The IPOX® Update 6/5/24
Online Fashion Giant Shein Preparing a Prospectus for a £50bn London Float
Shein, the online fashion giant founded in China and headquartered in Singapore, is preparing a prospectus for a £50bn ($64bn) float on the London Stock Exchange. The prospectus may be filed this week, with a potential IPO in the summer or early autumn, though the exact timing is uncertain. Shein initially aimed for a New York listing but faced political and regulatory challenges. The IPO could raise over £1bn ($1.27bn) from new share sales to investors, making it the second-largest in LSE history after Glencore's 2011 debut. Advisors on the deal include Goldman Sachs, JP Morgan, and Morgan Stanley. (Source)
Novelis Defers IPO Due to Market Conditions
Novelis, the US subsidiary of Hindalco Industries, has postponed its IPO due to unfavorable market conditions. The planned IPO aimed to raise up to $945 million, with shares priced between $18 and $21, valuing the company at up to $12.6 billion. Considering $4.35 billion in net debt, the enterprise valuation was estimated between $15.2 billion and $17 billion. Leading managers included Morgan Stanley, BofA Securities, and Citigroup. Following the announcement, Hindalco’s stock dipped by 1.47% to Rs 639 on the NSE. (Source)
Sanofi Plans to Spin Off its Consumer Healthcare Division
Sanofi plans to spin off its consumer healthcare division, potentially valuing it at €20bn ($21.7bn). The spin-off, managed by Goldman Sachs, Morgan Stanley, BNP Paribas, and Bank of America, is expected by late 2024 and could be one of Europe's largest IPOs this year. The consumer division, accounting for 10% of Sanofi’s sales, has attracted private equity interest. This move aligns with recent pharma spin-offs, such as GSK’s Haleon and Johnson & Johnson’s Kenvue. Sanofi’s CEO aims to focus on R&D for rare diseases and immunology, reducing reliance on Dupixent. Sanofi’s market value stands at €112.3bn ($122bn), with ongoing efforts to enhance its drug pipeline. (Source)
Genetics Testing Company Tempus AI Aims to Raise Up to $410.7 Million in US IPO
Tempus AI amended its S-1/A registration statement on June 5, 2024, aiming to raise up to $410.7 million through its IPO. According to its SEC filing, the estimated price range for the IPO is set between $35.00 and $37.00 per share, with plans to offer up to 11.1 million Class A shares. Notably, Groupon co-founder CEO Lefkofsky will retain 100% of the company's outstanding Class B common stock, holding about 65.3% of the voting power immediately following the IPO. The proceeds from this IPO are intended to support the growth and development initiatives of Tempus AI. (Source)
Israeli Tech Firm AppsFlyer Renews IPO Plans Aiming to Raise $300 Million
AppsFlyer, an Israeli tech company providing analytics, engagement, and fraud protection services for app marketers, is renewing its IPO plans with a target to raise $300 million. Major clients include eBay, Visa, and Nike, and the company employs about 1,000 people. Analysts predict the IPO, led by Goldman Sachs, JP Morgan Chase, and Bank of America, might occur in early 2025, though it could be delayed to the second half of 2025 or first half of 2026. AppsFlyer has been profitable for several years, generating $300-350 million annually from its SaaS offerings. The company has raised $314 million from investors such as General Atlantic, Eight Roads, and Qumra Capital. (Source)
Rapport Therapeutics Plans to Raise Around $122 Million in its IPO
Rapport Therapeutics intends to raise approximately $122 million through its IPO, pricing shares between $16 and $18. The company will offer up to 8 million shares, trading on Nasdaq under the symbol "RAPP". If underwriters fully exercise their option to purchase additional shares, net proceeds could reach $141.1 million. An additional $16.7 million is expected from a concurrent private placement with existing stockholders. The IPO funds will advance Phase 2a development of RAP-219 for epilepsy, neuropathic pain, and bipolar disorder, as well as support Phase 1 development of RAP-199. Conditions for IPOs appear to be improving, with Massachusetts life science companies likely to surpass 2023's IPO numbers. (Source)
Naver Webtoon Initiates IPO Process for Listing on Nasdaq
Naver Webtoon, a platform offering digital cartoons to over 150 countries, has initiated the IPO process for listing on Nasdaq. The company filed a registration statement with the SEC on May 31, and Bloomberg predicts Naver Webtoon could seek a $4 billion valuation, aiming to raise $500 million. The IPO is led by Goldman Sachs, Morgan Stanley, and Evercore. Naver Webtoon entered the U.S. market in 2014 and established a local entity in 2020. CEO Kim Jun-koo emphasizes the company's mission to empower creators and build a community. (Source)
Norway Oil Services Firm Akastor Affiliate HMH Holding Intends to Pursue a US Listing
HMH Holding Inc., an affiliate of Norway oil services firm Akastor, intends to pursue a US listing. HMH filed a confidential registration statement with the SEC on June 3, with the IPO expected to commence after the SEC review process in the second half of 2024. The IPO size and price range have not yet been determined. Formed by merging Baker Hughes' Subsea Drilling Systems with Akastor's MHWirth AS, HMH provides offshore drilling equipment and aims for energy-efficient solutions and growth in renewables. Akastor ASA is a Norway-based oil-services investment company with diverse industrial holdings. (Source)
Tencent-Backed AI Drug Research Firm QuantumPharm Launches Hong Kong IPO
QuantumPharm, a Tencent-backed AI drug research firm, has launched an IPO in Hong Kong to raise HK$1.13 billion (US$114 million). The company plans to sell a 5.5% stake at a price range of HK$5.03-$6.03 per share. Eight cornerstone investors have committed US$43.6 million to the IPO, which will be priced on June 7 and listed on June 13. Founded by MIT quantum physicists, QuantumPharm uses AI for drug design and development and posted a US$72 million adjusted net loss in 2023. Major investors include Tencent, HongShan, SoftBank Group, Google, and OrbiMed. (Source)
