The IPOX® Update 8/2/24

U.S.

AI Chipmaker Cerebras Systems Plans IPO for October 2024

U.S. AI chipmaker Cerebras Systems is preparing for an IPO as early as October 2024. The company has confidentially filed with the U.S. Securities and Exchange Commission for the listing, with Citigroup Inc. leading the process and Barclays Plc recently added to the lineup of banks. Cerebras, known for its CS-3 system optimized for AI computing, may seek a valuation exceeding $4 billion, matching its 2021 funding round valuation. The company's technology powers AI supercomputers. In 2021, Cerebras raised $250 million in Series F financing, led by Alpha Wave Ventures, Abu Dhabi Growth Fund, and G42. Other notable investors include Altimeter Capital, Benchmark Capital, and Coatue Management. (Source)

Tencent-backed YXT.com Group Holding Sets Terms for Nasdaq IPO

YXT.com Group Holding, a corporate learning software provider backed by Chinese tech giant Tencent, has announced plans to raise up to $36 million through an IPO on the Nasdaq. The company intends to offer 2.75 million American depositary shares priced between $11 and $13 each. Kingswood and Tiger Brokers are leading the transaction. YXT.com, which boasted over 2,400 customers as of March 31, has shown improving financial performance. In the first quarter, the company reported a net loss of $7.1 million, a reduction from the $18.8 million loss in the same period last year. Tencent Holdings maintains a 13.2% ownership stake in YXT.com. (Source)

Chinese Self-Driving Startup WeRide Files for U.S. IPO

Chinese self-driving technology company WeRide has filed for an IPO in the United States, aiming to raise up to $500 million. Founded in 2017 and based in Guangzhou, WeRide operates robotaxis and self-driving technologies across 30 cities in seven countries. The company, led by former Baidu engineer Tony Han, has expanded its offerings to include driverless buses and cleaning vehicles in China and Singapore. WeRide has attracted investments from major automotive players including Renault, Nissan, Mitsubishi Motors, and tech giant Nvidia. In its filing, WeRide reported 2023 sales of $55.3 million, alongside a net loss of $261.5 million. (Source)

SK Hynix Considers U.S. IPO for SSD Subsidiary Solidigm

South Korean semiconductor manufacturer SK Hynix is contemplating an IPO for its solid-state drive (SSD) subsidiary, Solidigm, in the United States. This move comes in response to the rising demand for enterprise SSDs (eSSDs) in the market. Solidigm, a subsidiary focused on solid-state drive technology, represents SK Hynix's efforts to capitalize on the growing data storage sector. The company aims to leverage the increased eSSD demand to drive financial growth through this potential IPO. Specific details about the timing and size of the offering have not been disclosed. (Source)

Europe

London Stock Exchange Denies Lowering Standards for Shein's Potential IPO

The CEO of the London Stock Exchange has denied allegations of lowering listing standards to attract the potential £50 billion IPO of fast-fashion retailer Shein. This statement comes in response to concerns raised about Shein's supply chain transparency and alleged forced labor practices. The company, which initially planned a U.S. listing before facing labor-related concerns and competitor lawsuits, filed for a London listing in June with support from the Labour party. The London Stock Exchange Group (LSEG) maintains that its listing standards remain stringent and are governed by UK authorities. Recent UK regulatory changes have been aimed at enhancing the appeal of its capital markets. Shein has asserted a zero-tolerance policy for forced labor and a commitment to human rights. (Source)

Fosun's Fidelidade Evaluates New IPO Attempt for Portuguese Hospital Operator

Fidelidade, a subsidiary of Chinese conglomerate Fosun, is reassessing the possibility of an IPO for its Portuguese hospital operator, Luz Saude. The CEO of Fidelidade cited market conditions and valuation concerns as reasons for postponing the IPO decision until at least 2025. Luz Saude, valued at approximately €1 billion ($1.1 billion), could have marked Portugal's first IPO in three years. While Fidelidade is also considering a private sale of Luz Saude, it prefers an IPO for better asset visibility. Luz Saude was previously delisted in 2018 following Fosun's majority acquisition. Concurrently, Fidelidade itself is preparing for its own IPO, though no specific date has been set. The company is also seeking acquisitions in Latin America, particularly targeting Mexico, Colombia, and Panama for expansion. (Source)

Asia-Pacific

LG Group's IT Unit, LG CNS, Prepares for Seoul IPO

LG CNS, the IT services unit of South Korea's LG Group, is planning an IPO in Seoul as early as 2025. The company reported a profit of $9.9 million in the first quarter of 2024 and is estimated to have an enterprise value of approximately $5.4 billion. LG CNS specializes in providing cloud, data, security consulting, and warehouse management services. This potential IPO follows the $10.8 billion listing of LG Energy Solution in 2022. The timing of the LG CNS listing is still under deliberation and has not been finalized. South Korea's IPO market has seen a 51% year-over-year increase in funds raised, totaling $2.14 billion in 2024. (Source)

Zhongmiao Holdings Prices Hong Kong IPO at Bottom of Range

Zhongmiao Holdings, a Chinese insurance agency, has priced its Hong Kong IPO at the bottom of the proposed range, raising $32 million. The IPO involves the issuance of 35.3 million primary shares, representing 25% of the company's enlarged share capital. The final pricing implies a market capitalization of approximately $127 million for Zhongmiao. Cornerstone investors Hong Tai and Reynold Lemkins have committed $4.6 million and $1.3 million respectively to the offering. The listing, which includes a 15% greenshoe option, is scheduled for August 6. Citic Securities and Ping An of China Capital (Hong Kong) are serving as the sponsors for the IPO. Zhongmiao posted a profit of $2.1 million in the first four months of 2024, an 11% increase from the previous year. (Source)

Indian E-Scooter Maker Ola Electric Sets Terms for Major IPO

Ola Electric, an Indian e-scooter manufacturer, has announced plans to raise $734 million in its IPO. The offering has attracted interest from major global investors including Fidelity, Nomura, and Norges Bank. The IPO values Ola at 25% below its last private fundraising round, which valued the company at $4 billion. As of June 30, Ola Electric held a 46% share of India's e-scooter market. The IPO, scheduled to run from August 1 to August 6, will involve issuing new shares to raise $657 million. Ola Electric, backed by SoftBank, intends to use the IPO proceeds for capital expenditure and research and development. The company has set its price band at 72 to 76 rupees ($0.86-$0.91) per share. (Source)

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