The IPOX® Update 7/5/24

U.S.

Actuate Therapeutics Plans $50 Million IPO

Actuate Therapeutics (ACTU), a biotech firm developing GSK-3 inhibitor drugs for metastatic pancreatic cancer, plans to raise $50 million in an initial public offering (IPO) in the week of July 8th. The company will issue 5,600,000 shares priced between $8.00 and $10.00 per share, targeting a market capitalization of $207 million. Titan Partners is the underwriter, with Newbridge Securities Corp. as co-manager. Actuate Therapeutics' lead drug, elraglusib, is currently in a Phase 2 trial targeting metastatic pancreatic ductal adenocarcinoma (mPDAC). Elraglusib has received FDA Fast Track and Orphan Drug Designations for pancreatic cancer in the U.S. (Source)

KKR Plans Nasdaq IPO for OneStream in July

KKR is planning a Nasdaq IPO for digital finance software firm OneStream in July. Morgan Stanley, JP Morgan, and KKR Capital Markets are leading a 19-bank syndicate for the IPO. OneStream's offering includes a "synthetic secondary" component to repurchase KKR's equity interests. The company reports $480 million in annualized recurring software revenue and over 1,400 customers. OneStream's platform automates workflows and provides financial forecasts. Founded in 2006 by Thomas Shea and Craig Colby, OneStream has positive cash flow and minimal debt. Previous IPO plans were delayed due to changes in software valuations. (Source)

Colombian Airline Avianca Group Plans Confidential US IPO Filing

Avianca Group, a Colombian airline, plans to confidentially file for a US IPO after emerging from bankruptcy. The airline exited Chapter 11 bankruptcy in December 2021, which it had filed in May 2020. Avianca reported $1.27 billion in Q1 revenue, up from $1.09 billion a year earlier, and turned a $13 million profit in Q1, compared to a $12 million loss in 2022. As of March, Avianca's fleet includes 128 Airbus 320s and 13 Boeing 787s. The IPO's timing and execution will depend on market conditions. Other Latin American airlines, including Aeroméxico and LATAM Airlines, are also pursuing US IPOs.

Solera Corp Reveals Revenue Rise in U.S. IPO Filing

Risk management and asset protection software firm Solera Corp has revealed a 3.5% annual revenue rise in its U.S. IPO filing. The company's revenue increased to $2.44 billion for the year ended March 31, 2024, while its annual net loss widened to $471.6 million from $374.5 million year-over-year. Solera serves over 280,000 customers in more than 120 countries with its automotive SaaS platform. The company plans to use the IPO proceeds to pay down $5.2 billion in debt. Solera's shares are set to list on the NYSE under the symbol "SLRA". Morgan Stanley, Goldman Sachs, BofA Securities, and Jefferies are serving as lead underwriters for the IPO. (Source)

Europe

ZF Friedrichshafen Considers Future IPO for Commercial Vehicle Division

German automotive systems supplier ZF Friedrichshafen is considering an initial public offering (IPO) for its commercial vehicle division in the future. CEO Holger Klein stated that IPO options will be discussed with shareholders. An IPO for ZF's airbag division is also under consideration. The commercial vehicle division contributed 17% of ZF's total sales last year. ZF is managing debt from acquisitions and evaluating capital market options. The company is also navigating an economic downturn in the truck manufacturing sector. (Source)

Revolut Considers IPO Venue Options

British fintech company Revolut is considering various options for its IPO venue. Board member Martin Gilbert stated that the company is at least a year away from a stock market listing. Revolut is reportedly working with bankers to sell around $500 million in existing shares, valuing the firm at over $40 billion. Co-founder Nik Storonsky previously expressed interest in listing on Nasdaq over the London Stock Exchange. Revolut has been working to secure a UK banking license for over three years. The Financial Conduct Authority has recently eased listing rules for founder-led companies. Revolut's 2023 financial results showed profit, and the firm has been improving its financial controls. (Source)

