The IPOX® Update 11/8/23
Cuscal Defers A$514 Million IPO Amidst Market Headwinds
Australian payments company Cuscal has postponed its A$514 million (USD 328.96 million) IPO due to current market conditions. The deferred listing, which was to be managed by Bank of America as the lead, indicates a cautious approach from the company amidst a challenging environment for new listings on the ASX. Cuscal, aiming to become the second-largest IPO of 2023 following chemical distributor Redox, sought to raise A$378.4 million (USD 242.18 million). The postponement aligns with a trend seen across various sectors, with companies like Virgin Australia and Molycop also delaying their public offerings. This move by Cuscal reflects a broader market sentiment and cautious investor approach to new listings. (Source)
Oldenburgische Landesbank Eyes IPO Amidst Record Profit Outlook
The German bank Oldenburgische Landesbank (OLB), backed by Apollo Global Management among others, is contemplating an IPO as it anticipates a record net profit of over €200 million for the year. With a net interest income increase of 20% in the first nine months, OLB's financial health appears robust. The bank's credit portfolio has expanded to €19 billion, driven by growth in specialized finance sectors. Despite a conservative stance in commercial real estate loans, with less than 4% of its portfolio in EU properties and none in the US, OLB's performance highlights a strong financial foundation and a potential opportunity for investors in the IPO market. The bank also expects regulatory approval for its acquisition of Degussa Bank, which will bring it under the European Central Bank's supervision in Q1 2024. (Source)
UK Market Anticipates Klarna's IPO Despite Regulatory Hurdles
As the market adapts to the burgeoning sector of 'Buy Now, Pay Later' (BNPL), Sweden-based Klarna faces regulatory challenges ahead of a potential IPO. The fintech firm, which has seen its valuation adjust to $6.7 billion amid a shifting market, is in the midst of regulatory scrutiny focused on consumer protection. The UK's eagerness for Klarna's IPO comes with calls for the government to expedite BNPL regulation. This news coincides with fintech giant Revolut, valued at $33 billion, awaiting its UK banking license. The developments underscore the need for a balance between fostering technological growth and ensuring consumer safety in capital markets. (Source)
Euronext Declines Deutsche Börse's Joint Venture for IPO Support
Stock exchange operator Euronext has decided against a joint venture with Deutsche Börse that aimed to enhance liquidity for IPOs, especially for startups. The proposal, put forth by Deutsche Börse CEO Weimer, sought to create a larger liquidity pool to invigorate the IPO ecosystem. Euronext's decision to follow an independent path reaffirms its strategy to support the IPO market, focusing on providing a dynamic and self-sufficient platform for companies looking to go public. (Source)
Circle Considers 2024 IPO Amid Expanding Stablecoin Market
Circle, the issuer of the second-largest stablecoin USD Coin (USDC), is considering an IPO in 2024. This follows its previous plan for a public debut in 2022 with a valuation of $9 billion through a SPAC deal. Circle's contemplation of an IPO comes at a time when the cryptocurrency market is gaining institutional interest and regulatory frameworks are being developed. This potential move by Circle reflects the growing mainstream adoption of stablecoins and digital assets. In the backdrop, cryptocurrency Ripple, another major player in the space, may require SEC approval for any future public offering, according to CryptoLaw US founder John E. Deaton, suggesting a careful and regulated approach to crypto-related IPOs. (Source)