South African IT and AI Company Suppple Plc Raised £200 Million in an IPO on the Luxembourg Stock Exchange
Suppple Plc, a South African IT and AI company, raised £200 million ($248 million) in an IPO on the Luxembourg Stock Exchange. The company, co-founded by Professor Eldrid Jordaan, develops chatbot platforms for businesses, governments, and large institutions. Suppple's technology enables rapid digitization of processes and workflow automation, assisting GS1 in verifying and tracking products globally to combat fake and unsafe goods. The company also enhances business process outsourcing services in South Africa, Kenya, and Colombia. Suppple must comply with LuxSE rules in the coming months for the listing to be finalized, with a South African listing anticipated soon to attract local investor interest. (Source)
French Optical Component Maker Exosens Sets IPO Price at 20 Euros per Share
Exosens, a French optical component maker, has set its IPO price at 20 euros per share, valuing the company at around 1 billion euros ($1.08 billion). The shares will start trading on June 7. Exosens provides night vision tools and photo sensor technology for defense, medical, and nuclear applications. The IPO aims to generate up to 400 million euros ($427 million) through new and existing share sales. The IPO will include a private placement and a reserved capital increase for Bpifrance, with Groupe HLD retaining control. (Source)
Alef Education Increases IPO First Tranche Due to High Demand
Alef Education has increased its IPO first tranche from 112 million to 140 million shares due to high demand. The first tranche is valued between AED 182 million and AED 189 million ($49.5 million to $51.4 million). Consequently, the second tranche was reduced from 1.28 billion to 1.26 billion shares, though the total IPO size remains unchanged. Selling shareholders Tech Nova Investment and Kryptonite Investments will retain 68% and 12% stakes, respectively. The remaining shares will be subject to a 180-day lock-up period. The first tranche offer closes on June 4, and the second tranche on June 5, with the final offer price announced on June 6. Alef Education's ADX listing is scheduled for June 12, pending regulatory approvals. (Source)
Perfume Retailer Arabian Oud Hires Emirates NBD Capital and SNB Capital for Saudi IPO
Arabian Oud, the world's largest supplier of oriental fragrances, has hired Emirates NBD Capital and SNB Capital to manage its Saudi IPO. Founded in 1982, the company operates 1,200 stores across 37 countries. While the timing and valuation of the IPO are still under discussion, this move comes amid a highly active market for deals in Saudi Arabia, where recent IPOs have attracted $176 billion in institutional investor orders. The planned IPO aims to capitalize on the current market interest. (Source)
Gulf IPO Boom Continues in 2024 with Numerous Saudi and UAE Companies Planning Public Listings
The Gulf IPO boom continues in 2024 with numerous Saudi and UAE companies planning public listings. Economic diversification strategies in the UAE and Saudi Arabia fuel investor interest in various sectors. In the first quarter of 2024, 10 IPOs raised $1.2 billion, maintaining last year’s strong pace. Notable upcoming IPOs include LuLu Group International, Alef Education, and possibly Etihad Airways. Sectors poised for IPOs include technology, healthcare, transport, retail, and renewables. Saudi firms like Expertise, SIRC, Flynas, and Riyadh Dynamics are among those planning IPOs. The IPO boom aligns with Saudi Vision 2030 and UAE economic diversification plans, attracting global investors. (Source)
Ripple CEO Hints at Considering Overseas IPO Due to U.S. Regulatory Challenges
Ripple CEO Brad Garlinghouse has hinted at considering an overseas IPO due to regulatory challenges in the U.S. Garlinghouse criticized SEC Chairman Gary Gensler's stance, citing difficulties in obtaining approval for Ripple's IPO. While commending NYSE President Lynn Martin's progressive attitude, he noted the SEC's misalignment with the industry's needs. Garlinghouse stated that going public in the U.S. does not make sense for Ripple under the current regulatory environment. Ripple is evaluating the possibility of listing in jurisdictions outside the U.S. This statement was made during an interview at the 2024 Consensus conference hosted by CoinDesk. (Source)
Nordic Capital to Sell German Wheelchair Maker Sunrise Medical to Platinum Equity
Sunrise Medical, the German wheelchair manufacturer, will be sold by Nordic Capital to Platinum Equity, ending its plans for an IPO on the Frankfurt Stock Exchange. The initial intention was to list shares in a private placement to reduce debt. While the sale price remains undisclosed, the transaction is expected to complete in the third quarter, pending regulatory approvals. CEO Thomas Babacan will continue in his role under the new ownership. Nordic Capital acquired Sunrise Medical from Equistone in 2015. This sale is another instance of a private equity firm acquiring a pre-IPO company. (Source)
A Dozen Indian Consumer-Facing Companies Plan IPOs in 2024
A dozen Indian consumer-facing companies are planning IPOs in 2024, leveraging the growth potential and demand from tier-2 and tier-3 cities. Among the companies preparing for IPOs are Swiggy, Baazar Style Retail, CG Foods, One Mobikwik Systems, and Hindustan Coca-Cola Beverages. Swiggy targets raising around $1 billion, transitioning from "Swiggy Private Limited" to "Swiggy Limited." Executives express optimism about the unsaturated consumer market and potential IPO success. (Source)
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