The IPOX® Update 7/7/23

Prominent IPOs to Debut Across Global Markets Next Week

The upcoming week is set to witness a notable series of initial public offerings (IPOs) across various global markets, showcasing a diverse portfolio of companies from a variety of sectors. On Monday, the Hong Kong market is set to see the debut of Wise Living Technology (2481 HK), a heat services provider catering to both residential and non-residential customers, with an offer size of $35m. On the same day, the Malaysian market will feature the property developer SkyWorld Development (SKYWLD MK) with a $69m offer size.

The following day, the Hong Kong market will host another IPO by Sichuan Kelun-Biotech Biopharmaceutical (6990 HK). The firm, specializing in medical packaging, such as infusion bottles, and generic drugs, including antibiotics, is looking to raise $174m from its IPO.

On Wednesday, Hidroelectrica (H2O RO), Romania's largest energy producer, will go public in Bucharest, marking the largest European IPO in 2023 so far with a whopping $1.75b offer size. The Romanian state fund Fondul Proprietatea is set to sell a 20% stake, while the government will retain the remaining 80%.

Another IPO will be witnessed in Hong Kong on Wednesday by Keep (3650 HK), a Softbank-owned Chinese fitness app, with a $85m offering. Thursday will see two debuts, one by Maggioli in Milan (Ticker Pending), a consultancy with a focus on digitalization in public administration and private companies with an offering of $146m, and another by Star Plus Legend Holdings (6683 HK) in Hong Kong, an investment holding company specializing in consumer healthcare retail businesses with a $102m offer size.

Cava Group and Savers Value Village Lead the Thawing of IPO Winter

Recent success in the Initial Public Offering (IPO) space could indicate a thawing of the so-called "IPO winter". The American fast-casual restaurant chain Cava Group recently debuted its $318m offering with a staggering 99% surge in stock value. Savers Value Village, a thrift store retailer, also enjoyed a significant rise in shares by 27%. Despite a decline in the number of Q2 IPOs from 46 to 38, the total capital raised in the quarter doubled from $3.5 billion to a robust $8.5 billion. Furthermore, both traditional and Special Purpose Acquisition Company (SPAC) IPOs saw a significant increase in average offering size in Q2, indicating potential market recovery. These figures starkly contrast the previous IPO bull market and the past six quarters. (Source)

Thyssenkrupp's Hydrogen Unit Nucera Gains Post-IPO

Thyssenkrupp's hydrogen unit, Nucera, recently debuted with a successful $659 million IPO in Germany, despite a challenging European listing environment. The company, which produces hydrogen gas from renewable energy sources crucial for decarbonization, saw its IPO rise by as much as 8.9%. Valued at €2.5 billion, Nucera is backed by Saudi Arabia’s Public Investment Fund. Thyssenkrupp plans to maintain a stake of at least 50.2% in Nucera, which seeks to expedite the adoption of green hydrogen. (Source)

Romania's Stock Exchange Awaits Liquidity Surge from Hidroelectrica Listing

Hidroelectrica, Romania’s largest electricity producer, is scheduled to commence trading on July 12, bringing significant liquidity potential to the nation's stock exchange. The hydropower utility's listing came after Fondul Proprietatea raised $1.8 billion from selling a stake in the company. This could pave the way for the inclusion of the Bucharest bourse in the MSCI Emerging Markets watchlist next year. With an initial weighting of 15% that could rise to 20% post-IPO, Hidroelectrica's listing might trigger similar offerings from the private sector. (Source)

L Catterton Contemplates Birkenstock's IPO

Private equity firm L Catterton, backed by LVMH, is reportedly mulling over an IPO for the German sandal maker Birkenstock. A potential IPO, guided by Goldman Sachs and JPMorgan, could value the company at over $6 billion and could occur either this year or the next. This follows L Catterton's acquisition of a majority stake in Birkenstock in 2021 at a $4.9 billion valuation. Birkenstock, nearly 250 years old, has recently seen immense success in the fashion industry, partnering with prominent brands like Dior and Valentino, and continues to invest heavily in its German production sites. (Source)

PT Amman Mineral Internasional's Shares Jump 4% on IDX Debut

Indonesian mining firm PT Amman Mineral Internasional, the world's largest copper miner, made a robust entry into the stock market with its shares surging 4% on the Indonesia Stock Exchange (IDX) debut. The company successfully raised $715.81 million in what turned out to be the country's largest initial public offering (IPO) of 2023. The IPO was highly sought-after, oversubscribed 13.6 times and drawing in around 27,000 retail investors. The mining giant was attractively valued at a price-to-earnings (PE) ratio of 6.7 times. With this, Salim Group-backed PT Sumber Gemilang Persada turned into the majority shareholder, owning a 35.58% stake following the IPO. In 2022, Amman Mineral logged a net revenue of $2.8 billion, which indicates a significant 118% YoY increase. (Source)

