The IPOX® Update 9/25/23

Lumi Rental Co's Strong Debut in Saudi Market

Riyadh-based car rental firm Lumi Rental Co made an impressive debut on the Saudi stock market, with its shares surging by 30%. The company's IPO raised $290 million, attracting an overwhelming $27 billion in investor bids. The offering was oversubscribed nearly 95 times by both institutional and retail investors. This strong performance has contributed to Saudi Arabia's 2023 IPO haul, which now stands at $2.41 billion. The successful IPO comes as the Tadawul index recovers 20% from its March lows, and oil prices near $94 a barrel, further bolstering the Saudi market outlook. (Source)

German Defense Supplier Renk's Upcoming IPO

German defense supplier Renk is targeting a valuation between €1.5–€1.8 billion for its upcoming IPO. Financial investor Triton has set the share price range at €15–€18 and aims to sell up to 27.03 million Renk shares, potentially raising between €405–€486 million. Interestingly, no proceeds from the IPO will go to Renk; 27% of the shares will be publicly traded. The shares can be subscribed from Tuesday until October 4, with the Frankfurt Stock Exchange debut planned for October 5. The IPO is organized by investment banks Citigroup, Deutsche Bank, and JPMorgan. (Source)

Novartis Confirms Sandoz Spin-off IPO

Swiss pharmaceutical giant Novartis has confirmed that its Sandoz generics unit will undergo a spin-off IPO set for October 4, 2023. Regulatory approvals have been received, including from the SIX Exchange Regulation for Sandoz's listing on the Swiss Exchange. Sandoz has secured external financing of approximately $3.75 million and a revolving credit facility of $1.25 billion. Novartis shareholders will receive one Sandoz share for every five Novartis shares as part of the spin-off. Sandoz is also set to replace the world's second-largest HR firm, Adecco, in the Swiss Leaders Index (SLI). (Source)

Ecopro Materials Targets Seoul's Largest IPO

South Korean battery-materials producer Ecopro Materials is aiming for Seoul's largest IPO since LG Energy in early 2022. The company is seeking to raise up to $498 million through the offering, with share pricing set between 36,200 won and 46,000 won per share. The bookbuilding process is scheduled from October 30 to November 3, with pricing to be determined on November 7. If successful, the IPO would surpass Doosan Robotics' 421.2 billion won, making it the largest domestic offering of 2023. Parent company Ecopro Co. owns nearly 54% of Ecopro Materials. (Source)

Spinneys Dubai Plans IPO for Q2 2024

Dubai-based supermarket franchisee Spinneys Dubai, owned entirely by Albwardy Investment, is planning an IPO for the second quarter of 2024. The company has hired Rothschild & Co for IPO advisory services and has invited banks to pitch for roles in offering up to 30% of the company. The IPO is set to be listed on the Dubai Financial Market, which is expected to provide a significant boost to the regional food retail sector. Spinneys operates over 65 stores in the UAE and at least seven in Oman. With an annual turnover exceeding $1 billion, Albwardy also owns the franchise rights to British supermarket Waitrose. The IPO activity in the Gulf is expected to rebound after raising nearly $22 billion in 2022. (Source)

Australian Data Center Operator AirTrunk Mulls IPO

Australian data center operator AirTrunk is considering an IPO with an enterprise value of over A$10 billion ($6.4 billion). Investors Macquarie Asset Management and PSP Investments are seeking proposals for both an IPO and a minority stake sale. Macquarie Capital and at least two other banks are expected to serve as joint lead managers for the IPO. The move comes amid rising demand for data centers, driven by increased reliance on cloud services. AirTrunk CEO Robin Khuda has highlighted AI computing as a significant growth driver for the industry. The company recently secured an A$4.6 billion sustainability-linked loan, the largest of its kind in Australia this year. The IPO aims to capitalize on investor interest in digital infrastructure and the scarcity of data centers. (Source)