The IPOX® Update 6/14/24

Jun 14

Tempus AI's $400 Million Nasdaq IPO Heavily Oversubscribed

Tempus AI, a medical data company, has announced that its $400 million Nasdaq IPO is heavily oversubscribed, with 11.1 million shares covered 13 times over. The offering is priced within the $35-$37 range, with shares set to trade under the ticker "TEM." Tempus disclosed a patent infringement lawsuit by Guardant Health, alleging infringement on liquid biopsy technology patents. Despite the lawsuit, investor demand remains strong, with no withdrawals reported. The IPO terms imply a market cap of around $6 billion, below previous valuations from funding rounds. In April, SoftBank invested $200 million in Tempus, converting to shares at a 10% discount to the IPO price. Tempus reported a 2022 net loss of $214 million on $532 million revenue, with a Q1 2023 loss of $65 million on $146 million revenue. (Source)

Apollo Global Management Seeks to Raise $500 Million in Aeromexico's IPO

Aeromexico, Mexico's legacy airline, is planning an IPO to raise $400 million to $500 million, with Apollo Global Management and other investors leading the effort. The airline emerged from bankruptcy protection two years ago and is collaborating with Barclays, Morgan Stanley, JPMorgan, Evercore, and Apollo on the IPO. Apollo owns 22% of Aeromexico, acquired during the airline's Chapter 11 restructuring in 2020. Delta Air Lines is also a shareholder in Aeromexico. The timing of the IPO remains uncertain due to market volatility following recent Mexican elections. (Source)

Telix Pharmaceuticals Cancels Planned $200 Million Nasdaq IPO

Telix Pharmaceuticals, a radiopharma biotech listed on the Australian Securities Exchange since 2017, has canceled its planned $200 million Nasdaq IPO at the last minute due to unfavorable market terms. The company aimed to raise $183 million with an option for $211 million by offering 17 million ADSs. Telix cited alignment with shareholder interests and sufficient current capital as reasons for the withdrawal. Despite positive pipeline results and strategic acquisitions leading to a significant share price increase in 2023, Telix emphasized its profitability and capability to fund key U.S. product launches without the IPO. The company's lead drug, TLX591, is in a phase 2/3 global study for prostate cancer patients. Shares of Telix Pharmaceuticals fell as much as 2.7% to A$16.02, their lowest level since May 27. (Source)

Golden Goose IPO to Test its Super-Star Status

Golden Goose, a luxury sneaker brand owned by private equity firm Permira, has set a conservative price range for its upcoming IPO. The Italian brand, famous for its $550 Super-Star sneakers, plans to list in Milan on June 21. Permira will remain a major shareholder, with Golden Goose using the proceeds to repay debt. The brand's 34% EBITDA margin and reliance on a single luxury item draw comparisons to the Italian brand Moncler. The IPO price range implies an 11x 2023 EBITDA valuation, which is significantly lower than Moncler's 14x multiple. Investors may question Golden Goose's ability to sustain growth amid a slowdown in the luxury sector. Notably, another Permira-owned footwear brand, Dr. Martens, has struggled since its 2021 London IPO. (Source)

Hyundai Motor India Plans $3 Billion IPO

Hyundai Motor India plans to raise $3 billion through an IPO, targeting a valuation of $18-$20 billion. The IPO could surpass India's largest IPO record set by LIC's $2.7 billion listing in 2022. Hyundai will file draft papers with Sebi today, aiming to sell 140-150 million shares. Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley are advising on the IPO. Hyundai Motor India reported FY23 revenue of $7.3 billion [Rs 60,000 crore] and profits of $570 million [Rs 4,653 crore]. The IPO is an offer for sale by the parent company, reducing Hyundai's dependence on its Korean parent. A successful IPO could set a new benchmark for future listings and boost investor confidence in the Indian market. (Source)

