The IPOX® Update 6/11/24

Raspberry Pi Shares Soar 40% After London IPO

Shares of UK budget computer firm Raspberry Pi surged 40% following its IPO on the London Stock Exchange. The shares reached 392p, significantly above the IPO price of 280p. The IPO valued Raspberry Pi at £541.6 million ($674 million), raising £166 million ($207 million). Initial trading commenced under "conditional dealing" on June 11, with full trading set to start on Friday. This IPO is perceived as a positive development for the London market, especially amid recent high-profile departures to New York. Notably, Arm and Lansdowne Partners committed to purchasing shares worth $35 million (£27.5 million) and $20 million (£15.7 million) respectively. The funds from the IPO will be utilized for engineering projects, supply chain enhancements, and general corporate purposes. (Source)

Golden Goose Sets IPO Price Range at €9.50-10.50 Per Share

Luxury sneaker brand Golden Goose has established its IPO price range at €9.50-10.50 per share. The company and its shareholders aim to raise €558 million ($600 million) from the IPO, implying a market valuation of €1.7-1.9 billion ($1.8-2.1 billion). Permira, the private equity firm, plans to sell approximately 30% of Golden Goose's share capital. The company will issue around 10 million new shares, raising €100 million ($108 million). Trading is anticipated to begin on June 21, 2024. Proceeds from the IPO will be allocated towards debt repayment and support for future growth initiatives. (Source)

Hyundai Motor India Plans to File for $2.5 Billion IPO

Hyundai Motor India is preparing to file for an IPO, potentially raising $2.5 billion, which would mark India's largest IPO since Life Insurance Corporation's $2.5 billion IPO in 2022. Hyundai plans to file a draft red herring prospectus with Sebi within the next two weeks, with approval expected within 60-90 days. The IPO could potentially launch by September or October. Citigroup, HSBC, JPMorgan Chase, Kotak Mahindra Bank, and Morgan Stanley are the investment banks involved. Hyundai's SUV sales, which comprised 67% of total sales in May, highlight its market success. The IPO could revitalize the Indian automotive market, potentially inspiring other automakers to pursue similar ventures. (Source)

Japan's Staffing Startup Timee Targets July IPO in Tokyo

Timee, a Japanese staffing startup, is targeting a July IPO in Tokyo, aiming for a $1 billion valuation. The company operates a platform that connects workers with short-term gig opportunities across various sectors. Daiwa Securities and Morgan Stanley are appointed as joint global coordinators for the IPO, with the Tokyo Stock Exchange potentially approving the listing as early as next week. Timee has 7 million registered users seeking flexible work shifts and quick payments. The IPO reflects Japan's evolving labor market, influenced by demographic changes and increased demand for flexible work. Timee's backers include Itochu and CyberAgent, while investors such as Jafco plan to sell shares in the IPO. (Source)

StubHub Plans IPO as Soon as Next Month

Ticket resale platform StubHub is planning an IPO as early as next month, working with Goldman Sachs, JPMorgan, and Bank of America. The company reported $350 million in EBITDA and $1.4 billion in revenue for the year ending March. StubHub seeks a $16.5 billion valuation, matching its 2021 funding round. Competitors include Vivid Seats, with a market cap of $1.2 billion, and Live Nation, valued at $24 billion. The US DOJ lawsuit against Live Nation could alter market dynamics, potentially benefiting StubHub. Initial discussions with investors are ongoing, with no final decisions made yet. StubHub operates in over 90 countries, integrating platforms StubHub and Viagogo. (Source)

Walgreens Boots Alliance Halts IPO Plans for Boots UK

Walgreens Boots Alliance (WBA) has suspended plans for an IPO of Boots UK and is exploring potential sale options. WBA is in discussions with potential buyers, including private equity firms. Boots UK is valued at approximately £7 billion ($8.9 billion). This strategic review by WBA aims to enhance long-term shareholder value by considering all possible options. Walgreens' stock has declined by roughly 50% over the past year, with a market cap of $13.7 billion. In Q2 FY24, WBA reported a net loss of $5.9 billion and an operating loss of $13.2 billion. Previous potential buyers included Reliance Industries, TDR Capital, and Apollo Global Management. (Source)

Octopus Energy CEO Suggests IPO Might Not Be in London

The CEO of Octopus Energy has suggested that their IPO might not take place in London due to investment limitations. The London Stock Exchange has been struggling to retain big-name listings in the face of New York's competitive edge. Recent high-profile exits include Arm, Flutter, and Shell considering New York over London. Valued at $9 billion, Octopus Energy aims to expand its Kraken customer service software platform, particularly in the US. The upcoming UK election could influence London's financial attractiveness and regulatory environment. Despite these challenges, London continues to attract some IPOs, such as Chinese fast-fashion giant Shein. (Source)

