The IPOX® Update 12/11/23
Shein Explores Potential UK Listing After Confidential US Filing
Chinese online fashion behemoth Shein is in discussions for a potential public listing on the London Stock Exchange, following its confidential filing in New York. Despite the likelihood of a US listing, a UK listing is now under consideration, although a dual listing appears improbable. Last year, Shein was valued at over $100 billion, but this valuation has since adjusted to $66 billion. The company recently expanded its British market presence by acquiring UK women's fashion site Missguided. With operations spanning over 150 countries and boasting 150 million users globally, Shein's expansion into the UK market signals a strategic diversification in its global outreach. (Source)
ZKH Group Announces Terms for $66 Million US IPO
ZKH Group, a Chinese B2B procurement platform specializing in MRO (Maintenance, Repair, and Operations) services, has set the terms for its upcoming US IPO, aiming to raise $66 million. The offering includes 4 million American Depositary Shares (ADSs), priced between $15.50 and $17.50 each. At the midpoint price, ZKH Group's market value is estimated at $2.8 billion, with the IPO representing just 2.5% of its shares. Founded in 1998, ZKH Group reported a revenue of $1.2 billion in the 12 months ending September 2023. The planned listing on the NYSE under the symbol 'ZKH' has major banks like Deutsche Bank, China Renaissance, and CICC as bookrunners. (Source)
Marex Group Shifts IPO Aspirations from London to New York
The Marex Group, a British commodities broker, is filing for an IPO in New York, pivoting away from its earlier London focus. Marex's decision to opt for a US listing reflects a broader trend among UK companies, who are increasingly favoring US markets over London in pursuit of deeper liquidity and potentially higher valuations in the US market. (Source)
Mumbai's Stock Market Witnesses Record-Breaking Success
Mumbai's stock market has experienced a year of unprecedented success in 2023, setting new records in the global IPO landscape. Tata Technologies, a subsidiary of the renowned Tata conglomerate, saw its IPO soar over 160% on debut, highlighting the vibrant nature of the Indian market. India is on track to record 209 IPOs this year, surpassing major markets like Shenzhen, Shanghai, and Hong Kong. The Indian market's capitalization has now exceeded $4 trillion, closely challenging Hong Kong's $4.6 trillion market size. (Source)
Hong Kong Brokers Advocate for Regulatory Reform
In response to the prolonged IPO drought, Hong Kong's small brokers have formed an association to champion regulatory changes. This group is advocating for more lenient rules for the Growth Enterprise Market (GEM), Hong Kong's small-cap market, which has not seen any new listings since 2021. The coalition argues that Hong Kong regulators have been focusing on larger businesses, thereby overlooking the needs of the small-cap market. The closure of over 96 local brokerage firms since 2021 underscores the challenges faced by smaller entities, with many opting for Nasdaq listings due to the less favorable conditions in Hong Kong. The association is calling for the introduction of market-making mechanisms and stronger enforcement against market manipulation on GEM. Supported by key political figures, this coalition aims to make the Hong Kong market more inclusive and accessible for companies of diverse sizes, thereby revitalizing the local IPO landscape. (Source)
Doordash Joins the Nasdaq 100 Index
Doordash, a member of the IPOX® 100 U.S. Index, is set to join the Nasdaq 100 Index, effective prior to the market opening on December 18th. This inclusion marks a significant achievement for the food delivery service company, reflecting its strong market position and growth potential. In early trading, Doordash experienced a 3% gain, underscoring the positive investor sentiment surrounding this development. This inclusion is indicative of the growing influence and success of companies within the IPOX® 100 U.S. Index. (Source)