Viva Communications Contemplates $250M IPO in 2024

Philippines-based multimedia firm Viva Communications is considering a $250 million IPO in 2024. This potential share sale could assign a value of $1 billion to the provider of entertainment and media services. The holding company, Viva Holdings, might also decide to list its subsidiaries. BDO Capital and Investment have been chosen to serve as underwriters for the planned IPO. This development comes as part of a series of upcoming Philippine IPOs which include Citicore Renewable Energy Corp and Prime Infrastructure Capital. Viva Communications is a dynamic firm offering a plethora of content and programs across various formats including film, music, and cable television. (Source)

VinFast Aims for Nasdaq Listing via SPAC Merger

Vietnamese electric-vehicle maker VinFast is planning a Nasdaq listing in the third quarter of 2023 through a Special Purpose Acquisition Company (SPAC) merger. The merger is facilitated by Black Spade Acquisition Co. and could value VinFast at approximately $23 billion. Initially, VinFast was preparing for a traditional IPO but decided to go for a SPAC merger due to challenging capital market conditions. While a decision between listing on the New York Stock Exchange or Nasdaq is still pending, VinFast is aiming to complete the SPAC deal by July 20. More details about the listing will be released in due course. (Source)

ClinChoice Considers Hong Kong IPO in 2024

Backed by Goldman Sachs, clinical trial services provider ClinChoice is considering a Hong Kong IPO next year. The company, which provides clinical-stage research services to pharmaceutical, biotech, medical device, and consumer health firms, is valued at about $1 billion. Through the IPO, it aims to raise a few hundred million dollars. China International Capital Corp. and Morgan Stanley are assisting with the potential listing. ClinChoice has been growing through strategic acquisitions, including that of Italy-based Cromsource. However, the details of the listing such as size and timeline are still subject to change. (Source)

China Resources Holdings Eyes $1 Billion Hong Kong IPO For Its Bottled Water Unit

Chinese conglomerate China Resources Holdings is preparing for a $1 billion initial public offering (IPO) of its bottled water unit, China Resources C'estbon Beverage, in Hong Kong. The unit could go public as early as this year. The Hong Kong-based holding company has chosen Bank of America, BOC International, Citic Securities, and UBS Group to arrange the deal, though details concerning size, timing, and bank lineup could still change. If successful, the IPO will considerably boost the Hong Kong IPO market which has been lagging. C'estbon Beverage, a unit of the firm, offers a range of beverages including packaged drinking water, bottled tea, and "Fire" coffee products in China (Source).

Dubai's Roads and Transport Authority Mulls IPO for Dubai Taxi Corp and Public Parking Unit

The Roads and Transport Authority (RTA) of Dubai is considering an initial public offering (IPO) for its Dubai Taxi Corp and public parking unit. These potential listings are part of a strategic review of the transport regulator's assets, under advisement by Rothschild & Co. The plan aligns with the broader privatization strategy of the Dubai government, possibly extending to energy group ENOC and dnata. Last year, RTA successfully raised $1 billion with the sale of a 24.9% stake in the toll-road business, Salik. The authority is also exploring options for its public parking assets and the Nol card, a public transport payment system. The city of Dubai generated nearly $8.5 billion from five IPOs last year, with a plan to list 10 state-linked companies (Source).

Nusantara Sejahtera Raya Aims for $159 Million in Jakarta IPO

Nusantara Sejahtera Raya, the company that operates Cinema XXI movie theaters, is seeking up to $159 million in an initial public offering (IPO) in Jakarta. The firm is offering 8.34 billion new shares or a 10% stake at a price between 270-288 rupiah each. Major shareholders also plan to sell part of their stake at the listing. The bookbuilding is set for July 10-14, the offer period from July 27-31, with a listing date of August 2. The underwriters for this IPO include JP Morgan Sekuritas, UBS Sekuritas, Indo Premier Sekuritas, and Mandiri Sekuritas. The proceeds from the offer will be used to expand the theater network and repay debt (Source).

Wise Living Technology Raises $35 Million in Hong Kong IPO

Chinese heating service provider Wise Living Technology has raised HK$187.5 million (US$35m) in an initial public offering (IPO) in Hong Kong. The firm sold 75.6 million shares at HK$3.60 each, forgoing the overallotment option. The Hong Kong portion of the IPO was oversubscribed 1.54 times, while the international portion was oversubscribed 1.35 times. Jiang Gang International Investment is the cornerstone investor with a 19.6% stake. The IPO did not generate additional proceeds as the oversubscription was less than 15 times. Shares are set to start trading on the Hong Kong bourse on July 10 (Source).