The IPOX® Update 12/07/2024

U.S.

Holcim Plans Dual NYSE-SIX Listing for North American Business

Swiss cement giant Holcim has announced plans for a dual listing of its North American business on the New York Stock Exchange and Swiss Exchange (SIX). The separation, scheduled for completion in mid-2025, targets a market capitalization exceeding $30 billion. Holcim shareholders will vote on the spin-off at a meeting on May 14, 2025, after which the parent company will relinquish all ownership in the new entity. The dual-listing strategy aims to align with U.S. GAAP standards and seek inclusion in U.S. indices while maintaining access for European investors through the Swiss exchange. The decision reflects the typically higher valuations commanded by U.S. building materials firms compared to their European counterparts. (Source)

Seven & i Plans North American 7-Eleven IPO in $60B Buyout Deal

Japanese retail conglomerate Seven & i Holdings has announced plans for a North American IPO of its 7-Eleven operations as part of a larger $60 billion management buyout backed by the founding Ito family. The North American business, which includes 7-Eleven stores and Speedway/Sunoco gas station operations, aims to raise over $6.6 billion through the IPO. The proceeds will help repay approximately $40 billion in loans from Japanese banks, including Sumitomo Mitsui. The North American operations generate $70.3 billion in annual sales. The move comes amid competitive pressure from rival bidder Alimentation Couche-Tard, which offered $47 billion to acquire Seven & i. A special committee led by Stephen Dacus continues to evaluate the bids and restructuring plans. (Source)

ServiceTitan Sets Terms for $5.16 Billion NYSE Listing

U.S. software firm ServiceTitan, which provides solutions for HVAC technicians, has set terms for its initial public offering, targeting a $5.16 billion valuation. The company plans to raise $502 million by offering 8.8 million shares at a price range of $52-$57 each. Founded in 2007, ServiceTitan has raised $1.46 billion to date and will list under the ticker "TTAN." The company competes with Salesforce, SAP, and Jobber in business management software solutions. The current valuation represents a decrease from its $7.6 billion valuation in 2022, reflecting tighter market conditions. A 14-firm underwriting syndicate, led by Goldman Sachs and Morgan Stanley, will manage the listing, which comes amid a year-end surge in VC-backed listings. (Source)

Citigroup Plans Banamex IPO for 2025

Citigroup has announced plans to list its Mexican retail banking unit, Banamex, in 2025. Banamex serves over 20 million clients through approximately 1,300 branches across Mexico. The bank has completed the separation of Banamex from its institutional banking operations, a crucial step toward the IPO. The listing, which may include both Mexico City and New York exchanges, awaits regulatory approvals and favorable market conditions. This strategic shift follows the cancellation of a planned $7 billion sale to Grupo Mexico due to political tensions. Citi México will maintain its institutional client focus with approximately 3,000 employees. Details regarding fundraising size and pricing remain undisclosed. (Source)

Starlink's Potential "Super-IPO" Highlighted by Market Expert

Starlink, the satellite internet project by Elon Musk, has been identified as a potential record-breaking IPO candidate by market expert James Altucher. The listing could surpass Saudi Aramco's $26 billion IPO record, according to Altucher's analysis. The company aims to disrupt the $2.18 trillion telecom sector with its global high-speed satellite internet service. Altucher has identified a supplier crucial to Starlink's operations as a potential pre-IPO investment opportunity. The analysis points to possible government support under a future Trump administration. Altucher, known for previous predictions on Bitcoin and Netflix, offers detailed investment strategies through an online presentation. (Source)

Asia-Pacific

Kioxia Holdings Sets Price Range for $727 Million Tokyo IPO

Japanese memory chip maker Kioxia Holdings Corp has set its IPO price range for a December 18, 2024 listing, aiming to raise approximately $727 million at a $4.9 billion valuation. The company specializes in NAND flash memory products and plans to raise up to ¥109 billion, with shares priced between ¥1,390 and ¥1,520. The offering includes 71.94 million shares, combining primary and secondary offerings. Previously backed by Bain Capital and Toshiba, with Bain acting as a significant selling shareholder, the IPO allocation strategy reserves 40% for international investors and 60% for domestic investors. Morgan Stanley, Nomura, and Bank of America are serving as joint global coordinators for the listing. (Source)

FineToday Postpones Tokyo IPO Citing Market Conditions

Japanese personal-care company FineToday has postponed its planned December 17 IPO on the Tokyo Prime Market, citing unfavorable market conditions. The CVC Capital-backed firm, which was targeting a $1.5 billion valuation, delayed the offering due to misaligned valuation expectations between the company and investors. The indicative pricing at ¥2,150 ($14.25) represented only a 6% discount to industry peers' median ratios. The company, which was spun off from Shiseido Co. in 2021 and partially sold to CVC-backed Oriental Beauty, faces competitive pressures in the cosmetics sector that limit projected growth. The new IPO timing remains undecided as the company reassesses market conditions and investor sentiment. (Source)

Mao Geping Cosmetics Plans $270 Million Hong Kong IPO

Chinese beauty company Mao Geping Cosmetics has set December 10, 2024, for its Hong Kong IPO, aiming to raise up to $270 million. Founded by renowned makeup artist Mao Geping, the company specializes in high-quality skincare and cosmetics in China. The offering involves 70.6 million shares, representing 15% of the enlarged share capital, with an indicative price range of HK$26.30 to HK$29.80 per share. Cornerstone investors have committed $100 million to the IPO, demonstrating strong institutional confidence. The company reported an adjusted profit of RMB 513 million (approximately $71 million) for H1 2024, showing a 47% year-over-year increase. CICC is serving as the IPO sponsor, positioning the offering to capitalize on China's growing premium beauty market. (Source)

MENA

Almoosa Health Sets IPO Price Range, Eyes $1.5B Valuation

Saudi healthcare operator Almoosa Health has announced its IPO price range at SAR123-127, targeting a $1.5 billion valuation. The offering aims to raise up to $450 million through the sale of 13.29 million shares, representing 30% of the company's capital. Cornerstone investors, including Tawuniya and Alfozan Holding, have committed to 22% of the offer shares. The institutional book-building period ends December 10, followed by retail subscription on December 23-24. The company plans to use the proceeds to expand to 1,430 beds by 2028 through two new hospitals and five primary care centers. Almoosa Health reported 2023 revenue of $261 million with net income of $26 million, with 2024 earnings following a similar trajectory. The IPO aligns with Saudi Arabia's healthcare market growth projections, which forecast the sector to reach $96 billion by 2030. (Source)

Nice One Targets $320 Million Riyadh IPO

Saudi cosmetics e-retailer Nice One has announced plans to raise $320 million through an IPO on the Riyadh exchange. The offering involves a 30% stake in the company, with shares priced between 32-35 riyals ($8.53-$9.33) each. At the maximum price, the company would be valued at 4 billion riyals ($1.07 billion). The institutional bookbuilding period runs until December 8, with EFG Hermes and SNB Capital serving as advisors. This IPO contributes to Saudi Arabia's robust 2024 IPO market, which has already raised $3 billion across various sectors. The listing comes amid increased regional beauty sector activity, highlighted by Huda Beauty's consideration of selling its perfume division. The offering adds to the Middle East's collective IPO fundraising of $10 billion in 2024. (Source)

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