The IPOX® Update 8/16/23

VinFast Electrifies Nasdaq with a Staggering 255% Debut Surge

Vietnamese automaker VinFast, known for its electric vehicles, experienced a groundbreaking debut on Nasdaq as its shares rocketed 255%. The impressive performance escalated Chairman Pham Nhat Vuong's net worth by a phenomenal $39 billion, placing him at a commendable $44.3 billion. These strides place VinFast's market cap ahead of industry bigwigs like GM and German luxury automaker Mercedes-Benz Group AG. Notably, its market valuation now dwarfs that of Chinese EV producer XPeng by sixfold. Despite facing challenges such as a recall due to software issues and a potential value slump post-SPAC merger, VinFast remains optimistic. The company is eyeing sales between 45,000-50,000 units this year and targets a break-even by 2024. Their unconventional route to public listing via a SPAC merger with Black Spade Acquisition Co. instead of a traditional IPO was another highlight. (Source)

Hong Kong Exchange Foresees Robust IPO Future Amid Profit Surge

Hong Kong Exchange CEO Nicolas Aguzin paints an optimistic future for the IPO market, emphasizing a promising pipeline ahead. The stock exchange operator, HKEx, reflecting its profit uptick, has boosted its interim dividend by 30%. This amounts to a dividend of USD0.58 per share for H1 2023, marking a 30% surge from the preceding year. HKEx's half-yearly revenue records HKD10.58 billion, termed its "second-best ever". Operational expenditures have grown by 6.8%, with increased staff and professional fees cited as the primary drivers. Chair Laura Cha highlighted the first half's challenging global sentiments, underlined by varied economic hurdles. HKEx shares experienced a minor 0.5% drop, closing at HKD300.20 by Wednesday in Hong Kong. (Source)

Rob McEwen Considers IPO Launch for Argentina Copper Venture

Mining entrepreneur Rob McEwen is mulling over an IPO for his Argentina copper venture, which could materialize as early as November. The venture, termed McEwen Copper, aims for public listing either in late 2023 or the beginning of 2024. Current projections estimate the potential IPO offer size to range between $100-million to $150-million, though private financing avenues remain open for consideration. The mining establishment targets finalizing feasibility studies by early 2025, with copper production scheduled for the close of the decade. Crucial support from automaker Stellantis and mining magnate Rio Tinto Group plays a significant role in propelling the project forward. Rob McEwen is also in pursuit of financing partners for a massive $2.5-billion mine construction, a move that might affect his current 52% ownership stake. Even as Argentina's political landscape undergoes shifts, McEwen stays hopeful for the project's prosperous future. (Source)

Chinese Firms Eye $1 Billion Fundraise through Zurich Share Sales

Bloomberg reports that two Chinese enterprises have their sights set on raising $1 billion via GDR share sales in Zurich. Chemical manufacturer Guangzhou Tinci Materials has outlined plans to secure $820 million through Zurich's GDR to bolster its production capabilities. Parallelly, logistics powerhouse Milkyway Chemical Supply Chain aspires to gather $187 million in Zurich to finance acquisitions and manage working capital. As these firms eagerly await nods of approval for their GDR ventures from shareholders and Chinese regulators, Zurich's GDR market anticipates a revival. This revival is in light of the recent deceleration in new Chinese issuances, primarily attributed to regulatory apprehensions. Furthermore, the expanded cross-border listing program offers Chinese firms lucrative opportunities to raise funds outside the confines of the US market. Another company, the solar entity LONGi Green Energy, contemplates an offer with potential proceeds of about $2.75 billion, though a specific timeline remains undisclosed.