Prisma Properties Opens Books for $148 Million IPO in Stockholm

Swedish real estate company Prisma Properties has opened books for a $148 million fixed price IPO in Stockholm. The IPO includes 45.5 million new shares priced at SKr27.50 each, raising SKr1.25 billion ($148 million). Alma Property Partners is selling 11.45 million shares for SKr315 million, with a free -float of 34.6%. The IPO values Prisma at SKr4.52 billion ($426 million), a 5% discount to net asset value (NAV). Primary proceeds will fund development and property investments, with a 15% secondary greenshoe option available. Key investors include Capital World Investors, Clearance Capital, Lansforsakringar Fondforvaltning, and Odin Forvaltning. Trading is set to begin on June 18, attracting interest from both domestic and international investors across Europe. (Source)

Shein to Miss Out on FTSE 100 Due to Insufficient Share Float

Chinese fast-fashion giant Shein will miss out on inclusion in the FTSE 100 due to insufficient share float. Although Shein plans to file its IPO prospectus with the FCA this month, the float is expected to occur after August. With a valuation of $66 billion, Shein could have ranked among the FTSE 100's top ten. The company aims to raise over £1 billion, though co-founder Sky Xu will retain his stake. Index tracker funds will not be required to hold Shein shares due to FTSE criteria. Shein faces scrutiny over its business model, particularly regarding tax advantages and labor practices, along with ESG-related controversies and investor skepticism. (Source)

Biotechs Line Up for IPOs in Bullish Sign for US Listings Market

Biotech firms Alumis and Upstream Bio have filed for IPOs, targeting the US market before the November presidential election. Alumis, which raised $259 million this year and has a valuation around $1 billion, focuses on treatments for severe plaque psoriasis. Upstream Bio's lead drug targets severe asthma and is currently in mid-stage trials. The US biotech IPO market shows signs of recovery, with $1.7 billion raised this year, a 64% increase year on year. Despite poor performance of most 2024 listings, companies like CG Oncology and Rapport Therapeutics have performed well. Biotech IPO candidates might delay listings until after the presidential election for market clarity. Large pharmaceutical companies are likely interested in Alumis due to its phase-three drug trials. (Source)

Minieye Technology Files for Hong Kong IPO

Chinese autonomous driving firm Minieye Technology has filed for an IPO in Hong Kong, aiming to raise $150 million USD. The company has surpassed a market capitalization of $512 million USD. Notable backers include Alibaba CEO Eddy Wu Yongming, who holds a 2.3% stake. Minieye generated revenue of 476 million yuan ($66.6 million USD) last year, despite reporting a loss of 139 million yuan ($19.4 million USD) in 2023. The firm supports 29 carmakers with Level 2 autonomous driving solutions. (Source)

Cinclus Pharma Applies for Listing on Nasdaq Stockholm

Swedish company Cinclus Pharma has applied for listing on Nasdaq Stockholm, with trading expected to begin on June 20, 2024. The offering price is set at SEK 42 ($3.89 USD) per ordinary share, with approximately 17 million newly issued shares. The total offering is valued up to SEK 715 million ($66.3 million USD). Cinclus Pharma specializes in developing treatments for gastrointestinal diseases. (Source)

PureHealth May Gain $800 Million from Ardent Health Services' IPO

UAE healthcare operator PureHealth may gain $800 million from its US subsidiary Ardent Health Services' IPO. PureHealth holds a 26.05% stake in Ardent Health, acquired for $500 million in 2022. Ardent Health aims to raise $400 million and reach a $5 billion valuation through its IPO. The listing could increase PureHealth’s stake value to approximately $1.3 billion. Ardent Health operates 30 hospitals and over 200 care sites across six US states. PureHealth's shares on ADX are currently trading at Dh3.65, having peaked over Dh6 since its listing. PureHealth's portfolio includes the UK’s Circle Health and Sheikh Shakbout Medical City in the Middle East. (Source)

