The IPOX® Update 11/9/23
Geely's Premium EV Brand Zeekr Set to Announce IPO in New York
The luxury electric vehicle brand of Chinese automotive giant Geely, Zeekr, is expected to unveil its IPO details in New York. The upcoming release of Zeekr's IPO prospectus suggests that trading could commence in the coming weeks. With leading financial institutions Goldman Sachs and Morgan Stanley orchestrating the underwriting, the exact size and price of the IPO remain unknown, with a confidential filing last December hinting at aspirations over $1 billion. The amount raised may be adjusted in response to market reception. This IPO is notably set to be the first major US float by a Chinese firm in two years, unfolding within a landscape of heightened regulatory scrutiny. Zeekr has reported a double-digit gross profit margin and is strategically leveraging Geely's manufacturing capabilities to enhance its profitability. Ranking 13th in China's EV sales and with plans to venture into European and other markets, Zeekr sold 79,028 units, showcasing its competitive presence in the sector. (Source)
Fortegra, a Tiptree Insurance Company, Prepares for NYSE Listing
Speciality insurance underwriter Fortegra, a subsidiary of Tiptree Insurance, has submitted an S-1 filing in anticipation of its upcoming IPO. Fortegra has highlighted the Managing General Agent (MGA) and Excess and Surplus (E&S) sectors as focal points for growth. The firm plans to be listed on the New York Stock Exchange (NYSE) under the ticker symbol TFG, with the IPO's scale and valuation details yet to be disclosed. While the exact timing for Fortegra's NYSE debut has not been announced, speculation suggests it may aim to raise up to $100 million. As the specialty insurance market continues to expand, Fortegra's forthcoming IPO represents a strategic opportunity for the company within the insurance industry. (Source)
Investcorp Capital's Abu Dhabi IPO Receives Boost from Citigroup and Goldman Sachs
Investcorp Capital, supported by its parent company, major alternative asset manager Investcorp Holdings, plans to upsize its IPO in Abu Dhabi, now at $451 million with 720 million shares available. Citigroup and Goldman Sachs have rejoined the offering, initially turning down the opportunity due to the new unique price stabilization mechanisms behind the listing. The IPO is set to price at 2.30 dirhams, reflecting strong demand at the higher end of the expected range. Amid regional geopolitical tensions, the IPO market in the Middle East is attracting attention, with IVC Strategic Investment anchoring the offering with a $250 million commitment. The commencement of trading on Investcorp shares is scheduled for November 17. (Source)
Syngenta Delays Potential $9 Billion IPO Amid Market Volatility
Swiss-Chinese agrochemical firm Syngenta, which became a part of China's state-owned ChemChina in 2017 through a $43 billion deal, has postponed its IPO, previously targeted at raising approximately 65 billion CNY ($8.93 billion). This delay extends the uncertainties faced since its 2021 plans, now looking towards a launch by the end of next year, market conditions allowing. The company is considering alternative options to widen its shareholder base while shifting its focus from the STAR Market to the main board of the Shanghai Stock Exchange. The postponement underscores the challenges within the Chinese market, as well as the company's prudent approach to timing its public offering. (Source)
Rakuten Securities IPO Deferred as Mizuho Financial Group Boosts Stake
The brokerage sector of Japan's Rakuten Group, Rakuten Securities, has decided to defer its IPO amid strategic realignments and a recent investment by Mizuho Financial Group amounting to $576 million. This postponement follows Rakuten's operational reassessment in light of the transition to zero commission trading. With the IPO off the immediate agenda, the group is focusing on financial restructuring to address impending debt deadlines. Mizuho's increased stake is perceived as a strategic move, potentially positioning Rakuten Securities for a stronger market debut when the IPO is eventually rescheduled. (Source)
