The IPOX® Update 11/22/23
MBC Group Sets Stage for High-Profile Saudi IPO
The Middle East's largest broadcaster, MBC Group, has engaged HSBC and JPMorgan for a IPO in Saudi Arabia. Slated for 2024, the IPO will offer a 10% stake, translating to 33.25 million shares, pending regulatory approval. Sixty percent of MBC, founded by notable Saudi businessman Waleed Al Ibrahim, is owned by the Saudi government. The group reported a 2022 revenue of 3.49 billion riyals ($930 million) and boasts a weekly viewership surpassing 150 million. Proceeds from the IPO are earmarked for debt reduction and investments, particularly in the streaming service Shahid. This significant listing in the Saudi market follows the $678 million offering by cargo firm SAL. Institutional orders will be taken from November 30 to December 6, with retail bids open from December 14-18. (Source)
Tata Technologies' IPO Marks Robust Demand
Engineering services provider Tata Technologies, focusing on the automotive and aerospace industries, has seen its IPO valued at $366 million receive overwhelming demand, being oversubscribed 4.20 times. The company, part of the Tata Group, is now valued at $2.43 billion. Investors have placed bids for over 189 million shares, totaling approximately $1.13 billion. Notably, this marks the first public offering by the Tata Group since Tata Consultancy Services' IPO in 2004. The Indian IPO market has been thriving in 2023, with 194 companies listed amidst economic growth, which has increased the value of the Indian rupee amid inflows. Tata Technologies' stakeholders, including Tata Motors, are set to sell shares in the IPO, which debuts on November 30. (Source)
HKEX Introduces Digital IPO Platform FINI to Revitalize Hong Kong's Market
The Hong Kong Stock Exchange (HKEX) has launched a new digital IPO platform, FINI, in a strategic move to rejuvenate the city's declining primary market. This innovative platform is designed to significantly streamline the IPO process in Hong Kong, reducing the settlement cycle to just two days. FINI aims to mitigate risks for issuers and investors, particularly in volatile markets, thereby aligning Hong Kong with its global peers and enhancing its competitiveness in international capital markets. This development comes at a crucial time, as Hong Kong's IPO activity has reached a 20-year low in 2023, marked by a substantial decrease in listings and proceeds. However, despite the global economic challenges, nearly 100 companies are reportedly in the pipeline for listing in Hong Kong. Experts anticipate that the introduction of FINI will play a pivotal role in attracting investor interest and aiding the market's recovery. The platform's efficiency and risk-reducing features are expected to provide a much-needed boost to the Hong Kong IPO market, potentially setting a new standard for IPO processes globally. (Source)
CATL Considers Hong Kong H-Share Listing Amid Market Shift
Contemporary Amperex Technology Co. Ltd. (CATL), a leading Chinese EV battery maker, is contemplating a Hong Kong H-Share listing. This move comes as the company's plans for a Global Depository Receipts (GDR) sale in Switzerland are currently on hold. CATL, already listed in Shenzhen, boasts a market value of around $109 billion. While details of the Hong Kong listing, including fundraising size, remain unclear, CATL initially aimed to raise at least $5 billion through the GDR sale. The company has seen its shares drop by about 19% in 2023, including a recent 2% decline. The broader shift to GDR offerings in Europe by Chinese firms has been complicated by regulatory concerns in Beijing. (Source)
Fosun International to Spin Off Luz Saude in Lisbon IPO
Chinese conglomerate Fosun International Ltd. is set to spin off its Portuguese hospital operator Luz Saude SA in a listing on Euronext Lisbon. This move has been greenlit by the Hong Kong Stock Exchange, indicating a step in Fosun's broader strategy to improve financial stability. The listing will involve a private placement of new Luz Saude shares and the sale of existing shares held by Fidelidade, a Portuguese insurer under Fosun's control. This strategic decision emerges as Fosun grapples with a challenging economic landscape in China, which has affected its overall performance. The spinoff and listing are pivotal to Fosun's efforts in managing debt and enhancing liquidity. Luz Saude's IPO represents a key element in Fosun's ongoing agenda to optimize its operations and fortify its capital structure through strategic asset sales. (Source)
Houyi Digital Internet Industry Technology Prepares for Nasdaq IPO
Shenzhen-based Houyi Digital Internet Industry Technology has filed for an Initial Public Offering (IPO) on the Nasdaq stock exchange, aiming to raise approximately $100 million. The company, operating under the ticker symbol HYHL, plans to offer 20 million shares at an expected price of $5 each. Houyi Digital is a diverse enterprise, engaging in both the alcohol products sales and digital products, a unique combination of traditional and modern industry sectors. The firm is yet to finalize an underwriting agreement for the IPO. (Source)
