The IPOX® Update 8/31/24

U.S.

MBX Biosciences Files for Nasdaq IPO Amid GLP-1 Drug Development

MBX Biosciences has filed for a Nasdaq IPO, aiming to leverage growing interest in GLP-1 weight loss drugs. The U.S. biotech firm specializes in developing long-acting peptide therapies for metabolic and endocrine disorders. The IPO may price as early as September, with JP Morgan, Jefferies, Stifel, and Guggenheim Securities acting as joint bookrunners. MBX recently completed a $63.5 million Series C funding round, led by Deep Track Capital, Driehaus Capital, and T Rowe Price. The company holds $118 million in cash, primarily funding its lead drug candidate, a hormone replacement therapy currently in Phase II trials for calcium deficiency. Additionally, MBX’s GLP-1 drug, targeting severe obesity complications post-bariatric surgery, is in Phase I trials with data expected by year-end. A second GLP-1 drug aimed at improving on existing treatments is in preclinical development, with Phase I trials potentially starting next year. (Source)

Tembo E-LV to Go Public via $904 Million SPAC Deal

Tembo E-LV, a unit of VivoPower International, will go public through a $904 million SPAC merger with Cactus Acquisition. Tembo specializes in battery-electric and off-road vehicles for sectors such as mining, utilities, and humanitarian aid. VivoPower acquired a 51% stake in Tembo in 2020 to expand into electric light vehicles and sustainable energy markets. The merger, expected to close by year-end, will result in a new entity, Tembo Group, which aims for a Nasdaq listing. SPAC mergers have decreased since 2021 due to regulatory scrutiny, making this deal notable. The transaction will allow Tembo Group to capitalize on the growing demand for electric and off-road vehicles, enhancing its market visibility and access to capital for future growth. (Source)

Events.com to Go Public Through SPAC Merger with Concord Acquisition II

Events.com, a platform for event management, will go public through a merger with Concord Acquisition Corp. II, a SPAC led by Bob Diamond and Jeff Tuder. The merger values Events.com at a pro forma enterprise value of nearly $400 million, with a pre-money equity value of approximately $314 million. The combined entity will be listed on the New York Stock Exchange under the ticker "RSVP." Concord Acquisition II, which initially raised around $280 million in 2021, now holds less than $25 million after redemptions. The merger is expected to support Events.com's expansion, including revenue growth, new product offerings, and AI-driven personalization. Events.com previously secured a $100 million capital commitment from Gem Global Yield LLC SCS to accelerate its growth post-listing. CEO Mitch Thrower and President/COO Stephen Partridge will continue to lead the company after the merger. (Source)

Smithfield Foods Spins Off European Operations Ahead of Planned U.S. IPO

Smithfield Foods, a major U.S. pork processor, has spun off its European operations into a new entity named Morliny Foods as part of its strategy to facilitate an IPO in the U.S. market. Smithfield Foods is owned by China's WH Group, which acquired the company in 2013 for $4.7 billion. Morliny Foods will operate in Poland, Romania, Slovakia, Hungary, Spain, and the UK, focusing on fresh pork, poultry, and packaged meats. Despite the spin-off, both Smithfield Foods and Morliny Foods will remain subsidiaries of WH Group, the world's largest pork processor. Smithfield’s U.S. IPO is pending approval from relevant stock exchanges and the U.S. SEC. The company plans to grow its North American business by expanding its higher-margin packaged meats segment and leveraging its strong brand portfolio. (Source)

Europe

Raspberry Pi Set for Potential FTSE 250 Inclusion After Strong IPO Performance

Raspberry Pi, the Cambridge-based computer maker included in the IPOX® 100 Europe Index (ETF: FPXE), could enter the FTSE 250 index just three months after its IPO. The company went public in June, experiencing strong investor interest. Its shares are currently trading at 401p, reflecting a 40% increase from the 280p IPO price. The company’s market capitalization now stands at £782.2 million ($984 million), positioning it for potential inclusion in the FTSE 250. Analysts suggest that Puretech Health, with a market cap of £397 million ($499 million), may be relegated from the index to accommodate Raspberry Pi. Known for its affordable computing products, Raspberry Pi has expanded into industrial computer modules, catering to the growing 'internet of things' market. The company will release its first performance report on 24 September, detailing its first-half results. (Source)

MENA

Delivery Hero Plans Dubai IPO for Middle Eastern Unit Talabat

Delivery Hero, a German food delivery company, is preparing to list its Middle Eastern unit Talabat in Dubai. The IPO is expected to take place in the fourth quarter of 2024, subject to market conditions and regulatory approvals. Delivery Hero may conduct a secondary share sale but plans to retain a majority stake post-IPO. Analysts estimate the Middle East and North Africa unit's valuation at approximately $5.5 billion. The IPO will contribute to the active Gulf IPO market, which also includes significant listings by NMDC Group and Al Majed for Oud Co.. While Deutsche Bank views the IPO as beneficial for Delivery Hero’s overall valuation, some analysts express concerns over the timing, especially with implications for cash flow in competitive markets like South Korea. (Source)

