The IPOX® Update 9/19/23

Instacart's NASDAQ Debut with Emphasis on Ad Business

U.S. grocery delivery company Instacart marked its entry into the stock market with a successful NASDAQ IPO. The shares were initially indicated to open at $39, which is notably higher than its IPO price of $30. Read the IPOX® Watch for more information about the company. 

Instacart's recent pivot towards becoming a data and advertising business played a significant role in its appeal to investors. A substantial 30% of its revenue is generated from its advertising sector, which boasts a higher margin compared to its core shopping transactions. The firm's CEO, Fidji Simo, who previously held a significant role at U.S. social media titan Facebook, further emphasizes this ad-centric approach through new strategies. However, challenges lie ahead, including ensuring seamless inventory visibility and enhancing customer experience. The long-term growth and consumer inclination towards online grocery shopping, especially post-pandemic, remains an area of speculation. (Source)

Carrier Global Ponders Commercial and Residential Fire Unit Listing

U.S. HVAC firm Carrier Global, member of the IPOX® 100 U.S. Index (ETF: FPX) is contemplating a potential listing of its commercial and residential fire unit. The new standalone entity might predominantly focus on products like smoke and carbon monoxide detectors. As part of Carrier's broader strategy, the firm is considering the divestiture of its fire, security, and commercial refrigeration segments by 2024. The security business alone, which is currently on the market, could potentially fetch over $3 billion. It's notable to mention that Carrier, which currently boasts a valuation of $46 billion, emerged as a spinoff from the U.S. conglomerate United Technologies in 2020. (Source)

Doosan Robotics Celebrates South Korea's Top IPO of 2023

South Korean robotics company Doosan Robotics announced a significant $319 million raise in what's being hailed as the nation's top IPO for 2023. The shares were priced at 26,000 won each, placing them at the upper spectrum of the projected range. Notably, the parent entity, Seoul-listed Doosan Co., retains its position as the majority shareholder. This IPO reflects South Korea's growing interest and investment in the robotics domain, with tech behemoth Samsung Electronics being a key player. Doosan Robotics, renowned for its collaborative robots, boasts a clientele that includes prominent names like Hyundai and LG. The collaborative robot market, on a global scale, is expected to surge to $6.8 billion by 2029, painting a prosperous future for the industry. (Source)

Strong Demand Marks Schott Pharma's IPO

German medical-glass manufacturer Schott Pharma has witnessed an overwhelming demand for its Initial Public Offering (IPO). Investors' demand has exceeded the deal size, including the greenshoe option, according to bookrunners. Schott Pharma's IPO aims to accumulate between €849 million and €987 million. The firm is offering a 23% stake in its operations, with the shares priced between 24.50 euros and 28.50 euros. This robust demand underlines the growing interest and potential opportunities within the medical glass sector. (Source)