The IPOX® Update 8/23/24
U.S.
Yanolja's Nasdaq IPO Faces Delay Amid Liquidity Issues at Qoo10
South Korean travel and leisure platform Yanolja is facing a potential delay in its planned Nasdaq IPO due to liquidity issues at its subsidiary, Qoo10. The problem centers on Qoo10's $125.6 million debt to Yanolja's travel booking arm, InterparkTriple, stemming from a deal involving a stake in logistics firm Qxpress. The stake was collateralized, but financial troubles at Qoo10 have significantly devalued Qxpress, exacerbating the situation. Qoo10's Korean subsidiaries filing for court receivership in July has led to further payment delays and a decline in Qxpress's value. Financial investors in Qxpress, including Crescendo Equity Partners and Korea Development Bank PE, may convert bonds into equity, which could further reduce the logistics firm's value. This scenario could force InterparkTriple to recognize an accounting loss, negatively affecting Yanolja's financial health, which already reported a $49 million net loss in the first half of 2024. (Source)
Bicara Therapeutics Files for Nasdaq IPO Targeting $200 Million
Bicara Therapeutics, an oncology biotech firm, has filed for an IPO with plans to list on Nasdaq under the ticker BCAX. The company is targeting a $200 million IPO, following a $165 million Series C funding round completed eight months ago. Bicara's lead drug, BCA101, is currently in Phase 1/1b trials for treating EGFR-driven solid tumors, including head and neck cancers. A pivotal trial for BCA101 is expected to start by late 2024 or early 2025. The largest shareholder, Biocon, holds a 16% stake in the company. As of June 2024, Bicara reported having $203 million in cash, alleviating immediate financial pressures. (Source)
Zenas BioPharma Files for Nasdaq IPO Amid Summer Lull
Zenas BioPharma, a late-stage biotech company focused on autoimmune diseases, has filed for an IPO on Nasdaq under the ticker ZBIO. The company is aiming to raise $100 million, following a $200 million Series C funding round earlier this year. Zenas is advancing its lead drug, obexelimab, which is currently in Phase 3 trials for immunoglobulin G4-related disease and in Phase 2 for conditions like multiple sclerosis and lupus. The company, backed by Bristol-Myers Squibb, plans to market obexelimab in the U.S. and Europe while considering outlicensing opportunities in Asia. With $183 million in cash as of June 2024, Zenas is positioned to advance its clinical programs. (Source)
China-Based WeRide Postpones U.S. IPO Amid Regulatory Concerns
Chinese autonomous driving startup WeRide has postponed its U.S. IPO just days before the regulatory deadline. The company aimed to raise up to $119.4 million by offering 6.452 million American depositary shares at $15.50-$18.50 per share. Existing investors had agreed to purchase $320.5 million in shares upon the IPO's completion. The delay comes amid U.S. concerns over Chinese smart vehicles, with potential restrictions on Chinese vehicle software. WeRide, founded in 2017, specializes in autonomous driving technology and operates in 30 cities across Asia, the Middle East, and Europe. For the first half of 2024, WeRide reported $20.97 million in revenue but a loss of $123.03 million, higher than the previous year. (Source)
Europe
CVC Capital Partners Plans IPO for Deutsche Bahn's Logistics Unit Schenker
CVC Capital Partners is planning to list Schenker, the logistics unit of Deutsche Bahn, on the Frankfurt Stock Exchange. Schenker, which has received final bids valuing it at approximately $15.57 billion, is the target of a consortium led by CVC and Danish transport firm DSV. The CVC-led group has offered an option for the German government to reinvest, potentially raising the valuation to $17.8 billion. Deutsche Bahn is currently reviewing the offers and is expected to consult with the government before making a final decision. The bids reportedly include guarantees for employment and maintaining Schenker's brand and locations. A final decision on the bids is anticipated in the coming weeks. (Source)
Nordic Capital Considers IPO for Scandinavian Consumer Finance Lender NOBA
Nordic Capital is weighing the possibility of an IPO for NOBA, a Scandinavian consumer finance lender, potentially in 2025. NOBA, which was formed by the merger of Swedish lender Nordax and Bank Norwegian in 2022, could be valued between €3 billion and €4 billion in the public offering. Goldman Sachs, JPMorgan Chase, and Carnegie Investment Bank have been selected to work on the IPO. Nordic Capital streamlined NOBA's corporate structure this summer by merging three legal entities into one. The IPO is expected to be a significant event for the European financial sector, particularly in light of the limited IPO activity in recent years. (Source)
India
Swiggy Targets $15 Billion Valuation for India IPO
Indian food delivery giant Swiggy is targeting a $15 billion valuation for its upcoming IPO. The company, backed by SoftBank, plans to raise between $1 billion and $1.2 billion in what could be one of India's largest IPOs this year. Swiggy, which competes with Zomato in food delivery and quick commerce, focuses on its Instamart grocery delivery service. The company received shareholder approval in April to raise up to $1.25 billion, and a public filing is expected soon. While Swiggy's food delivery segment is profitable, its Instamart service remains loss-making, despite operating around 550 warehouses in 35 cities. Swiggy's last funding round in 2022, led by Invesco, valued the company at $10.7 billion. The IPO proceeds are expected to be used to expand Instamart and build more warehouses across India. (Source)
HDFC Credila Financial Services Plans $500 Million IPO in India
