The IPOX® Update 8/18/23

Chipmaker Arm Prepares for Major 2023 IPO

UK-based chipmaker Arm has lined up 28 banks to steer its upcoming IPO, touted as the largest of 2023. Among the lead banks are prominent names like Barclays Plc, Goldman Sachs, JPMorgan Chase, and Mizuho Financial Group. The second-tier underwriters feature Bank of America, Citigroup, Deutsche Bank, and Jefferies Financial Group, while a third group includes securities firms like Daiwa Securities, HSBC, Intesa Sanpaolo, and Societe Generale. The company aims to raise between $8-10 billion in its September offering, with a target valuation ranging from $60-70 billion. (Source)

Instacart Set to Revitalize US IPO Scene in September

Grocery delivery company Instacart, based in San Francisco, is setting its sights on an IPO in September, a move expected to give a significant lift to US listings on the Nasdaq. Although the company had initially mulled over a direct listing, they've decided in favor of the more customary IPO route. Instacart, which previously raised $2.74 billion and enjoyed a valuation of $39 billion in 2021, has adjusted its internal valuation to $13 billion, down from an earlier $24 billion. The overall US IPO activity is picking up again, after a cumulative raise of just $14 billion this year, a stark contrast to the $241 billion accumulated in 2021. Financial specifics regarding the IPO will be unveiled in the forthcoming SEC filing. (Source)

Novartis Announces Spin-off of Generics Unit Sandoz

Pharmaceutical titan Novartis, headquartered in Switzerland, has declared its intentions to spin off its generics unit, Sandoz, following a comprehensive strategic review. Sandoz is set to be an independent entity, listing on the Swiss exchange SIX. For the US investors, Novartis will offer ADRs for Sandoz, though a primary listing on a US exchange is not in the cards. The anticipated listing date for Sandoz is around 4th October, with shareholders poised to receive one Sandoz share for every five Novartis shares they hold. This move marks yet another step in Novartis's journey to reshape itself as a pure-play pharma enterprise, reminiscent of its earlier spin-off of its eye care division, Alcon. (Source)

Australia's ASX Anticipates a Strong IPO Pipeline

Australia's premier securities exchange operator, ASX, is expressing confidence in a resilient IPO pipeline, pending favorable economic conditions. Despite current global trends that have squeezed the Australian IPO market, particularly due to inflationary pressures affecting U.S. IPOs in 2023, ASX remains hopeful for an imminent recovery. This optimism stems from the exchange's dedication to the technology sector, combined with the potential of data provision as a lucrative business opportunity. Despite challenges faced in fiscal 2023, including a 2.1% dip in market revenue, ASX discloses a mere 1.2% decline in its 12-month operating revenue, amounting to A$1.01 billion (US$648.7 million). (Source)

Luxury Maternity Care Saint Bella Eyes 2024 Hong Kong IPO

Hangzhou-based luxury maternity care firm Saint Bella is contemplating an IPO in Hong Kong in 2024. The company, renowned for partnering with elite hotels to offer upscale postpartum treatments, is receiving assistance from heavyweight financial institutions such as Goldman Sachs and UBS. They anticipate a potential share sale between $100 million and $200 million. Recent Series C rounds witnessed its parent company, PrimeCare, and Saint Bella collectively amassing nearly $100 million. Major investors backing the company include the tech powerhouse Tencent Holdings and China Life Insurance Co. Emphasizing luxury, Saint Bella offers a 56-day extravagant postpartum service at Four Seasons Hong Kong, priced at a lavish HK$1.5 million ($191,671). (Source)

Jyong Biotech to Launch $40 million IPO on Nasdaq

Established in 2018, Taiwanese plant-based drug developer Jyong Biotech has filed for a $40 million IPO on the Nasdaq, with plans to list under the ticker symbol JYB. Joseph Stone has taken the helm as the lead bookrunner for the firm that operates subsidiaries across locations like Taiwan, Singapore, Hong Kong, and China. Jyong Biotech specializes in the development of plant-based therapies primarily targeting urological conditions. Their front-runner drug candidate, MCS-2, has successfully completed Phase III trials, addressing benign prostatic hyperplasia and lower urinary tract symptoms. However, the company faces the challenge of revising its clinical trial data to adhere to FDA guidelines before procuring regulatory approval. The proceeds from the IPO will be channeled primarily towards R&D and clinical trials. (Source)