The IPOX® Update 7/20/23
Oddity's IPO Triumphs, Stocks Surge 40%
The direct-to-consumer beauty and tech firm Oddity had a triumphant IPO, with its stock price surging 40% to an opening price of $49.10, lifting its market cap to approximately $2.8 billion. Known for profitable and fast-growing brands Il Makiage and SpoiledChild, Oddity's focuses on data and AI to drive customer recommendations. This positive market response may signal a potential lift for the currently depressed IPO market. Major seller L Catterton, a private-equity firm with over $33 billion in assets, is considering taking German shoe manufacturer Birkenstock public next, with a potential $7 billion valuation. (Source)
Revival Predicted for Europe's IPO Market
Bank of America predicts a slow revival for Europe's IPO market, as approximately $3.8 billion of $9.5 billion in European IPOs were raised in the last month. Successful European IPOs include Romanian utility Hidroelectrica SA, and Thyssenkrupp's Nucera hydrogen unit. The Bank suggests the IPO market recovery might occur later this year or early 2024. Adverse market conditions have led to the withdrawal of planned IPOs by Italian software company Maggioli SpA and German energy storage provider Intilion. This market environment also resulted in the postponed listing for WE Soda Ltd. due to low valuation by investors. (Source)
Kenvue posts post-IPO earnings, Bloomberg interviews IPOX® CEO
IPOX Schuster's CEO, Josef Schuster, was recently interviewed by Bloomberg for his expert opinion on the current IPO market. The discussion focused on the upcoming earnings results of Kenvue Inc., a recent entrant to the public market, and their potential impact on investor sentiment.
Excerpt:
“Anything earnings related is going to be viewed by the market as very important,” said Josef Schuster, founder and chief executive officer of IPOX Schuster. “Underwhelming results could put a dent into the IPO market and sentiment because we have good momentum currently building.”
UAE-based Alef Education Considers IPO as Student Enrollments Surge
The United Arab Emirates-based edtech firm Alef Education is considering an IPO as student enrollments surge. The potential offering could occur as early as next year, following preliminary talks with advisers. Alef Education, which caters to the K-12 sector with services including a learning platform, curriculum design, professional development for teachers, and AI, benefits from Dubai's emergence as a post-Covid haven that has increased enrollment in private schools, mandatory for expatriate children. In 2022, the Persian Gulf had its second-best year on record for IPOs with over $23 billion raised. This follows the successful public listing of Dubai private school operator, Taaleem Holdings, which went public with a $204 million IPO last November. (Source)
Alibaba-Backed Megvii Technology Restarts Application for Shanghai's Star Board Listing
Megvii Technology, an AI startup backed by Alibaba, has restarted its application for listing on Shanghai's Star Board. The company plans for a Chinese Depositary Receipt offering of at least $835 million. Megvii's application for a Hong Kong IPO had lapsed in 2020 due to alleged involvement in human rights violations. The resumption of the application coincides with global competition in AI technology development. Other Chinese AI companies, including Beijing Fourth Paradigm Technology and Mobvoi, are also planning for IPOs. Previous AI company IPOs, such as SenseTime Group and Qingdao AInnovation Technology Group, have underperformed. (Source)
Chinese Consumer Electronics Reseller, Creative Global Technology, Files for $18M US IPO
Creative Global Technology Holdings, a Chinese consumer electronics reseller specializing in the resale of pre-owned smartphones, tablets, and laptops, has filed for an $18 million US IPO. The Hong Kong-based firm (registered in the Cayman Islands), which operates primarily in the Hong Kong and Southeast Asia markets, aims to offer 4 million shares at $4-$5 each. This proposed offering would value the company at $108 million. In 2022, Creative Global Technology had a net income of $3.4M on revenue of $27.9M, representing a 165% revenue growth from 2021. The company, which does not have a dividend policy, plans to use the IPO proceeds for business expansion. After the IPO, the company will have 24 million total shares outstanding, with the founder retaining 20 million shares. (Source)
