The IPOX® Update 7/25/23

IPO Market Rebound Signaled by Oddity Tech

The IPO market could be rebounding, as suggested by the successful debut of Oddity Tech, a direct-to-consumer beauty brand's parent company. This follows a recent trend of companies delaying their IPOs due to market volatility. The potential rebound is also indicated by several companies revealing their plans for initial public offerings. Arm, a British chip designer, is preparing for what could be the biggest IPO of the year in September, with a targeted valuation of over $50 billion. Klaviyo, a marketing automation platform, valued at $9.5 billion in 2021, is also preparing for an IPO in September. Furthermore, Turo, a car-sharing marketplace, and Birkenstock, a German shoe manufacturer, are considering IPOs later this year. Instacart, a grocery delivery and pick-up service, plans to go public in late 2023. Despite the market rebound, fintech company Stripe and social news aggregation site Reddit have decided to hold off on their 2023 IPO plans. (Source)

Dubizzle Engages Citigroup and HSBC for Possible IPO

Dubizzle, a popular classifieds platform among UAE expats, has engaged Citigroup and HSBC for a potential IPO. The platform is particularly prominent in the Middle East and Asia and is backed by tech investor Prosus NV. Offering details, including the size and timeline, are currently under discussion. In its last funding round, Dubizzle attracted a $200 million investment led by Affinity Partners. The firm achieved unicorn status in 2020, boasting over 167 million monthly visits to its classifieds portals. Rothschild is advising on the potential listing, which is likely to be on a regional stock market. (Source)

Citigroup Acquires Deutsche Bank's Mexican License, Paving the Way for IPO

Citigroup, the American multinational investment bank, has acquired Deutsche Bank's Mexican bank license, paving the way for a separate institutional bank IPO. The acquisition facilitates Citigroup's preparation for the initial public offering of its Mexican consumer unit, Banamex, planned for 2025. Deutsche Bank, which began scaling down Mexican operations in 2016, confirmed the Citigroup deal. This move signifies Citigroup's commitment to investing in and growing its institutional client franchise in Mexico. (Source)

Molycop Announces $680 Million IPO amid Rising Copper Demand

Molycop, an Australian mining consumables company, is planning a US$680 million IPO. The company's fortunes are closely tied to increasing copper demand due to electrification trends. Molycop, a producer of grinding media for ore processing, holds a 52% market share in key regions. The company's mining exposure is heavily skewed towards copper, with annual earnings of US$125.8 million. The IPO could be the largest in Australia since 2021, with the current owner, American Industrial Partners, planning to retain a 40% stake. The funds raised from the IPO will be used to refinance debt and reset the capital structure. (Source)

China's Securities Watchdog Urges Toning Down Negative Policy Descriptions in U.S. IPO Prospectuses

The securities watchdog in China is advising firms to downplay negative policy descriptions in their IPO prospectuses. This stricter rule could deter global advisors and banks from facilitating Chinese IPOs, as the challenge to meet the requirements of both U.S. and Chinese regulators increases the risk of legal action. No company has successfully navigated the new listing process as of the end of June and these moves appear to contradict attempts to reassure foreign investors and expedite overseas IPO procedures. Portrayals deemed too negative could lead to denial of offshore listing approvals, further complicating the IPO process for Chinese firms. (Source)