The IPOX® Update 5/31/24

Bill Ackman Plans Pershing Square IPO

Investor Bill Ackman plans to take investment firm Pershing Square public by late 2025 or early 2026. As a precursor, Ackman is selling a stake to investors, valuing the firm at $10.5 billion. Pershing Square manages approximately $16.3 billion in net assets and primarily holds stocks of undervalued large companies, including Chipotle and Universal Music Group. Nearly all of its capital is in a closed-end fund trading on European exchanges. Half of the $1 billion pre-IPO round will fund the new Pershing Square USA, launching soon. Ackman aims to attract investors by leveraging his social media presence and high-profile activism. (Source)

Eric Lefkofsky's Tempus Files for IPO

Eric Lefkofsky's AI health tech company Tempus has filed for an S-1 ahead of its IPO after raising $1.42 billion. Founded in 2015, Tempus focuses on genomic testing and data analysis for cancer care. In 2023, the company generated $531 million in revenue but reported a $290 million net loss. Tempus aims to integrate AI into diagnostic tools, though AI revenue was only $5.5 million in 2023. Lefkofsky's shares have 30 votes each, granting him substantial control post-IPO. The company received $200 million from SoftBank and aims to raise additional capital in the future. This IPO follows Lefkofsky's previous listings of Groupon, InnerWorkings, and Echo Global Logistics.

Guzman y Gomez's June IPO

Guzman y Gomez (GYG) seeks to raise $160.75 million in a June IPO, valuing the company at $1.46 billion. GYG plans to sell 11.1 million shares at A$22 each, raising A$242.5 million ($160.75 million). The deal includes A$200 million in primary proceeds and A$42.5 million from secondary shareholders. This will be Australia's largest IPO in nearly a year, following Redox's A$404 million raise in mid-2023. GYG raised A$135 million in a pre-IPO round, valuing the business at A$1.76 billion. Pre-IPO investors, including QVG Capital and Aware Super, have fully underwritten the IPO. GYG shares will start trading on the Australian Securities Exchange on June 20. (Source)

Hong Kong IPO Market Shows Signs of Revival

Hong Kong's IPO market is showing signs of revival with three successful debuts raising $111 million. Shanghai-based used-car dealer Autostreets saw a 66% surge on its first trading day, closing up 27%. The IPO raised $19.6 million, with local investors oversubscribing by 433.34 times. Vending-machine company Qunabox Group and e-commerce player EDA Group also had strong debuts. Combined, the three companies raised $111 million, the most since a major IPO in April 2024. Hong Kong IPO proceeds fell 29% in Q1 2024, but sentiment is improving with recent successes. Analysts highlight the need for bigger, higher-quality deals to sustain market recovery. (Source)

Cloud Factory Technology's Hong Kong IPO

Cloud Factory Technology plans to launch a $60-$80 million IPO in Hong Kong next week, sponsored by SPDB International. The company provides internet data center solutions, including colocation and infrastructure management, managing data center space and cabinets from suppliers rather than owning its own centers. In 2023, Cloud Factory posted an adjusted net profit of $3.3 million, up 73% from 2022. The IPO will help fund further expansion and operational growth. This move reflects growing investor interest in the tech and data center sector in Hong Kong. (Source)

Golden Goose's Milan IPO

Italian luxury sneaker brand Golden Goose plans to list on Milan's Euronext in June. The IPO will include existing shares and $107.92 million of new shares, aiming for a 25% free float. CEO Silvio Campara describes the IPO as a natural step in Golden Goose's success story. Proceeds from the IPO will be used to strengthen capital structure and reduce debt. Golden Goose was valued at $1.4 billion when acquired by private equity firm Permira in 2020. The company's net revenue reached $633.5 million, with a core profit of $215.9 million in 2023. BofA, J.P. Morgan, Mediobanca, UBS, BNP Paribas, Citigroup, UniCredit, and Lazard are managing the IPO. (Source)

LG Electronics Plans Indian Unit IPO

South Korea's LG Electronics plans an IPO of its Indian unit to raise around $500 million. The IPO is targeted for the financial year ending in March 2025. LG Electronics India is a major home appliance manufacturer. The parent company aims to capitalize on the strong Indian equity market. LG Electronics did not comment on the IPO plans, and its shares fell 3.8% to a $13.8 billion market cap. Hyundai Motor also plans a $3 billion IPO for its Indian unit, the largest in India's history. Additionally, Blackstone-owned International Gemological Institute plans an Indian IPO of $200-$400 million this year. (Source)

