceeds from the IPO will be used to pay down debt. Founded in 2017, Waystar develops payments software for large hospital systems. The firm, majority-owned by EQT and CPPIB, will list on the Nasdaq Global Select Market under the symbol "WAY". (Source)

Novelis Targets $12.6 Billion Valuation in U.S. IPO

Novelis, an aluminum producer owned by Indian conglomerate Aditya Birla Group's Hindalco Industries, aims for a valuation of up to $12.6 billion in its U.S. IPO. The company plans to raise up to $945 million by offering 45 million shares priced between $18 and $21 each, with the potential to increase proceeds to $1.08 billion through a greenshoe option. Novelis will list on the New York Stock Exchange under the symbol "NVL". Lead underwriters for the IPO include Morgan Stanley, BofA Securities, and Citigroup Global Markets. The U.S. IPO market shows signs of recovery in 2024, with economic optimism driving increased activity. (Source)

Minieye Technology Plans $150 Million Hong Kong IPO

AI driving firm Minieye Technology is set to raise $150 million from its IPO in Hong Kong. CICC and Citic Securities are the sponsors for the listing. Founded in 2014, Minieye provides intelligent driving and cabin solutions. The company decided to list in Hong Kong after abandoning its A-share plan, citing market conditions and international opportunities as influencing factors. Minieye reported an adjusted net loss of $26 million for 2023, an improvement from the previous year's $29 million loss. The company filed for the listing on May 28, 2024. (Source)

Saudi Arabia Leads Middle East IPO Market with $1.7 Billion in Deals

Saudi Arabia is leading the Middle East IPO market with $1.7 billion in deals since March. The country accounts for five of seven IPOs priced in the region this year. Healthcare operator Al Hokail is expected to launch an IPO before summer. Other notable IPOs include UAE's Spinneys, which received strong demand, and Abu Dhabi-based Alef Education Holding. Saudi Arabia’s Lulu is set to dual list on the Abu Dhabi Exchange and Tadawul. The region's IPO market continues to use stabilization mechanisms despite legal concerns, driven by high investor demand and favorable economic conditions. (Source)

Dangote Refinery Plans Dual Listing on London and Lagos Stock Exchanges

Dangote refinery in Nigeria plans to dual list on the London Stock Exchange (LSE) and the Nigerian Stock Exchange (NSE) by the end of the year. Aliko Dangote, the executive behind the $20 billion refinery, confirmed the need for dual listing due to NSE's limited capacity. The refinery, Africa's largest, has a refining capacity of 650,000 barrels per day and is expected to reach full capacity this year or next, making it the largest in both Africa and Europe. The refinery has secured its first crude supply deal with TotalEnergies, starting in July. Dangote also has other listed interests, including Dangote Cement, Dangote Flour Mills, and Dangote Sugar. (Source)

Yaqeen Capital Sets IPO Price for Nomu Listing

Saudi-based Yaqeen Capital has set the IPO price at SAR 40 per share for its upcoming listing on the Nomu market of the Saudi Exchange (Tadawul). The IPO transaction was covered by 105.07%, according to Alinma Investment Company, with Yaqeen Capital offering 3 million shares, representing 20% of its total shares. The total amount raised from the IPO is SAR 120 million (approximately $32 million). Alinma Investment will finalize procedures with Tadawul and set the listing date. Alinma Investment Company is the financial advisor for the IPO. Yaqeen Capital's listing on Nomu will proceed following Tadawul's approval. (Source)

Coxabengoa Plans IPO Within Two Years

Spanish water and energy firm Coxabengoa, soon to be Cox Group, plans to IPO up to 30% of its capital within two years. The company has presented its IPO prospectus to CNMV and will engage with investors until July 24. The first possible IPO window is before the fiscal year's end, though it may extend to 18-24 months. The IPO proceeds aim to accelerate Cox Group’s growth strategy. Formed from the purchase of Abengoa, Cox Group reports over €800 million ($860 million) in revenue and €150 million ($161 million) in EBITDA. The group targets €1.29 billion in revenue and €188 million in EBITDA by 2024. Advising banks for the IPO include Banco Santander, BNP Paribas, and Bank of America, with the IPO expected to raise €300 million ($323 million). (Source)

IPOs in Saudi Arabia Draw $176 Billion in Orders Over Two Years

IPOs in Saudi Arabia have attracted $176 billion in orders from investors over the past two years. Notable recent IPOs include Dr. Soliman Abdul Kader Fakeeh Hospital, which logged SAR 341 billion in orders earlier this month, and Saudi Manpower Solutions Co., which received SAR 115 billion in orders, 128 times the available shares. Other significant IPOs include Rasan Information Technology Co., generating SAR 108.6 billion in orders, and Miahona, a water treatment company, drawing SAR 94.4 billion. The high demand has been driven by hedge fund managers, retail investors using bank leverage, and the ease of digital subscription. (Source)

FIVE Holdings Plans IPO Next Year

Dubai's luxury hotel operator FIVE Holdings plans to go public next year, working with Citi and Deutsche Bank on the IPO. FIVE operates luxury hotels in Dubai, Ibiza, and Switzerland. Chairman Kabir Mulchandani estimates the company’s value at $2.5-3 billion and is considering a dual listing. The IPO will test investor interest in Dubai’s entertainment sector, which targets expats and tourists. Dubai’s post-pandemic economic boom and relaxed regulations have fueled property price and rent increases. FIVE’s top ESG rating for a green bond in a $321.9 million deal may attract ESG-focused investors. (Source)

Actuate Therapeutics Files for $50 Million IPO

U.S.-based Actuate Therapeutics has filed for a $50 million IPO to fund its pancreatic cancer treatment efforts. The company plans to list shares on Nasdaq under the symbol ACTU. Titan Partners Group is the sole bookrunner for the IPO. Actuate’s lead drug candidate, elraglusib, is in Phase 2 trials for metastatic pancreatic cancer. Founded in Texas, Actuate focuses on developing innovative cancer treatments. Financial details were not disclosed in the SEC filing, but the filing fee schedule indicates a $50 million target. Proceeds from the IPO will support the advancement of Actuate’s drug development programs. (Source)

Shift Up Corp. Plans June IPO on Kospi

South Korean gaming firm Shift Up Corp. plans a June IPO on the Kospi, valued at $2.6 billion. The company will issue 7.25 million new shares, aiming to raise between $257 million and $329 million. Lead managers Korea Investment & Securities Co. and NH Investment & Securities Co. based their value estimation on a 39.25 P/E ratio. Tencent Holdings owns 40.1% of Shift Up, which was valued at 2 trillion won last October. In 2023, Shift Up reported an operating profit of 111 billion won and revenue of 168.6 billion won. Popular games such as Goddess of Victory: Nikke and Stellar Blade have bolstered the company’s market performance. Employees could gain up to 82.6 billion won from stock options based on the upper price band. (Source)

Disclaimer: News summaries may contain mistakes. The information does not constitute financial advice, endorsement or recommendation and should not be considered as such.