Johor Plantations Group Launches RM735M IPO, Malaysia's Largest in 2 Years

Johor Plantations Group, a Malaysian palm oil company, has launched a RM735 million ($156 million) IPO, marking Malaysia's largest IPO in two years. The last significant Malaysian IPO was by dairy producer Farm Fresh, which raised RM1 billion in March 2022. Johor Plantations is offering up to a 35% stake (875 million shares) at a retail price of 84 sen per share. The sole selling shareholder, Kulim, a unit of the Johor state government agency Johor Corp, will retain a 65% stake. Of the IPO proceeds, RM345.2 million will go to Kulim, while RM389.8 million will be used for capital expenditure and replanting. Johor Plantations aims to become a fully integrated palm oil producer by diversifying into downstream specialty oils and fats. IPO cornerstone investors include abrdn Islamic Malaysia, AHAM Asset Management, and Kumpulan Wang Persaraan. The listing date is set for July 9. (Source)

Shein Raises Prices Ahead of Planned IPO

Shein, the fast fashion retailer, has increased its prices to boost revenue and profit ahead of its planned IPO. According to data from EDITED, Shein's price hikes have outpaced rivals H&M and Zara. The company estimates its 2024 revenue to be $50 billion, a 55% increase from the previous year. Shein seeks a valuation of around $64 billion (50 billion pounds) in a London IPO. In the U.S., Shein's footwear prices rose to $40.7 due to the inclusion of external brands like Skechers. While higher prices may affect purchase rates, Shein aims to attract more frequent site visits. (Source)

UAE Hospital Operator NMC Healthcare Explores IPO or Sale

NMC Healthcare, a UAE-based hospital operator, is exploring strategic options, including a potential IPO or sale. The company has appointed Rothschild & Co as joint financial advisor to review alternatives for shareholders and plans to appoint a second advisor. NMC underwent a tumultuous phase starting in late 2019, which led to the removal of previous management and ownership. Since March 2022, NMC has achieved several milestones, including appointing new leadership and resolving legacy creditor litigation. NMC operates 85 hospitals, clinics, and medical facilities across the UAE, serving over 5.5 million patients annually. The company is well-positioned to capitalize on the UAE's rapid population growth and increasing demand for high-quality medical services. Healthcare IPOs in the UAE and Saudi Arabia have been extremely popular, with Abu Dhabi's PureHealth being a notable success. (Source)

Bosch Considers Listings of Certain Divisions to Aid Acquisitions

Bosch, the German technology group and auto supplier, is open to public listings of certain divisions to aid in financing acquisitions, according to CEO Stefan Hartung. Hartung emphasized that these listings would not involve the group or its core auto business. Bosch has substantial experience as an issuer of billions in bonds but needs all capital market skills. Hartung stated, "We ourselves are not going to the capital market as Bosch" due to the company's legal structure. The CEO reiterated recent comments about the necessity of sub-company listings in suitable areas. Bosch aims to expand its presence in the underrepresented US market, with Hartung stating, "Bosch has to deliver." The company is among the firms competing to acquire $6 billion+ heating and ventilation assets from Johnson Controls International in the US. (Source)

Plenitude Prepares for Milan Bourse Listing

Plenitude, the retail and renewable arm of Eni, is prepared to list on the Milan bourse. The IPO, initially delayed in 2022 due to the energy crisis stemming from Russia's invasion of Ukraine, is now back on track. Eni recently signed a deal with Energy Infrastructure Partners (EIP) for a 7.6% stake in Plenitude, with EIP investing approximately €600 million (USD 649 million), valuing Plenitude at €10 billion (USD 10.82 billion). Plenitude awaits stable market conditions and reduced volatility to proceed with the IPO. The company currently serves over 10 million customers, targeting 11.5 million. Plenitude may also consider acquiring additional customer portfolios to grow its client base. (Source)

Raspberry Pi Shares Surge 16% as Retail Investors Begin Trading

Raspberry Pi, a budget computer firm, saw its shares surge 16% on Friday as retail investors began trading. The shares reached 478p, a 70% premium on its IPO price. Shares had previously risen 47% since the IPO, initially available only to institutional investors. Raspberry Pi's IPO, raising $206 million [£166 million], was a significant boost for the London market, which has faced departures, including Flutter and TUI moving listings abroad. Founded in 2008, Raspberry Pi has sold over 60 million single-board computers globally. In 2023, Raspberry Pi reported revenues of $266 million [£211.1 million] and operating profits of $37.5 million [£29.8 million]. (Source)