Prisma Properties to Launch Stockholm IPO

Swedish real estate company Prisma Properties aims to raise $118 million in a Stockholm IPO. Pre-marketing involves cornerstone commitments of $59.2 million at $2.63 per share. The IPO values Prisma at $430.8 million, a 5% discount to its net asset value (NAV). Prisma’s properties include sites leased to chains like Jula, Rusta, Willys, Netto, and McDonald's. The company reported a net operating income of $31.5 million in 2023 and aims for 15% annual NAV growth. Alma Property Partners, owning 85.3% of Prisma, will offer a substantial secondary tranche in the IPO. (Source)

Northvolt AB Delays IPO to 2025

Swedish battery maker Northvolt AB plans to list shares in Sweden in 2025, delaying from 2024. Founded by ex-Tesla managers, Northvolt is key to Europe's electric-vehicle supply chain. The company has raised over $13 billion in debt and equity for its operations. Northvolt delayed the IPO due to a challenging market and operational setbacks. The company halted construction in Canada due to environmental analysis demands. Northvolt secured $5 billion in project financing to expand its Skelleftea facility, backed by Volkswagen and BMW. In March, Northvolt began constructing a new battery plant in Germany. (Source)

OTB Postpones IPO to 2026

Italian fashion group Only The Brave (OTB) is likely to list in 2026, according to Chairman Renzo Rosso. OTB, which includes brands like Diesel and Jil Sander, was initially preparing to list in 2025. Tougher conditions in the luxury fashion industry prompted the delay. Rosso emphasized the need to wait for the right market conditions and performance metrics. OTB generated $2.1 billion in turnover and $151.7 million in operating profit in 2023. The company aims to meet investor expectations before proceeding with the IPO. The luxury market's subdued start in 2024 influenced the decision to delay the listing. (Source)

Barclays Predicts End of IPO Drought

Barclays Plc sees signs that the long IPO drought is ending due to clarity on interest rate cuts. Corporate chiefs and investors are gaining confidence as central banks plan to lower rates. Barclays recently helped CVC Capital Partners raise $2.46 billion in Europe's third-largest IPO this year. European companies have raised $12.4 billion via IPOs in 2024, more than double last year's amount. Uncertainty about the Federal Reserve's rate cuts has slowed US dealmaking and underwriting. The European Central Bank may cut rates next month, offering a potential entry point for investors. Barclays expects significant revenue growth from equity underwriting, with a strong focus on AI-related sectors. (Source)

U.S. IPO Market Sees Positive Movement

The U.S. stock market, influenced by top-performing tech stocks, is seeing notable IPO successes. Four out of five recent $100 million+ IPOs exceeded expectations in share volume and pricing. Many recent IPOs, including Reddit, Rubrik, Ibotta, and Instacart, are trading above their IPO prices. Fifty-eight companies have raised $14.1 billion in U.S. IPOs this year, a significant increase from last year. Despite this increase, the number of IPOs remains low compared to historical norms, with many venture-backed unicorns still in the pipeline. (Source)

Special Opportunities REIT Aims for £500 Million IPO

Special Opportunities REIT targets a £500 million IPO on the London Stock Exchange. The IPO includes an initial placing, offer for subscription, and cornerstone subscriptions at 100p per share. Cornerstone investors, including GoldenTree Asset Management and TR Property Investment Trust, committed £104-£119 million. The REIT focuses on under-managed UK commercial properties with potential for rental growth, such as student accommodation and data centers. The IPO aims to capitalize on low property valuations due to pension funds exiting holdings. Led by veterans Harry Hyman and Jamie Hopkins, the REIT aims to exploit market dislocation. IPO applications close on June 11, 2024, targeting high-quality assets sold below market value. (Source)

Gauzy Ltd. Sets Terms for $75 Million IPO

Israeli light and vision control company Gauzy Ltd. has set terms for its $75 million IPO. The company offers 4.17 million shares at $17.00 to $19.00 per share, targeting a $333.28 million market cap. The IPO will list on NASDAQ, with joint book-runners including Barclays and TD Cowen. Gauzy reported a net loss of $74 million on $85.28 million revenue for the year ending March 31, 2024. IPO proceeds will be used for working capital. Founded in 2009, Gauzy specializes in smart glass applications and advanced driver assistance systems. The company has partnerships with Boeing, Honda, Mercedes, Ford, BMW, and Avery Dennison. (Source)

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