The IPOX® Update 9/18/23

Instacart Prepares for IPO with Focus on Advertising and Tech

U.S. grocery delivery platform Instacart is set to commence its trading on Tuesday, aiming to raise as much as $660 million, which could lead to an impressive valuation exceeding $9 billion. The move comes after successful IPOs from other companies like the UK-based semiconductor designer Arm Holdings, which was substantially backed by SoftBank. Notably, Instacart has garnered significant interest, enlisting multinational food and beverage corporation PepsiCo among other cornerstone investors. These cornerstone investments could secure nearly 60% of shares. Under the leadership of CEO Fidji Simo, the company has pivoted its primary focus towards advertising and technology, rather than delivery services, fully leveraging its vast consumer data. This strategic shift seems to have been beneficial, as Instacart reported profits of $242 million for the first half of 2023, a significant turnaround from the $74 million loss in the preceding year. The listing is orchestrated by major investment banks Goldman Sachs and JPMorgan and will be trading on the Nasdaq with the symbol CART. (Source)

Klaviyo Inc. Raises IPO Target Following Positive Market Responses

U.S.-based marketing and data automation firm Klaviyo Inc. has revised its IPO target upwards to $557 million, potentially valuing the company at a robust $8.7 billion. The move to adjust the share price range from $25-$27 to $27-$29 suggests strong demand. The company is planning to offload 19.2 million shares, following in the footsteps of Instacart and Arm Holdings. Investment powerhouses BlackRock Inc. and AllianceBernstein LP have emerged as cornerstone investors, indicating their interest with a combined investment of $100 million. Financial figures for Klaviyo show promise; its H1 report indicated a profit of $15 million on revenues amounting to $321 million, reflecting a positive shift from the previous year. The IPO will be overseen by leading investment banks including Goldman Sachs, Morgan Stanley, and Citigroup, and the company plans to list its shares on the NYSE under the ticker KVYO. (Source)

Omani Energy Giant OQ SAOC Aims for Country's Largest-Ever IPO

Omani state-owned energy conglomerate OQ SAOC has set its sights on raising a staggering $771 million through its IPO, potentially making it the largest ever in the nation. The shares for OQ Gas Networks SAOG, a subsidiary, have been priced between 131-140 baisas. In a strategic move, the state-run OQ intends to sell a 49% stake in OQGN through Oman Energy Trading and Oman Oil Services. Key investments have been anchored by Fluxys Belgium SA, Saudi's Public Investment Fund, and the Qatar Investment Authority. The IPO, part of Oman's overarching privatization plan, echoes similar efforts undertaken by Saudi Arabia and UAE. It's worth noting that OQGN plays a pivotal role in gas transportation within Oman, managing an impressive 4,031 km of pipelines. The listing process is being coordinated by Bank Muscat among others. (Source)

Germany's Schott AG Eyes IPO for Its Pharma Packaging Subsidiary

German glass conglomerate Schott AG is gearing up for an IPO of its pharmaceutical packaging subsidiary, with ambitions of raising close to €1 billion. Set to be listed on the 28th of September, shares are priced in the range of €24.50 to €28.50, which could value the company between €3.7 billion and €4.3 billion. In a notable commitment, Qatar's state enterprise, Qatar Holding, has indicated interest as an anchor investor, aiming for a stake of up to 4.99%. Post-IPO, parent entity Schott AG will retain a dominant 77% majority share. Financially, Schott Pharma has shown resilience with an 8% revenue growth, registering €670 million for the initial three quarters of the 2022/23 fiscal year. The firm expects further growth spurred by the rising demand for syringes, particularly for mRNA therapies and obesity treatments, such as those provided by Danish pharmaceutical company Novo Nordisk. (Source)

Spanish Airline Volotea Eyes Potential Listing on Madrid Stock Market

Spanish low-cost carrier Volotea is reportedly considering a listing on the Madrid stock exchange, signaling a potential expansion plan. The airline has enlisted the expertise of global investment banks Morgan Stanley and Barclays to lay the groundwork for the prospective IPO. However, a conclusive decision on the share listing is still under deliberation, with all parties awaiting optimal market conditions to ensure a successful debut. To date, there have been no official communications from either Volotea, Morgan Stanley, or Barclays regarding the speculated listing. (Source)