The IPOX® Update 10/4/24

U.S.

AI chipmaker Cerebras Systems files for Nasdaq IPO under the ticker "CBRS."

AI chipmaker Cerebras Systems has filed for an IPO, aiming to list on Nasdaq under the ticker "CBRS." Founded in 2016, Cerebras competes with established players like Nvidia in the AI chip market, focusing on cloud services powered by its WSE-3 chip. For the first half of 2024, the company reported a net loss of $66.6 million on $136.4 million in sales. A significant portion of its revenue, 83%, came from UAE-based AI firm Group 42. The company raised $250 million in 2021 and is valued at over $4 billion. Citigroup and Barclays are leading the offering, with prominent investors including Foundation Capital and Benchmark. Cerebras faces competition from major companies like Nvidia, AMD, Intel, and large cloud providers such as Amazon, Microsoft, and Google. (Source)

Ingram Micro reveals U.S. IPO filing following Platinum Equity buyout.

Ingram Micro, a U.S.-based technology distributor, has made its IPO filing public, aiming to return to the stock markets after a 2021 buyout by Platinum Equity. Ingram Micro, which was acquired from China’s HNA Group for $7.2 billion, plans to list on the NYSE under the ticker "INGM." The IPO will involve both the company and some existing stockholders selling shares, with proceeds primarily intended to reduce debt. Ingram Micro's 2023 net revenue decreased by 5.5% to $48 billion, after selling its commerce and lifecycle services unit for $3 billion. Net income also dropped to $352.7 million from $2.39 billion in 2022, mainly due to the large gain from the CLS sale. The IPO is being led by Morgan Stanley, Goldman Sachs, and J.P. Morgan. (Source)

Brazilian digital bank PicPay plans Nasdaq IPO for 2025 after earlier delay.

Brazilian fintech firm PicPay is planning an IPO on Nasdaq in 2025, following a previously delayed attempt in 2021. Owned by J&F, PicPay will soon hire financial institutions including Citigroup to manage the offering. The IPO will aim to increase PicPay’s visibility among tech investors, though the size of the offering will be adjusted according to market conditions. The company reported a net income of $11.3 million for H1 2024, nearly doubling its earnings from the previous year. Brazil’s central bank reforms have spurred PicPay’s growth, solidifying its position as a major challenger bank. The firm sees 2025 as favorable for an IPO due to potential Federal Reserve rate cuts and post-election economic stability. (Source)

Cybersecurity firm Proofpoint explores pre-IPO funding ahead of a potential 2026 public market return.

Proofpoint, a cybersecurity company, is considering raising pre-IPO funding as it looks to return to public markets in 2026. Acquired by Thoma Bravo for $12.3 billion in 2021, Proofpoint is prioritizing mergers and acquisitions to strengthen its market position before going public again. The company is focused on expanding in regions like Japan and the Middle East, while seeking to differentiate itself through balanced growth and profitability. Proofpoint competes with firms like Palo Alto Networks, CrowdStrike, and Fortinet. CEO Sumit Dhawan, appointed in 2022, is leading the efforts to explore new funding and expansion strategies. (Source)

Ryan Reynolds’s ad tech firm MNTN targets potential 2025 IPO.

MNTN, the ad tech firm associated with actor Ryan Reynolds, is preparing for a potential IPO in 2025, with Morgan Stanley advising on the deal. MNTN focuses on performance-driven TV advertising technology, having raised $119 million in a Series D round in 2022. The firm gained significant attention after acquiring Reynolds's advertising agency, Maximum Effort, in 2021. Reynolds now serves as MNTN's chief creative officer and has helped drive the company’s innovative “fastvertising” strategy—creating quick, culturally relevant ads. The IPO aims to bolster the company’s growth and visibility, although details about the offer size and timing remain subject to change. (Source)

Chime Financial Inc. plans to go public in 2025, led by Morgan Stanley.

San Francisco-based Chime Financial Inc., a fintech company offering fee-free digital banking services, is preparing to go public in 2025. Chime focuses on providing accessible banking solutions without traditional fees, targeting customers seeking alternatives to conventional banks. Insiders report that Morgan Stanley will act as the lead underwriter for the IPO. While details about the IPO size or valuation have not yet been disclosed, the move underscores Chime’s plans to solidify its position in the growing fintech sector. Chime’s IPO timeline may still be subject to changes based on market conditions. (Source)

Europe

Ebury, backed by Banco Santander, starts investor talks for London IPO in 2025.

British payments firm Ebury, backed by Banco Santander, has initiated talks with investors regarding a potential IPO on the London Stock Exchange. The listing could take place as early as the first half of 2025, although the company is also considering bringing in strategic investors. Ebury, which handles over £25 billion in cross-border payments annually and employs more than 1,600 people globally, could be valued at up to £2 billion ($2.45 billion). Goldman Sachs and Bank of America are advising on the deal, with other banks potentially joining. Banco Santander acquired a majority stake in Ebury in 2020 for $459 million and has since increased its ownership. A successful IPO would help revitalize London's struggling market for new listings, which has faced increased competition from New York. (Source)

Shein advances preparations for a London IPO, aiming for UK market approval.

Online retailer Shein, originally founded in China and now headquartered in Singapore, is advancing preparations for a London IPO. The company is set to hold informal investor meetings in the coming weeks, having already confidentially filed papers with UK regulators in June. Shein is targeting an IPO within this quarter, pending final approval from UK authorities, and is looking to match its previous valuation of $66 billion from last year. The shift to a London listing follows challenges in the U.S., where Chinese regulatory concerns over Shein's supply chain and labor standards issues have posed hurdles. A successful IPO would be a significant boost for the UK's IPO market, which has struggled this year with only nine listings. (Source)

Sports supplements group Applied Nutrition announces plans for London Stock Exchange IPO.

