The IPOX® Update 7/27/23
Surf Air Mobility Gears Up for a Major Direct Listing
US-based regional carrier Surf Air Mobility Inc is going public via a significant direct listing, the first of its kind since 2021. The company has been assigned a reference price of $20 by the NYSE. This move follows a merger with Southern Airways prior to listing. Despite a previous failed blank-check merger which valued Surf Air at $1.42 billion, the current listing scenario puts the company's valuation at around $1 billion, considering 49.8 million outstanding shares as of March 2023 (mentioned in their S-1 Filing). Surf Air Mobility's shares will trade under the symbol SRFM on the NYSE. Co-founders Liam Fayed and Sudhin Shahani are set to remain as the largest shareholders after the listing. The company's investor roster includes well-known venture capital firms IVP, NEA, ff Venture Capital, and Facebook co-founder Eduardo Saverin. This listing signifies a significant milestone in Surf Air Mobility's growth trajectory. (Source)
Middle Eastern IPO Activity Witnessing Strong Upsurge
Bank of America has reported an increase in IPO activity within the Middle East, with a strong driving force being private companies. IPOs in the region have garnered $5.1 billion in 2023, constituting 34% of Europe, Middle East, and Africa's (EMEA Region) total IPO proceeds. Despite a marked decline of 65% from the 2022 figures, the Middle Eastern region continues to remain an active space for listings, particularly in light of the global listing slump. A shift is observed from 2022 when state-owned firms dominated the listings; now private companies like Advanced Inhalation Rituals and the Dubizzle Group are considering IPOs. A challenge to regional listings by private firms is the prevalent investor preference for high dividend yields often offered by state-owned companies. However, decreased IPO activity in Europe over the past year and a half has fueled increased investor interest in the Middle East. The implications of this shift remain to be seen as US and European markets normalize. (Source)
Hong Kong and Indonesia Strengthen IPO Market Ties
Among the top 10 IPO markets globally, Hong Kong Exchanges and Clearing (HKEX) and the Indonesia Stock Exchange (IDX) have signed an accord to explore and enhance opportunities for cross-border listings. This agreement, officiated in Jakarta by HKEX CEO Nicolas Aguzin and IDX President Director Iman Rachman, is expected to boost international company listings in Hong Kong. As part of this MOU, joint product development and ESG initiatives will be promoted, benefiting both economies and enhancing connectivity between Hong Kong and Southeast Asia, one of the fastest-growing regions. According to a Deloitte partner, this collaboration is viewed as a "win-win" situation, which will significantly benefit both Hong Kong and Indonesian exchanges, further strengthening their positions in the global IPO market. (Source)
Positive Outlook for Renault's Ampere IPO
The initial investor meetings regarding the Ampere IPO have been deemed "encouraging" by the CFO of the French automaker Renault. Renault aims for a free float of more than 10% in Ampere. This optimism, however, is shadowed by potential investor pushback due to concerns about the sustainability of Renault’s pricing strategy for Ampere. Despite this, fellow automakers Nissan and Mitsubishi have expressed interest in purchasing products from Ampere, as reported by Renault. Furthermore, Nissan has agreed to invest up to €600 million in Ampere. Even amidst competition and aggressive pricing by rivals, Renault remains committed to affordability in Electric Vehicles (EVs ) with Ampere. This promising scenario paints a positive picture for Ampere's upcoming IPO. (Source)
Chinese Refiner Guangdong Ubridge Eyes $300 Million HK IPO
Chinese titanium and zirconium refiner Guangdong Ubridge is contemplating a $300 million IPO on the Hong Kong Stock Exchange. With an annual processing capacity of 300,000 tons, Ubridge, founded in 1989, is a significant player in the metals and mining sector. The firm has selected BNP Paribas and China Securities International to arrange the share sale. The potential IPO could be as early as next year. In preparation for this, Ubridge is also considering a funding round prior to the IPO to attract strategic investors. As part of its global expansion strategy, Ubridge is establishing long-term partnerships with overseas miners and targeting mines outside China. The final details of the fundraising, including size and timeline, could still change. This IPO represents a key opportunity for investors to tap into the burgeoning metals and mining market in China. (Source)
