The IPOX® Update 8/16/24

U.S.

WeRide Delays Nasdaq IPO Pricing, Adds New Investor

Chinese autonomous driving technology firm WeRide has postponed its Nasdaq IPO pricing to next week. The delay is attributed to the need for updated documentation and the addition of a new investor. WeRide aims to raise up to $119 million by selling 6.45 million American Depositary Receipts (ADRs) at a price range of $15.50 to $18.50 each. This offering represents approximately 2% of the company's enlarged share capital. German automotive supplier Robert Bosch has expressed interest in purchasing $100 million of the IPO float. The IPO is being led by Morgan Stanley, JP Morgan, and CICC, alongside a $320.5 million private placement. WeRide operates in over 30 cities globally and holds driverless permits in China, the U.S., UAE, and Singapore. In the first half of 2024, the company reported revenue of $21 million, an 18% year-on-year decline, with an adjusted net loss of $43.6 million. (Source)

Samsonite International Plans Dual Listing in the U.S.

Luggage maker Samsonite International, currently listed on the Hong Kong Stock Exchange since 2011, is planning a dual listing in the United States to enhance share liquidity. The company has also announced a $200 million share buy-back program. In the first half of 2024, Samsonite reported a 7.7% rise in net profit to $164.3 million, while net sales slightly decreased by 0.4% to $1.77 billion. U.S. sales were down 0.2%, and China sales were up 3.8%. Samsonite's current market capitalization is approximately HK$30.9 billion ($3.94 billion). (Source)

Hindalco Industries to Resume U.S. IPO for Novelis in 2025

Hindalco Industries plans to resume the U.S. IPO for Novelis, the largest aluminum recycler, in 2025. The IPO, originally aimed at raising $945 million, was postponed in June due to market conditions. Hindalco is seeking a premium valuation for Novelis, which operates 14 scrap-processing plants globally. Novelis is experiencing strong demand across various sectors including packaging, automotive, aerospace, and construction. Hindalco is shifting its focus to upstream businesses in India amid rising demand for aluminum and copper. In Q2 2024, India's aluminum and copper demand surged by 15% and 11% respectively, driven by construction and electrification projects. Hindalco has also expressed concerns about potential tax burdens following a Supreme Court ruling on mineral rights taxation. (Source)

Klarna Bank Nears Selection of Goldman Sachs to Lead U.S. IPO

Stockholm-based fintech company Klarna Bank AB is close to selecting Goldman Sachs to lead its U.S. IPO, planned for next year. The company is currently in discussions with investors for a pre-IPO sale of existing shares. Klarna had previously aimed for a $20 billion valuation for the IPO, but the details may change. The company's valuation dropped from $45.6 billion in 2021 to $6.7 billion in 2022, largely due to rising interest rates. In preparation for the IPO, Klarna has refocused its operations by divesting non-core businesses and investing in AI. In June, it agreed to sell its Checkout payments business for approximately $520 million. Founded in 2005, Klarna has 150 million active customers globally, including 34 million in the U.S. The company's move towards a U.S. IPO signals its ambition to expand its presence in the American market and capitalize on the growing demand for innovative financial services. (Source)

Europe

Revolut Secures $45 Billion Valuation Ahead of Potential IPO

London-based fintech Revolut has secured a $45 billion valuation in a recent secondary sale. The neo-bank, founded in 2015, recently obtained a UK banking license after years of waiting. In 2023, Revolut reported financial results with $2.2 billion in revenue and $545 million in pre-tax profit. The secondary sale, involving investors Coatue, D1 Capital Partners, and Tiger Global, aims to boost liquidity for employees. CEO Nik Storonsky has indicated a preference for a potential Nasdaq IPO over a UK listing. The recently acquired UK banking license will enable Revolut to offer a range of financial services, including loans, overdrafts, and savings accounts, to its 9 million UK customers. (Source)

Metlen Energy & Metals Targets London Stock Exchange Listing

Greek company Metlen Energy & Metals SA, valued at $5.3 billion, is aiming to list on the London Stock Exchange in the first quarter of 2025. The Athens-listed firm plans to file for the London listing by the end of 2024. Metlen is Greece's second-largest electricity producer and operates 11.9 GW of renewable energy projects. The company also trades natural gas and runs the EU's only vertically integrated bauxite, alumina, and aluminum production business. Citigroup and Morgan Stanley are advising Metlen on the listing process. The company intends to maintain its listing on the Athens Exchange alongside the potential London listing. (Source)

