The IPOX® Update 10/12/24

U.S.

Honeywell Plans to Spin Off Advanced Materials Business into New U.S. Public Company

Honeywell has announced plans to spin off its advanced materials division into a separate publicly traded U.S. company. The new entity will focus on products such as bullet-resistant armor and pharmaceutical packaging, and is projected to generate $3.7-$3.9 billion in revenue in fiscal year 2024. This division contributed 10% of Honeywell’s $36.66 billion in total sales for 2023. The spin-off is expected to be completed by late 2025 or early 2026. Honeywell, valued at $132 billion, is shifting its focus toward aviation, automation, and energy segments. (Source)

AI Chipmaker Cerebras Systems Likely to Postpone IPO Due to CFIUS Review

Cerebras Systems, a U.S.-based AI chipmaker, is likely to delay its IPO due to a review by the Committee on Foreign Investment in the United States (CFIUS). The review focuses on a minority investment by UAE-based tech conglomerate G42, which accounted for 83% of Cerebras' 2023 revenue. G42's investment involves non-voting securities, but concerns from U.S. regulators revolve around potential technology transfer to China. Cerebras expects CFIUS to approve the deal later this year, but the IPO is currently on hold. (Source)

Moove Lubricants Postpones U.S. IPO Amid Market Uncertainty

Moove Lubricants, a subsidiary of Brazil's Cosan, has postponed its U.S. IPO, which was expected to raise up to $438 million. The delay comes amid unfavorable market conditions, ending a potential three-year U.S. listing drought for Brazilian companies. The IPO was intended to fund acquisitions, investments, and help reduce Cosan's significant debt load. Private equity firm CVC Capital Partners is a key investor in Moove. The postponement follows investor concerns over Cosan's deteriorating credit metrics, which have led the company to consider asset sales to improve its financial standing. (Source)

Europe

Spanish Baker Europastry Cancels $531M IPO Due to Market Volatility

Europastry, a Spanish bakery firm, has withdrawn its €504.9 million ($531 million) IPO due to market instability. This comes after a previous postponement in June, which the company attributed to the uncertainty surrounding European elections. Despite renewed pre-marketing efforts and some early anchor investor demand, increased market volatility, highlighted by a 44% spike in the VIX, led Europastry to pull the offering. Poor post-IPO performance of fellow Spanish company Puig Brands further dampened sentiment, with shares trading below their issue price. (Source)

Dutch Grid Operator TenneT Considers Spin-Off or Stake Sale of German Unit

TenneT, the Dutch electric grid operator, is exploring options to spin off or sell a stake in its German division, which is valued at over $21.95 billion. The Dutch Ministry of Finance is in discussions with TenneT about bringing in private investors. Options under consideration include an IPO or a private share placement. Earlier this year, a potential sale of the German division to the German government for $24.69 billion fell through. To support its ongoing operations, the Dutch government has committed to providing additional loans totaling $34.8 billion across 2024-2026. (Source)

Zabka Group to Raise $1.6 Billion in Largest Polish IPO Since 2020

Zabka Group, Europe's largest convenience store chain, is set to raise 6.45 billion zlotys ($1.6 billion) in its initial public offering. Zabka will sell 300 million shares at 21.5 zlotys ($5.48) each, representing a 30% stake in the company. The IPO will be Poland’s largest since e-commerce platform Allegro raised $2.8 billion in 2020. With the potential for an over-allotment option that could increase the share count to 345 million, Zabka’s IPO aims to revive interest in Warsaw’s stock market. The company will begin trading on October 17, 2024. (Source)

Asia-Pacific

Japanese Payments Company Infcurion Plans Tokyo IPO in 2025 to Accelerate Growth

Infcurion, a Japanese payments company, has announced plans to go public in Tokyo in 2025 to support its growth ambitions. The company recently secured a $53.8 million investment from Sumitomo Mitsui, valuing Infcurion at over $201.7 million. Infcurion specializes in digital wallet and credit card services and has experienced rapid growth in credit card issuance. The IPO proceeds will be used to fund potential M&A opportunities and support the company’s broader expansion across Asia, with a focus on B2B transactions in Japan’s evolving digital payments market. (Source)

Tokyo Metro's $2.35 Billion IPO Multiple Times Oversubscribed in International Books

Tokyo Metro has reported that its up to ¥348.6 billion ($2.35 billion) IPO is multiple times oversubscribed in international books. The company plans to price shares within a range of ¥1,100 to ¥1,200, with final pricing set for October 15. Tokyo Metro will issue 290.5 million secondary shares, with 20% allocated for international investors and 80% for domestic investors. This IPO is Japan’s largest since SoftBank’s ¥2.41 trillion offering in 2018, and Tokyo Metro will begin trading on October 23. (Source)

Eneos Holdings' Metals Unit JX Advanced Metals Applies for Tokyo IPO

JX Advanced Metals (JXAM), a subsidiary of Japan's largest oil refiner Eneos Holdings, has applied for an IPO on the Tokyo Stock Exchange. JXAM is expected to have a market capitalization exceeding $4.7 billion. Originally a mining firm, JXAM now focuses on advanced materials for semiconductor production after shifting its business strategy. The IPO will help fund further investment in these areas, crucial to the global semiconductor supply chain. (Source)

Lotte Shopping to Restructure Singapore SPC, Plans Southeast Asia Expansion and Future IPO

Lotte Shopping, South Korea's leading retailer, will convert its Singapore SPC into a holding firm to oversee its Southeast Asian operations, with plans for a future IPO. Lotte is targeting expansion in key markets such as Vietnam and Indonesia, as it looks to grow beyond its saturated domestic market. Collaborating with British online grocer Ocado, Lotte will also enhance its online fresh food offerings. The company aims to achieve $1 billion in operating profit by 2030 and has pledged to raise its dividend payout to 35% of net profit. (Source)

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