The IPOX® Update 9/22/23

Alibaba's Logistics Arm Cainiao Targets Hong Kong IPO

Logistics firm Cainiao, subsidiary of IPOX® International Index Member Alibaba (BABA US) has announced plans to file for an IPO in Hong Kong as early as next week. Cainiao aims to raise at least $1 billion in its share sale, although the firm's valuation is yet to be decided. Financial giants Citic, Citigroup, and JPMorgan have been enlisted to manage the IPO, while CICC has dropped out of the arrangement. The news led to a 4.4% gain in Alibaba's stock in Hong Kong. If successful, Cainiao would be the first unit of Alibaba to go public since the parent company announced its breakup. Alibaba has also delayed the IPO of its Freshippo grocery chain in Hong Kong due to weak market sentiment. Cainiao has an extensive network and promises 24-hour delivery services in China and 72-hour global delivery, in partnership with over 3,000 logistics firms. (Source)

Vietnam-Based VNG Postpones U.S. IPO Amid Market Volatility

Vietnam-based internet startup VNG has decided to postpone its U.S. IPO plans, citing mixed performances in recent public listings, including Arm Holdings and Instacart. Advised to wait for improved market conditions, VNG's IPO could be delayed until next year. The decision follows a volatile market entry by another Vietnamese firm, VinFast Auto, which saw its shares erase an initial 504% surge. Originally a game publisher, VNG has diversified its service offerings to include messaging and video streaming. The company had plans to sell about 22 million shares, though the price range had not been disclosed. The deferment underscores the cautious approach companies are adopting in a turbulent market landscape. (Source)

First-ever SPAC Deal in Middle East Announced

The Middle East is set to host its first Special Purpose Acquisition Company (SPAC) deal involving ADC Acquisition Corp and United Printing & Publishing. ADC Acquisition Corp, backed by Abu Dhabi's ADQ and Chimera Investments, plans to merge with United Printing, a card-making firm. The deal is expected to provide United Printing with 1.1 billion dirhams ($300 million) in cash, implying an enterprise value of 600 million dirhams. BDSwiss strategist Mazen Salhab suggests that state-owned investment funds are expected to play a significant role in future SPAC deals in the region. The move comes at a time when the SPAC market has seen a decline amid a broader slump in M&A and equity offerings. (Source)

EuroTeleSites Starts Trading in Vienna Amid Mixed Results

The tower spin-off from Telekom Austria, EuroTeleSites, commenced trading in Vienna with mixed outcomes. The company's stock gained over 9% from the opening but debuted below the reference price. It has a market capitalization of €753 million ($802 million). Despite opening 13% below the reference price on the Wiener Börse, the stock managed to recover slightly, narrowing its losses by midday. Concurrently, Telekom Austria's shares rose by 1.4%, adjusted for the spin-off ratio. EuroTeleSites plans to lease its mobile towers more broadly following the spin-off. The A1 Group has offloaded €1 billion of debt to the newly formed infrastructure company, and Telekom Austria shareholders will receive one EuroTeleSites share for every four held. America Movil and ÖBAG hold 56.55% and 28.42% of the company’s shares, respectively. (Source)