The IPOX® Update 7/27/24

U.S.

Medline Industries Explores IPO in 2025, Potentially Valuing Company at $50 Billion

Medline Industries is exploring an IPO in 2025, potentially valuing the company at $50 billion. Early-stage talks with banks for a listing as soon as spring 2025 are ongoing. The U.S. IPO market shows signs of recovery in 2024 after two challenging years. Blackstone, Carlyle Group, and Hellman & Friedman bought a majority stake in Medline in 2021, valuing it at $30 billion excluding debt. Medline is a major manufacturer and distributor of medical supplies, including surgical equipment and laboratory devices. Medline and its private equity owners have not commented on the IPO plans. (Source)

Actuate Tweaks IPO Plans, Now Offering 2.95 Million Shares Priced Between $8 and $10

Actuate has adjusted its IPO plans, now offering 2.95 million shares priced between $8 and $10. Underwriters have 442,500 additional shares available, potentially raising $27 million. The initial plan was to offer 5.5 million shares, raising $52 million at $9 per share. The downsized offering of 2.7 million shares is expected to raise $25.3 million with underwriters. Funds will support phase 1 trials of elraglusib for refractory Ewing sarcoma. Phase 2 trials for elraglusib in bone cancer and other cancers have been delayed due to funding. IPO proceeds will aid in completing phase 1 trials and some preclinical studies. (Source)

Google's $23 Billion Acquisition Talks with Cybersecurity Startup Wiz Fall Apart Ahead of IPO

Google's $23 billion acquisition talks with cybersecurity startup Wiz have fallen apart ahead of Wiz's planned IPO. Wiz CEO Assaf Rappaport announced plans for an IPO, aiming for $1 billion annual revenue. Wiz currently generates $500 million in annual recurring revenue, doubling within a year. Google faces antitrust scrutiny, with lawsuits affecting potential large acquisitions. Wiz, founded in 2020, raised $1 billion at a $12 billion valuation this year. Acquiring Wiz would enhance Google's cloud computing offerings against Amazon and Microsoft. Google's largest acquisition was Motorola Mobility for $12.5 billion in 2012. (Source)

Chinese Electric Truck Startup Windrose Aims to Raise $200 Million Before US IPO

Chinese electric truck startup Windrose aims to raise $200 million before a US IPO. The fundraising target was increased from an initially planned $100 million. Belgium's wealth funds SFPIM and PMV committed $50 million in equity investment. Citigroup will provide $50 million in lending as part of the fundraising. Windrose plans to build assembly plants in Europe and the US with the funds. The European Commission imposed up to 38% tariffs on Chinese EVs due to alleged unfair subsidies. Windrose's US plant in Georgia aims to fulfill its 6,400 truck order book. (Source)

Europe

Dolce&Gabbana Considers IPO After Record Revenue Growth

Italian fashion house Dolce&Gabbana is considering an IPO after record revenue growth. CEO Alfonso Dolce emphasizes ethical growth and maintaining company values in any deal. Dolce&Gabbana reported a 17% revenue increase to $2.04 billion for fiscal year 2023-2024. The fashion house plans to open 12 new U.S. stores, including a flagship on Madison Avenue, New York. The U.S. and Canada account for 28% of the company's turnover, compared to 16% from China. Previous statements indicated a potential stock market listing was not an immediate priority. The company aims to maintain similar revenue growth in the current fiscal year. (Source)

UK's Financial Conduct Authority Proposes New Rules to Ease Capital Raising

The UK's Financial Conduct Authority has proposed new rules to ease and reduce costs for capital raising. The threshold for issuing prospectuses for secondary fundraisings increased from 20% to 75% of issued share capital. This change allows companies to expedite secondary share issues, saving up to six weeks in the process. New rules aim to attract high-growth companies to list and raise funds in the UK over New York. The overhaul includes granting company founders more control through dual class share structures. Follow-on transactions in the UK have surged, despite a lack of IPOs this year. The proposals also include new rules for public offer platforms to support startup fundraising. (Source)

Ending Tax Breaks for Low-Value Parcels Threatens Shein's Profitability Ahead of Planned IPO

