The IPOX® Update 8/8/23
SoftBank's Arm IPO attracts Apple and Samsung
The leading chip design unit of Japanese conglomerate SoftBank, Arm, is eyeing a September listing on Nasdaq. The anticipated market cap is expected to exceed $60 billion, which could make it the standout IPO of 2023. Notably, this valuation has doubled since SoftBank's acquisition of Arm for $31 billion in 2016. Tech giants like U.S. technology firm Apple and South Korean conglomerate Samsung have shown interest in investing once Arm is listed. The move to go public by Arm, which currently boasts a 90% market share in smartphone chip designs, is seen as a robust signal indicating the resurgence of high-tech stocks in the financial market. However, it's worth noting that Arm recently reported a quarterly loss, with an 11% drop in revenue attributed to decreased consumer spending. The company recorded a loss of $66 million in the June quarter, on revenues of $88.5 billion. (Source)
MENA Continues Strong IPO Momentum in Q2
The MENA region, particularly the gulf region, showcased its buoyant IPO market with 13 new listings in Q2 2023, raising a collective $1.8 billion. This represents a 44% surge in listings, albeit with an 80% reduction in proceeds when compared to Q2 of the previous year. The first half of 2023 saw 23 MENA IPOs bringing in $5.2 billion in proceeds. Notable mentions include Saudi Arabian pharma firm Jamjoom which successfully raised the highest amount in Tadawul, raking in $336 million. UAE energy firm Adnoc L&S experienced a significant oversubscription rate of 163x, securing $769.5 million. Adding to the list, financial firm Al Ansari, became the first family-owned business to be listed in the UAE, securing a commendable $210.4 million. Our IPOX® MENA Index is up 18% YTD, beating major benchmarks such as the Dow Jones Mena Index and the MSCI Arabian Markets Index. (Source)
HydrogenPro Eyes Nasdaq for U.S. Expansion
Norwegian electrolysis firm HydrogenPro, currently valued at $128 million market cap in its home market, is considering an IPO on Nasdaq. The primary aim is to secure the requisite financing for its ambitious U.S. expansion strategy and to connect with a broader investor base. This decision saw its shares in Oslo take a minor hit, dropping almost 2%. However, this move elucidates HydrogenPro's strategic shift to capitalize on the North American market and offer investors better accessibility. (Source)
IPOX® Holding Novo Nordisk Surges on Obesity Drug Results
Shares of the Danish pharma giant Novo Nordisk surged to a record high, following positive trial results for its obesity drug, Wegovy. The drug demonstrated a reduction in heart risks by 20%, leading to a stock price surge of up to 17%, marking its highest increase since 2002. Patients suffering from obesity and with previous cardiovascular complications reported significant benefits from Wegovy over other placebo treatments. These outcomes from the SELECT cardiovascular trial reportedly affirm the drug's efficacy and safety, in line with prior evaluations. (Source)
Chinese EV Battery Producer, Beijing WeLion, Sets Eyes on 2025 IPO
Chinese EV battery manufacturer, Beijing WeLion, has set ambitious goals as it plans to go public by 2025. WeLion's semi-solid state battery, which is a feature in Nio's ES6 SUV, aims for a 20-fold revenue growth, targeting a staggering $1.4 billion by 2025. Notably, WeLion's battery technology boasts a remarkable 1,000km range, outclassing several of its competitors. To ramp up production, the firm has planned the launch of four new battery production facilities, hoping to augment its capacity to a whopping 30GWh by 2025. This technological prowess has attracted the attention of leading carmakers including German auto giants Volkswagen and Mercedes-Benz, U.S. automobile maker Ford, and Chinese tech firm Xiaomi. (Source)
