The IPOX® Update 11/14/23
BYD-Backed Hebei Gellec Eyes Hong Kong IPO in 2024
Chinese battery firm Hebei Gellec New Energy Science & Technology Co., supported by major electric vehicle manufacturer BYD Co., is considering an IPO in Hong Kong by 2024. Gellec, which specializes in the production of wet-process lithium-ion battery separators, is a key player in the rapidly expanding battery sector, crucial for the EV industry. The firm's close ties with BYD, a leading name in electric vehicles, are significant, with BYD holding over a 2% stake and contributing to more than half of Gellec's revenue. The potential IPO, expected to raise several hundred million dollars, could value Gellec at around $2 billion. This move comes after Gellec withdrew its $178 million Shanghai IPO application, reflecting the broader challenges in Asia's IPO market, including regulatory hurdles and economic slowdowns. The China Securities Regulatory Commission's current approach to slow the pace of IPOs for market stability further underscores the strategic timing of Gellec's decision. (Source)
Bain Capital Considers Sale or IPO of Varsity Brands Valued Over $6 Billion
Private equity firm Bain Capital is exploring a sale or IPO for Varsity Brands, an American academic apparel company, potentially valuing it at over $6 billion, including debt. Varsity Brands, known for its presence in the academic sports apparel sector, is split among three major subsidiaries: Herff Jones, a provider of educational recognition and achievement products; Varsity Spirit, focused on cheerleading and dance team uniforms and competitions; and BSN Sports, a distributor of sports equipment and apparel. The company has reported over $400 million in 12-month EBITDA, reflecting its financial performance. Bain is currently interviewing banks to hire advisers for its majority stake cash-out plan. However, both Bain and Varsity Brands have declined to comment on the potential sale or IPO. This move, if materialized, could offer a significant opportunity in the IPO market, highlighting Varsity Brands' strong position in the academic sector. (Source)
Glencore Acquires 77% Stake in Teck Resources' Coal Business for $6.93 Billion
Glencore, a multinational commodity trading and mining company, has acquired a 77% stake in the coal business of Teck Resources, a Canadian mining company, for $6.93 billion. This deal includes a plan to spin off Glencore's combined coal operations, including Teck's assets, into a new entity to be listed on the New York Stock Exchange within two years. This strategic move aligns with Glencore's aim to exit thermal coal, focusing instead on metals critical for the energy transition. The acquisition led to a 3.1% increase in Glencore's share price and a 5.1% rise in Teck's following the announcement. Teck plans to use the sale proceeds for debt repayment, development of new metal mines, and shareholder returns. The deal is subject to Canadian government approval, with a focus on natural resource protection. This upcoming listing of the new entity represents a significant development in the IPO market, offering investors exposure to a major player in the global mining and commodities sector. (Source)
