The IPOX® Update 10/19/24

U.S.

Pony.ai Aims to Raise $300 Million in U.S. IPO for Autonomous Driving Expansion

Pony.ai, a Chinese autonomous driving technology startup, is planning to raise $300 million through an IPO in the U.S. The IPO, which could launch as early as this week, marks a significant move for the company as it aims to expand its global presence. The funds raised will be used to advance Pony.ai’s research and development in autonomous vehicle technology and support its operational growth. The startup focuses on developing self-driving software solutions and autonomous mobility services, competing in an increasingly crowded market. While the company has not yet confirmed a specific IPO date or valuation, this move reflects Pony.ai's strategy to scale its business worldwide. The U.S. listing highlights the competitive nature of the autonomous driving industry as companies vie for funding to accelerate innovation (Source)

Scilex Holding Considers IPO for Subsidiary Scilex Pharma

Scilex Holding is exploring options for an IPO or spinout of its drugmaking subsidiary, Scilex Pharma. The company’s flagship product, ZTlido, a topical treatment for nerve pain, is projected to exceed $180 million in sales for 2024. Scilex Pharma is also working on a next-generation version of ZTlido, which could potentially generate $1.2 billion in peak sales within six years. Recently, Scilex licensed Elyxb for migraine treatments and Gloperba for gout, expanding its product line. Additionally, its subsidiary Semnur Pharmaceuticals merged with Denali Capital in a $2.5 billion deal, aiming to commercialize its lead product, Semdexa, for sciatica. Scilex Holding was formed via a SPAC merger with Vickers Vantage in 2022, and the potential IPO would further capitalize on its growing pharmaceutical portfolio (Source)

Europe

Swiss Telecom Group Sunrise to List Shares on Swiss Exchange in November

Sunrise, Switzerland's second-largest telecom group, will begin trading its Class A shares on the Swiss stock exchange on November 15, 2024. The spin-off from Liberty Global follows its acquisition of Sunrise in 2020 for $7.4 billion. The telecom group currently holds an enterprise value between $9.27 billion and $10.43 billion, and generated $3.27 billion in revenue along with $379 million in adjusted free cash flow in 2023. Liberty Global shareholders will receive Sunrise shares through American Depositary Shares (ADS) on Nasdaq beginning November 13, with exchanges for Sunrise shares available from November 14. The company also plans a dividend payout of around $261 million for 2024, intending to pay up to 70% of its adjusted free cash flow in the future (Source)

Motel One Eyes 2026 IPO Amid Internal Preparations

German hotel chain Motel One plans to go public no earlier than 2026, as it undergoes further internal adjustments, according to founder Dieter Müller. The company, which operates nearly 100 hotels across Europe and New York, posted revenue of EUR 850 million ($897 million) in 2023. Müller owns 40% of Motel One’s shares and 60% of its voting rights. The IPO would provide liquidity for shares held by the next generation of heirs. The company aims to exceed EUR 1 billion ($1.05 billion) in revenue, though challenges remain for 2024. The delayed IPO reflects the company's cautious approach, prioritizing internal structuring and stability before entering the capital markets (Source)

Asia-Pacific

South Korea’s K Bank Delays IPO to 2024 Citing Low Institutional Demand

K Bank, South Korea’s internet-only bank, has postponed its IPO from October 30 to early 2024 due to insufficient demand from institutional investors. Originally, the bank aimed to raise 1 trillion won ($755 million) with a target market cap of 5 trillion won. The proposed share price range was set at 9,500-12,000 won ($6.90-$8.80) per share, but underwriters NH Investment & Securities and KB Securities suggested lowering the minimum price to 8,500 won. This delay marks the second postponement for K Bank, following a similar move in February 2023 due to unfavorable market conditions. The bank plans to restructure its offering and aim for a better valuation in early 2024 (Source)

Tokyo Metro Sets IPO Price at 1,200 Yen for October 23 Listing

Tokyo Metro, Japan’s leading subway operator, has set its IPO price at 1,200 yen ($8) per share ahead of its listing on the Tokyo Stock Exchange’s Prime Market scheduled for October 23, 2024. With this price, the company’s market capitalization will be around 700 billion yen ($4.67 billion). The central and Tokyo metropolitan governments will collectively sell 50% of their shares in this offering. The IPO proceeds are expected to support reconstruction efforts following the 2011 earthquake and tsunami. The listing is one of Japan's largest in the past decade, drawing significant interest from both domestic and international investors (Source)

