The IPOX® Update 8/9/23
Amazon Explores Significant Stake in Arm's Impending IPO
E-commerce titan Amazon is in discussions about potentially taking on an anchor investor role in the IPO of British semiconductor design company Arm. Speculations suggest that Arm's IPO could generate as much as $10 billion, escalating its valuation to approximately $70 billion. Owned by Japanese conglomerate SoftBank, Arm is also engaging in talks with several global tech giants such as Intel, Nvidia, Samsung, and Apple. Amazon's interest aligns with its use of Arm-based chips, known for their cost-efficiency. This comes as chip companies' valuations, especially those in the AI segment, are witnessing a surge. (Source)
IPO Revival: NYSE and Nasdaq Vie for Major Listings
The competitive landscape between the NYSE and Nasdaq intensifies as both vie for significant new stock listings, signaling an awakening in the IPO market. US grocery delivery entity Instacart has opted for Nasdaq, with a valuation update of around $12 billion. The British semiconductor firm Arm has also chosen Nasdaq for its much-anticipated listing. Meanwhile, NYSE has successfully secured listings for US marketing platform Klaviyo and German footwear brand Birkenstock, with the IPO market rebounding from its prolonged downturn. (Source)
Cava's Robust Rally Sparks IPO Enthusiasm Amidst Market Caution
In the wake of the 141% rally by US restaurant chain Cava Group Inc. on its IPO debut, the market is buzzing with excitement. Simultaneously, tech enterprise Oddity Tech Ltd. observed a 50% hike since July. Despite the optimism, 2023 has seen US IPOs amass only $14.1 billion, a stark 94% drop from 2021. Investment experts are split in their views: while T. Rowe Price's David DiPietro anticipates a boost in IPO activity by mid-2024, Citigroup's Doug Adams advises prudence against over-enthusiasm. Amidst this landscape, private equity entity L Catterton is preparing for the next month's IPO of German footwear brand Birkenstock. (Source)
Royal Ahold Delhaize Considers IPO for E-commerce Division Bol.com
Dutch grocery corporation Royal Ahold Delhaize may revisit its plans for a public listing of its e-commerce arm, Bol.com. This decision comes a year after initial plans were shelved owing to market unpredictability. Bol.com, a competitor of Amazon in the Netherlands, posted a 13% sales upswing. Moreover, Ahold's Q2 profits soared to €904 million ($992 million), spurred by a 3.6% increase in US sales. However, the company continues to confront challenges in Europe, including labor strikes and franchising disputes. The firm's forecast foresees an adjusted operating margin consistently above 4%. (Source)
CVC Capital Partners Eyes IPOs for Douglas and DKV
CVC Capital Partners is evaluating IPOs for two major German entities in its portfolio: perfume retailer Douglas and fleet services firm DKV Mobility.
For Douglas, a retail brand with origins dating back to 1821, the target valuation stands at €7 billion ($7.7 billion). The retailer boasts a substantial presence across Europe with over 1,800 stores, focusing on a shift toward integrating its physical and online sales channels. This strategy bore fruit as the company generated a robust revenue of about €3.7 billion in its 2021/22 fiscal year.
It's worth noting that Douglas' journey toward the public markets isn't new. In 2015, Douglas had hinted at plans for an IPO. However, the narrative changed when CVC decided to acquire the company, just days after the public listing announcement. The acquisition came at a price of around €2.8 billion and involved a transition of ownership from Advent International and the foundational Kreke family.
On the other hand, DKV Mobility, a leading fleet services company in Germany, is also on CVC's radar for a public listing. The expected valuation for DKV's IPO floats around the €4 billion mark. The company recently highlighted its financial prowess with €621 million in revenue, facilitating transactions worth €17 billion in 2022. (Source)