Fast Fashion Retailer Shein Raises Prices Ahead of Planned IPO

Flix Eyes Stake Sale Instead of IPO

German bus and train services company Flix is considering a stake sale rather than proceeding with an IPO. Flix is in early-stage discussions with investors, including private equity firm EQT, to sell a 30% stake. This potential deal could value Flix at $3.4 billion (€3.2 billion), potentially higher than an IPO valuation. The company had previously planned an IPO in the first half of 2024, with advisors including JP Morgan, Goldman Sachs, and BNP Paribas. Both Flix and EQT have declined to comment on the potential stake sale. The move comes as Flix explores alternatives to capitalize on higher valuations compared to the current IPO market conditions. (Source)

Special Opportunities REIT Cancels London IPO Due to Weak Investor Demand

Special Opportunities REIT, a British property trust, has cancelled its planned London IPO owing to insufficient investor demand. The trust aimed to raise £500 million but fell short of the £250 million minimum required. The UK's commercial real estate market continues to grapple with investor concerns about ongoing strains and reduced demand post-pandemic. This decision marks another setback for London's struggling IPO market, which has been lagging behind some global counterparts. In contrast, Raspberry Pi, a computer maker, saw its shares soar on their London debut, bringing rare positive news to the market. Additionally, landlord Great Portland Estates completed a £350 million rights issue with a 97% take-up rate, with bank underwriters expected to cover any unsold shares. However, the UK economy showed no growth in April, according to official data released on Wednesday. ( Source)

UK Neobank Starling Group Committed to Future IPO

Starling Group, a UK neobank, remains committed to a future IPO on the London Stock Exchange. Higher interest rates boosted Starling's annual profit by 55% to GBP 301.1 million (USD 380 million). The bank's Interim CEO, John Mountain, confirmed ongoing discussions about the IPO's timing, with incoming CEO Raman Bhatia set to update plans after taking office on July 24. Starling aims to expand globally with its banking software, Engine, which has already secured clients in Romania and Australia. However, impairment provisions have risen to GBP 47 million (USD 59.2 million) due to increased arrears in mortgage and small business loans. Despite high competition, Starling's deposit base grew by 4% to GBP 11 billion (USD 13.88 billion). (Source)

NeOnc Technologies Cancels Proposed IPO

NeOnc Technologies has canceled its proposed IPO after initially filing in December. The company had planned to offer 6 million shares priced between $11.25 and $13.75, aiming to raise approximately $75 million. An update on March 1 confirmed the expected offering details before the cancellation. (Source)

DIFC CEO Predicts UAE and Saudi IPO Boom in 2024

DIFC CEO Arif Amiri predicts a significant IPO boom in the UAE and Saudi Arabia in 2024. Dubai plans 10 more government IPOs following a successful 2022, which saw $22 billion raised from 51 IPOs. The IPO of Parkin was notably oversubscribed 165 times, attracting $71 billion in demand. IPO fees in the Middle East and North Africa exceeded $1.2 billion, with equity deals generating $13 billion in 2023. Dubai experienced an influx of 109,900 high-net-worth individuals in 2023, including 298 centi-millionaires and 20 billionaires. DIFC's ecosystem now includes over 370 asset management firms, 440 registered foundations, and 600 active family business entities. The DIFC launched the world's first Family Wealth Centre in March 2023 to support family business growth and succession planning. (Source)

Peel Hunt Predicts Rebound in London IPO Market

Peel Hunt predicts a rebound in the London IPO market after a challenging year. Recent IPOs, including that of Raspberry Pi, indicate a revival in investor interest. CEO Steven Fine notes tentative signs of market recovery despite previously low activity levels. The investment bank advised on Raspberry Pi's successful IPO, which has boosted market confidence. Fine expects a fuller reopening of the IPO market by late 2024. Better-than-expected UK GDP figures and reduced investor outflows are positive signs. Peel Hunt remains optimistic about high-quality companies returning to the London market. (Source)

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

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