The IPOX® Update 7/28/23
Surf Air Mobility Takes a Dive in NYSE Direct Listing
California-based airline company Surf Air Mobility commenced trading on NYSE through a direct listing on July 27, 2023. The regional air carrier opened at $5 per share, a notable dip from the planned $20 opening price. The company's shares fell a further 37% below the reference price in the first major US direct listing since 2020. This was a sharp contrast from the $99M pre-IPO the company raised from investors like IVP, NEA, with the largest holders being co-founders. Despite the current financial landscape, Surf Air is developing electric planes for regional flights, although they have warned these plans could fail. The air carrier had a $15M loss on $28M revenue in Q1 of this year, after merging with Southern Airways ahead of listing. However, the direct listing does not raise fresh capital but allows for insider selling sooner than an IPO. (Source)
South Korean Firm Yudo Eyes $100M US IPO
Yudo, a South Korean firm specializing in the manufacture of hot runner systems (tools for making plastic products), is contemplating a $100M US IPO. The company has engaged BofA and Citi for a potential listing projected to happen late 2023 or early 2024. Yudo produces hot runners for various sectors including automotive, electronics, and medical devices. The systems heat and inject plastic into molds, enabling rapid production. (Source)
Majestic Ideal Holdings Prepares for First Chinese US IPO Under New Rules
Majestic Ideal Holdings, a China-based apparel supply chain manager, is moving closer to its Nasdaq IPO. While the IPO will be relatively small at an estimated market cap of $61.9M, this listing is significant as it is the first Chinese listing in the U.S. since stricter overseas share sale rules were implemented in March. Majestic successfully completed its registration for the IPO, a significant step in the application process. Founded in 2014 and based in the Cayman Islands, the company operates the New Brand unit in Shanghai and provides end-to-end apparel supply chain services in China. Majestic plans to use the IPO proceeds for the expansion of inventory, marketing, suppliers, and working capital (Source)
Indonesia's Cinema XXI to Proceed with IPO, Lower Limit Price Set
Indonesia's Cinema XXI, the country's leading cinema chain, has priced its upcoming initial public offering (IPO) at IDR 270 per share, the lower limit of the offering range. The firm is now projected to raise IDR 2.25 trillion ($149m), slightly below its initial target of IDR 2.4 trillion ($159m). The offering, which comprises 8.33 billion shares or 10% of post-IPO capital, will run from July 27 to August 1. The majority of proceeds will be used to expand Cinema XXI's theater network across Indonesia. The company is set to list on the Indonesia Stock Exchange on August 2 (Source).
Phoenix Technology in Preliminary Talks for Potential Abu Dhabi IPO
Crypto mining retailer Phoenix Technology is in early discussions regarding a potential IPO in Abu Dhabi later this year. The company, founded in 2015, operates one of the largest crypto mining facilities in the Middle East, providing hardware and hosting services. Currently, it has over 700 megawatts of operations spanning across the US, Canada, Europe, and the Middle East. The United Arab Emirates, where the company is based, has positioned itself as a global hub for cryptocurrencies, attracting industry giants such as Binance, OKX, and Bybit with its friendly policies (Source).
Chinese Used Car Marketplace Taoche Seeks $200M ahead of 2024 U.S. IPO
Taoche, a Chinese used car marketplace backed by tech giants Tencent and JD.com, is seeking to raise up to $200 million in fresh funds, putting the company's valuation at $1 billion. This move is part of a broader wave of Chinese used car platforms eyeing IPOs, including Chehaoduo and Tuhu Car. While Taoche is targeting a 2024 IPO and considering a US listing, these plans could change as discussions are still ongoing. The funds raised will be used to support the company's growth ahead of its potential market debut (Source).
Chinese Cement Additive Maker Anhui Conch Material Plans $100M HK IPO
Anhui Conch Material, a subsidiary of the major Chinese cement producer Anhui Conch, is preparing for an initial public offering (IPO) in Hong Kong, Bloomberg reports. The cement additive maker, founded in 2018, is slated to go public potentially next year and is expected to raise less than $100 million. Although details concerning the size and timeline of the offering are still fluid, the company has already selected KPMG as its auditor for the HK listing, signaling that preparations for the IPO are progressing despite the current weak market conditions (Source).
