The IPOX® Update 10/11/23

Birkenstock Prices IPO Shares at $46 Each, Eyeing $8.64 Billion Valuation

German footwear manufacturer Birkenstock has priced its initial public offering (IPO) shares at $46 each, with an aim to raise $1.48 billion, propelling its market value towards an anticipated $8.64 billion. The famed sandal-maker, in collaboration with private equity firm L Catterton, will distribute 32 million shares while retaining an 83% ownership stake post-IPO. Notable investors expressing interest in acquiring a substantial number of shares include Bernard Arnault’s family, the Norwegian sovereign fund, and Durable Capital. Leading the IPO are prominent financial services firms, Goldman Sachs, JPMorgan, and Morgan Stanley, and the stock is set to trade under the symbol BIRK. This move follows profitable fiscal reports from Birkenstock and the company plans to utilize the IPO proceeds primarily to reduce existing company debt. Additionally, substantial investments in its German production sites highlight Birkenstock's enhanced focus on manufacturing following the sale of its majority stake (Source).

ADES Holding Co. Witnesses 30% Share Uplift Following Saudi Arabia's Largest IPO in 2023

ADES Holding Co., a prominent oil driller, experienced a 30% surge in share prices following the largest IPO in Saudi Arabia this year. Backed by the Saudi sovereign wealth fund, shares leaped from 13.50 to 17.54 riyals. This uplift comes despite the Israel-Hamas conflict, which has been disrupting Gulf markets, yet ADES managed to accumulate nearly $77 billion orders on a $1.2 billion offering. The increasing regional tensions amid continuing conflicts may pose potential disruptions to the Middle East's IPO momentum. Notably, Saudi Arabia’s total listing proceeds have skyrocketed to $2.4 billion for the year, essentially doubling due to the ADES IPO. ADES was privatized by the Public Investment Fund and significant owners in 2021, elevating its value via acquisitions, and aims to utilize IPO proceeds to mitigate debt and fund strategic growth (Source).

Planisware Establishes Share Price at 16 Euros in Euronext Paris' Largest IPO in Two Years

Software company Planisware has priced its shares at 16 euros each, which is at the lower end of its target range, for what has become Euronext Paris’ largest IPO in the past two years. Planisware, specializing in project and portfolio management software, had initially sought a valuation between 1.11 and 1.25 billion euros, pricing shares at 16 to 18 euros. The IPO book, which was "oversubscribed on full deal size," indicating a robust investor interest, is set to close at 1300 CET on Wednesday, with the market eagerly anticipating a favorable debut. Although this announcement does not share exhaustive details about the company’s financials or future plans, it is evident that Planisware has garnered a noteworthy attention in its IPO, implying a positive outlook amongst investors (Source).

J&T Global Express Targets $500m IPO in Hong Kong

Southeast Asian courier service provider J&T Global Express, previously evaluated at $20 billion, has aimed its IPO at a scaled-down $500 million in Hong Kong, scheduled for Monday. This comes despite an earlier objective to procure a minimum of $1 billion through its IPO in the same region. Originating from executives of Chinese smartphone maker Oppo in 2015, the firm has navigated through the soaring demands for e-commerce logistics in Southeast Asia. A significant maneuver in 2021 witnessed J&T acquiring Best Inc’s delivery business, backed by Chinese giant Alibaba, for approximately $1.1 billion, marking a substantial entry into the Chinese market. While being a noteworthy IPO, it contrasts starkly with Hong Kong’s faltering share sales in the ongoing year, which cumulatively sum up to $2.74 billion amidst factors such as escalating interest rates and tightening regulations from China dampening the overall IPO activity in 2023. (Source)

Shiyue Daotian Group Secures HK$716m in Hong Kong IPO

Staple food corporation Shiyue Daotian Group has successfully raised HK$716 million in its IPO on the Hong Kong stock exchange, with shares pricing at HK$15.36 each, near the high end of the HK$13.00 to HK$15.80 range. The Hong Kong IPO segment was oversubscribed by 1.31 times, maintaining the availability of 5,341,200 shares without any reallocation. Internationally, the IPO was also oversubscribed at 1.26 times, retaining the original offering of 48,066,300 shares. Cornerstone investor Xinmin Tianshi Agricultural secured 6,632,400 shares, or 12.42% of the offering. Trading of shares from Shiyue Daotian Group (HKG:9676) is set to initiate on Thursday, October 12. The IPO involved the sale of a total of 53,407,500 shares to raise the net proceeds. (Source)

Italian Government Exploring IPO for State Railways Ferrovie dello Stato Italiane

The Italian Government is contemplating the IPO of up to 40% of the state-owned railway company, Ferrovie dello Stato Italiane (FS), on the Milan Stock Exchange, potentially generating up to €5 billion. Despite previous considerations in 2015, an IPO did not materialize at that time. FS, which generated revenues amounting to €13.66 billion in 2022 and remains fully state-owned at this juncture, provides integral railway services across Italy, boasting a network of 24,564 km of rail and a workforce of 85,000. The preparation for the IPO may extend up to a year, and there’s ongoing speculation about the possible segregation of FS subsidiaries, including Trenitalia, which focuses on passenger transport, and network company RFI, ahead of the IPO. (Source)

Bain Capital Delays Virgin Australia IPO to Potentially 2024

Private investment powerhouse Bain Capital has decided to postpone the IPO of Virgin Australia to potentially 2024, opting to observe market conditions in the subsequent year to determine the most opportune timing for the listing. Acquiring the airline following its collapse three years prior, Bain had resuscitated Virgin Australia with a substantial $2.24 billion deal. Initially, lead managers Goldman Sachs, UBS Group, and Barrenjoey Capital were targeting a listing in November. Virgin Australia, in its first annual profit recorded in over a decade, has posted an after-tax total of $82.56 million and has plans to recruit 1,500 frontline staff during its 2024 fiscal year. (Source)

Investment Firm KKR to Raise $728 Million via Kokusai Electric's IPO

Global investment firm KKR is set to raise $728 million through the IPO of Japanese chip-equipment maker Kokusai Electric, despite adjusting the share price to ¥1,830-1,840, which falls beneath the preceding indicative price of ¥1,890. This IPO stands out as Japan’s most sizeable since the 2018 listing of SoftBank Corp. Kokusai Electric will issue 195.2 million shares, wherein KKR will vend its 70 million shares, curtailing its stake from 92% to 63%. Originally acquired from Hitachi Ltd in 2017 for about ¥262.3 billion, Kokusai Electric marks KKR’s first Japanese buyout. Subsequently, it was sold to Applied Materials for $2.2 billion in 2019, albeit the deal fell through, and KKR repurchased it in 2020. (Source)