HDFC Credila Financial Services, an Indian education loans provider, is planning a $500 million domestic IPO. The company, which recently saw HDFC Bank sell a 90% stake to BPEA EQT and ChrysCapital for $1.14 billion, is set to meet with banks soon to finalize the syndicate for the IPO. HDFC Bank retains a 9.99% stake in HDFC Credila following the sale, which was a regulatory requirement for its merger with Housing Development Finance Corp. HDFC Credila reported a significant increase in financial performance, with revenue for FY2024 reaching $334.9 million (Rs27.7 billion), up 105% from the previous year, and profit after tax rising 92% to $6.4 million (Rs528.8 million). Another Indian education loan provider, Avanse Financial Services, is also planning an IPO of up to $424 million (Rs35 billion). (Source)
Asia-Pacific
Bain Capital Plans $500 Million IPO for Japanese Chipmaker Kioxia Holdings
Bain Capital is planning a $500 million IPO for Japanese chipmaker Kioxia Holdings Corp., a NAND flash memory producer. The IPO is expected to launch in October 2024, with Kioxia potentially valued at over $10.3 billion. This IPO is anticipated to be Japan's largest since Kokusai Electric Corp.'s $1.5 billion listing. Bain Capital acquired Kioxia from Toshiba in 2018 for $18 billion, with previous listing attempts delayed. The positive outlook in the memory industry and strong market conditions are expected to benefit the IPO. (Source)
Westwell Plans $100 Million Hong Kong IPO in 2025
Chinese autonomous-driving technology firm Westwell is preparing for a Hong Kong IPO in 2025, aiming to raise up to $100 million. The IPO will involve the participation of major financial institutions including CICC, Citic Securities, and CMB International. Westwell, which develops autonomous-driving technology and trucks for global logistics companies, operates in over 20 countries and serves more than 200 customers, including Maersk and Cosco. The offering could occur as early as next year, pending ongoing deliberations. Westwell's planned IPO comes amid a slight decline in Hong Kong's IPO market, and is aligned with the recent trend of Chinese auto-tech companies pursuing public listings, e.g. see below. (Source)
Horizon Robotics Receives Approval for $500 Million Hong Kong IPO
Chinese autonomous driving technology firm Horizon Robotics has received approval for a $500 million IPO on the Hong Kong Stock Exchange. Pre-marketing for the IPO could begin as early as next month, with China Securities International, Goldman Sachs, and Morgan Stanley as sponsors. Horizon Robotics, founded in 2015, develops autonomous driving technology and serves major automakers such as BAIC, BYD, Geely, Nio, and Hyundai. The company also has a joint venture with Volkswagen Group for customized driving automation in China. In 2023, Horizon reported a reduced net loss of $224 million, down from $266 million in 2022. Major shareholders include SAIC Motor, Hillhouse, and HongShan. (Source)
99 Speed Mart Retail Holdings Bhd Plans $506 Million IPO on Malaysia's Main Market
Malaysian mini-market chain 99 Speed Mart Retail Holdings Bhd is set to launch a RM2.36 billion ($506 million) IPO on Malaysia's Main Market on September 9, 2024. This will be Malaysia's largest IPO in seven years. The IPO is priced at RM1.65 per share and includes 1.03 billion existing shares and 400 million new shares, with the public issue expected to raise RM600 million ($129 million). Proceeds from the IPO will be used to fund the company's expansion, with RM389 million ($83 million) allocated to increasing the outlet count to 3,000 by 2025. Additionally, RM100 million ($21 million) will be used for new distribution centers, with further investments planned for delivery trucks and upgrading existing outlets. (Source)
Tokyo Metro Targets $4.7 Billion Valuation for October IPO
Tokyo Metro is targeting a $4.7 billion valuation for its IPO by the end of October 2024. This offering, expected to be Japan's largest in six years, could raise $2.35 billion (350 billion yen) by selling 50% of the company. The Tokyo and national governments, which currently own 100% of Tokyo Metro, are preparing to brief brokerages on the listing. The Tokyo Stock Exchange could approve the IPO as soon as mid-September. Tokyo Metro operates 195 kilometers of subway lines and serves 6.5 million passengers daily in Tokyo. The funds raised from the IPO will help the central government repay reconstruction bonds issued after the 2011 disaster. Nomura, Mizuho, and Goldman Sachs have been appointed as joint global coordinators for the IPO. (Source)
MENA
Arabian Mills Plans 30% Secondary IPO on Tadawul
Saudi Arabia-based Arabian Mills, formerly known as Second Milling Company, is launching a 30% secondary IPO on the Tadawul. The IPO involves 15.4 million shares, with HSBC as the sole bookrunner. Arabian Mills holds a 28.4% market share in Saudi Arabia's flour market, making it the second-largest producer in the country. The company's 2023 revenue was $229.7 million, with a profit of $53.3 million and EBITDA of $102.2 million. The IPO follows the successful 2023 listings of First Milling Company and Modern Mills on Tadawul. Post-IPO, Ajlan & Bros will hold a 35.09% stake, and Al Rajhi International will hold 24.5%, with a six-month lockup period. The bookbuilding process will begin on September 1, with pricing set for September 11, and the retail offer available from September 18-19. Final allocations are expected on September 26. (Source)
Saudi Perfumer Al Majed For Oud Plans 30% IPO on Local Stock Exchange
Saudi Arabia-based Al Majed For Oud plans to list a 30% stake on the local stock exchange. The IPO will offer 7.5 million shares, with final pricing determined through a bookbuilding process from August 25-29. The company, which will not receive proceeds from the IPO, operates 237 stores in Saudi Arabia and 49 more across the GCC region. Last year, Al Majed For Oud reported revenue of $204.4 million (767 million riyals) with a profit margin of 66.6%. This move comes amid increased IPO activity in the Gulf region, driven by efforts to deepen capital markets. Another Saudi perfume retailer, Arabian Oud, is also considering a listing following Al Majed For Oud's planned IPO. (Source)
Disclaimer: News summaries may contain mistakes. The information does not constitute financial advice, endorsement or recommendation and should not be considered as such.