NMDC Energy Launches IPO on Abu Dhabi Securities Exchange

NMDC Energy, a subsidiary of Abu Dhabi’s NMDC Group, has launched an IPO on the Abu Dhabi Securities Exchange (ADX) to raise $877 million. The IPO offers 1.15 billion shares priced at 2.8 Emirati Dirhams per share ($0.76). NMDC Group, the largest offshore contractor in the Middle East, received approval from the ADX to proceed with the offering. The listing of NMDC Energy is scheduled for 11 September 2024. The funds raised are expected to support NMDC Energy's expansion and operational activities. (Source)

Saudi Arabia's Al Majed for Oud Launches $188 Million IPO

Al Majed for Oud, a leading Saudi Arabian perfume retailer, aims to raise $188 million from its IPO by offering 30% of its capital. The IPO includes 7.5 million shares, priced between SAR90 and SAR94, with the total expected proceeds amounting to SAR705 million ($188 million). Investor orders are open from August 25 to September 19, with prices to be set after the book-building process. Saudi Fransi Capital is serving as the financial adviser, joint book-runner, and lead manager for the IPO. Founded in 1956, Al Majed for Oud operates 286 stores and offers 650 products across 132 brands. The company plans to expand its presence within Saudi Arabia and the GCC, focusing on retail and digital growth. (Source)

Asia-Pacific

Duality Biotherapeutics Plans Hong Kong IPO

Duality Biotherapeutics, a Shanghai-based biotech and partner of BioNTech, is preparing to go public on the Hong Kong Stock Exchange. The company has a robust pipeline of 12 Antibody Drug Conjugates (ADCs), with six candidates already in clinical trials. DualityBio’s partnerships, including those with BioNTech and BeiGene, represent over $4 billion in total value. The collaboration with BioNTech includes BNT323, BNT324, and BNT325 ADCs, targeting various solid tumors. BNT323, targeting HER2, is in late-stage trials and is expected to seek FDA approval in 2025. DualityBio's most advanced unpartnered ADC, DB-1310, targets HER3 and is currently in Phase I trials for non-small cell lung cancer. The company also focuses on autoimmune diseases, with DB-2304 set to enter trials for lupus erythematosus. (Source)

FWD Group May Refile for Hong Kong IPO in September

FWD Group, an Asian insurer controlled by billionaire Richard Li, is expected to refile for a Hong Kong IPO in September. The anticipated fundraising size is expected to be less than the original $1 billion target from over two years ago. FWD raised $1.825 billion in pre-IPO rounds during 2021-2022, valuing the company at approximately $9 billion. The IPO was initially filed in February 2022 but faced multiple delays due to challenging market conditions. The listing is being sponsored by Morgan Stanley, Goldman Sachs, CMB International, and JP Morgan, with HSBC as the financial adviser. FWD reported an operating profit after tax of $223 million for H1 2024, with strong contributions across regions. The company’s value of new business was $404 million, showing a 14% year-on-year growth. (Source)

Rigaku Holdings Plans October IPO on Tokyo Stock Exchange

Rigaku Holdings, a Japanese company specializing in X-ray analytical instruments, plans to list on the Tokyo Stock Exchange in October. The IPO is expected to raise between $200 million and $300 million. Founded in 1951, Rigaku has established itself as a leader in advanced testing technologies, with applications across construction, semiconductors, and biotechnology. The IPO aims to capitalize on Rigaku's long-standing expertise and growth potential in these high-tech and industrial sectors. The company’s products are critical in various industries, driving its market expansion and investment appeal. Final details regarding the IPO size and pricing are yet to be confirmed. (Source)

Hong Kong Eases Listing Rules for Tech Firms Amid IPO Slowdown

Hong Kong's stock exchange is easing listing rules for tech companies and SPACs in response to declining IPO activity. The minimum initial market capitalization for specialist tech firms is being reduced from HK$6 billion to HK$4 billion ($513.1 million). Pre-commercial companies will also see a reduction in market capitalization requirements from HK$10 billion to HK$8 billion. These changes apply to companies expected to list on or after September 1, 2024, and will be in effect for three years. Additionally, de-SPAC transaction requirements are being relaxed, with lower minimum third-party investment thresholds. The modifications are intended to attract high-growth tech firms to list in Hong Kong, providing more flexibility to issuers. These adjustments are part of broader efforts to maintain Hong Kong's status as a leading IPO market for innovative companies. (Source)

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