The IPOX® Update 11/27/23

Hong Kong Experiences Surge in IPO Activity with Four New Listings

Hong Kong's stock market is witnessing a significant uptick in IPO activity, marking its busiest period in two months with four companies debuting. Leading the pack is Sino Synergy Hydrogen Energy Technology, a firm specializing in hydrogen fuel cells, which is poised to be the largest IPO among the new entrants. Joining it are Dekon Food, K Cash Corp, and Shenghui Cleanness, each representing diverse sectors. Collectively, these companies aim to raise up to $410.6 million. This December rush is a typical trend, but 2023's offerings in Hong Kong are notably smaller due to prevailing economic challenges. The average IPO size in the city has dipped to $88.7 million this year, a substantial decrease from previous years. In response, Hong Kong has reduced stamp duty to stimulate equity trading, with a pipeline of 120 IPO applications. Prospective investors and market watchers can stay informed on the latest listings through the IPOX® IPO Calendar.

Canadian Market Sees Rise in Take-Privates Over IPOs in 2023

In a notable shift in the Canadian capital market, 2023 has seen more companies going private than launching IPOs. A total of 19 firms have transitioned to private entities, removing C$12.5 billion ($9.32 billion) from the Toronto Stock Exchange (TSX). This includes significant take-privates like Summit Industrial Income REIT and Home Capital Group, valued at $4.2 billion and $4.1 billion, respectively. In contrast, only 13 Canadian companies debuted on TSX and its junior exchange this year, raising a modest $114 million. The TSX's market capitalization is teetering at C$3.77 trillion ($2.8 trillion), potentially facing its first annual contraction in five years. The S&P/TSX Composite Index's modest gain of 3.7% in 2023 also pales in comparison to the S&P 500's 19% increase. Analysts attribute the trend towards take-privates to high volatility and rising interest rates in global markets. This pattern is not unique to Canada, with the US witnessing 58 take-privates worth $120.1 billion. The current market dynamics suggest a continued preference for privatizations over IPOs in the near term. (Source)

DEAG Entertainment Announces Frankfurt Re-IPO Plans for 2024

European live entertainment company DEAG Entertainment is set to re-enter the wider public market with a planned re-IPO in Frankfurt next year. With an estimated valuation of €250 million ($274 million), DEAG seeks to raise approximately €75 million. The re-IPO process is being advised by Hauck Aufhaeuser. Previously delisted in 2021 under the leadership of Christian Angermayer and Mike Novogratz, DEAG continues to trade on the smaller Hamburg bourse. The company forecasts over €300 million in revenue for 2023, bolstered by the resurgence of in-person events and strategic acquisitions. DEAG's prominence in the industry is partly due to its association with renowned artists like Ed Sheeran and Iron Maiden. This re-IPO represents a significant move in the European live entertainment sector, reflecting the industry's recovery and growth prospects post-pandemic. (Source)

Spread Group Sets Sights on IPO, Aiming to Double Revenue by 2028

German custom T-shirt printing company Spread Group is exploring IPO options with ambitious growth plans. The firm, led by CEO Julian de Grahl, is focusing on influencer marketing and business clients to fuel its expansion. Known for its custom printed T-shirts and hoodies, Spread Group is extending its reach into merchandise. Despite expecting 2023 revenues to fall below €200 million ($209.5 million) due to market conditions, the company aims to double its revenue by 2028. Their strategy includes partnerships with major festivals like Rock am Ring, enhancing sales prospects. This potential IPO could be a second major public offering for founder Lukasz Gadowski, who previously listed the food delivery firm Delivery Hero. The company's strategic plan involves broadening its market and professionalizing the firm by recruiting experienced executives, positioning Spread Group for significant growth in the apparel and merchandise sector. (Source)

Floward Targets Early 2024 for Saudi IPO

Online flower and gift delivery app Floward is planning an IPO in early 2024 on the Saudi Exchange (Tadawul). Goldman Sachs Group and HSBC Holdings Plc have been engaged to arrange the IPO, with further details on the IPO size and timeline still under discussion. Since its inception in 2017, Floward has expanded its operations to nine countries in the Middle East and the UK. The potential involvement of additional banks in the IPO arrangement is anticipated. Floward's IPO is a testament to the growing e-commerce sector in the Middle East, showcasing the region's increasing investment attractiveness. This move marks a significant step in Floward's journey, highlighting the company's growth and the broader potential of the Middle Eastern digital marketplace. (Source)

Golden Goose Gears Up for Milan IPO Amid Market Cautiousness

Italian luxury shoemaker Golden Goose is planning to launch its IPO in Milan. Bankers have valued the company between €3 billion ($3.3 billion) and €4 billion, underscoring its prominence in the luxury fashion sector. Golden Goose, known for its high-end sneakers often sported by celebrities like Selena Gomez and Taylor Swift, has attracted considerable attention from the fashion and investment communities alike. The company was acquired in 2020 by private equity firm Permira for €1.3 billion, indicating significant growth in its valuation since then. Despite the enthusiasm, the IPO details remain preliminary and could be subject to changes, with Permira not providing any comments. (Source)