The IPOX® Update 6/28/24

U.S.

Hospital Operator Ardent Health Seeks U.S. IPO

Ardent Health Partners, the fourth-largest privately held, for-profit hospital operator in the U.S., has filed for a $100 million IPO, renewing efforts after withdrawing in 2020. The company generated $5.4 billion in revenue in 2023, representing a 6% year-over-year growth. However, net income fell over 50% to $129.0 million due to increased operating expenses. Ardent Health Partners is seeking a listing on the New York Stock Exchange under the ticker ARDT. The company plans to use the IPO proceeds for debt repayment and general corporate purposes. This move by Ardent Health Partners highlights the ongoing dynamism in the healthcare sector and the potential for established players to tap into public markets for growth and financial restructuring. (Source)

Israeli AI Processor Developer Hailo Considers Wall Street IPO

Israeli AI processor developer Hailo is considering a significant Wall Street IPO. Founded in 2017, Hailo has raised $350 million and serves over 300 customers globally. The company's AI chips enhance edge device performance at lower power and cost without cloud dependency, finding applications in various markets including autonomous driving, security, and smart industries. Hailo recently announced partnerships, including one with Raspberry Pi, boosting its global exposure. The appointment of Yaron Garmazi as CFO and COO suggests IPO preparations are underway. A potential IPO could value Hailo between $12-15 billion, potentially benefiting early investors from Israel's auto-tech industry. This development underscores the growing interest in AI technology companies and the potential for significant valuations in the sector. (Source)

Vista-Backed Solera Seeks $10-$13 Billion Valuation in IPO

Solera, a vehicle life-cycle data and software services provider backed by Vista Equity Partners, is seeking a valuation of $10-$13 billion in its upcoming IPO. The company may raise up to $1.5 billion in the offering. Solera has filed confidentially for the IPO, with the public filing expected this week and marketing to investors potentially starting mid-July. The company serves over 300,000 customers, including insurers and vehicle dealers. This IPO comes amid a rebounding U.S. IPO market, which has raised $20 billion in the first half of 2024. Goldman Sachs, Morgan Stanley, Bank of America, and Jefferies are working on the offering. Solera's IPO plans reflect the growing interest in technology-driven services in the automotive sector and the improving conditions in the IPO market. (Source)

Lineage, Inc. Files for U.S. IPO, Seeking $30 Billion Valuation

Lineage, Inc., the global leader in temperature-controlled logistics, has filed for a U.S. IPO, applying to list on NASDAQ under the symbol "LINE". The company is seeking a valuation of $30 billion or more. Morgan Stanley, Goldman Sachs, BofA Securities, and J.P. Morgan are among the IPO underwriters. For the quarter ending March 31, Lineage reported $1.3 billion in revenue, a $48 million net loss, $444.2 million NOI, and $326.6 million adjusted EBITDA. Lineage operates over 450 facilities in 18 countries, showcasing its significant global presence in the cold chain logistics sector. This IPO highlights the growing importance of specialized logistics services and the potential for large-scale offerings in the sector. (Source)

Zenas BioPharma Plans $150 Million U.S. IPO

Zenas BioPharma, a clinical-stage biopharmaceutical company based in Waltham, Massachusetts, is planning a U.S. IPO to raise $150 million or more as soon as July. The company focuses on developing therapies in inflammation and immunology. In May, Zenas closed a $200 million series C preferred stock financing led by SR One, following a $118 million series B fundraising in 2022. This IPO plan comes amid a resurgence in biotechnology IPOs on U.S. exchanges, which have raised $1.6 billion this year, up from $447 million last year. Zenas BioPharma's IPO plans reflect the ongoing interest in innovative biopharmaceutical companies and the improving conditions for biotech offerings in the U.S. market. (Source)

Pershing Square USA to Offer Shares at $50 Each in New York IPO

Pershing Square USA, a fund managed by billionaire Bill Ackman, is planning to offer shares at $50 each in its New York IPO. The new fund, which targets retail investors and U.S. investors, will require a minimum investment of 100 shares. It will mimic the Europe-listed Pershing Square Holdings but with lower fees, including an initial management fee of 2% that will be waived for the first 12 months. $500 million from Ackman's recent stake sale will anchor Pershing Square USA. The fund will list on the NYSE under the symbol "PSUS". Citigroup, UBS, BofA, and Jefferies are the underwriters for the IPO. This offering represents an opportunity for U.S. investors to access Ackman's investment strategy through a publicly traded vehicle. (Source)

Asia-Pacific

Duality Biologics Plans $200-$300 Million Hong Kong IPO

Duality Biologics, a clinical-stage biotech company, is planning a Hong Kong IPO aiming to raise $200-$300 million. The company has selected Morgan Stanley, Jefferies, and Citic Securities to handle the float, with plans to bring the IPO to market by the end of 2024. Duality Biologics focuses on antibody drug conjugate therapeutics for cancer and autoimmune diseases. The company has partnerships with BioNTech and BeiGene that could yield up to $2.8 billion in milestone payments. In its last private funding round in 2021, Duality Biologics raised $90 million. This IPO plan highlights the ongoing interest in biotech companies and the potential for significant fundraising in the sector. (Source)

