The IPOX® Update 11/28/23
IPOs for 2024 in Focus: Reddit, Skims, Zeekr, Rubrik, Waystar
The IPO landscape for 2024 is shaping up to be dynamic and diverse, with several notable companies across various industries preparing to go public. Reddit Inc., the popular social media platform based in San Francisco, is eyeing a Q1 2024 IPO with a projected $15 billion valuation. Additionally, Rubrik Inc., a Palo Alto-based cloud security firm, is also considering a Q1 IPO, reflecting the growing importance of cybersecurity in the tech industry. Celebrity-led shapewear brand Skims, co-founded by Kim Kardashian, is exploring IPO options following a valuation of $4 billion in the summer, highlighting the rising trend of celebrity entrepreneurship in the fashion and retail industry. In the electric vehicle sector, Zeekr Intelligent Technology, a part of Geely Holding Group, is planning to enter the public market, underscoring the ongoing evolution and investor interest in sustainable transportation. Lastly, Waystar Holding Corp, a key player in healthcare technology, is also gearing up for its IPO, indicative of the increasing integration of technology in healthcare. These potential listings signal a robust and opportunistic year ahead for the IPO market in 2024! (Source)
Shein Targets a $90 Billion Valuation in 2024 US IPO
Shein, a fast-fashion retailer originally founded in China and now based in Singapore, has confidentially filed for a U.S. Initial Public Offering (IPO) in 2024. The company, partnering with notable financial institutions such as Goldman Sachs, JPMorgan, and Morgan Stanley, is aiming for a valuation of around $90 billion. Known for its trendy and ultra-low-priced clothing, Shein has outperformed competitors like Zara and H&M in the U.S. fast-fashion market. Despite facing criticism over labor conditions, overproduction, and the use of controversial cotton sources, Shein's global presence continues to expand. This expansion is evident in its new distribution centers across the U.S., Canada, and Europe, and in its manufacturing growth into Brazil, Turkey, and India. Shein's aggressive growth strategy and substantial market penetration make this IPO a significant event in the retail and e-commerce sector, signaling the company's confidence in its business model and future prospects in the competitive fast-fashion industry. (Source)
Lotus Technology Secures Funding Ahead of SPAC IPO
Lotus Technology, the electric vehicle unit of Geely Holdings, has secured a significant funding of USD 870 million ahead of its Nasdaq listing through a merger with L Catterton Asia Acquisition Corp. This funding includes USD 750 million in new financing and USD 120 million from a previous round in April. Valued at USD 5.5 billion pre-money, Lotus Technology focuses on innovating and expanding its electric vehicle offerings. The funding will be instrumental in advancing product innovation and expanding global distribution networks. Post-merger, the free float of shares is expected to exceed 19%, excluding current LCAA shareholders. (Source)
3M Announces Healthcare Spin-off 'Solventum' Set for 2024
Industrial conglomerate 3M has announced the upcoming spin-off of its healthcare business, now named Solventum. Expected to occur in the first half of 2024, pending board and regulatory approvals, this spin-off underscores 3M's strategy to streamline its operations and focus on core business areas. The new company, Solventum, reflects a commitment to addressing major healthcare challenges and is poised to carry forward 3M's 70-year legacy in science-based healthcare solutions. 3M Health Care, the parent company, generated $8.4 billion in sales in 2022, indicating the potential scale and impact of Solventum in the healthcare industry. The spin-off represents a strategic move to enhance shareholder value and allow for more focused and specialized operations in the healthcare sector. Bryan Hanson, the CEO of 3M Health Care, emphasizes the new company's dedication to innovation in patient care, marking an important transition for 3M as it adapts to changing market dynamics and focuses on delivering specialized healthcare solutions. (Source)
Kenya's Cellulant Ltd. Reconsiders IPO Plans Amidst Funding Shift
Kenyan payment firm Cellulant Ltd. has announced the cancellation of its anticipated 2024 IPO on the Nasdaq. The decision, influenced by a broader downturn in African startup funding, marks a significant shift in the company’s strategic approach to capital raising. Cellulant, which is backed by the investment firm TPG Inc., has been a prominent player in the African financial technology sector. The company currently operates across 19 African countries, including key markets like Nigeria and South Africa, and processes substantial volumes of transactions, amounting to $100 million monthly in cross-border payments and 20 million transactions. This strategic pivot comes against the backdrop of a 16% drop in African startup funding in Q3 to $1.2 billion. CEO Akshay Grover hinted at the possibility of turning towards private funding sources instead of pursuing the public market. (Source)
