The IPOX® Update 11/1/23
SAL Saudi Logistics Shares Soar in Riyadh Market Debut
SAL Saudi Logistics Services, the prominent air cargo firm, made a successful entrance into the Riyadh market, with its shares climbing by 28%. Representing the second-largest IPO in Saudi Arabia this year, the firm controls the cargo handling sector in the nation with an overwhelming 95% market share, predominantly handling transit and export consignments. This progression aligns with Saudi Arabia's forward-looking plans to establish itself as a global supply chain leader, a move envisioned to diversify its economy. (Source)
Waystar Postpones IPO Amidst U.S. Market Uncertainty
U.S.-based Healthcare-payments firm Waystar has decided to postpone its IPO roadshow, potentially pushing it to 2024. The U.S. IPO market has witnessed instability, with some recently listed large firms trading below their debut prices. Despite these market headwinds, Waystar, backed by private-equity firm EQT and with a minority stake held by Bain Capital, remains optimistic. The firm was previously valued at $2.7 billion in 2019. (Source)
Renault Reassesses EV Business Ampere IPO Amid Market Challenges
French automaker Renault is re-evaluating the IPO of its EV business, Ampere. Given the volatile market conditions and heightened competition from China, Renault might reconsider the IPO if the valuation of Ampere does not meet its target of around 7 billion euros. Initially slated for a 2023 debut, the potential listing has been deferred to spring 2024. (Source)
India Opens Avenues for Local Firms to List Overseas
India is reforming IPO regulations for its domestic companies by allowing them to list in selected foreign jurisdictions. This strategic move, part of the Companies Amendment Act 2020, aims to lure global investors as well. An initiative like the Gujarat International Financial Tech City (GIFT City) highlights India's global ambitions to rival hubs such as Dubai and Singapore. To attract investors, listings in GIFT City will be in dollars, providing an experience parallel to Nasdaq listings. The initiative has already seen a major shift with stock futures trading moving from Singapore to GIFT earlier this month. (Source)
Saudi BNPL Firm Tabby Achieves $1.5 Billion Valuation in Pre-IPO Fundraising
The buy-now-pay-later enterprise Tabby, based in Saudi Arabia, has secured $200 million in its pre-IPO fundraising round, increasing its valuation to $1.5 billion, a substantial leap from its January 2023 valuation of $660 million. Spearheaded by Wellington Management, the Series D round witnessed participation from notable investors such as Bluepool Capital and PayPal Ventures. Initially rooted in Dubai, Tabby shifted its headquarters to Saudi, strategizing for its anticipated listing on the Saudi stock exchange. As it stands, the firm boasts a user base exceeding 10 million and collaborates with 30,000 brands, offering its services across Saudi Arabia, the UAE, and Kuwait. Tabby's CEO accentuated the consistent repayment behaviors of consumers, emphasizing the resilience shown amidst prevailing global economic uncertainties. (Source)
UK IPO Market Experiences Downturn, Yet Offers Opportunities for Investors
According to a report by Peel Hunt, the United Kingdom's IPO landscape is undergoing a challenging period. Notably, the FTSE Small Cap Index experienced a 10% drop in membership and a 20% decline in market capitalization this year. Moreover, London's FTSE 100, post-Brexit, had to relinquish its prominent position as Europe's top stock market. In search of more fertile ground, prominent firms like chip designer Arm Holdings and building materials supplier CRH Plc have been opting for US listings. However, amidst the challenges, welcomed planned reforms may help the market to recover. (Source)