Art Share 003 S.A. Announces Intention to Float on Luxembourg Art Exchange

Art Share 003 S.A., a Luxembourg-based company, has announced its intention to float via private placement for qualified investors. The company holds the Gerhard Richter painting 'Abstraktes Bild (809-4)', which was sold for $34.4 million in October 2012. The offered shares will be Class B redeemable shares, settled in Euro, and will be listed on ARTEX Global Markets AG (ARTEX GM). The institutional offering targets investors in the European Economic Area, UK, and Switzerland. Art Share 003 operates as a securitization vehicle under Luxembourg law. (Source)

Northern Data's Shares React to Reports of Possible U.S. IPO for AI Units

Shares of German bitcoin miner Northern Data increased following reports of a possible U.S. IPO for its AI units. Bloomberg reported that the AI cloud computing and data center units could be valued at $16 billion, although Northern Data declined to comment on the IPO speculation. A Hauck Aufhäuser analyst expressed doubt about the $16 billion valuation, citing competition. Northern Data's stock rose 23% by 0829 GMT. The company is considering expanding into AI and data centers. (Source)

Europastry Postpones IPO Due to Market Conditions

Barcelona-based frozen bakery goods company Europastry has postponed its initial public offering (IPO) due to market conditions. The company cited "unfavourable market conditions and increased volatility" amidst European elections as the reason for the delay. Europastry plans to monitor market conditions to determine the timing of its IPO. The initial IPO plans included listing on the Barcelona, Bilbao, Madrid, and Valencia stock exchanges, with a primary offering of new shares valued at $240.89 million. Europastry operates in over 80 countries with 27 plants in the U.S. and Europe. The company reported Q1 2024 sales of $348 million and adjusted EBITDA of $50.48 million. (Source)

Fast-Fashion Group Shein Considers Listing Options

Fast-fashion group Shein is considering multiple options for its potential listing. The company confidentially filed with Britain's markets regulator in June for a possible London listing, while also keeping a Hong Kong listing as an option. Human rights groups in the UK have expressed concerns over Shein's labor practices in relation to its potential London IPO. Shein's listing plans remain under consideration. The company was valued at $66 billion in a 2023 fundraising round. British lawmakers have requested scrutiny of Shein's labor practices and use of tax exemptions. (Source)

Asia-Pacific

South Korea's IPO Market Reports High Subscription Rates in H1 2024

South Korea's initial public offering (IPO) market reported high subscription rates in the first half of 2024, with IPOs being oversubscribed 1,610 times on average. The Korean IPO market drew $151.9 billion in retail investor deposits during this period. HD Hyundai Marine Solution Co.'s IPO saw $18.1 billion in deposits. Stocks increased 91.4% on debut day, following a government policy change. Out of 29 firms, 27 set IPO prices 23% above their price band limits. Innospace Co., a spaceflight venture, was the only IPO to fall below its debut price. The gains of newly listed stocks were 35.5% a month after debut, compared to 91.4% on the first day. (Source)

MegazoneCloud Corp. Selects Banks for IPO

Korean cloud management company MegazoneCloud Corp. has selected JPMorgan, Samsung Securities, and Korea Investment & Securities for its initial public offering (IPO). Secondary arranger roles include Bank of America, Citigroup Global Markets Korea, and KB Securities. MegazoneCloud, backed by MBK Partners, reported $1.2 billion in revenue in 2023. The startup was valued at $1.7 billion in 2022 by MBK Partners and IMM Private Equity. MegazoneCloud provides cloud hosting, data analysis, and AI services to over 7,000 clients. South Korea's equity sales have seen $1.9 billion in IPOs priced this year, a 72% increase from last year. (Source)

Tencent-Backed Shift Up Prices KRX IPO

Shift Up, a South Korean gaming company backed by Tencent, has priced its Korea Exchange (KRX) IPO, raising $313.6 million. The IPO includes 7.25 million primary shares priced at 60,000 won, from a range of 47,000–60,000 won. The offering saw demand from 2,164 institutional investors, resulting in 225 times oversubscription. Shares will list on July 11, with 75% allocated to institutional investors and 25% to retail investors. Post-IPO, CEO Hyeong-tae Kim will hold 39.1%, and Tencent subsidiary Aceville will hold 35%. Shift Up's game Stellar Blade, released on April 26, was the second most downloaded game in the US and EU in April, with over one million copies sold since launch. (Source)

