The IPOX® Update 10/12/23

Birkenstock IPO Faces a Challenging U.S. Debut

Renowned sandal maker Birkenstock confronted a rocky initiation into the U.S. stock market, with its shares plummeting 12.6% on its trading debut. The German footwear company opened at $41 per share, notably beneath the IPO price of $46, and concluded its initial day at $40.20. This descent constitutes one of the more pronounced opening declines for U.S. IPOs exceeding $1 billion and could potentially cast apprehensions for other entities contemplating public listings. Amid the less than stellar performance, L Catterton, a private equity firm, will sustain control over Birkenstock with an 83% ownership post-IPO. The company, renowned for its durable and comfortable sandals, aims to leverage the proceeds from the IPO to mitigate its extant debt and bolster its financial foundation amidst expanding global operations. (Source)

OQ SAOC Achieves Oman’s Largest IPO, Amassing $748.6m

State energy firm OQ SAOC successfully navigated through Oman’s largest IPO yet, amassing an impressive $748.6 million and pricing at the peak of the proposed range. The IPO of OQ Gas Networks, a subsidiary, saw an exemplary demand of 4 billion rials despite prevalent Middle East tensions and global market apprehensions. The IPO, representing a 49% stake in OQ Gas Networks, priced its 2.1 billion shares at 140 baisas each. Moreover, retail investors were granted a 10% discount on the IPO price, paying 126 baisas per share. Anchor investors, including Fluxys Belgium, Saudi Arabia’s PIF, and Qatar Investment Authority, instilled additional stability into the deal. The shares of OQGN are set to commence trading on October 24, heralding a pivotal juncture in Oman’s privatization endeavors. (Source)

Luyuan and Shiyue Daotian Celebrate Sturdy Hong Kong IPO Debut Amidst Economic Pessimism

Electric-motorcycle manufacturer Luyuan and pre-packaged food supplier Shiyue Daotian have garnered positive attention with a hearty debut on the Hong Kong Stock Exchange, as shares of Luyuan and Shiyue Daotian climbed 0.95% and 22.66% respectively until first market close. This is noteworthy amidst a relatively subdued Hong Kong IPO market, characterized by heightened interest rates, which has witnessed 44 listings aggregating HK$24.6 billion in 2023, demonstrating a drop from the preceding year. Nonetheless, KPMG anticipates a potential revitalization in Hong Kong IPO activity, discerning approximately 110 active IPO applicants in limbo. Shiyue Daotian, having secured HK$820.3 million through its IPO, envisages intensifying supplier collaborations and amplifying production capabilities. Concurrently, Luyuan intends to allocate the HK$786.1 million acquired from its IPO towards research and development, and augmenting sales, distribution, and production endeavors. (Source)

Planisware Defers Paris IPO Amidst Prevalent Market Volatility

Enterprise software services provider Planisware, domiciled in France, has elected to postpone its planned IPO in Paris, citing the ongoing market volatility as a significant deterrence. The IPO, which was set to be the most substantial in Paris in the last two years, projected a valuation landing between 1.1 and 1.25 billion euros, showcasing a strong potential entry into the market. The postponement mirrors a broader apprehension permeating the European IPO market, prompting numerous entities to reschedule their listing plans. Notably, German military contractor Renk and toll payments provider DKV Mobility have similarly postponed their IPOs amidst the unstable conditions, with DKV Mobility rescheduling its prospective listing to 2024, specifically attributing the reshuffle to the present market environment. This trend of hesitancy and recalibration within European companies, adapting IPO timelines to navigate the tumultuous economic terrain, elevates concerns and accentuates a cautiously outlook toward the European IPO market. (Source)