The IPOX® Update 8/29/23

Marketing Firm Klaviyo Files for U.S. IPO

U.S. marketing automation company Klaviyo filed for an IPO in the United States last Friday. Klaviyo reported $15 million in net income on $321 million in revenue for the first half of 2023. The company was valued at $9.5 billion after a $100 million funding round in July 2022. Investors include Summit Partners, Shopify Strategic Holdings and Accomplice Fund 1. Klaviyo CEO Andrew Bialecki controls 38.1% of Class B shares. Goldman Sachs, Morgan Stanley and Citigroup will lead Klaviyo's IPO. The company plans to list on the New York Stock Exchange under the symbol KVYO. (Source)

ADES Holding Targets $1 Billion Saudi IPO

Oil and gas drilling company ADES Holding, backed by Saudi sovereign wealth fund PIF, aims to secure $1 billion in an initial public offering on the Saudi Exchange. ADES Holding will offload and issue shares in the largest Saudi IPO this year. Proceeds will fuel growth initiatives and cement leadership in the global jack-up drilling sector. The IPO aligns with Saudi Vision 2030, despite an 82% drop in Saudi IPO activity compared to 2022. The offer price announcement is scheduled for September 18, 2023. Arab media is optimistic and potential investors are enthusiastic due to ADES' connection with Aramco. However, ADES faces challenges in fleet expansion, integration of new rigs, and meeting future client demands and ESG obligations. (Source)

China Slows Down Mainland IPOs, Impacting Fundraising

China is slowing down mainland IPOs to bolster the secondary market and boost investor confidence amid declining growth momentum. The move is part of measures to revive the lagging stock market. There have been $39.7 billion worth of IPOs in China this year, down from $68.2 billion last year, but more than double the U.S. The CSRC announced phased restrictions on IPOs for "dynamic equilibrium" between investment and financing, lengthening the registration process. Over 650 companies await listing on the Shanghai and Shenzhen exchanges, including robot maker JAKA Robotics and semiconductor firm Shenzhen Chipsbank Technologies. Bankers criticize the move as going against earlier reforms, returning to the old model of controlling IPOs to lift stock prices. Increased scrutiny of offshore IPOs, liquidity shortage in Hong Kong, and Sino-U.S. tensions limit equity fundraising options for Chinese firms. (Source)

Nido Initiates $63.5M Australian IPO

Australian childcare center operator Nido has initiated a US$63.5 million IPO, with AustralianSuper as a cornerstone bidder. Proceeds will mainly be used for new center acquisitions, with a targeted market capitalization of $140.6 million U.S. dollars. AustralianSuper, the largest superannuation fund, has placed a cornerstone bid. Nido's revenue growth from $11.4 million U.S. dollars in 2020 to a forecasted $110.2 million U.S. dollars in 2024 represents a 57.3% compound annual growth rate. Former Think Childcare boss Mat Edwards will retain 50.5% ownership, escrowed until February 2025. Nido plans to expand from 52 to 100 centers in 4-5 years with Sydney’s Alceon Private Equity as a funding partner. Canaccord Genuity, MA Financial and Wilsons Corporate are mandated for the raise, with the roadshow beginning Friday and bids due September 11. (Source)

Jollibee Delays Vietnam Unit IPO

Philippine  fast food giant Jollibee has delayed the IPO of its Vietnam unit, SuperFoods. The company is working to improve operations before listing on the Vietnam Stock Exchange. Jollibee's CFO says the IPO remains part of the strategy but only at the right valuation and timing. SuperFoods' Highlands Coffee has around 700 stores in Vietnam. Systemwide sales were up 7.6% but same-store sales were down 8.2% due to competition and macroeconomic headwinds. Abacus Securities says the IPO delay is "beneficial" for Jollibee amid robusta coffee price uncertainty. The listing of SuperFoods was supposed to be a "catalyst" for Jollibee's share price. (Source)

FC Barcelona Moves Media Unit to Netherlands Before SPAC IPO

Spanish football club FC Barcelona is moving the headquarters of its content subsidiary, Barça Media, to the Netherlands before a planned Nasdaq initial public offering via a merger with special purpose acquisition company Mountain & Co. I Acquisition Corp. Barça Media, valued at $973 million, creates content including audiovisuals, cryptocurrencies, NFTs, avatars, eSports, and video games. The business depends heavily on FC Barcelona's brand, reputation, and on-field performance in LaLiga and UEFA competitions. FC Barcelona doesn't own all intellectual property rights related to the content, relying on monetization through social media. The contract duration is 20 years, extendable by another 20. The SPAC had $132 million in cash as of June 30, 2023. (Source)