Asia-Pacific

Airwallex Reports $500 Million Annual Revenue, Eyes 2026 IPO

Global payments firm Airwallex has reported an annual revenue of $500 million and is considering a potential IPO in 2026. CEO Jack Zhang has set a target of $1 billion in annual recurring revenue before going public. The company, backed by Tencent Holdings, has seen significant growth, particularly in the Americas where revenue increased by over 300%. Airwallex's global expansion is evident, with 35% of transaction volumes coming from the UK, Europe, and North America. The firm's payment processing volumes have surpassed $100 billion, marking a 73% year-over-year increase. Airwallex plans to begin IPO preparations in 2025, with the flexibility to decide on the listing post-2026. (Source)

TYK Medicines' Hong Kong IPO Books Covered for $74 Million Offering

Chinese clinical-stage biopharmaceutical company TYK Medicines has successfully covered the books for its Hong Kong IPO, aiming to raise $74 million. The company is offering 47.9 million primary shares at HK$12.10 each, representing 12.9% of its enlarged share capital. Cornerstone investor Changxing Xingchang has committed $26.3 million to the deal. The IPO books are set to close at noon Hong Kong time, with the listing scheduled for August 20. TYK Medicines specializes in cancer treatment, with a portfolio of 11 drug candidates primarily focused on lung cancer. In the first quarter, the company reported a loss of $14.9 million, an increase from the $11.5 million loss in the previous year. Citic Securities is serving as the sponsor for the IPO. (Source)

99 Speed Mart Launches Malaysia's Largest IPO in 7 Years

99 Speed Mart, Malaysia's leading mini-market chain, has launched a $532 million initial public offering, marking the largest in the country in seven years. The company is offering 1.43 billion shares at 1.65 ringgit each, according to the prospectus. Trading of shares is set to begin on September 9, with an expected market capitalization of 13.9 billion ringgit ($3.13 billion). 99 Speed Mart plans to use over half of the proceeds for network expansion and allocate 15.2% for new distribution centers. Founded in 1987 by Lee Thiam Wah, the company currently operates over 2,600 mini-market stores across Malaysia. The IPO has attracted significant interest, with 14 cornerstone investors, including government-linked firms, securing 55% of the deal size. CIMB Investment Bank Berhad is serving as the principal adviser and sole bookrunner, with Affin Hwang and RHB as joint underwriters. (Source)

Musinsa Considers KRX IPO as Early as 2025

KKR-backed South Korean online fashion company Musinsa is considering a potential IPO on the Korea Exchange (KRX) as early as 2025. The company is targeting a market capitalization of $2.9 billion to $3.7 billion. Founded in 2001, Musinsa offers over 8,000 local and foreign designer brands and has established itself as a leading player in South Korea's online fashion retail space. The company secured $190 million in a Series C financing round led by KKR in July 2023. Musinsa has a user base of more than 13 million members and recorded a gross merchandise value exceeding $2.2 billion in 2022. The company's financial performance has improved, with a net profit of $26.2 million in 2023, reversing a $4.9 million loss in 2022. Sales increased by 40.2% to $732.9 million in 2023. (Source)

Yanolja Plans Restructuring Ahead of Nasdaq IPO

South Korea's leading travel platform Yanolja is planning to restructure its affiliates in preparation for its Nasdaq IPO. As part of this restructuring, the company will integrate its Daily Hotel app into the main Yanolja platform by November 5, with sales of the app stopping on September 10. Yanolja has been active in mergers and acquisitions, acquiring companies such as Daily Hotel, eZee Technosys, Interpark, and Go Global Travel. However, the company faces challenges in achieving its targeted $7.3 billion IPO valuation due to declining profitability. In the previous year, Yanolja reported a small operating profit of 1.7 billion won ($1.2 million) on sales of $558 million. The company is focusing on growing its B2B cloud service for hotel management as a key future business. Yanolja is also facing delays in receiving $127 million from Singapore-based Qoo10 due to liquidity issues. (Source)

Guangzhou Sunda International Trading Considers Hong Kong IPO

Guangzhou Sunda International Trading Co., a supplier of personal care products in Africa, is considering a Hong Kong IPO. The company is eyeing a potential fundraise of between $100 million and $200 million, with the listing possibly occurring in early 2025. Sunda is working with China International Capital Corp. and Citic Securities on the potential share sale. The company's product range includes diapers, hygiene items, and home building materials such as ceramics. Sunda operates in several African countries and Peru. The company's founder established the company in the 1990s. (Source)

Hengli Group Plans Potential Hong Kong IPO for Shipbuilding Unit

China's Hengli Group is planning a potential Hong Kong IPO for its shipbuilding unit, targeting a fundraise of around $100 million. The IPO is currently in preliminary stages, and there's no guarantee it will proceed. Hengli Group, founded in 1994, operates across various sectors including oil refining, petrochemicals, polyester materials, and textiles. The company already has three listed subsidiaries, including Hengli Petrochemical, which is valued at $12.9 billion on the Shanghai Stock Exchange. (Source)

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