The IPOX® Update 10/19/23

Renault Plans IPO for Ampere EV Unit in H1 2024

French carmaker Renault is gearing up to list its Ampere EV division in H1 2024, as the carmaker's latest quarterly revenue didn't match expectations, leading to a significant decline in its stock value. Previously, the IPO for Ampere was deferred due to subdued demand for the Megane E-Tech, assertive pricing tactics by Tesla, and increasing competition from Chinese manufacturers. Renault's goal is a €10 billion valuation for Ampere, a figure that mirrors the entire worth of the carmaker at present. A capital markets day dedicated to Ampere is scheduled by Renault for November 15. (Source)

WH Group Contemplates U.S. IPO for Smithfield Foods in 2024

Chinese meat producer WH Group is contemplating a 2024 U.S. IPO for its pork subsidiary, Smithfield Foods, which is based in Virginia. Acquired in 2013 for $4.7 billion, Smithfield was formerly listed on the New York Stock Exchange. Post the merger, WH has emerged as global leader in hog farming and pork production. Despite challenges, including a reduced stock valuation, WH remains ambitious. Smithfield, post its acquisition, has reported an impressive $18 billion in annual sales, slaughtering 30 million hogs annually and establishing itself as a leading U.S. pork brand. (Source)

Shein Addresses Concerns Ahead of Potential U.S. IPO

Chinese fast-fashion retailer Shein, now emphasizing its Singapore headquarters, is eyeing a U.S. IPO, valuing the company at approximately $66 billion. Its phenomenal expansion during the Covid-19 pandemic was characterized by a broad product range coupled with competitive pricing. Shein has recently come under scrutiny over allegations ranging from forced labor, environmental impact, to design impropriety. The brand faces added scrutiny from U.S. legislators over its links with Xinjiang cotton. Responding to these concerns, Shein's vice-chair Marcelo Claure denied the allegations, and the brand has ceased using the controversial cotton. (Source)

Grand Centrex Ltd Merges with SPAC RF Acquisition in $1.2 Billion Deal

Singapore-based videogame publisher Grand Centrex Ltd (GCL) has announced a merger with SPAC RF Acquisition in a deal valued at $1.2 billion. GCL, recognized for holding exclusive distribution rights for popular games like The Witcher 3 and Cyberpunk 2077, is amplifying its game publishing efforts, marked by the recent "Atomic Heart" release and six anticipated titles within the next year. This significant deal is slated for conclusion in Q2 2024, with present GCL stakeholders retaining a majority stake and board control in the merged entity. (Source)