UK Financial Watchdog to Approve Major Listing Regime Overhaul

The UK Financial Conduct Authority (FCA) is set to approve the largest overhaul of the listing regime in 40 years. The FCA will review the final rules on June 27, aiming to boost London’s stock market by easing regulatory requirements. The new rules will combine the premium and standard listing segments into one category. However, FCA's chief cautions that the reforms may increase risks related to corporate transactions and higher-risk businesses listing. The overhaul follows a decline in London's IPOs and a shift towards US listings by major companies. The FCA plans to announce the changes after the July 4 election, with implementation expected in mid-July. (Source)

Yanolja Plans $400 Million US IPO as Soon as July

South Korean travel app Yanolja, backed by SoftBank, plans a $400 million US IPO as soon as July. The IPO could value Yanolja between $7 billion and $9 billion. Goldman Sachs and Morgan Stanley are set to lead the IPO, although launch details remain subject to change. Founded in 2005, Yanolja acquired Israeli tech provider Go Global Travel last year. The company has expanded its cloud services for hospitality, positioning itself against competitors like Airbnb and Expedia. Yanolja recently opened its 50th overseas office in Manhattan, aiming to grow its presence in North America. (Source)

Dida Plans Pre-Marketing for Hong Kong IPO

Chinese ride-hailing start-up Dida is preparing for pre-marketing of its Hong Kong IPO, aiming to raise around $50 million. CICC, Haitong International, and Nomura are the sponsors of the IPO. Dida, a smaller rival to Didi Global, initially filed for a Hong Kong IPO in October 2020. The company offers carpooling and taxi hailing services, generating revenue from service fees and advertising. Dida posted 2023 revenue of RMB 815 million ($113 million), a 43% increase from 2022, and an adjusted net profit of RMB 226 million, a 166% increase from the previous year. Major shareholders include co-founders (33.6%), Nio Capital (17.7%), and IDG Capital (10.4%). (Source)

Laopu Gold Plans $200 Million Hong Kong IPO

Chinese company Laopu Gold is planning a Hong Kong IPO this month, aiming to raise around $200 million. The company seeks listing approval from the Stock Exchange of Hong Kong after receiving the green light from the China Securities Regulatory Commission in March. Laopu Gold produces and sells gold jewelry through 32 boutiques in 13 Chinese cities. The company reported a profit of RMB 416 million ($57 million) for 2023, up 340% from 2022. Laopu Gold is capitalizing on surging gold prices for its IPO. China Securities International is the sponsor for the IPO. Detailed IPO terms and the exact listing date are yet to be disclosed. (Source)

Guzman y Gomez Increases ASX IPO Size to A$335 Million

Australian fast-food chain Guzman y Gomez has increased its ASX IPO size by 38% to A$335 million ($224 million), enabled by a commitment from Capital Research Global Investors. Initially, the deal included A$200 million in primary shares and A$42.5 million in secondary shares, each priced at A$22. The secondary portion has increased to A$135 million, while the primary tranche remains unchanged. Post-IPO, TDM Growth Partners will own 26.2% of Guzman y Gomez. The offer period runs from June 10 to 14, with shares expected to list on June 20. Founded in Sydney in 2006, Guzman y Gomez operates 185 restaurants in Australia and plans to expand using the IPO proceeds. (Source)

Sunwoda Electric Vehicle Battery Considers Moving IPO to Hong Kong

Sunwoda Electric Vehicle Battery Co, a unit of Shenzhen-based Sunwoda Electronic Co, is considering moving its IPO to Hong Kong due to slow approval processes in Shenzhen. The company has been discussing this potential move with advisors. Sunwoda EVB previously applied to list on Shenzhen’s ChiNext board with Citic Securities as sponsors. In a recent financing round, Sunwoda EVB raised CNY 1.65 billion ($229 million), valuing the company at CNY 36 billion ($4.98 billion). Parent company Sunwoda Electronic's shares have seen minimal gains this year, with a significant drop of over 70% from their peak in 2021. Sunwoda EVB supplies batteries to automakers including Dongfeng Motor Group and Geely Automobile Holdings. Deliberations regarding the IPO move are ongoing, with no final decision yet. (Source)

New Ruipeng Pet Group Withdraws Proposed $100 Million US IPO

Chinese company New Ruipeng Pet Group has withdrawn its proposed $100 million US IPO. The company filed for the IPO in January, planning to list on Nasdaq under the symbol RPET, though no specific IPO terms were set, and the $100 million figure was likely a placeholder. New Ruipeng operates 1,942 pet hospitals across China and offers veterinarian continuing education. The company also provides pet supplies and services through its Rvet portal and JackPet stores. New Ruipeng is incorporated in the Cayman Islands. The reason for the IPO withdrawal has not been disclosed. (Source)

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