The IPOX® Update 10/25/23

Kokusai Electric Celebrates Stellar Trading Debut in Japan

Kokusai Electric made its trading debut in Japan and saw its shares close at an impressive 27% above the offer price, marking the second-largest jump in recent +$500m listings this year. The firm, which was once a part of Hitachi, was included in the Topix index, reportedly prompting index trackers to buy over 14% of the company’s IPO stock by next month's end. Key insights from their prospectus reveal intentions to use 20-30% of surplus for dividends. Major customers of Kokusai include Samsung, TSMC, and Micron. With business plans involving R&D investments and new plant construction by 2024, Kokusai anticipates substantial market growth in the semiconductor domain. Interestingly, analysts quote that Kokusai's earnings valuation stands lower than rivals but bears more risk due to a higher connection to the fluctuating memory-chip market. (Source)

Telegram's Potential 2025 IPO on the Horizon

Russian messenger service Telegram, now operating from the UAE, may be preparing for an IPO in 2025. Recent convertible bonds issued by the company suggest a pre-IPO conversion option for 2025. Following the discontinuation of the TON blockchain project, Telegram amassed $1.75bn in 2021 through bond issues. Market speculations hint at a valuation ranging from $30bn-$50bn for their potential IPO, with each active user possibly contributing $50 to the valuation. However, decisions regarding the listing's location remain uncertain. (Source)

Northvolt Leans Towards European IPO

Battery cell producer Northvolt seems to be favoring a European IPO over a U.S. listing, with potential plans to debut in Stockholm in 2024, aiming for a $20 billion valuation. These plans, however, are still tentative, with market volatility playing a role in the final decision. Key backers for Northvolt include industry giants like Goldman Sachs, Volkswagen, BMW, and Blackstone. The company's growth strategy involves the commencement of a battery factory in Gothenburg and selecting Montreal for its North American plant. (Source)

Musinsa, Korea's Fashion Giant, Eyes 2024 IPO

Musinsa, Korea's premier online fashion platform, is strategizing for an IPO in 2024 with terms including a market capitalization surpassing 3.2 trillion won ($2.3 billion). This move comes after securing substantial investments from KKR and Wellington Management. Despite seeing an increase in company valuation and a rise in annual sales in 2022, subsidiary Soldout negatively impacted profits. Due to a pact with venture capital Sequoia Capital, Musinsa faces an impending deadline to list by the end of 2024. (Source)