Bain Capital-Backed Chipmaker Kioxia to File Preliminary IPO Application

Japanese chipmaker Kioxia, backed by Bain Capital, is set to file a preliminary IPO application on the Tokyo Stock Exchange. The full IPO application is expected in August, with a listing targeted for October or December. Bain Capital aims to recover capital via share sale, while Kioxia plans to raise capital with new shares. Mitsubishi UFJ Morgan Stanley Securities and Nomura Securities are advising on the listing. Kioxia had previously postponed its 2020 IPO due to U.S.-China trade tensions, targeting a $12.68 billion valuation at that time. Despite reporting a 253 billion yen ($1.6 billion) operating loss, Kioxia has refinanced 540 billion yen in loans and secured an additional 210 billion yen loan facility. This IPO attempt reflects the ongoing volatility in the semiconductor industry and the potential for significant offerings in the sector. (Source)

Momenta Plans U.S. IPO by End of 2024 or First Half of 2025

Chinese autonomous driving solutions provider Momenta is planning a U.S. IPO by the end of 2024 or first half of 2025. The company, valued at approximately $5 billion, has received approval from China's securities regulator to issue up to 63,352,856 ordinary shares for its U.S. IPO. Momenta plans to list on either the Nasdaq Stock Market or New York Stock Exchange. The company provides L2 and L4 autonomous driving systems and has over 10 mass production projects with automakers like SAIC, Lotus, and Denza. Momenta's solutions are used in over 50 vehicle models, including those from BYD Toyota EV and FAW Toyota. This IPO plan underscores the growing interest in autonomous driving technology and the potential for Chinese tech companies in the U.S. market. (Source)

Hozon New Energy Automobile Files for Hong Kong IPO

Chinese electric vehicle maker Hozon New Energy Automobile has filed for a Hong Kong IPO to fund its global expansion and avoid China's discount war. The company may raise up to $1 billion, potentially making it one of Hong Kong's top five fundraising efforts this year. Hozon plans to use the IPO proceeds to support its "internationalisation strategy" and localization of production facilities, as well as expand its global sales, service, and charging networks. The company has raised $3.63 billion in venture capital from investors including Qihoo 360, Citic Securities, and BAIC-BJEV. Despite reporting a widened loss of 6.9 billion yuan ($952 million) last year, Hozon's budget EVs are priced between $13,763 and $27,526. This IPO filing reflects the ongoing competition in the EV market and the potential for significant fundraising in the sector. (Source)

South Korean Gaming Company Shift Up Aims to Raise $313 Million in IPO

South Korean gaming company Shift Up is aiming to price its IPO at the top end of its range, potentially raising $313 million. At this pricing, Shift Up would be valued at $2.52 billion. Tencent, which currently holds a 40% stake, will see its share reduced to about 35% post-IPO. Shift Up is known for popular games such as "Destiny Child" and "Goddess of Victory: Nikke". The company reported an operating profit of 111 billion won ($80 million) on revenue of 169 billion won ($122 million) in 2023. Shift Up is expected to list in July, following the successful IPO pricing of Webtoon Entertainment. This IPO reflects the strong performance of the gaming industry and the potential for significant valuations in the sector. (Source)

Alibaba-Backed Baiwang Opens Books for $50 Million Hong Kong IPO

Baiwang, an Alibaba-backed company, has opened books for a Hong Kong IPO aiming to raise up to $50 million. Pricing is expected the week of July 1, with listing planned for the week of July 8. Baiwang provides SaaS financial and tax digitalization and data-driven intelligence solutions. The company posted an adjusted net loss of $11 million in 2023, up from a $9 million loss in 2022. Alibaba owns 11.9% of Baiwang, while Watertek holds 9.9% and Fosun International 5.3%. Haitong International is serving as the IPO sponsor. This IPO highlights the ongoing interest in financial technology companies and the potential for smaller offerings in the Hong Kong market. (Source)

Asia Expected to be Hot Spot for Equity Deals in H2 2024

Asia is anticipated to be a hot spot for equity deals in the second half of 2024, driven by IPO revivals. In the first half of 2024, India's ECM deals surged 137%, raising $28.5 billion, with IPOs raising $4.25 billion, an 89.3% increase over the previous year. Hyundai India's upcoming IPO, expected to be between $2.5 billion and $3 billion, could potentially be India's largest ever. In contrast, mainland Chinese ECM deals dropped nearly 70%, while IPOs fell 83.1% to $5.3 billion. Hong Kong's IPO value declined from $2.12 billion in H1 2023 to $1.46 billion in H1 2024. However, investor sentiment in Hong Kong and China has improved due to policy support and strong corporate earnings. These trends indicate a shifting landscape in Asian equity markets, with India showing particular strength while China and Hong Kong show signs of potential recovery. (Source)

MENA

Saudi Arabia's Fourth Milling Company Plans to List 30% Stake in IPO

Saudi Arabia's Fourth Milling Company (MC4) plans to list a 30% stake, or 162 million shares, in an initial public offering (IPO). The Saudi Capital Markets Authority (CMA) has approved the public listing application. MC4 produces flour, feed, bran, and wheat derivatives, with factories in Riyadh, Medina, and the eastern region. The company has a daily milling capacity of 3,150 metric tons of wheat grains and 450 tons of animal feed. Established in 2017, MC4 was privatized in 2021 for $229 million under Saudi Arabia's Vision 2030 strategy. This IPO follows Modern Mills' (MC3) flotation in March, which raised $314.6 million by selling a 30% stake. The CMA has also recently approved Arabian Mills' (MC2) IPO application. These developments highlight Saudi Arabia's ongoing efforts to privatize state-owned enterprises and diversify its economy in line with its Vision 2030 strategy. (Source)

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