The IPOX® Update 9/21/23

KKR-Backed Kokusai Electric Plans Tokyo IPO Valuing Company at $3.7 Billion

Private equity firm KKR is planning to raise $750 million through the Tokyo IPO of Kokusai Electric, a Japan-based chipmaking equipment company. The offering will involve the listing of 58.8 million shares at an indicative price of ¥1,890 each, potentially valuing Kokusai Electric at approximately ¥435.5 billion ($3.7 billion). The pricing announcement is expected on October 16, with the listing date set for October 25. The IPO could become Japan's largest since SoftBank Corp's ¥2.4 trillion offering in 2018. Furthermore, an over-allotment option will offer up to 8.83 million additional shares. This move follows the successful U.S. IPO of chip designer Arm Holdings, which is backed by SoftBank Group. (Source)

Midea Group Aims for $1 Billion Hong Kong IPO

World's largest home appliances maker Midea Group, based in China, is set to file for a $1 billion IPO on the Hong Kong Stock Exchange. China International Capital Corp and Bank of America have been named as joint sponsors for the offering, which could start trading early next year. The IPO was approved by Midea's board on the 10th anniversary of its Shenzhen listing and aims to fund R&D in automation, robotics, and smart home appliances. With an annual revenue of $47.3 billion, the IPO aligns with Midea's global development strategy. The listing could serve as a significant boost for Hong Kong's sluggish IPO market and attract more global investors. (Source)

Telekom Austria to List Tower Business EuroTeleSites on Vienna Stock Exchange

Telecommunications firm Telekom Austria has announced plans to list its tower business, EuroTeleSites (ETS AV), on the Vienna Stock Exchange. Shareholders of the Austria-based Telekom Austria will receive one EuroTeleSites share for every four Telekom Austria shares, with no capital increase involved. The listing follows a 12% increase in Telekom Austria's stock price to €7.59 since the IPO announcement in late June. Subsidiary A1 Group will offload €1 billion in debt to EuroTeleSites. The newly formed entity is expected to have a revenue of €230 million and anticipates a 4-6% annual revenue growth, driven mainly by anchor tenant A1 and 5G expansion. Mexican majority owner America Movil holds a 56.55% stake in the company. (Source)

Chinese AI Startup Beijing Fourth Paradigm to Launch Hong Kong IPO

Chinese AI startup Beijing Fourth Paradigm is pricing its Hong Kong IPO shares at HK$55.6 each, aiming to raise HK$1.023 billion ($131 million). The company specializes in sectors such as finance and healthcare and plans to sell 18.4 million shares at the low end of the HK$55.60 to HK$61.16 range. Three cornerstone investors led by New China Capital Management are subscribing for $96.8 million or 70.6% of the IPO. Fourth Paradigm has recently been added to the U.S. "Entity List," restricting technology exports from U.S. suppliers. The firm's products have applications across multiple sectors including retail, energy, and telecommunications. Pre-IPO investors include Goldman Sachs, Sinovation, and Haitong International Investment. (Source)