The IPOX® Update 9/4/23

Arm Adjusts IPO Expectations, Launches at Nasdaq Next Week

British semiconductor and software design company Arm, owned by Japan's SoftBank, has begun its roadshow ahead of its imminent Nasdaq listing. The company is aiming to secure between $5-7 billion from its IPO, a markdown from its initial target of $10 billion. Indicative pricing suggests shares could range from $47 to $51, which would translate to an overall valuation between $50 billion and $54 billion. Notably, this is lower than the anticipated $60-70 billion valuation. A notable downturn in revenue, falling by 1% to $2.68 billion, was observed, with high exposure to the Chinese market noted as a potential risk factor. Nonetheless, tech behemoths such as Apple, Nvidia, Intel, and Samsung have been cited as strategic IPO investors. SoftBank's acquisition of Arm, valued at $64 billion, might face devaluation amid these unfolding dynamics. (Source)

Microsoft-Backed Rubrik Prepares for IPO

U.S. cloud and data security startup Rubrik, backed by software and cloud colossus Microsoft, is eyeing an IPO launch this year. The potential offering may yield between $500 million and $700 million. Preparations are underway with Rubrik's investor roadshow potentially kicking off in October. Rubrik reached an impressive valuation of $4 billion in 2021, following Microsoft's equity investment. As the startup solidifies its IPO strategy, it has enlisted a formidable roster of banks, including Goldman Sachs, Barclays, Citigroup, and UBS, to fortify its position. The forthcoming period will also see other tech entities, such as Arm Holdings Ltd., Instacart Inc., and Klaviyo Inc., making their respective moves towards IPOs. (Source)

Omani Energy Giant OQ SAOC Plans Significant IPO for Gas Pipeline Unit

Omani energy behemoth OQ SAOC is gearing up to introduce a groundbreaking IPO by offloading a 49% stake in its gas pipeline unit. The move could usher in Oman's most substantial listing with potential gains of $800 million. The forthcoming trading of OQ Gas Networks SAOG shares is slated for October. This strategic move aligns with Oman's broader privatization initiatives, reflecting similar endeavors in regional counterparts Saudi Arabia and UAE. Earlier this year, OQ's oil-drilling unit IPO reaped $244 million, signaling a positive trend for the energy conglomerate. Banking giants Bank Muscat, Bank of America, and EFG Hermes have been designated as the global coordinators for this highly anticipated IPO. (Source)

IPOX® Holding Alibaba Contemplates Fundraising for Cloud Unit Ahead of Hong Kong IPO

Chinese e-commerce titan and IPOX® International (ETF: FPXI) Index member Alibaba is mulling over a pre-IPO fundraising strategy for its cloud division. The anticipated listing in Hong Kong might be preceded by the cloud unit raising between $1.4 billion to $2.8 billion, potentially attracting investments from Chinese state-owned firms, including telecom enterprises. Established in 2009, Alibaba Cloud, mirroring services akin to Amazon Web Services, clocked in revenue of $11.2 billion for the year ending March. Despite its prominent stance, Alibaba Cloud has previously found itself under the scanner of Chinese regulatory bodies. This move comes on the heels of an earlier announcement detailing Alibaba's division into six distinct entities, with multiple segments setting their sights on IPOs. (Source)

Australian IPO Market Braces for Major Listings Despite Downtrend

In the wake of a challenging year, Australia's IPO market pins hopes on substantial listings, potentially accruing a combined worth of A$2 billion. The cumulative IPOs for the current year fetched A$885 million, marking a dip from the A$1.1 billion recorded in 2022. Key players, airline brand Virgin Australia and metals processor Molycop, stand poised to usher in a combined influx of A$2 billion through their listings. However, uncertainty surrounds the timeline, raising questions about the possibility of both firms launching their IPOs before the year concludes. As Molycop sets the stage with a non-deal roadshow, Virgin Australia's owner, Bain Capital, is treading cautiously, assessing market dynamics before advancing with IPO strategies. (Source)

Korea Exchange Witnesses Spike in Pre-IPO Preparations

In light of ongoing global macroeconomic uncertainties, there's a significant uptick in IPO activities in South Korea. The Korea Exchange highlighted that 10 companies are initiating pre-IPO proceedings in September, a number that surpasses historical averages. This influx indicates a revived investor sentiment in the IPO market after a period of stagnation caused by unfavorable stock conditions. Prominent among the listings is South Korean robot manufacturer Doosan Robotics, which has scheduled its demand forecasting for September 11th and is anticipating a public subscription between September 21-22. The company's valuation currently stands at a robust $2.27 billion. Moreover, Shinsung ST, a battery components manufacturer also from South Korea, plans to go public in October, riding on the rising trend of electric vehicles. While Doosan Robotics is expected to play a pivotal role in shaping the local market sentiment for 2023, it's essential to note that despite an increase in sales, the company's profitability is under pressure due to operating losses and a surge in research and marketing outlays. (Source)

Novo Nordisk Rolls Out Wegovy in UK Amid Supply Limitations

Leading Danish pharmaceutical firm Novo Nordisk, member of the IPOX® Europe (ETF: FPXE) and IPOX® International (ETF: FPXI) Indexes, has officially released its weight-loss drug Wegovy in the UK. The rollout, however, is on a "controlled and limited" basis. Eligible patients, as per the criteria set by the National Institute for Care and Excellence, can avail the drug via the National Health Service (NHS). Furthermore, Wegovy will be accessible privately through registered healthcare professionals. Notably, Novo Nordisk has pointed out that the supply of Wegovy will be limited for an unforeseeable period. Despite these constraints, the NHS might prescribe the drug to approximately 50,000 qualified patients. This release is underpinned by a Novo Nordisk study revealing that Wegovy significantly reduces heart attack or stroke risk by 20% in obese individuals with cardiovascular complications. The drug's introduction in the UK market presents a promising solution for addressing obesity and its related health concerns, though the limited supply may pose challenges in meeting the demand. Novo Nordisk recently surged to become Europe's most valuable company by market capitalization, overtaking French luxury fashion firm LVMH. (Source)