The IPOX® Update 9/7/24

U.S.

Titan Cement International Plans IPO for U.S. Unit Titan America in 2025

Titan Cement International, based in Greece, plans to IPO its U.S. subsidiary Titan America in early 2025. Citigroup and Goldman Sachs have been hired to manage the New York listing. The company expects to raise at least $500 million by selling a minority stake in Titan America, which is valued at over $2 billion. Titan America generated $1.6 billion in sales in 2023 and contributed nearly 60% of Titan Cement’s total revenue. Shares of Titan Cement have risen 80% in the past year, increasing the company’s market cap to $2.8 billion. European companies, like Holcim, are also eyeing U.S. listings for their North American units. (Source)

Solera and Grupo Aeroméxico Among Top U.S. IPO Candidates

Analysts expect the U.S. IPO market to see 30 to 50 more deals in 2024, raising around $10 billion, although full market recovery is unlikely before 2025 due to market volatility and the upcoming U.S. elections. Companies are cautious about IPO performance, with 119 companies, including Solera and Grupo Aeroméxico, maintaining active filings. Solera, a Texas-based auto software provider, is expected to raise up to $1.5 billion in its IPO. Fall candidates include StubHub, Cerebras, and Specialty Building Products, while tech IPOs continue to recover from the low levels of 2023. (Source)

Zenas BioPharma and Bicara Therapeutics Set Price Ranges for U.S. IPOs

Biopharmaceutical companies Zenas BioPharma and Bicara Therapeutics have set their price ranges for upcoming U.S. IPOs. Each company aims to raise approximately $200 million. Zenas, backed by Bristol Myers, will offer 11.76 million shares priced at $16-$18, with a target market cap of $681 million. Zenas is developing immunology therapies for diseases such as multiple sclerosis and lupus. Bicara plans to offer 11.77 million shares at the same price range, targeting a valuation of around $812 million. Both companies are expected to list on Nasdaq, with Zenas under "ZBIO" and Bicara under "BCAX." (Source)

Newsmax Files for U.S. IPO Under Regulation A+

Newsmax Inc., the fourth-highest-rated cable news channel in the U.S., has confidentially filed for an IPO under Regulation A+. The company aims to raise up to $75 million and list on the New York Stock Exchange under the ticker "NMAX." Newsmax is also conducting a private placement to raise an additional $150 million through Series B 7% Convertible Preferred Stock, open to accredited investors. The IPO, expected to occur in late 2024 or early 2025, will enhance Newsmax’s market liquidity. Upon completion, all Series B shares will convert into common stock. (Source)

Samsonite Chooses JPMorgan and Morgan Stanley for U.S. Dual Listing

Samsonite, a global luggage manufacturer currently listed in Hong Kong, has selected JPMorgan and Morgan Stanley to manage a dual listing in the U.S. The move aims to increase liquidity and accessibility for global investors. While the company initially explored a take-private deal, it was deemed too expensive. In the first half of 2024, Samsonite reported a net income of $164 million on $1.77 billion in sales. Its market value is approximately $3.5 billion, though shares have fallen 26% this year. The company may consider making the U.S. its primary listing venue. (Source)

Semnur Pharmaceuticals to Go Public via SPAC Merger in $2.5 Billion Deal

Semnur Pharmaceuticals, a developer of non-opioid pain therapies, plans to go public through a SPAC merger with Denali Capital. The deal values the company at $2.5 billion. Semnur, a subsidiary of Scilex Holding Company, will be renamed and listed on Nasdaq under "SMNR" and "SMNRW." The merger is expected to close in the first quarter of 2025. SPAC mergers have declined in popularity due to increased regulation and economic challenges, but the deal provides an alternative listing route. (Source)

Medera Inc. to Go Public via SPAC Merger Worth $623 Million

Biotech firm Medera Inc. is set to go public via a SPAC merger with Keen Vision Acquisition Corp. in a deal valued at $623 million. Medera develops gene- and cell-based treatments for cardiovascular diseases, using bioengineered human-based technology for more accurate drug testing. The merger will generate $149.5 million in cash proceeds, subject to stockholder redemptions. The deal, chosen over a traditional IPO, is expected to close in Q4 2024. Keen Vision raised $150 million in its IPO last year, though SPAC funding has declined since 2021. (Source)

Europe

Carlyle Group to Take Acrotec Group Public in $4.7 Billion Zurich IPO

Carlyle Group has selected Bank of America, Morgan Stanley, and UBS to lead the IPO of Acrotec Group on the Zurich Stock Exchange in 2025. Acrotec, based in Switzerland, produces luxury watch parts and precision components for the medical-tech, automotive, electronics, and aerospace industries. The IPO could value Acrotec at up to $4.7 billion. Carlyle acquired Acrotec in 2021 and is preparing the IPO in collaboration with Rothschild & Co. The offering is expected to drive private equity-backed IPO activity in Europe, with several other firms planning similar listings. (Source)

Europastry Plans October IPO on Madrid Stock Exchange

Barcelona-based frozen bakery producer Europastry is planning to launch its IPO on the Madrid Stock Exchange in October 2024. The company had previously postponed its IPO in June due to market instability in Europe. Europastry intends to offer new shares valued at €225 million and a secondary sale by the main shareholders. Founded in 1987, Europastry operates in over 80 countries with 27 plants across the U.S. and Europe. The company reported a net turnover of €1.3 billion in 2023. Europastry plans to list at least 25% of its shares during the IPO. (Source)