X.J. Electrics Files for $50 Million Hong Kong IPO to Expand Production Bases

X.J. Electrics, a Chinese kitchenware manufacturer, has filed for a Hong Kong IPO to raise approximately $50 million. The company, which generated 1.19 billion yuan ($163 million) in revenue last year with a net margin of 10.2%, plans to use the IPO proceeds to establish new production facilities in Thailand and Indonesia. Electric kettles, accounting for 42% of its 2023 sales, are a key product line. Sinolink Securities is acting as the underwriter. The company follows a trend among Chinese manufacturers of shifting production overseas to reduce costs. X.J. Electrics aims to expand its brand and explore acquisitions as part of its growth strategy (Source)

Alibaba and Baidu Back Horizon Robotics’ $696 Million Hong Kong IPO

Horizon Robotics, an AI chip developer for autonomous vehicles backed by Intel, is launching a $696 million IPO in Hong Kong. The company will sell 1.36 billion shares, priced between HK$3.73 and HK$3.99, with trading expected to start on October 24. Alibaba and Baidu are investing $50 million each as cornerstone investors. This is Hong Kong's largest IPO of 2024 and represents Horizon Robotics’ shift from a previously planned U.S. listing. The company has also partnered with Volkswagen, which invested $2.3 billion in 2022 for a joint venture focused on vehicle software (Source)

Foshan Haitian Flavouring & Food Targets $1.5 Billion Hong Kong IPO in 2025

Foshan Haitian Flavouring & Food, a leading Chinese condiment producer, is planning a $1.5 billion IPO in Hong Kong as a secondary listing, potentially taking place in the first half of 2025. The company’s Shanghai-listed shares have gained 20% this year, valuing it at $35 billion. The decision follows a trend of increased Hong Kong IPO activity, with $7.3 billion raised so far in 2024. Founded in 1955, Haitian’s product range includes soy sauce, cooking oil, and hotpot sauces. The company’s fundraising goals will depend on market conditions (Source)

Hyundai Motor India’s $3.3 Billion IPO Achieves 18% Subscription on Day One

Hyundai Motor India has seen 18% subscription for its $3.3 billion IPO on the first day of bidding. This IPO is the largest in India’s history and the world’s second-largest of 2024. The automaker, which is India’s second-largest carmaker with a 15% market share in passenger vehicles, aims for a market valuation of $19 billion at the higher price range. The offering saw institutional investors like BlackRock and Fidelity pre-order $989.4 million worth of shares, while employees subscribed to 80% of their allocated shares at a discount. The share sale closes on October 17, with trading expected to commence on October 22 (Source)

MENA

Lulu Group International to Raise Up to $1.8 Billion in Abu Dhabi IPO

Lulu Group International, a major UAE-based retail and sourcing conglomerate, plans to float 25% of its business on the Abu Dhabi Securities Market (ADX), targeting a capital raise between $1.7 billion and $1.8 billion. The IPO is expected to provide Lulu with a market valuation of approximately $6.5 billion to $7 billion. Pricing details will be finalized by the end of October, with employee allocations included. The shares are set to start trading by mid-November. The company’s dual listing on Saudi Arabia’s Tadawul has been postponed, though discussions continue. The IPO is managed by Emirates NBD Capital, HSBC, Abu Dhabi Commercial Bank, and Citigroup, with Moelis & Co. serving as financial advisors. This marks Abu Dhabi's fourth IPO this year, following listings such as NMDC Energy and Alef Education Holding Plc (Source)

Oman's OQ Exploration and Production Secures $2.03 Billion in Record IPO

OQ Exploration and Production (OQEP), a subsidiary of Oman’s state-owned energy group OQ, raised $2.03 billion through its IPO, the largest in the country’s history. The offering involved 2 billion shares, representing 25% of the company, priced at the top range of 370-390 baizas per share. The IPO attracted strong demand, oversubscribed by 2.7 times, mainly from anchor investors. The listing is part of Oman's broader privatization strategy aimed at diversifying the economy. OQEP’s post-IPO market capitalization stands at approximately $8.1 billion, making it the largest entity on the Muscat Stock Exchange. Trading is expected to commence around October 28, 2024. This IPO follows other successful listings, such as last year’s $771 million offering for OQ’s pipeline business and a $244 million IPO for Abraj Energy Services (Source)

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