The IPOX® Update 8/21/23
Arm to Announce IPO Details in SEC Filing
British semiconductor and software design company Arm is set to unveil its IPO details this week, highlighting the firm's financial standing following its acquisition by SoftBank. The offering is expected to be one of the most prominent in the U.S. this year, with a potential valuation ranging from $60 billion to $70 billion. The anticipated funds raised might range from $8 billion to $10 billion, though SoftBank's choice to retain a larger share could alter this projection. The last significant U.S. IPO was registered by electric-vehicle producer Rivian at $13.7 billion in 2021. The forthcoming listing of Arm could encourage other tech startups, like U.S. online grocery platform Instacart, to consider their IPO plans. Investment titan SoftBank appears to capitalize on this opportunity, offering only 10% of Arm's stock for sale. However, preliminary documents have revealed a 1% revenue decline for Arm in the previous fiscal year. (Source)
Indonesia Foresees Larger IPOs Amid Political Stability
As Indonesia approaches its upcoming elections, the nation's financial landscape anticipates larger IPOs due to diminished political uncertainty. The president director of Indonesia's largest bank Bank Mandiri perceives potential issuers gearing up for 2024. Furthermore, securities firm Mandiri Sekuritas, leading the IPO arrangement in Indonesia for the past three years, witnesses a remarkable uplift in the country's IPO listings, recording a 120% annual growth to touch $3.2 billion in 2023. Key sectors under the spotlight include mining, with nickel — essential for EV batteries — gaining significant attention. The consumer sector also showcases substantial offerings, broadening the horizon for investors. The overall sentiment among investors remains buoyant, undeterred by potential political transitions. (Source)
SF Holding Co. Eyes Secondary Listing in Hong Kong
China's top delivery enterprise SF Holding Co., commonly known as SF Express, is exploring a secondary listing in Hong Kong. The company has teamed up with renowned finance institutions, including Goldman Sachs, Huatai Securities, and JPMorgan for the prospective share sale. While the specifics related to the fundraising size and timeline have not been divulged, the potential proceeds are estimated to lie between $2 billion and $3 billion. SF's valuation is pegged at approximately $29.9 billion, securing its position as the fourth-largest globally among listed delivery firms, trailing UPS, Deutsche Post, and FedEx. Established in 1993, SF Express caters to an expansive client base across China and has a presence in 208 countries worldwide. The company reported a commendable 28% jump in its net income for 2022, amounting to 8.1 billion yuan. Additionally, the company's founder, Wang Wei, originally from Hong Kong, stands out as the 17th wealthiest individual in China. (Source)
