The IPOX® Update 8/11/23
Germany Witnesses Booming IPO Trend with Listings Valued Over €20 Billion
Germany is experiencing renewed vigor in the IPO sector with new listings potentially surpassing €20 billion. Private equity firm CVC is gearing up for two major Frankfurt IPOs: €3.4 billion for German fleet company DKV Mobility and €7 billion for German perfume retailer Douglas. Meanwhile, German footwear brand Birkenstock is aiming for a U.S. listing that could exceed €7.3 billion, with backing from equity firm L Catterton. Germany-based Renk, a military gearbox producer, and the medical-glassware division of Schott are also lining up for multibillion-euro IPOs. Despite the economic uncertainties, Germany's strong stock market performance continues to lure in IPO candidates. European firms have garnered $7.3 billion from IPOs in the current year, a stark contrast to the $70 billion in 2021, with over 50% of the funds sourced from German enterprises, notably driven by the IPO of German car maker Porsche last year. (Source)
Olam Agri Postpones IPO Amid Drastic Profit Drop
Olam Agri, an agricultural subsidiary of the Singaporean multinational agri-business group, has delayed its planned IPO in both Singapore and Saudi Arabia to the first half of 2024 following a sharp 90% plunge in its half-yearly profit. This decline was majorly attributed to the poor yields from the Australian almond crops. The reported profit stood at S$48 million, tumbling down from S$429 million from the previous period. In addition to the crop challenges, the company also grappled with increased expenditures stemming from surging interest rates. Moreover, the listing of Olam's ofi unit has been shelved owing to the ongoing conflict in Ukraine. (Source)
Esdec Targets New York IPO Valued at $5 Billion
Esdec, a Dutch-based solar mounting company, is keen on making its debut on the New York Stock Exchange with a valuation estimated at $5 billion. Supported by Blackstone and Rivean Capital, Esdec has onboarded both JPMorgan and Morgan Stanley for its public listing. Aiming to tap into the escalating demand for green assets, Esdec provides solutions including rooftop solar racking and mounting systems. The exact details concerning the size and timing of the listing remain under wraps. This move coincides with a resurgence in the U.S. IPO market, highlighted further by the triumphant debut of Cava Group Inc.. Furthermore, British semiconductor titan Arm Ltd. is prepping for a colossal $10 billion IPO in the forthcoming month. (Source)
Vietnam's VinFast to List in U.S. via SPAC Merger
Vietnam-based electric vehicle manufacturer, VinFast, has recieved the green light from the shareholders of Black Spade Acquisition, a Hong Kong-based SPAC, to proceed with their merger. Initially opting for a conventional IPO, VinFast shifted its strategy and withdrew its plans in June 2023 in favor of a SPAC deal. The automaker has set its sights to trade on Nasdaq under the ticker "VFS" by mid-August. Amplifying its global outreach, VinFast has recently started building its maiden U.S. production facility located in North Carolina. However, the journey hasn't been devoid of hurdles. Their recent launch, the VinFast VF8 SUV, has faced critical reviews, with some even branding it as the most underwhelming car available in the U.S. for 2023. (Source)
Biotech IPO Market Expected to Bounce Back
Analysts are forecasting a potential revival in the biotech IPO landscape. A mere 22 biotech companies opted for a public listing in the previous year, indicating a lull. The high market valuations in 2021 might have painted an optimistic scenario, subsequently leading to a reduction in IPOs. Several biotech entities faced hardships as initial financial backing dwindled amidst the pandemic's challenges and higher interest rates. These companies are currently in anticipation of favorable market conditions, eyeing higher valuations for their IPOs. The intricate dance between biotech IPOs and pharma M&As can prove mutually beneficial, and pharmaceutical entities are projected to intensify their M&A pursuits. In a significant move, American biotech company Biogen has procured Texas-based Reata Pharmaceuticals for a staggering $7.3 billion, aiming to augment its focus on neurological treatments with the inclusion of Reata's approved drug, Skyclarys, designed for Friedreich ataxia. (Source)