British sports supplements firm Applied Nutrition has announced its intention to list on the London Stock Exchange, targeting a potential valuation of £500 million ($610 million). Founded in 2014 by Thomas Ryder, the Liverpool-based company has grown its revenue to £86 million ($105 million). Applied Nutrition, which sells its products in over 80 countries, is aiming to scale its global presence. The IPO will offer shares to both institutional and retail investors, as the company seeks to expand its product offerings and customer base. Chairman Andy Bell described the IPO as a step towards making Applied Nutrition the world’s most trusted sports nutrition brand. Deutsche Numis is managing the listing process. (Source)

Asia-Pacific

Horizon Robotics to pre-market Hong Kong IPO, targeting $500 million.

Chinese autonomous driving technology firm Horizon Robotics plans to pre-market its Hong Kong IPO next week, targeting around $500 million. The IPO is being sponsored by China Securities International, Goldman Sachs, and Morgan Stanley. Horizon Robotics, which serves clients such as BAIC Motor, BYD, Geely, Nio, and Hyundai, specializes in AI chips and software for autonomous vehicles. The company also formed a joint venture with Volkswagen Group in China. Horizon Robotics reported a $725 million loss in H1 2024, primarily due to fair value changes. The company was valued at $8.7 billion after a $210 million private funding round in December 2023. Key shareholders include SAIC Motor, Hillhouse, and HongShan. (Source)

South Korean digital lender K Bank opens books for W984bn KRX IPO.

South Korea's first digital-only bank, K Bank, has opened the books for its W984 billion ($744 million) IPO on the KRX. The offering comprises 82 million shares, evenly split between primary and secondary offerings, with a price range of W9,500 to W12,000 per share. The IPO will be the largest in Korea since LG Energy Solution's listing in January 2022. BC Card, a subsidiary of KT Corp, will retain a 30.4% stake post-IPO. The company has over 10 million users and reported a net income of W85.4 billion ($64.6 million) in H1 2024, marking a 242% increase year-on-year. Institutional book-building runs from October 2–16, with shares expected to start trading on October 31. (Source)

Thai Beverage Pcl revives IPO plan for its beer unit, BeerCo, aiming for Q3 next year.

Thai Beverage Pcl has revived its plans to take its beer unit, BeerCo, public, targeting a potential IPO in the third quarter of next year. The decision is expected by December, with the IPO aimed at benefiting from a market rally. The company had previously shelved BeerCo’s IPO in 2021 due to poor market conditions. ThaiBev is also considering bringing in equity partners to strengthen the business, with two interested parties currently in discussions. ThaiBev, which generated $6.7 billion in revenue over nine months, is also exploring a potential future listing for its spirits business. BeerCo’s EBITDA rose 10.2% year-on-year to $370 million. (Source)

JD Industrials renews plans for a Hong Kong IPO after previous delay.

JD Industrials, a subsidiary of Chinese e-commerce giant JD.com, has refiled for an IPO on the Hong Kong Stock Exchange after an earlier application lapsed due to market conditions. JD Industrials provides industrial supply chain technology and services in China. Originally, the company sought to raise $1 billion in the IPO before market volatility delayed the listing. The new filing comes as global markets begin to stabilize after a challenging year for IPOs. JD.com had announced plans to spin off its industrials and property units in March 2023, and this refiled IPO represents a renewed effort to move forward with the spinoff. The new application does not specify the fundraising target or a timeline for the IPO. (Source)

MENA

Perfumer Al Majed for Oud to begin trading on Saudi Main Market on October 7.

Saudi Arabian perfume company Al Majed for Oud will begin trading on the Saudi Main Market on October 7, following a highly successful IPO. The final price per share is set at SAR 94 ($25.05), with the company raising SAR 705 million ($187.88 million). The company will list 30% of its issued share capital, and the IPO was significantly oversubscribed by 156.5 times during the institutional book-building phase. Al Majed for Oud specializes in traditional fragrances and is among Saudi Arabia's leading perfumers. BSF Capital is acting as the financial advisor, lead manager, bookrunner, and underwriter for the offering. (Source)

Lulu Group drops Tadawul listing, focuses on ADX IPO.

UAE-based hypermarket chain Lulu Group has decided to abandon the Tadawul leg of its planned IPO and will instead focus on listing solely on the Abu Dhabi Securities Exchange (ADX). The decision was driven by regulatory coordination challenges rather than market or investor concerns. Despite the change, the IPO size remains at $1.5 billion, and demand is expected to remain robust. The IPO is led by ADCB, Citigroup, Emirates NBD, and HSBC. While a future Tadawul listing is not ruled out, it is not planned at this time. Lulu's IPO will be one of the largest in the UAE this year. (Source)

Talabat targets a $12.9 billion to $15.1 billion valuation in its upcoming Dubai IPO.

Talabat, a food delivery service owned by Delivery Hero, is gearing up for an IPO in Dubai, with a valuation expected to range between $12.9 billion and $15.1 billion. This valuation surpasses that of parent company Delivery Hero. According to Jefferies analysts, the estimate is based on a projected 2025 EV/Ebitda ratio of 21 to 24.7 times. Talabat achieved $6.1 billion in gross merchandise volume (GMV) and $194 million in ad revenue in 2023. However, the company faces competition from rival Careem, backed by Uber. Talabat's IPO is poised to draw significant global attention to Dubai’s exchange and boost the UAE's capital markets. The deal is being led by Emirates NBD, Morgan Stanley, and J.P. Morgan. (Source)

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