The IPOX® Update 10/26/23
UL Solutions Announces NYSE IPO Plans
Chicago-based testing and certification provider UL Solutions has revealed intentions to raise $1 billion in an IPO on the NYSE next month. This move could value the company at over $5 billion. The specific details of the IPO, including timing and valuation, might be modified leading up to the event. Two notable financial institutions, JPMorgan Chase & Co. and Goldman Sachs Group Inc., are guiding UL Solutions through the IPO process. UL Solutions, which is under the control of the nonprofit UL Standards & Engagement, has recently filed confidentially for the IPO. Preliminary consultations with potential investors are currently in progress, aiming to gauge the demand. Notably, the shares on offer will be existing, meaning no funds are projected to be raised for the company itself. Industry trends show growth within the testing, inspection, and certification sectors, attributed to both aging infrastructure and emerging regulatory requirements. (Source)
Australian Bank Cuscal Limited Sets Stage for Upcoming IPO
Australian banking entity Cuscal Limited is gearing up for its IPO pricing slated for next week. Internal presentations indicate the firm generates an annual revenue of $300 million AUD ($189 million USD) primarily from transaction-based fees. In terms of market share, Cuscal commands 8% of the "issuing" sector, which is valued at $10.6 billion AUD ($6.68 billion USD). Major banks account for 74% of this market. Furthermore, Cuscal boasts a 21% stake in the ATM sector and 1% in credit card payments from a $3.3 billion AUD ($2.08 billion USD) pool. In recent endeavors, the bank invested $136 million AUD ($85.68 million USD) in operational enhancements, including critical system upgrades. Past acquisitions include the data and banking platform BASIQ. The forthcoming IPO seeks to raise between $367 million to $378.4 million AUD ($231.1 million to $238.3 million USD) with an anticipated listing date set for November 28. (Source)
Sodexo to Spin Off Pluxee, Eyes Euronext Paris Listing
French services titan Sodexo has announced plans to spin off its Voucher and Benefits division, Pluxee, with a targeted listing on Euronext Paris in 2024. Upon this move, Pluxee is set to take on €600 million of Sodexo's debt but aims to uphold a robust investment grade credit rating. Sodexo shareholders will retain their double voting rights in Pluxee. The official spin-off decision is scheduled for a vote at an EGM in early 2024, right before Pluxee's capital markets day. The spin-off is expected to have negligible tax implications for Sodexo shareholders based in France and the US. Renowned financial institutions, including BNP Paribas, Citi, JPMorgan, and Société Générale, are selected as the primary equity advisors. To ensure financial agility post-listing, Pluxee has secured a credit facility worth €650 million and a bridge facility valued at €1.5 billion. (Source)
Select IPOX® Holdings Q3 Earnings Highlights
Carrier Global, prominent HVAC and refrigeration solution provider, showcased robust Q3 performance with adjusted earnings registering at $0.89 per share, surpassing analyst predictions of $0.79. Their Q3 net sales exhibited a rise to $5.73 billion, an enhancement from the previous year's $5.45 billion. The company also lifted its 2023 earnings outlook to $2.70 per share, resulting in its shares experiencing a surge of over 6% in premarket trading.
Kenvue, J&J consumer health spin-off, revealed its Q3 adjusted earnings as $0.31 per share, leading to a 2% pre-market dip in its share value. The firm lowered its annual profit forecast, attributing it to decreased demand for cold and flu medicines. Additionally, Kenvue's 2023 sales growth guidance underwent a revision from its initial 4.5%-5.5% to the current 4%-4.5%. The board also sanctioned a buyback of 27 million shares, imposing no expiry on the same.
Meanwhile, Israeli automotive technology firm Mobileye disclosed an 18% YoY increment in its Q3 revenue, amounting to $530 million. The firm's shares ascended by 2.4% in the pre-market phase. While the Q3 Diluted EPS (GAAP) stood firm at $0.02, the Adjusted EPS was pegged at $0.22. Mobileye, with a robust balance sheet flaunting $1.2 billion cash and zero debt as of Q3 2023, also acknowledged positive business developments influenced by the encouraging feedback from its Zeekr software rollout. The firm also noted minimal disruption from the Israel-Hamas conflict, attributing it to its efficient business continuity strategies.
Orkla, the Norwegian consumer goods and aluminium conglomerate, faced a decline of 8.6% after its 3Q results indicated potential raw material cost concerns for the forthcoming year, 2024. Significant transactions include the acquisition of a 40% stake in Orkla's Food Ingredients division by Rhône, valued at NOK15.5B. Moreover, Orkla Foods Europe unveiled a change in its CEO designation, with Atle Vidar Nagel Johansen assuming the interim role from Nov. 1.