The IPOX® Update 11/11/23
Zeekr Intelligent Technology Holding Ltd. Files for US IPO
Chinese electric vehicle manufacturer Zeekr Intelligent Technology Holding Ltd., a subsidiary of Zhejiang Geely Holding Group, has officially filed for a U.S. IPO. Financial giants Goldman Sachs, Morgan Stanley, Bank of America, and CICC are assisting with the IPO process. This move follows Geely's previous public listings, such as Polestar in 2021 and Volvo Car on the Stockholm exchange. However, it's notable that post-IPO, stocks of Volvo Car and Polestar experienced significant declines. According to Reuters, Zeekr may aim to raise less than $1 billion, adjusting for lowered production forecasts. In 2022, Zeekr sold over 92,000 vehicles but faces challenges in achieving near-term profitability. Their product lineup includes the 001 crossover, the 009 van, the X compact SUV, and a premium sedan set to launch soon. (Source)
Fibra Next Plans IPO in Mexico Post-Thanksgiving
Latin American REIT Fibra Next is planning its IPO in Mexico, potentially launching after the U.S. Thanksgiving holiday. The company aims to raise up to $1.5 billion, although investor reluctance at the current valuations might lead to a potential reduction to around $1 billion. Fibra Next is comparable to established industrial developers like Corporacion Inmobiliaria Vesta and Prologis Property Mexico. Its focus on the "nearshoring" trend is particularly aimed at proximity to the U.S. market. However, its properties, mostly located in central Mexico, are considered less appealing compared to northern locations. Despite the possible downsizing, this could be Mexico's largest IPO since 2018. (Source)
London Stock Exchange Group CEO Anticipates IPO Market Rebound
London Stock Exchange Group (LSEG) CEO David Schwimmer has expressed optimism for a rebound in IPO activity, contingent upon stabilization of the current economic and geopolitical climate. Post-Brexit, London's position as Europe's leading trading center has been challenged by Amsterdam. Schwimmer anticipates markets adapting to conflicts like those in Ukraine and Gaza, ensuring a continuous flow of capital. UK reforms could further enhance market liquidity by allowing pension funds more significant investment opportunities. With the acquisition of Refinitiv, LSEG has positioned itself as a major market data provider, competing directly with Bloomberg. The Group is also set to launch a faster FX trading platform in Singapore and has entered a partnership with Microsoft to integrate LSEG data into Microsoft Teams, aiming to enhance analytics capabilities by 2024. (Source)
Investcorp Capital's Prices Abu Dhabi IPO At Top of Price Range
Investcorp Capital has successfully completed its IPO in Abu Dhabi, raising 1.66 billion dirhams ($451 million), with shares priced at the top of the range. The IPO was increased by 12% due to robust demand, valuing the company at 5 billion dirhams. The offering witnessed heavy oversubscription from international and regional institutional investors, including a $250 million commitment from a cornerstone investor. Investcorp Capital, with a diverse portfolio in private equity, real estate, credit, and general partner positions, will begin trading on November 17. The company, supported by Abu Dhabi’s Mubadala Investment Co. and managing $50 billion in assets, plans to utilize the IPO proceeds to develop its capital financing services and expand strategically. (Source)
Syngenta Group Delay Overshadows Asian IPO Market
The Syngenta Group, a global agribusiness company, has postponed its Shanghai IPO until the end of next year, reflecting broader challenges in the Asian IPO market. This delay comes amidst China's economic struggles and a slower regulatory pace for IPO approvals. The Asian IPO volume has dropped by 40%, with China's proceeds declining by 37.6% year-on-year. Syngenta's planned $9 billion IPO would have been Asia's largest in 2023, surpassing Hua Hong Semiconductor's offering. However, the overall slowdown in the Asian IPO market mirrors trends seen in Europe, attributed to valuation issues and economic uncertainties. The market is looking towards interest rate stabilization as a potential catalyst for renewed interest in major Asian IPOs, including those of high-profile companies like Bytedance and Sinopec Marketing. (Source)
