The IPOX® Update 10/5/23

Unexpected Cancellation for Renk's IPO Amidst Volatile Markets

German tank gearbox manufacturer Renk, initially set to launch its IPO today at a pricing of €15 per share, has abruptly postponed its listing in a surprising last-minute decision. Investment company Triton, which had acquired Renk in 2020 when it was valued at approximately €750 million, has placed the IPO on an indefinite hold.  Other German companies, such as fleet services DKV Mobility and perfume retailer Douglas, are planning listings, navigating through the challenging IPO landscape amidst these market challenges. (Source)

Doosan Robotics Witnesses Remarkable IPO Performance in South Korea

South Korean robotics firm Doosan Robotics made a striking debut on the Seoul stock exchange, doubling its share value and raising 421 billion won ($312 million) in what marks the largest IPO in South Korea for 2023. Notably, the firm's shares peaked with a 160% intraday surge, eventually closing 98% higher at 51,400 won, demonstrating the robust investor appetite within the nation, which is renowned as the world’s top robot adopter. Despite the impressive performance of Doosan Robotics, its parent company, conglomerate Doosan Co., experienced a 19% plunge in share value post-IPO. The raised capital from Doosan Robotics' IPO is planned to be funneled into strategic acquisitions and global expansion, potentially enhancing robotic mobility in various industrial applications. (Source)

Norway's $1.4T Sovereign Fund Bolsters US IPO Market

Norway's sovereign fund, Norges Bank, domiciled in Oslo, has become a key player in stimulating the US IPO recovery by backing significant listings. Recently, it backed the German sandal manufacturer Birkenstock. and also pledged up to $400 million in support of the U.S. grocery delivery enterprise Instacart's IPO. A noteworthy trend unraveling in the US IPO market is the critical role of cornerstone investors in not only building early demand but also ensuring price stabilization and instilling confidence through their early commitments. Six out of the ten largest US IPOs in 2023 have leveraged cornerstone investors to establish a stable investment base and mitigate potential volatility post-listing. (Source)

BlackBerry to Initiate IPO for IoT Division

Canadian software and cybersecurity firm BlackBerry has outlined plans to launch an IPO for its Internet of Things (IoT) division. The separation from its main cybersecurity operations is set to transpire in the first half of the next fiscal year following a strategic review with advisers from U.S. multinational investment bank Morgan Stanley and financial services firm Perella Weinberg Partners. The intent behind the IoT subsidiary’s separate trading is to facilitate a clearer assessment of BlackBerry’s core businesses. (Source)

OQ Gas Networks Targets $771M in Oman's Largest IPO

Omani energy firm OQ Gas Networks seeks to raise $771 million in what is poised to be Oman’s record IPO, with pricing likely to be at the upper marketed range. The company plans to sell a 49% stake, pricing its shares between 131 and 140 baisas each. The IPO has attracted substantial interest, with companies like Belgian natural gas transporter Fluxys Belgium, the Saudi sovereign wealth fund Saudi Public Investment Fund, and the Qatar Investment Authority securing a combined 30% as anchor investors. Despite prevailing global concerns over escalated interest rates and an economic slowdown, OQ’s IPO persists in demonstrating strong demand, embodying the Middle East's defiance against the global IPO trend by showcasing solid demand and successful debut performances. (Source)

Yanolja to Transition Focus from Sale to South Korean IPO

South Korean travel booking platform Yanolja, which has significantly scaled in its sector since its inception in 2015, is pivoting from a potential sale to preparing for an IPO in South Korea as early as November. Previously valued at 1.2 trillion won ($888 million USD), Yanolja is aiming for a post-IPO market capitalization exceeding 2 trillion won ($1.48 billion USD). Private equity firm CVC Capital intends to retrieve part of its investment via initial Yanolja share sales and maintain post-IPO managerial rights. As the company, known for its 36 million app downloads and 4.4 million monthly active users, edges closer to its IPO, it intends to select an IPO lead underwriter within the year, possibly issuing Request for Proposals to securities firms in the upcoming month. (Source)

Canva Reveals $1.7B Annualized Revenue as IPO Speculations Rise

Australian design software group Canva recently revealed an impressive $1.7 billion in annualized revenue, spotlighting a robust 21% growth within six months and thereby igniting further speculation regarding a potential IPO. The company, which flaunts 16 million paying subscribers and a staggering 150 million monthly users, was last valued at a substantial $US25.5 billion, generating keen investment interest. Canva might also contemplate a foreign listing over the Australian Securities Exchange (ASX), further intensifying the ongoing discussion related to private asset valuation in Australian capital markets. The application of a 15x revenue multiple on its current revenue aligns well with its recent hefty valuation, but the real testament of its valuation will be witnessed through its potential IPO.  (Source)