SBB Plans IPO of Subsidiary Sveafastigheter in Sweden

SBB, a Swedish real estate group, is planning to list its residential property subsidiary Sveafastigheter as part of a broader debt-reduction strategy. The IPO will provide the company with additional liquidity and attract external shareholders. SBB has been restructuring over several years to manage its debt burden. The listing is expected to be announced soon, although SBB has not provided specific details about the offer size or valuation. (Source)

Asia-Pacific

Midea Group to Raise $3 Billion in Hong Kong’s Largest IPO in Three Years

Midea Group, the world's largest home appliance maker, is set to raise at least $3 billion through an H-share IPO in Hong Kong, making it the largest listing in the city in over three years. The IPO is expected to surpass Baidu’s $3.08 billion listing in 2021. Midea, already listed in Shenzhen, began its pre-roadshow this week, with the book-building process expected to start shortly. The company’s shares are up 17% this year, valuing Midea at approximately $64.2 billion. (Source)

MENA

Delivery Hero Prepares to List Talabat on Dubai Stock Exchange in Q4 2024

Delivery Hero SE is preparing to list its Middle East and North Africa unit Talabat on the Dubai stock exchange in the fourth quarter of 2024. The IPO could raise approximately $1 billion. Talabat is valued at more than $6 billion, and the listing will help Delivery Hero unlock cash and improve liquidity. The deal is part of a growing trend of Gulf IPOs, which have been quickly oversubscribed. However, analysts note that a reduced ownership stake in Talabat could impact Delivery Hero’s future cash flows. (Source)

Tabby Plans IPO on Saudi Stock Exchange, No Date Set Yet

Tabby, a buy-now-pay-later (BNPL) app, plans to IPO on the Saudi Stock Exchange (Tadawul), though a timeline has not been announced. The company recently acquired Saudi digital wallet Tweek as it expands its services in Saudi Arabia. Founded in the UAE, Tabby moved its headquarters to Saudi Arabia in 2023. In its 2023 Series D funding round, the company raised $200 million, valuing it at $1.5 billion. Tabby operates across Saudi Arabia, UAE, and Kuwait, with further expansion planned in the region. (Source)

Arabian Mills for Food Products to Raise $271 Million in Saudi IPO

Arabian Mills for Food Products, a Saudi food processing company, plans to raise between $255 million and $271 million through its upcoming IPO. The price range for the offering is set between SAR 62 and SAR 66 per share, and the company’s estimated market capitalization is between $848 million and $903 million. A total of 15.4 million shares, representing 30% of Arabian Mills' issued capital, will be sold by existing shareholders. The company will not receive proceeds from the IPO. HSBC Saudi Arabia is the sole financial advisor for the offering. (Source)

Al Majed for Oud Finalizes IPO Price at SAR 94

Al Majed for Oud, a Saudi perfumery company, has finalized the price for its upcoming IPO at SAR 94 per share after an oversubscription rate of 156.5 times. The company plans to offer 7.5 million shares, representing 30% of its issued capital, with an expected offer size of SAR 705 million ($188 million). Retail subscription is set to open on September 15, 2024, for one day only. The company aims to use the IPO to enhance its market position and support future growth. (Source)

India

Premier Energies Debuts on Indian NSE with 120% Premium

Premier Energies, an Indian solar energy company, debuted on the National Stock Exchange (NSE) at Rs 990, a 120% premium to its issue price. The IPO raised Rs 2,830.40 crore ($340 million) and was oversubscribed 75 times. Premier Energies reserved 233,644 shares for employees, offering a Rs 22 discount on the issue price. Retail investors were allocated no more than 35% of the issue, with a minimum application of 33 shares, priced at Rs 14,850. Kotak Mahindra Capital, J.P. Morgan India, and ICICI Securities served as book-running lead managers. (Source)

Oversubscription of Indian IPO Shares Declines Due to Financing Restrictions

Oversubscription of Indian IPO shares reserved for non-institutional investors has dropped to 17 times, down from 38 times. The decline follows the Reserve Bank of India’s restrictions on IPO financing, limiting loans to Rs 10 million ($110,000). Additionally, the Securities and Exchange Board of India (SEBI) has shifted the share allotment method for non-institutional investors to a lottery system, further reducing access. The study analyzed 144 IPOs between April 2021 and December 2023, with a combined raise of Rs 2.13 trillion ($26.8 billion). (Source)

Advanta Enterprises Plans $500 Million IPO in 2025

Advanta Enterprises, a seed subsidiary of UPL, plans to raise $300 million to $500 million through an IPO in 2025. The company is collaborating with Bank of America, Citigroup, JM Financial, and Morgan Stanley on the offering. Advanta's Q1 2024 revenue fell 7.1% year-over-year to Rs 9.85 billion ($119 million), while operating profit dropped 30%. UPL, a crop protection and seeds company, is exploring private placement or public offering to unlock Advanta’s value. UPL's shares have risen 3.5% this year. (Source)

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