The potential end of tax breaks for low-value parcels threatens Shein's profitability ahead of its planned IPO. Shein confidentially filed for an IPO in London in June, targeting a valuation matching last year's $66 billion. The European Union is considering abolishing duty-free limits on parcels under €150, affecting Shein's cost advantage. South Africa and Brazil have already increased taxes on low-value imported parcels, adding to regulatory uncertainty. Changes to import duties could force Shein to raise prices or cut profit margins, impacting competitiveness. Investors like Adil Shah and Jon Hudson express concerns about the impact of losing tax advantages on Shein's IPO. Shein claims its success relies on its "on-demand business model" rather than tax exemptions. (Source)

IPOX® Holding Rentokil's Shares Soar on Report of Ex-BT Chief Looking to Buy Firm

Rentokil Initial's shares soared 12% following a media report that former BT Group boss Philip Jansen was working on a private equity-backed takeover bid for the British pest control firm. Jansen, who stepped down as BT's chief executive earlier this year, is reportedly in talks with private equity firms over a plan that would see him appointed as executive chairman of Rentokil. The company's stock hit its highest level since October 19, when it tumbled more than 18% after flagging soft demand in North America, its largest market. Rentokil's FTSE 100-listed shares have lost nearly a third of their value from an all-time high in June last year. Last month, activist investor Nelson Peltz's Trian Fund accumulated a significant stake in the company, making the New York-based hedge fund one of the top 10 shareholders in Rentokil. Analysts at RBC Capital Markets noted that while the report is unsubstantiated, it could help provide a floor to the shares and squeeze out any shorts. (Source)

Revolut Plans to Sell $500 Million of Employee-Owned Shares, Valuing Company at $45 Billion

London-based fintech Revolut plans to sell $500 million of employee-owned shares, valuing the company at $45 billion. The deal allows employees to cash out their holdings, boosting Revolut's valuation ahead of a potential IPO. Revolut facilitates crypto trading within its app and launched a standalone crypto exchange in May. The company is in talks with investment firm Greenoaks regarding the share sale. Higher interest rates have created an uncertain environment for IPOs in recent years. Revolut aims to enhance liquidity for employees and prepare for an IPO. Revolut declined to comment on the share sale when contacted by CoinDesk. (Source)

Ebury, a Santander-Owned Payments FinTech, Plans $2.5 Billion UK IPO

Ebury, a Santander-owned payments FinTech, plans a $2.5 billion UK IPO. The IPO represents a rare confidence boost for the London Stock Exchange. Ebury is collaborating with Goldman Sachs for the IPO. The company offers cross-border payments, payroll transfers, currency risk management, and business lending. Ebury expanded globally in 2022 by acquiring Brazilian FinTech Bex. Rival FinTech CAB Payments saw a 70% share drop post-IPO, highlighting market risks. Some FinTechs, like Klarna, are opting for US IPOs, while others, like Trustly, delay listings. (Source)

Asia-Pacific

Midea Group Gains Approval for Hong Kong Listing, Potentially Raising $3 Billion

Chinese home appliance giant Midea Group has received approval for a Hong Kong listing that could potentially raise $3 billion, making it the largest IPO in Hong Kong this year amid a sluggish market. Bank of America and CICC are sponsoring the IPO, with the timing yet to be decided. The China Securities Regulatory Commission supports leading Chinese industrial companies listing in Hong Kong, as evidenced by recent approvals for China Resources Beverage's $500m-$1bn IPO and SF Holding's $1bn-$2bn IPO. Midea's IPO is expected to attract institutional investors if it offers an attractive discount to A-shares. The company's solid fundamentals, steady growth, and diverse product offerings position it well for market interest. (Source)

Chinese EV Maker Hozon Targets Southeast Asian Market for $1 Billion Hong Kong IPO

Chinese electric vehicle maker Hozon is targeting the Southeast Asian market for its $1 billion Hong Kong IPO. Hozon's Neta brand, Thailand's second-largest EV, helped double the company's sales to nearly $2 billion by 2023. The IPO aims to capitalize on Southeast Asia's low car ownership, similar to China a decade ago. Other Chinese automakers like BYD, Geely, Great Wall Motor, and SAIC Motor are also eyeing Southeast Asia due to overcapacity at home. Competition has led to price wars, with Bangkok investigating BYD's price cuts despite consumer cash-back offers. Southeast Asia EV sales are projected to reach 864,300 by 2028, far less than China's 2023 figures. The success of Hozon and its rivals' expansion in Southeast Asia depends on successful exports to justify high costs. (Source)

