The IPOX® Update 9/15/23

RayzeBio Inc and Neumora Therapeutics Launch U.S. IPOs

San Diego-based biotech firm RayzeBio Inc launches today. The company, which specializes in radiopharmaceutical cancer therapies, is introducing an upsized offer of $311m with a market capitalization of $995m. Its leading candidate, RYZ101, is currently in Phase 3 trials. With no reported revenue and a net loss of $65.76M in the last year, the proceeds from the IPO are planned to advance clinical trials, fund drug development, and complete the manufacturing facility. (Source)

Biopharmaceutical company Neumora Therapeutics Inc, based in Watertown, MA, debuts today with an offer size of $250m, projecting a market cap of $2.5 billion. The company, which was founded in 2019, focuses on treatments for brain diseases. Its lead candidate, Navacaprant, targets Major Depressive Disorder. Despite having no revenue and a substantial net loss of $131.7M over the last year, the company has notable collaborations with partners such as Amgen, Vanderbilt University, and is backed by investment firm SoftBank. The IPO proceeds are earmarked for pipeline development and research programs. (Source)

Instacart Enhances IPO Price Range Ahead of Public Listing

U.S. grocery-delivery firm Instacart has revised its IPO price range, targeting a new range of $28-$30 per share, up from its prior $26-$28/share range. The company seeks to raise up to $660 million by offering 22 million shares. Simultaneously, Instacart CEO Simo is transitioning the company's core focus from delivery services to grocery technology and data utilization. This adjustment in strategy and the amplified IPO price range anticipates its public trading debut set for Tuesday. (Source)

SoftBank Strategizes for Arm's IPO Success

Technology investment firm SoftBank has positioned chip designer Arm for a robust IPO. Following a conservative pricing strategy, Arm made a strong debut, raising $4.87 billion and registering a notable 25% share gain post-IPO. Despite the successful launch, conservative pricing resulted in an estimated $1 billion potential left on the table. Major tech giants, including U.S. tech company Apple and processor manufacturers Nvidia and Intel, emerged as top investors in Arm's IPO. Post-IPO, SoftBank continues to be the predominant shareholder, retaining a 90% stake in Arm. (Source)

J-League Financially Supports Clubs Pursuing IPOs

The renowned Japanese football league, J-League, has taken a strategic step towards offering financial backing to its clubs that are eyeing IPOs. This move comes in light of dwindling sponsorships and disruptions caused by the Covid-19 pandemic. The league's primary focus is on clubs that demonstrate competitiveness, popular appeal, and efficient management. This new permission for club listings emerges as an attractive exit strategy for potential investors. The recent commendable performance by Japan in the Qatar World Cup has further elevated the investment appeal of football in the region. Highlighting the viability of such endeavors, European entities like the Juventus Football Club SpA have showcased the successful path of football clubs going public. Notably, Urawa Red Diamonds reported impressive sales figures, leading with a staggering 8.1 billion yen (approximately $55 million) in the last fiscal year. (Source)

Barito Renewables Aims for $228m Indonesia IPO

Indonesia-based geothermal energy company, Barito Renewables, has set its sights on a promising IPO, targeting an impressive $228 million. With plans to offer 4.5 billion shares priced between 670-780 rupiah each, it is set to represent a 3.35% stake. The public offering is scheduled between October 2-4, with an official listing on IDX slated for October 6 under the ticker BREN. The parent entity, Barito Pacific, an energy-focused conglomerate, aims to reduce its stake from 66.67% to 64.43% post-IPO. In financial terms, Barito Renewables showcased a robust Q1 2023 performance, marking a profit of $29.24 million, reflecting a 31% YoY growth, and revenue figures reaching $147.08 million, a 10% YoY increase. The funds from the IPO will primarily assist Star Energy Geothermal, aiming to repay a debt of $158.6 million and finance a refund of $72.5 million to Star Energy Oil & Gas. To highlight, as of 2023, 65 companies have been listed on IDX, with an additional 26, including six significant ones, in anticipation of their IPOs. (Source)

Novartis Shareholders Greenlight Sandoz Spinoff

Switzerland-domiciled pharmaceutical titan, Novartis, has received a unanimous nod from its shareholders for the spinoff of its generic drug unit, Sandoz. Sandoz is gearing up for its stock market debut around October 4, 2023. In this spinoff, Novartis shareholders stand to gain one Sandoz share for every five shares of Novartis held. While Sandoz shares won't be joining Switzerland's primary SMI index, they will hold a position in the Swiss Leader Index (SLI). This strategic separation paves the way for Novartis to transition into a more specialized pharmaceutical entity. The emphasis on this spinoff is to establish Sandoz as a leading provider of generics and biosimilars, both in Europe and globally. Financially speaking, Novartis has set an ambitious aim of achieving over a 40% core profit margin, while Sandoz has set its target on a 24-26% core EBITDA by the year 2028. (Source)