FirstCry Owner Brainbees Solutions Plans Domestic India IPO

Brainbees Solutions, owner of baby products marketplace FirstCry, is planning a domestic India IPO in early August. The IPO is expected to raise between $500 million and $700 million. The offering includes 18 billion rupees ($215 million) in primary shares and 54.4 million secondary shares. Major institutional vendors include SoftBank, Mahindra & Mahindra, and TPG. CEO Supam Maheshwari and over two dozen individual shareholders are also selling shares. A pre-IPO placement of 3.6 billion rupees will reduce the primary share component. Proceeds will fund new stores, warehouses, and marketing initiatives. For the nine months ended December, the company reported revenue of 48.9 billion rupees with a net loss of 2.78 billion rupees. (Source)

MENA

Gulf ECM Reports US$16bn in H1 2024

The Gulf Equity Capital Markets (ECM) reported US$16 billion in the first half of 2024. This volume surpasses 2023's US$5.4 billion and approaches the 2008 peak of US$18.5 billion. Excluding Saudi Aramco's follow-on offering, the 2024 deal count rose to 17 from 13 in 2023 with similar cash volumes. Initial Public Offerings (IPOs) accounted for 11 deals, while notable secondary offerings included Adnoc Drilling's US$934 million bookbuild. Private sector IPOs in the UAE increased, with US$1.3 billion in volume led by Spinneys and Alef Education. Saudi Arabia reported US$2 billion in seven private sector IPOs. EFG Hermes led GCC league tables with US$1.8 billion credit and an 11% market share. (Source)

EFG Hermes Reports on Gulf IPO Pipeline

EFG Hermes' ECM Head reports an active Gulf IPO pipeline, with e-commerce and IT companies expected to go public in the second half of 2024. EFG Hermes plans five IPOs in Saudi Arabia and two in Oman by year-end. In the UAE, IPOs are expected to be mainly private sector-led, with deals anticipated in Dubai and Abu Dhabi. Private sector IPOs are projected to range from $300 million to $500 million. EFG Hermes led IPOs for Dr. Soliman Abdel Kader Fakeeh Hospital and Miahona in 2024. UAE and Saudi IPO stocks from 2021-2024 have shown an average increase of 44% post-listing. The report notes that foreign investors face allocation challenges in Gulf IPOs, except for Aramco's major sale. (Source)

UAE-based Alpha Data Plans IPO in Abu Dhabi

UAE-based IT services company Alpha Data plans to raise $200 million from an initial public offering (IPO) in Abu Dhabi. EFG Hermes and Emirates NBD Capital are working with Alpha Data on the potential share sale, which is expected to take place by the end of the year. Alpha Data provides ICT solutions, including AI, mobility, security, IoT, big data, and cloud computing. This IPO follows three other IPOs in UAE stock markets this year, which added $5.8 billion in new market capitalization. Alef Education Holding, the first IPO on ADX in 2024, reported a market capitalization of AED 9.45 billion ($2.57 billion). The IPO size and timing for Alpha Data are still preliminary. (Source)

Oman's Asyad Group Plans IPO for Shipping Subsidiary

Oman's state-owned Asyad Group plans to launch an initial public offering (IPO) for its subsidiary Asyad Shipping by year-end. Jefferies Group and EFG Hermes have been selected as advisers for the IPO. Asyad Shipping transports LNG internationally with a fleet including crude carriers and chemical tankers. Key partners include Brazilian miner Vale, and energy firms BP and Shell. Asyad Group, owned by Oman's wealth fund, has over $4 billion in assets. This IPO aligns with Oman's efforts to privatize state entities. In 2021, Asyad considered divesting up to 40% of its ownership. (Source)

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