The IPOX® Update 7/12/23

SoftBank Backed Arm Ltd. Discusses IPO with Nvidia

British semiconductor and software design company, Arm Ltd., backed by Japan's multinational conglomerate SoftBank Group, is in talks with American multinational technology company, Nvidia Corp., for an Initial Public Offering (IPO). Nvidia is reportedly considering an investment at a valuation between $35 billion to $40 billion. Other strategic investors, including American multinational corporation and technology company, Intel Corp., are also engaging in discussions to participate in the IPO. This strategic move is crucial for SoftBank's recovery following significant startup losses, seeking a high valuation from this IPO. Arm aims to raise up to $10 billion in a New York listing, foregoing London. The company's technology, critical to smartphones and electronics, is being marketed as an AI investment. (Source)

Romanian Green Power Utility Hidroelectrica Goes Public

Hidroelectrica, Romania's largest electricity producer, recently went public on the Bucharest Stock Exchange. The company's shares soared by 8.6% in its market debut, valuing the company at over $10 billion. The initial public offering (IPO) was oversubscribed and raised $1.8 billion, reflecting the company's high profitability and dividend yield. The debut has been seen as a 'maturity test' for the Bucharest Stock Exchange, which it passed successfully. Franklin Templeton-managed Fondul Proprietatea SA sold a 17.3% stake in Hidroelectrica during the IPO, resulting in a surge of interest in the Romanian stock market. (Source)

AXA Considers Private Sale or IPO for Reinsurance Branch, XL Re

French multinational insurance firm, AXA, is contemplating a private sale or an initial public offering (IPO) for its reinsurance branch, XL Re. This move aligns with AXA's objective to decrease volatility in their Property and Casualty (P&C) underwriting results and reduce exposure to natural disasters. The potential sale reportedly does not surprise investors due to discussions held in the press in 2021. Currently, the talks are in preliminary stages and may not result in a transaction. AXA declined to comment on the situation. (Source)

Medical Staffing Firm Tryt Inc. Sets Tokyo IPO Price at 1,200 Yen Per Share

Japanese medical staffing company, Tryt Inc., has set its initial public offering (IPO) price at 1,200 yen per share, according to recent filing documents. The shares are priced at the midpoint of the range, which is set between 1,100 and 1,300 yen. The listing, which is expected on July 24, is set to raise $340 million. The IPO price range is lower than the earlier indicative price of 1,620 yen. Tryt's services focus on job placements in the healthcare and welfare sectors, aiming to address labor shortage and productivity improvement in the medical welfare industry. (Source)

Star Plus Legend Holdings' Hong Kong IPO Oversubscribed 13 Times

Low-carb coffee and drinks maker, Star Plus Legend Holdings, founded by the mother of Taiwanese pop star Jay Chou, successfully went public. The Hong Kong-based company's initial public offering was oversubscribed by a notable 13 times by retail investors. It raised US$31.3 million, pricing shares at HK$4.25 each. Chou's influence extends beyond music, playing a significant role in extending the company's business into intellectual property, media content creation, and event planning. The funds raised from the IPO will be used to diversify the product range, increase brand exposure, create celebrity content, and upgrade technology, bolstering the company's competitive positioning in the market. (Source)

Oklo to Go Public Via SPAC Merger Valued at $850 Million

California-based nuclear-fission startup, Oklo, is set to go public through a special purpose acquisition company (SPAC) merger, at a valuation of $850 million. Oklo, which develops small modular nuclear reactor designs, aims to compete in the competitive power market by selling carbon-free power. This merger is seen as a test of investor appetite for clean-energy startups, particularly amid a recent downturn in the sector. Backed by Sam Altman, CEO of AI startup OpenAI, Oklo is expected to navigate a rigorous licensing process while developing its nuclear fuel-recycling technologies. (Source)

Toronto Stock Exchange Experiences Significant Slump in IPOs

The Toronto Stock Exchange, Canada's largest equity exchange, has experienced a significant slump in the market for initial public offerings (IPOs), with new equity issues falling by 54% in the first half of the year. Companies have managed to raise a total of C$5.4 billion, however, just C$386 million of that amount was raised through IPOs, marking a decrease of 80%. The only IPO of more than C$100 million that was completed during this period was by Lithium Royalty Corp. (Source)

Maggioli Withdraws IPO Amid Unsatisfactory Market Conditions

Italy-based ICT solutions provider, Maggioli SpA, has withdrawn its IPO on Euronext Growth Milan. The decision was made in conjunction with joint global coordinators, Mediobanca and Intesa Sanpaolo, citing adverse market conditions as the cause. These unfavorable conditions led to an inability to reach a "satisfactory valuation" of the company. Selling shareholder Pacri Srl was also involved in this decision. The company's previous IPO plans have now been put on hold due to these market conditions, highlighting the continued impact of the global economic climate on new listings. (Source)