The IPOX® Update 10/3/23

Oct 3

Renk Initiates IPO, Establishing Price Range Amidst Overflowing Demand

German tank gear manufacturer Renk, alongside its selling shareholder Triton, has solidified its IPO price range, placing it between €15 to €18 per share. This move is underlined by high demand that has not only met but surpassed the complete deal size within the pre-established price guidance range. This offer comprehensively encompasses approximately 27 million shares emanating from Triton's subsidiary, Rebecca BidCo's holding, potentially paving the way for a free float of up to 27%, inclusive of over-allotments. The ensuing expected placement volume is projected to position itself between €405m to €486m ($509m). With an offer period from September 26 to October 4, trading on the Frankfurt Stock Exchange is scheduled to commence effectively from Thursday, October 5 (Source).

Bergé Targets 2024 IPO for Astara, Engaging Prominent Investment Banks

Spanish logistics firm Bergé has engaged heavyweight financial institutions, including BNP, Morgan Stanley, and HSBC, gearing up for its car-sharing/subscription unit Astara’s IPO. Valued at an approximate €2 billion, Astara casts its sights on 2024 for its IPO launch, with the anticipatory IPO proceeds envisioned to accelerate Astara’s transition into an integrated mobility platform. Bergé, aspiring to retain control, is considering listing between 25% to 49% of Astara. Currently, Bergé commands a 75% stake in Astara, while Mitsubishi holds the remaining 25%. Notably, Mitsubishi is contemplating selling part of its stake during the IPO (Source).

CPF Global Food Solution Defers Anticipated IPO Amidst Turbulent Market Conditions

Major global animal feed and livestock producer Charoen Pokphand Foods (CPF), domiciled in Thailand, has strategically postponed its anticipated IPO amidst prevailing market volatility. Initially targeting up to $750 million through its IPO, the company has rescheduled the listing for 2024, citing influencing market factors such as global inflation, interest rates, and waning investor sentiment as key determinants of this decision. Thailand's SET Index has notably suffered a decrease of approximately 13% YTD, emerging as Southeast Asia's weakest performer (Source).

Eight Biotech Firms Secure $1.1b Through Q3 IPOs Amid Varied Market Reception

A consortium of eight biotech companies has raised $1.1 billion through IPOs in Q3, despite encountering a mixed market reception. Notable entities such as Lexeo, Abivax, and Kairos, all of which are in early-stage human testing for their drugs, have filed for IPOs. However, only two out of the eight biotech firms that initiated IPOs in Q3, namely RayzeBio and Apogee, have traded above their debut price. For example, Neumora Therapeutics experienced a one-third share price decline since its mid-September IPO. A report from EY highlights a perceptible drop in “unicorn” IPOs within the health and life sciences sector, signaling investors’ preference for robust proof of concept and high-quality teams in biotech (Source).