The IPOX® Update 11/17/23

Investcorp Capital's IPO Closes at Offering Price in Abu Dhabi

Abu Dhabi-based Investcorp Capital, a firm investing in diverse sectors, experienced a muted market response in its recent IPO, closing at the initial offering price of 2.30 dirhams. Despite this, the IPO, which raised $451 million, was upsized by 12% due to robust demand from institutional investors. The IPO's unique aspect was a 30-day price stabilization mechanism, a first in the UAE market. Over half of the offering, amounting to $250 million, was underpinned by a cornerstone investor group. This performance stands in contrast to other regional IPOs like SAL Saudi Logistics and ADES Holding, which saw their shares soar on debut. Investcorp Capital, backed by Investcorp Holdings, plays a significant role in the region's financial landscape. (Source)

WuXi XDC's Hong Kong IPO Sees Remarkable 36% Surge on Debut

Hong Kong-based biopharma contract researcher WuXi XDC made an impressive debut with its IPO closing 36% higher. The company, which priced its shares at the top of the range at HK$20.60, raised $471 million. This strong performance, highlighted by a 50x oversubscription rate from individual investors, is particularly noteworthy given the generally subdued Hong Kong IPO market. WuXi XDC's IPO attracted seven cornerstone investors, including General Atlantic Singapore, committing $300 million. The funds raised are earmarked for expanding facilities in Singapore and boosting production capacity in China. This successful IPO comes amidst Hong Kong's efforts to invigorate equity trading, including a recent stamp duty reduction. (Source)

Ecopro Materials' IPO in Seoul Soars 58% on Market Debut

South Korea's Ecopro Materials, specializing in materials for electric vehicle batteries, made a striking debut in Seoul, with its IPO surging 58%, closing at 57,200 won per share. The firm raised $323 million, marking Korea's second-largest IPO of 2023. Despite the initial plan for a larger IPO, the offering was downsized due to weak investor demand. The company's strong market entry contrasts sharply with the broader market downturn and its major shareholder's slump. The CEO cited external factors like high U.S. interest rates and delayed European green policies impacting the EV market. South Korea's IPO market has faced challenges, with an 80% decline in proceeds year-to-date. The funds raised by Ecopro Materials will be channeled into technology development and expanding production capacity. (Source)

DayDayCook Sets IPO Price at $8.50 Per Share for Listing Today

Chinese ready-to-eat meals company DayDayCook has priced its IPO at $8.50 per share for 3.9 million Class A Ordinary Shares. The company, focusing on content-driven food consumer brands, will see its shares start trading on the NYSE American today, November 17. Initially priced between $9.50 and $11.50, the IPO was downsized, with the offering consisting solely of shares offered by DayDayCook. Underwriters hold a 30-day option to purchase an additional 585,000 shares. The net proceeds from the IPO are designated for working capital and business expansion. DayDayCook's entry into the public market represents a significant step for the company in a dynamic sector. (Source)

Li Auto Inc. to Join Hong Kong's Hang Seng Index

Automobile manufacturer Li Auto Inc., based in China and a member of the IPOX® International Index (ETF: FPXI), is set to join the Hang Seng Index effective December 4. This inclusion will expand the Hang Seng Index to 82 companies. Li Auto, specializing in manufacturing premium electric vehicles, saw its stock rally by 5% in pre-market trading Friday, following the announcement. The company's inclusion in the index is a testament to its growing prominence in the automobile industry, particularly in the electric vehicle segment. (Source)