The IPOX® Update 6/21/23

Goldman Sachs Foresees U.S. IPO Market Rebound

Goldman Sachs predicts a revival in the U.S. IPO market as the IPO Environment Gauge surges to 93, nearing average activity levels. Share sales are down 95% from 2021, but there are signs of recovery as Restaurant chain Cava raised $318 million in a robust IPO. An economic soft landing could further bolster the IPO Issuance Barometer to 119 in H2 2023. A significant increase in IPO activities is anticipated in 2024, according to PwC experts. (Source)

Bank of America Indicates M&A Market Stabilization

Bank of America suggests that as the IPO market struggles, M&A activity is being bolstered. Pharmaceutical firm Eli Lilly has acquired Dice Therapeutics for $2.4 billion in an M&A deal. Private equity firms are reacquiring formerly public companies due to weak IPO performance. The equity markets are showing resilience with a potential increase in M&A activity expected. (Source)

Kodiak Gas Services Pursues $328 Million IPO

Kodiak Gas Services files for a $328 million IPO, targeting a US listing. Despite declining US rig counts, Kodiak has shown revenue growth in compression services. The company's filing includes terms for common stock. Post-IPO, an affiliate of EQT AB, a Swedish private equity firm that is part of the IPOX® Europe Index (ETF: FPXE), will beneficially own approximately 79% of its stock. (Source)

Savers Value Village Targets $2.7 Billion Valuation in IPO

Savers Value Village is aiming for a $2. 7 billion valuation in its IPO, offering 18.75 million shares at $15-$17 each. Private equity firm Ares Management will retain 88% post-IPO. Canadian and Norwegian investors have shown interest in purchasing $130 million. J.P. Morgan, Jefferies, Goldman Sachs, and UBS will lead the NYSE listing under the ticker "SVV". (Source)

Malaysia Implements Changes to Speed Up IPO Listings

Securities Commission and Bursa Malaysia have implemented changes to speed up IPO listings in Malaysia. The country aims to compete with Indonesia’s booming market. Power firm Leader Energy is preparing a $430 million IPO, which could be the largest in Kuala Lumpur since 2017. (Source)

Alibaba Logistics Arm Cainiao Reshuffles IPO Banks

Cainiao, the logistics arm of Alibaba, has reshuffled investment banks for its upcoming IPO. Citic Securities and JPMorgan have joined Cainiao’s IPO, replacing CICC to avoid conflict with rival J&T Global. Hong Kong is expecting major listings from Chinese logistics firms, with Cainiao targeting its listing by the end of this year. (Source)

Weichai Group to Sell $292 Million Stake in Luxury Yacht Maker Ferretti

Weichai Group plans to offload up to 26.1% of Ferretti's share capital in a Milan offering. Ferretti brands include high-end yachts favored by celebrities such as George Clooney. Trading of Ferretti's new stock is expected to begin on June 27 in Milan. Goldman Sachs, JPMorgan, and UniCredit will serve as joint global coordinators for Ferretti's Milan listing. Ferretti’s Hong Kong stock, part of IPOX® holdings, surges ahead of the Milan listing in an arbitrage opportunity. (Source)

Turkish IPO Market Booms as Companies Raise $1.33 Billion

Cash-strapped firms in Turkey have turned to IPOs for financing amid a credit crunch. The Borsa Istanbul could surpass 2021’s record of 52 IPOs with 10 more firms ready to list. However, foreign investors remain wary due to economic policies and a weakening currency. The Borsa Istanbul IPO Index has soared 2,060% since 2020, driven mainly by local investors. (Source)

IG Metall Open to Investor Entry or IPO for Thyssenkrupp Marine Systems

German metalworkers' union, IG Metall, is open to investor entry or an IPO for Thyssenkrupp Marine Systems, a subsidiary specializing in naval vessel construction. The union has set conditions including job security, site protections, and investment commitments. IG Metall has set up a commission to monitor negotiations for Thyssenkrupp Marine Systems' potential self-reliance. (Source)

Norwegian IT Consultancy Crayon Group Explores Potential Sale

Crayon Group shares jumped 10% in Oslo trading following news of exploring a potential sale. With 3,700 employees in 46 countries, Crayon is valued at $1 billion and generated sales of 5.2 billion kroner in 2022. European tech firms, including Crayon, are attracting interest from private equity. Crayon was recently added to the IPOX® Europe Index (ETF: FPXE) in June rebalancing. (Source)