Chinese tutorial services provider Golden Sun Education opened for trading this week, with its shares surging almost 300% following a $17.6M initial public offering. Meanwhile, mining billionaire Robert Friedland's Ivanhoe Electric delayed its IPO until next week, planning to raise $174M at a $1.2B market cap.
LATEST IPOS AND DIRECT LISTINGS:
Golden Sun Education Group (GSUN) opened on June 22 at $19. The company had priced 4.4M shares at $4.00 per Class A ordinary share. Network 1 Financial Securities acted as the sole underwriter and book-running manager for the offering. Golden Sun is a provider of tutorial services in China that has three tutorial centers, one educational company that partners with high schools, and one logistics company that provides logistic and consulting services.
RECENT IPOS TO WATCH:
SaverOne 2014 (SVRE) and Zhong Yang Financial (TOP) are among stocks that could see new coverage roll out this upcoming week as the quiet periods for banks that underwrote the companies' IPOs expire.
Upcoming IPO and direct listings expected include Ivanhoe Electric (IE), Instacart, Steinway (STWY), and Bitdefender.
This week’s $180M IPO of billionaire Robert Friedland’s junior copper play Ivanhoe Electric didn't price as expected post-close Thursday. A syndicate led by BMO Capital Markets, Jefferies, Raymond James, RBC Capital Markets and Scotiabank is marketing 14.4M Ivanhoe shares at $11.75-$12.50, but bankers early Thursday opted to extend marketing into next week with a goal of pricing post-close Monday, according to IFR's John Doran.
An Instacart listing could happen as soon as this year, though the timing may slip, people familiar with the matter told Bloomberg's Crystal Tse after the online grocery delivery platform said it confidentially filed documents for an IPO. Instacart is working with banks including Goldman Sachs (GS) and JPMorgan (JPM) on an offering, Tse's sources say. Instacart competes with offerings from Amazon (AMZN), Uber (UBER) and DoorDash (DASH).
Meanwhile, The Wall Street Journal's Jaewon Kang and Corrie Driebusch noted that Instacart confidentially filed for an initial public offering less than two months after cutting its valuation by nearly 40%. By filing confidentially now, Instacart is positioning itself to go public as early as September, people familiar with the offering told the Journal.
Steinway Musical Instruments has filed for an initial public offering of shares of its Class A common stock. The prospectus for the offering states in part, "We are a leading manufacturer of high-performance musical instruments, boasting a brand renowned worldwide. Steinway is one of the longest-lasting and most storied brands in the music industry and beyond... We operate in two reporting segments, Piano, or 'Steinway & Sons,' and Band, or 'Conn-Selmer.' In fiscal year 2021, our Piano and Band segments generated net sales of $406.6 million and $131.7 million, respectively, up from $317.4 million and $98.4 million, respectively, in the prior fiscal year. In fiscal year 2021, our Piano and Band segments generated Adjusted EBITDA of $106.8 million and $10.7 million, respectively, up from $72.1 million and $4.9 million, respectively, in the prior fiscal year."
Bitdefender Holding B.V., which identifies itself as "a global cybersecurity leader," announced that it has confidentially submitted a draft registration statement on Form F-1 to the U.S. Securities Exchange Commission for the proposed initial public offering of its securities in the United States. "The timing, size and price range for the proposed offering have yet to be determined. The initial public offering is subject to SEC and other regulatory review processes, as well as market and other conditions," the company said. Bitdefender did not disclose a proposed ticker symbol for its anticipated stock offering.
OTHER NOTABLE SYNDICATE NEWS:
Bausch Health (BHC) announced an update on its previously stated plan to pursue an initial public offering of its Solta Medical business. Solta is a leading global provider in medical aesthetics with innovative and effective skin rejuvenation and body contouring solutions, including the Thermage RF systems, Fraxel laser, Clear + Brilliant laser and VASER ultrasonic systems. Solta attracted significant investor interest during the IPO process. However, in light of challenging market conditions and other factors, the company is suspending its plans for the IPO of Solta. Bausch Health believes that the interests of the company's stakeholders are best served in the near-term by focusing on driving Solta's revenue, profits and cash flow while also achieving key operational and regulatory milestones. For now, Solta will remain as part of Bausch Health and continue to contribute to the deleveraging of the company's balance sheet. The company will revisit alternative paths for Solta in the future.
Few private companies benefited more during the pandemic than Klarna Bank AB, viewed by some as the next PayPal (PYPL) or Block (SQ), as consumers flocked to the specialty lender, The Wall Street Journal's Julie Steinberg, Corrie Driebusch and Ben Dummett reported. Klarna's valuation soared to $46 billion from $5.5 billion in just two years, the authors noted. But times have changed and the loss-making startup has burned through a chunk of the money it raised in recent years and is now seeking fresh funds. Fundraising negotiations are continuing, people familiar with the matter said, and the valuation investors are willing to put on the company has fallen, first to around $30 billion, then to around $15 billion. The value might dip as low as $10 billion, according to one of the people. According to several media reports, the company is reportedly considering going public in 2022. The report also noted that two of Klarna's publicly traded competitors - Affirm Holdings (AFRM) and Zip Co. (ZIZTF) - have been slowing new originations and have seen their share prices fall 80% and 90%, respectively, this year.
Blank check company Goldenstone Acquisition (GDST) said that it has entered into a deal with blockchain-based payments company Roxe Holding to take it public for a combined enterprise value of about $3.6 billion, Reuters' Echo Wang reported. The deal bucks an unfavorable market environment with cryptocurrencies plunging in value and investors largely losing interest in special purpose acquisition companies of this sort partly because of disappointing returns, the author noted.
Opening Day" is The Fly's recurring series of stories on the latest initial public offerings, their performance, analyst commentary and upcoming IPOs.