The IPOX® Update 8/10/24

U.S.

AI Company Abnormal Security Raises $250M in Series D Funding for IPO Preparations

U.S.-based AI company Abnormal Security has raised $250 million in Series D funding as it prepares for an IPO. Wellington Management led the round, with participation from Greylock Partners, Menlo Ventures, Insight Partners, and CrowdStrike's Falcon fund. Abnormal Security uses AI to analyze email behavior and detect compromised accounts. The company now serves 17% of the Fortune 500 and has doubled its workforce since May 2022. Abnormal plans to expand into Asia-Pacific and secure U.S. government authorization with the new funds. The company aims for an IPO by the end of 2025 to facilitate acquisitions and growth. (Source)

Asia-Pacific

China Resources Beverage Receives Approval for $1 Billion Hong Kong IPO

China Resources Beverage (CRB), China's second-largest water bottler, has received approval for a $1 billion IPO in Hong Kong. This could be Hong Kong's largest IPO since August 2022, following China Tourism Group Duty Free's $2.3 billion offering. CRB generated $5.5 billion in revenue last year, primarily from its C'estbon brand, which accounts for 95% of its sales. The company sponsors Chinese Olympic table tennis teams, which recently dominated the Paris Olympics, boosting its brand visibility. CRB's shares are expected to start trading later this quarter or early in Q4, depending on market conditions. The IPO will make CRB the 18th subsidiary of China Resources Group to go public, and the ninth to list in Hong Kong. (Source)

Chinese Smartphone Maker Honor Prepares for IPO with Strong State Backing

Honor, a Chinese smartphone maker, is preparing for an IPO with strong state backing. The company aims to list on China's A-share market, potentially this year or early next. Honor was valued at $13.8 billion when sold by Huawei to Shenzhen entities in 2020. The company's IPO could enhance investor appeal due to significant local government backing. Support includes retroactive R&D funding, tax breaks, and overseas expansion assistance. A successful IPO could provide Shenzhen city a way to exit its investment in Honor. The company has declined to disclose current IPO valuation or specific details. (Source)

Europe

Continental Revises Spin-Off Plans, Considers Listing Automotive Unit

German automotive supplier Continental has announced changes to its restructuring plans. The company has cancelled its initial plan to spin off its automotive display business (UX), postponing this carve-out indefinitely. Instead, Continental is now considering spinning off and listing its entire automotive unit on the Frankfurt stock exchange. This new plan includes separating the core automotive supply business from Continental's tire and industrial business. The potential spin-off also encompasses the contract manufacturing division. Continental expects its executive board to make a decision on the spin-off in Q4 2024, with the plan potentially being finalized by the end of 2025. The spin-off is subject to approval at the annual shareholders' meeting on April 25, 2025. If approved, the new automotive entity will likely be 100% publicly listed by the end of 2025. It will be headquartered in the Rhein-Main area and listed in Frankfurt. Philipp von Hirschheydt, the current Automotive head, will lead the new company. Meanwhile, Contitech will become the second pillar alongside the tire business, continuing product separation for the auto industry. Continental will retain its brand for the tire division. (Source 1) (Source 2)

Klarna Explores Secondary Share Sale Ahead of Potential IPO

Swedish fintech company Klarna is weighing a secondary share sale ahead of a potential IPO. The firm seeks to surpass its last valuation of $7 billion from the previous fundraising. Klarna is in talks with investment firms about buying shares from existing shareholders. Sequoia Capital backs Klarna, which has consulted Goldman Sachs for the potential share sale. Preliminary deals suggest a valuation of $10 billion or more based on recent private stock trades. Discussions involve a person approached by Klarna's representatives and another who spoke with its leaders. Klarna, now 15 years old, aims to gauge investor interest before its public offering. (Source)

MENA

Egypt Targets $2.5B from Government IPO Program in FY2024/25

Egypt aims to raise $2.5 billion from its IPO program in the fiscal year 2024/25. The program targets exiting seven sectors, including pharmaceuticals and construction. Investments will be reduced in seven sectors, including power plants. The government plans to create opportunities for private sector investments in four sectors. Egypt has raised $3.1 billion from government offerings since March 2023. The government is considering issuing green bonds and sukuk in the local market. Egypt issued its first sovereign sukuk worth $1.5 billion in February 2023. (Source)

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