The IPOX® Update 7/6/23

Japan Dominates Asian IPO Market

Recent IPO performance in Japan exhibits a noteworthy surge, with debutants rising by 75% on average. The "Buy Japan" investment trend, in combination with favorable market conditions such as a weak yen, corporate reforms, and the Bank of Japan's accommodative monetary policy, is fueling the country's IPO market. Major beneficiaries include Rakuten Bank Ltd and SBI Sumishin Net Bank Ltd, the largest IPOs this year, with share prices jumping over 30%. Smaller IPOs like space aircraft developer ispace Inc have also experienced impressive performance with a 500% rise in shares. The growing demand among global investors for Japanese IPOs is likely attributed to the fear of missing out on these lucrative opportunities. (Source)

Thyssenkrupp's Hydrogen Unit Nucera Valued at €2.5 billion in IPO

German conglomerate Thyssenkrupp's hydrogen unit, Nucera, is to be valued at €2.5 billion in its upcoming IPO. Amid investor hesitations in an uncertain market, over 30 million shares have been placed at €20 each. Shares are being sold by Thyssenkrupp and Italy’s Industrie De Nora SpA, with trading set to commence on Friday. Major buyers include Saudi Arabia’s Public Investment Fund and BNP Paribas Asset Management. Nucera, a producer of hydrogen from renewable energy, had previously stalled its IPO due to market volatility. The IPO is being led by Citigroup and Deutsche Bank, with support from Commerzbank AG/Oddo BHF, Societe Generale, and UniCredit. (Source) Read the latest IPOX® Watch - IPO Pre-Launch Analysis on Thyssenkrupp Nucera ahead of tomorrows debut!

Romania's Hidroelectrica Valued at $10.28 Billion in IPO

Romania's largest hydroelectric power company, Hidroelectrica, has set a share price of RON104 for its upcoming IPO, valuing the company at $10.28 billion. Fondul Proprietatea plans to sell up to 89.7 million Hidroelectrica shares, representing its entire holding. Following the offering, no proceeds will go to Hidroelectrica, and the Romanian state will maintain an 80.06% stake in the company with a 12-month lock-up period. The company's trading admission is expected on July 12th. The offering presents an opportunity for investors to participate in Romania's robust energy sector. (Source)

PT Amman Mineral Internasional Sets for Indonesia's Largest IPO This Year

PT Amman Mineral Internasional, owner of the second-largest gold and copper mine in Indonesia, is setting the stage for Indonesia's largest IPO this year, with share prices set at 1,695 rupiah each, aiming to raise $711 million. The company, owner of the fifth-largest copper mine globally, has seen a more than threefold increase in net income from the previous year, reaching $1.09 billion in 2022. The IPO proceeds will be used for working capital, debt repayment, and funding refinery projects in West Nusa Tenggara province. This marks the largest newcomer to Indonesia's exchange since GoTo Group in April 2022. (Source)

SoftBank-backed Keep Inc. Raises $40 Million in Hong Kong IPO

Keep Inc., a leading fitness app provider in China backed by SoftBank, has raised $40 million in its Hong Kong IPO, pricing at the lower end of the range. The fitness platform offered 10.84 million shares and is set to start trading on July 12. Other major shareholders include Tencent and Bertelsmann SE & Co. Shenzhen Fenda Technology, Fuqing Shengde Calorie Investment, and Xiamen Evere Sports Goods have agreed to buy shares. This comes as a significant development in the Chinese fitness tech space, offering investors an entry point into the growing sector. (Source)

Temasek-backed Lu DaoPei Medical Files for Hong Kong IPO

Lu DaoPei Medical, the largest hematology healthcare services provider in China and backed by Temasek, has filed for a Hong Kong IPO. Joint sponsors for the offering are Citic Securities, CMB International, and Macquarie Capital. The company operates several hospitals in China, including Hebei Yanda LDP Hospital, Beijing Yizhuang LDP Hospital, and Beijing Shunyi LDP Hospital, and is planning to expand with Shanghai LDP Hospital opening in December 2023 and Hebei Yanda LDP Hospital relocation by 2025. The healthcare provider is well known for its comprehensive hematology specialty services, including HSCTs, chemotherapy, targeted therapy, immunotherapy, and diagnosis. Although the current IPO target is unknown, Lu DaoPei Medical planned to raise $500m in a Hong Kong IPO in August 2021. (Source)

Zhejiang Yongtai Technology Raises up to $107 Million in London GDR Offering

Zhejiang Yongtai Technology Co., a prominent fine chemicals maker, has launched a GDR offering on the London Stock Exchange, potentially raising up to $107 million. This offering is the first Chinese GDR listing in London since wind turbine maker Ming Yang Smart Energy Group Ltd raised $757 million last year. In Europe, Chinese GDRs account for almost 20% of listings this year, and have raised nearly four times more than Chinese IPOs in New York. Analysts anticipate future GDR listings from major issuers such as Contemporary Amperex Technology Co. Ltd or LONGi Green Energy Technology Co. Ltd. (Source)

Claire's Postpones Its Plan to Go Public

Claire's, the teen accessories chain, has postponed its plan to go public, citing public equity market conditions. The decision to delay the IPO comes as Claire's focuses on its strategic initiatives. The retailer emerged from bankruptcy almost three years ago and first indicated its intention to go public in 2021. Despite experiencing a significant increase in sales and operational profitability in the first half of 2021, Claire's acknowledged that it lagged in e-commerce according to a preliminary prospectus filed last August. In recent years, the company expanded its reach through shop-in-shops, strengthening its retail presence. (Source)