The IPOX® Update 7/4/23

Yahoo Eyeing Return to Public Markets

Internet media titan Yahoo is considering reentering the public markets, according to CEO Jim Lanzone. Amid challenging times for online advertising and fluctuating consumer sentiment, Yahoo is gearing up to aggressively pursue mergers and acquisitions. Apollo Global Management, Yahoo's current owner, sees an initial public offering as a probable outcome. Despite the tough market conditions, Yahoo has positioned itself for profitability following a restructuring of its advertising tech division, coupled with its strong balance sheet. This financial readiness underlines Yahoo's preparedness for a potential public offering. (Source)

Singapore Fintech Firm Nium Plans for 2025 US IPO

Singapore-based fintech company Nium is making strides toward a US IPO in 2025. Nium has been successful in doubling its revenue to $82 million, overcoming economic challenges in Southeast Asia. The company, which assists businesses in managing payments, seeks to reach profitability prior to its public listing. Moreover, Nium is planning acquisitions of 2-3 payments startups within the upcoming year through a $50 million fund. Nium's platform provides online payment services, money transfer, and credit card issuance. The firm's major investors include Singapore sovereign wealth funds GIC Pte and Temasek Holdings Pte, further solidifying its financial standing as it gears up for the IPO. (Source)

Rakuten Considers IPO for Online Brokerage Arm Amid Debt Concerns

Japanese e-commerce giant Rakuten is planning to list its online brokerage division, Rakuten Securities, on the stock exchange in light of recent financial concerns. A public listing would boost decision-making across its various businesses, offering a potential solution to its debt challenges. Rakuten Securities, 20% owned by Mizuho Financial Group Inc.'s brokerage subsidiary, is yet to schedule its listing date pending approval from the Tokyo Stock Exchange. Despite Rakuten's share value hitting a 14-year low due to loss-making mobile business and maturing debt, Rakuten Securities witnessed a 2.8% rise in net income to $80 million in the last year. (Source)

Chinese Cobalt Producer Huayou Targets $583 Million From Swiss IPO

Huayou Cobalt, a Shanghai-based firm specializing in cobalt production, has plans to raise $583 million from an IPO in Switzerland. The company aims to list up to 50 million Global Depositary Receipts (GDRs) at a price of $11.65 each on the Swiss Stock Exchange by the end of this week. This move follows a current trend among Chinese companies to list on international exchanges. Cobalt, a crucial component in battery technology, forms the crux of Huayou's production, making the company's offering particularly relevant amidst the ongoing global shift towards renewable energy. However, the firm's decision to list in Switzerland, a market typically known for lower trading volumes, could pose potential challenges. (Source)

Shisha Company AIR Considering Potential IPO in the Middle East

Advanced Inhalation Rituals (AIR), majority-owned by London-based private equity firm Kingsway Capital, is exploring the possibility of an IPO in the Middle East. The company, which owns shisha molasses manufacturer Al Fakher, is also considering a sale. Al Fakher, operational since 1999, serves over 100 countries and stands as a leading figure in the industry. The venue for the IPO is yet to be decided, with Rothschild & Co advising on possible deals. Amid a slew of state-owned firms going public, a decision to hold an IPO in the UAE would be a unique move by a private company in the Gulf state. The IPO follows Kingsway Capital's 2020 privatization of Al-Eqbal Investment, Al Fakher's previous owner. (Source)

Dragonfly Biosciences Targets ASX Listing with Upcoming IPO

Dragonfly Biosciences, a UK-based cannabis producer, has set its sights on the Australian Securities Exchange (ASX) for its upcoming IPO. The company aims to raise up to AUD $5 million (approximately USD $3.35 million), setting a company valuation of up to USD $26.8 million. Dragonfly specializes in producing cannabidiol (CBD)-based supplements and lotions, which are exempt from the psychoactive effects of THC. Despite reporting losses in both the UK and Australia, Dragonfly hopes to tap into the burgeoning health and wellness market. The ASX listing is viewed as a stepping stone into the Asian market, where the firm has garnered significant investments. (Source)

Korean Webtoon Maker YLAB Preparing for Public Listing

YLAB, a Korean webtoon creator, is gearing up for a public listing, focusing on intellectual property revenue, which is expected to outpace content earnings. The company has experienced robust growth, with sales reaching $22.8 million in 2022, demonstrating an annual growth rate of 135.5% between 2020 and 2022. After the IPO, the company's market cap is projected to range between $84.7 million and $96.4 million, based on a share price range of $6.35 to $7.24. Partners of YLAB include Naver Webtoon Ltd and CJ ENM Co, holding a 12.02% and 12.01% stake respectively. The listing will be managed by Korea Investment & Securities Co., with bookbuilding expected to start from Monday. (Source)

Revival of French Tech IPOs Anticipated by Morgan Stanley

Morgan Stanley has predicted a resurgence in French tech IPOs next year, following a dormant phase this year due to a crash in valuations. A number of French unicorns, including Doctolib and Blablacar, are reportedly preparing for potential listings. Meanwhile, refurbished electronics startup Back Market and cloud management company Planisware are also said to be planning IPOs. However, the location for these listings remains uncertain, with some French companies considering U.S. markets. The current market sentiment in France does not favor new tech listings, posing potential challenges for these upcoming IPOs. (Related Source)

Croatian Energy Company ENNA Plans IPO to Invest in Green Energy

Croatian energy company, ENNA, is planning for an IPO with the process envisaged to span five years. The firm aims to invest over $1.07 billion in green projects within Croatia. The Zagreb Stock Exchange is being considered as a possible venue for the listing. ENNA's focus encompasses renewables, transport, and logistics, with active solar and geothermal projects under development. The firm also has a significant investment planned in Rijeka Gateway, a joint venture with APM Terminals. Furthermore, the natural gas trading arm, PPD, is set to exit ENNA and will be under the direct ownership of Blue Horizon. (Source)