The IPOX® Update 11/6/23
IPOX® International Index Set To Gain Amidst Short-Selling Ban in South Korea
The reintroduction of a short-selling ban in South Korea caused a remarkable upturn in members of the IPOX® International Index. Two prominent stocks from the index, battery manufacturer LG Energy Solution Ltd. and battery materials firm Ecopro BM Co., domiciled in South Korea, witnessed a respective 22.8% and a surge capped at 30%. The renewed ban also resulted in a significant 5.66% gain of the KOSPI index, closing at 2,502.37. Notably, foreign investors, who majorly dominate the short-selling market, constituted 67.9% of this year's total short sales in Korea. However, certain analysts convey caution, suggesting the potential of this surge being temporary, leading to a possible withdrawal of foreign capital. (Source)
Klarna Shifts Towards UK Incorporation Aiming $15 Billion IPO
Klarna, the BNPL (Buy Now Pay Later) firm domiciled in Sweden, is currently transitioning with the initiation of a new UK holding company. This move, perceived as a critical step ahead of an anticipated IPO that could potentially value Klarna upwards of $15 billion. While the exact locale and timing of the IPO remain undisclosed, sources from Sky News suggest a possible listing in New York over London. Notably, Klarna, with a valuation of $6.7 billion, proudly boasts of 150 million global customers, 500,000 merchant partners, and a team of 5,000 employees. Furthermore, this administrative shift, under the direct supervision of the Swedish Financial Supervisory Authority, ensures that Swedish operations remain unaffected. (Source)
Indian E-commerce Startup Udaan Prepares for 2025 IPO
The Indian e-commerce platform Udaan, which aids merchants in sourcing goods and competes with giants like Reliance Industries and Walmart's Flipkart, is currently gearing up for an IPO in 2025. As a move aligning with this aspiration, CEO Vaibhav Gupta envisages operational profit within the coming 18 months. The company, which was founded by former Flipkart engineers in 2016, has been dedicated to revolutionizing retail by assisting small stores and excluding middlemen. Udaan's fintech division further empowers shopkeepers by offering them lucrative working capital loans, marking a significant 70% annual growth rate. With a prior valuation exceeding $3 billion in 2021, Udaan remains open to potential listing locations, including both India and overseas as the country plans to permit domestic firms to list abroad. (Source)
