The IPOX® Update 8/31/23

Goldman Sachs Leads Upcoming IPOs

Investment banking giant Goldman Sachs is leading the charge to revive a dormant IPO market, with upcoming IPOs including chip designer Arm and online grocery delivery service Instacart. The IPO market in the US has significantly slowed down this year, with only $14.4 billion raised compared to $242 billion in 2021. Goldman Sachs is helming SoftBank’s Arm IPO, potentially the biggest since November 2021. Additionally, it is leading the IPOs of marketing-technology firm Klaviyo and footwear manufacturer Birkenstock. The tech sector is the focus of IPO market valuation resets, according to EY. This move by Goldman Sachs may help recover losses from a lack of dealmaking in the recent past. (Source)

Saudi Auto Rental Firm Lumi Could Raise $290m in IPO

Lumi, a Saudi Arabian auto rental firm, could raise up to $290 million in an IPO, with a price range set between 62-66 riyals per share, valuing the company at up to 3.63 billion riyals. The institutional book-building period has started, and the final offer price will be announced on September 7. This share sale is considered a litmus test for the Gulf IPO market after a slow summer. Lumi, a wholly-owned unit of Saudi travel company Seera, is the third-biggest auto rental operator in Saudi Arabia with a 7% market share. It has hired Saudi Fransi Capital and EFG Hermes to arrange the sale of 30% of its shares. (Source)

Swedish Fintech Klarna Ready for IPO When Market Conditions Improve

Klarna, the Swedish fintech company, is ready for an IPO when market conditions improve, according to CEO Sebastian Siemiatkowski. The company achieved its first monthly profit in three years and met the CEO's three requirements for an IPO. Despite having to slash its valuation by 85% to $6.7 billion and cut 10% of its workforce last year due to growing losses, Klarna's Q2 revenues increased by 17% to SKr5.5 billion, and credit losses fell 41% to SKr1 billion. The company is now established in the US with 30 million users and three consecutive quarters of gross profit. Although Klarna has no need to raise funds, it could make an "active choice" to do so. (Source)

Metagenomi Prepares for Fall IPO with JP Morgan

Gene-editing biotech firm Metagenomi is preparing for an IPO this fall with the assistance of JP Morgan. Although the company's plans and the amount to be raised have not yet been confirmed, Metagenomi has already raised over $400 million in venture capital and biopharma partnerships. Unlike most biotech firms that went public this year, Metagenomi's gene-editing work is still in the preclinical stages. The company is working on gene-therapy programs for various diseases, including hemophilia A, cystic fibrosis, and immuno-oncology diseases. It has received financial support from over 30 investment groups and drugmakers, including Bayer, Novo Holdings, RA Capital, Moderna, and Bristol Myers Squibb. Metagenomi has also formed partnerships with Moderna, Affini-T, and Ionis and last disclosed a $100 million extension to its Series B in early 2023. The upcoming IPO will provide an opportunity for investors to participate in the development of innovative gene-editing therapies. (Source)

Egypt Aiming for $5 Billion from IPOs by June 2024

The Egyptian government has announced plans to attract $5 billion from IPOs of power plants and state-owned companies by June 2024. This move will include offering stakes in the Siemens Beni Suef power plant, Gabal El-Zeit wind power plant, Zafarana wind farm, and companies Safi and Watanya. Between March 2022 and July 2023, the government collected $5 billion by offering stakes in 13 companies. As part of the State Ownership Policy Document, stakes in 35 state-owned companies will be offered to strategic investors by the end of June 2024. The list of companies now includes Eastern Company, Al Ezz Dekhila, and Telecom Egypt, which were added to the initial list of 32 companies released in February 2023. This initiative is part of a broader strategy to stimulate the Egyptian economy by encouraging private sector investment and development. (Source)

EcoPro Materials IPO Review to Gain Speed

EcoPro Materials, a South Korean company specializing in high-nickel precursor, a key material for secondary batteries, is expected to gain speed in its IPO review next month. The market capitalization is projected to be up to 5 trillion won ($3.78 billion), and if successful, EcoPro Materials will become the third trillion-dollar company to go public in South Korea this year. Legal concerns surrounding the group founder have been resolved, clearing uncertainties for the IPO. The company plans to use the proceeds from the IPO to expand its production capacity and reduce its dependence on China. The high-nickel precursor is a critical component in the manufacturing of electric vehicle batteries, and the global demand for this material is expected to increase as the electric vehicle market continues to grow. (Source)