The IPOX® Update 10/13/23

TAB Gida Gains Approval for Borsa Istanbul IPO

TAB Gida, the Turkish operator of Burger King, has been greenlit for a listing on Borsa Istanbul, with aims to conduct Turkey’s largest IPO since 2018. The company has ambitions to amass 6.83 billion liras ($246 million) through the sale of up to 52.5 million shares, priced at 130 liras each. The offering will encompass new shares and those from parent entity TFI TAB Food Investments. TAB Gida, which manages roughly 1,500 restaurants – over 700 of which are Burger King outlets across multiple countries – has seen a remarkable 125% surge in revenue in 2022, achieving 8.62 billion liras and netting 361.8 million liras. This IPO pursuit trails behind reports in 2021 regarding a potential Turkish IPO and positions TAB Gida amidst a surge of Turkish firms navigating through the Istanbul listing landscape, propelled by a hearty local retail investor environment. (Source)

Citigroup Foresees Limited Impact on Middle East Deals Amid Conflict

Global banking giant Citigroup projects a limited impact on Middle Eastern deals amidst the ongoing Israel-Hamas conflict, with Miguel Azevedo from the bank perceiving a "muted impact" on deal activities should the conflict remain contained. Although market sentiment is currently apprehensive, influenced by diverse factors like US inflation data fostering volatility, Azevedo acknowledges a resilience in the regional IPO scene, envisioning a "very solid" pipeline for the forthcoming year. Despite the conflict and subsequent retaliatory airstrikes introducing uncertainties into the Middle East’s flourishing deal context, Saudi-backed oil driller ADES and Oman’s OQ Gas Networks SAOG have reported successful IPO performances. However, economists alert towards potentially underappreciated risks of a wider war involving Iran and Lebanon, which could significantly impact oil supplies. (Source)

Didi Global Inc. Eyes 2024 Hong Kong Listing for Comeback

Chinese Ride-hailing firm Didi Global has outlined plans for a 2024 Hong Kong listing as part of a strategic comeback following a troubled debut and subsequent delisting on the NYSE. Didi has navigated towards improved relations with Chinese regulators following a substantial fine and a market share reduction to around 70%. For investors and employees, the new listing could potentially offer financial recuperation after the initial listing debacle slashed valuations from $80 billion to $16 billion. Didi’s key investor, tech investor SoftBank Group, could also possibly recover losses with the prospective public listing. Furthermore, as part of a strategic maneuver, Didi is permitting employees to sell shares back to the company, possibly in alignment with listing preparations, while also concentrating on profitable markets, curbing operations in numerous countries but bolstering focus on regions like Brazil and Latin America. (Source)

Cuscal Initiates IPO with Backing from Bank of America

Payment infrastructure provider Cuscal, with ownership links to entities including MasterCard and Bendigo and Adelaide Bank, has inaugurated its IPO, with an offering of up to $240m USD and a projected market cap peaking at $336m USD. In collaboration with Bank of America, the firm anticipates the conclusion of the bookbuild by November 3, engaging global funds through international investor meetings. Cuscal, which furnishes various financial institutions with payment solutions, plans to commence trading on the ASX from November 23, conjuring significant interest amidst a reported net profit of $16.4m USD, reflecting a 12% increase, and Adjusted EBITDA surging 27% to $28.7m USD in the last financial year. (Source)