The IPOX® Update 10/30/23

Dubai Taxi Corp. Targets $300M From Upcoming IPO

Dubai Taxi Corp., a transportation subsidiary, is setting its sights on approximately $300 million from its imminent share sale, marking a significant move in Dubai's 2023 privatization efforts. The taxi operator has also announced plans to distribute a 4Q dividend worth 71 million dirhams ($19 million) in April 2024. Furthermore, from 2024 onwards, Dubai Taxi pledges to distribute at least 85% of its annual net profit as biannual dividends. To facilitate the listing in Dubai, Dubai's Roads & Transport Authority is collaborating with financial heavyweights Bank of America, Citigroup, and Emirates NBD Capital. Following a successful $1 billion IPO by road-toll operator Salik Co. in 2022, the RTA is capitalizing on more assets, with an IPO for Dubai Parking in the pipeline after the taxi business listing. Although IPO momentum in the Middle East has remained strong since late 2021, Dubai's pace decelerated post a robust 2022. (Source)

Japanese Battery-Maker AESC Secures $1B Funding, Eyes US IPO

Japan-based battery manufacturer AESC has successfully secured a $1 billion funding round and is contemplating a US IPO with a projected valuation spanning 'several billions'. The company is also exploring further opportunities for a Series C funding round. This recent funding comes on the heels of a Series B round spearheaded by Singapore's sovereign wealth fund, GIC Pte. Established as a joint venture between Nissan and NEC, Chinese tech conglomerate Envision has held a controlling stake in AESC since 2018. However, AESC's ties to China have raised potential "Foreign Entity of Concern" issues in the US. With global operations, AESC manufactures batteries for nearly a million vehicles. The Biden Administration's Inflation Reduction Act has also introduced stringent EV battery sourcing mandates. (Source)

Apex Fintech Considers Traditional IPO Post 2021 SPAC Withdrawal

Apex Fintech, a prominent custody and clearing firm, is contemplating a traditional IPO, especially after its 2021 withdrawal from a SPAC merger. The earlier SPAC merger attempt had valued Apex at a hefty $4.7 billion, but it encountered regulatory roadblocks. Notably, companies like eToro and Circle had also withdrawn their SPAC deals in 2021, primarily due to the SEC's concerns regarding cryptocurrency. Despite a perceivable slowdown in the IPO market, Apex's CEO Capuzzi is optimistic about witnessing more public listings by the spring or summer of 2024. Serving distinguished clients like SoFi and Betterment, Apex had initially aimed for a swifter SPAC route for its public listing. With the SEC now having a more refined understanding of cryptocurrencies, Apex's future public endeavors might encounter fewer obstacles. It's worth noting that Apex had previously sold its crypto unit to Bakkt to overcome earlier challenges. (Source)

Shenzhen Shouhui Technology Mulls Hong Kong IPO

Chinese online insurance platform Shenzhen Shouhui Technology is evaluating the prospects of an IPO in Hong Kong, potentially as early as next year. Renowned financial institutions China International Capital Corp. and Huatai Securities Co. have been entrusted with the listing preparations. Depending on prevailing market conditions, the IPO could generate funds ranging between $200 million and $300 million. Established in 2015, Shouhui Tech specializes in offering comprehensive insurance services, complemented by online medical consultations. The firm also acquired an internet hospital license in 2022. Prominent investors such as HongShan, Matrix Partners China, and Gopher Asset Management Co. hold stakes in the company. (Source)

Chinese Noodle Chain Maliuji Eyes Hong Kong IPO

Popular Chinese noodle chain Maliuji is considering an IPO in Hong Kong. Financial firms CMB International and Huatai Securities Co. are managing the listing preparations. However, specifics regarding the IPO size and valuation remain under wraps. Founded in 2020, Maliuji shot to fame via Douyin, the Chinese counterpart of TikTok. The noodle chain, renowned for its hot-and-sour noodles, currently lacks an official website. With 21 operational outlets in major cities, plans are in motion to open an additional 12. Furthermore, Maliuji's products are available for purchase on prominent platforms like Alibaba Group's Taobao. (Source)

Lexeo Therapeutics Announces 9M Shares IPO Priced Between $13-$15

New York-based, clinical-stage genetic medicine company Lexeo Therapeutics has disclosed its intention to offer 9 million shares in its forthcoming IPO. Each share has been priced within the range of $13 to $15, suggesting an IPO offer size that could reach up to $130 million. Esteemed financial institutions JPMorgan, Leerink Partners, and Stifel have been selected as underwriters for the process. Lexeo specializes in the development of innovative therapies primarily focused on addressing cardiovascular diseases and Alzheimer's. Its flagship program is centered around tackling Friedreich's ataxia cardiomyopathy, a hereditary movement disorder. Notably, their drug candidate, LX2006, for Friedreich's ataxia is currently undergoing a Phase 1/2 trial and has shown encouraging early results. The proceeds amassed from the IPO will be primarily utilized to expedite the development of LX2006, LX2020, and LX1001, along with fortifying other pipeline programs and further research initiatives. As per recent financial disclosures, Lexeo has not yet begun revenue generation and reported a net loss amounting to $32.1M in the first half of 2023. Additionally, the company has clarified that there are no immediate plans to disburse dividends to stakeholders. (Source)