Xunfei Healthcare Technology Aims for $100 Million Hong Kong IPO in September

Xunfei Healthcare Technology, which is 52.5% owned by Shenzhen-listed iFlytek, aims to launch a $100 million Hong Kong IPO in September. Joint sponsors for the IPO include Huatai International, GF Capital (Hong Kong), and CCB International. Founded in 2016, Xunfei develops speech recognition software and hardware for medical records. The company reported a loss of $24 million for the first nine months of 2023, an increase from $23 million a year earlier. The IPO filing was submitted in January 2024. (Source)

OCI Holdings May List Malaysian Polysilicon Unit on Kuala Lumpur Stock Exchange

South Korean OCI Holdings is considering listing its Malaysian polysilicon unit on the Kuala Lumpur stock exchange. The IPO could raise RM1.5 billion ($320 million), potentially valuing OCI Malaysia at up to RM6 billion. If successful, it would be Malaysia's largest listing since MR DIY Group's RM1.5 billion IPO in 2020. OCI Malaysia produces 35,000 metric tons of solar PV polysilicon annually in Sarawak. OCI, founded in 1959, produces chemicals, petrochemicals, and carbon materials. The Seoul-listed parent company OCI has seen a 28% market value drop this year, now worth $1.1 billion. (Source)

Thai Petrochemicals Producer Indorama Ventures Plans $1 Billion Subsidiary IPOs

Thai petrochemicals producer Indorama Ventures plans to raise $1 billion from subsidiary IPOs. The company's packaging unit Indovida is set to complete an Asian IPO in 2025, raising $300 million. Surfactant maker Indovinya is expected to list in the US in 2026, raising $700 million. Indorama Ventures has established governance and project teams for the IPOs and is in the process of selecting advisers for the listings. Analysts expect Indovinya to list in the US, while the venue for Indovida's IPO has not yet been decided. Indorama Ventures shares rose 1.1% to Bt18.10 following the announcement. (Source)

U Mobile Plans to Raise Over $500 Million in Malaysia IPO by Early 2025

U Mobile plans to raise over $500 million in a Malaysia IPO by early 2025. The IPO application will be filed with Bursa Malaysia by August 2024, and is expected to value U Mobile at over $2 billion. Proceeds will fund mobile data network expansion and other initiatives. If successful, it will be Malaysia's largest IPO since 2017. Malaysia's IPO market has raised $637 million in the first half of 2024. U Mobile, founded in 2006, is Malaysia's youngest telecom company with 5G readiness. (Source)

Manycore Tech Inc. Plans Hong Kong IPO to Raise Up to $200 Million

Hangzhou-based Manycore Tech Inc., specializing in 3D design software and operating Kujiale and Coohom platforms, plans to file for a Hong Kong IPO to raise up to $200 million this year. The company is working with CCB International Holdings and JPMorgan Chase on the listing. Manycore abandoned a US IPO plan in 2021 after Didi Global Inc.'s problematic New York debut. The shift to Hong Kong aligns with a trend among Chinese firms favoring local IPOs. The company was loss-making in 2020, as indicated in previous US listing documents. New listings in Hong Kong have raised $2.26 billion this year, a 14% drop from the same period last year. (Source)

Amazon in Talks to Acquire Swiggy's Quick Commerce Subsidiary, Instamart

Amazon is in talks to acquire Swiggy's quick commerce subsidiary, Instamart. Indian firm Swiggy recently filed for a $1.25 billion IPO, the largest for a new-age internet firm. No official offer has been made yet, and Amazon must act quickly for further negotiations. Deal complications arise as Swiggy may not sell only Instamart, and Amazon avoids food delivery. A full acquisition would be costly for Amazon, with Swiggy valued at $10-12 billion. Amazon, working on quick commerce for months, needs global clearance for quick deliveries. Flipkart's previous acquisition talks with Swiggy failed due to valuation issues. (Source)

MENA

UAE-Headquartered Retail Tech Provider Pathfinder Secures $325 Million Investment

UAE-headquartered retail tech provider Pathfinder has secured a $325 million investment from Silver Rock Group. Pathfinder plans a NASDAQ IPO in Q4 2024. Silver Rock Group's investment will support Pathfinder over the next three years, starting in Q4 2024. The funding will enhance the development and global rollout of the RetailGPT platform. RetailGPT uses Gen AI to extend physical stores into the digital realm. CEO Sadique Ahmed highlights the funding's role in pursuing growth and innovation. Pathfinder aims to expand into new markets and enhance its Phygital Commerce technology. (Source)

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