The IPOX® Update 7/24/23

IPOX® holding Symbotic soars following SoftBank JV formation

AI supply-chain-services firm, Symbotic, an IPOX® 100 U.S. Index member and Japanese tech investor SoftBank have teamed up to form a $100m joint venture named GreenBox Systems LLC. SoftBank is set to acquire a 65% ownership stake in GreenBox, while Symbotic retains the remaining stake. The partnership entails SoftBank's purchase of $7.5 billion of Symbotic's AI-powered systems for its warehouses. Symbotic, a firm that assists companies in using robots to fulfill orders, went public in 2022. As part of this agreement, SoftBank will increase its stake in Symbotic by purchasing 17.8 million shares. Symbotic's shares have seen an impressive surge, with a 263% rise reported this year. (Source)

Creative Global Technology Prepares for $18 million US IPO

The Hong Kong-based used consumer electronics importer, Creative Global Technology Holdings Limited (CGTH), is planning an initial public offering (IPO) in the US, seeking to raise $18 million. Incorporated in the Cayman Islands in 2016, CGTH operates primarily in Hong Kong and Southeast Asia, sourcing and reselling recycled electronics such as smartphones, laptops, and tablets. Recently, the company has exhibited rapid revenue growth, with revenues reaching $27.9 million and net income of $3.4 million for the fiscal year ended September 30, 2022. However, a concentration of operations in Hong Kong and China, uncertain future prospects, and a low IPO valuation present potential risks. The IPO proceeds are intended to expand its wholesale business, develop a wholesale auction market, extend its retail business, broaden its overseas market presence, and build a repair/refurbishment factory. (Source)

Surf Air Mobility Sets Sights on NYSE Direct Listing this Friday

California-based regional air mobility company, Surf Air Mobility, founded in 2022, plans to go public through a direct listing on the New York Stock Exchange (NYSE) on July 27, with a goal of raising $281 million. The company will not receive any proceeds from the sale of shares. Instead, the move will provide an opportunity for existing shareholders to sell their stakes if they choose to, and no lock-up agreement has been put in place. Surf Air Mobility, a merger of Surf Air and Southern Airways, operates a fleet of 31 Cessna Caravans, the largest of its kind in the US. The company aims to tap into the $15-22 billion addressable US regional air mobility market with plans for the development of electric aircraft powertrains and the expansion of its air service network. With revenues of $101 million and a net loss of $84 million in the last 12 months, the firm has made clear it does not plan to distribute dividends, but rather reinvest profits into fueling its growth. (Source)

Six Chinese Bubble Tea Chains eye Overseas IPOs

Amid local regulations, six Chinese bubble tea chains, including the largest, Mixue Bingcheng, are considering overseas IPOs. The firms are exploring IPO opportunities in Hong Kong and the US due to Chinese restrictions on franchise-based businesses. Mixue Bingcheng, with a global presence of 28,000 stores, is weighing an IPO decision, with a previous $918 million Shenzhen IPO currently on hold. The firm's decision could potentially affect other companies' choices, with other tea chains likely to raise less than $500 million each. An expected surge in Chinese consumer spending post-Covid is fuelling the international IPO prospects for these firms. (Source)

Snack Shop Chain, Busy For You, weighs IPO

Founded in 2017, the fast-growing snack shop chain, Busy For You, is considering an IPO that could potentially raise $100-200 million. The company is deliberating between a listing in China or Hong Kong, with Hong Kong deemed to be the faster option. Since its inception, Busy For You has opened over 3,000 stores, with around 1,000 added between November 2022 and June 2023. The firm boasts investors including Gaorong Capital and Sequoia China, although it claims no specific plans for the listing venue or size. If Hong Kong is chosen, the listing could occur as early as next year. (Source)

Mitsubishi Motors to Decide on Investment in Renault's EV IPO

Mitsubishi Motors, an automotive company, will make a decision by year-end on investing in Renault's electric vehicle (EV) unit, Ampere, which is a candidate for an IPO. Mitsubishi, part of an alliance with Nissan and Renault, is considering its decision following Nissan's plan to invest in Ampere. Renault has postponed Ampere's IPO to H1 2024, with the aim of separating its combustion and EV businesses. The progress of discussions between Nissan and Renault will influence Mitsubishi's decision. Despite ongoing suspension of operations in China due to sluggish sales and unresolved discussions with a local partner, Mitsubishi's CEO stresses the significance of utilizing Ampere, primarily launching in Europe. (Source)

HK-listed Hua Hong Semiconductor Announces $3 Billion IPO Plan

China's second-largest foundry, Hua Hong Semiconductor, has unveiled plans for a $3 billion IPO on Shanghai's STAR board. Hua Hong intends to sell 407.75 million shares at CNY52.00 each. The funds raised will be utilized for a new fabrication plant in Wuxi, China, and for upgrading an 8-inch production line. The semiconductor firm reported record revenue of $2.48 billion in 2022. In the first quarter, it posted a net profit of $152.2 million, up from $102.9 million in the previous year. Along with its existing listing in Hong Kong, Hua Hong's shares are up 0.40%. (Source)