The IPOX® Update 4/5/2025

U.S.

Tariff Sell-off Puts IPOs in Limbo

US equity capital markets are anticipating significant disruption to IPO activity due to the recent tariff-driven market sell-off. Companies like Klarna, StubHub, and eToro, which filed for IPOs in March, are likely to delay their launches as the S&P 500 has entered correction territory and the Russell 2000 has fallen into a bear market following the announcement of new tariffs. Bankers are planning discussions with potential equity issuers to assess the situation, and ECM activity is expected to be muted through the Easter holiday weekend as markets adjust to the new realities. IPOs from less tariff-sensitive sectors might still proceed but may require discounts to attract anchor investors, while Klarna's potential NYSE IPO faces particular uncertainty given Affirm's stock decline and growing recession concerns. (Source)

Klarna, StubHub, eToro Delay IPOs Amid Market Turmoil

Swedish fintech Klarna, ticket marketplace StubHub, and trading platform eToro have all reportedly decided to delay their initial public offerings due to significant market instability following the announcement of sweeping U.S. tariffs. As IPOX® Research Analyst Lukas Muehlbauer explained to Reuters, "This kind of market instability naturally makes any company, regardless of sector, hit the brakes on near-term IPO plans." The pause comes amid heightened fears of a trade war that has negatively impacted stocks across the board, creating a challenging environment for companies planning to enter the public markets and potentially complicating the recovery of the U.S. IPO landscape. These postponements represent a significant setback to what was expected to be a revitalized IPO market in 2025. (Source 1) (Source 2)

Circle Internet Files for Long-Awaited NYSE IPO

Stablecoin issuer Circle Internet Financial has filed for an NYSE IPO, aiming to go public in late April under the ticker "CRCL." JP Morgan and Citigroup are leading a syndicate of 10 banks for the offering, which could launch as early as April 16. This marks Circle's second attempt at going public after terminating a SPAC merger in late 2022. The company reported robust financial performance with revenue of $1.68 billion in 2024 and a net income of nearly $157 million. Circle's core product, USDC stablecoin, had $43.9 billion issued and held in 4.3 million digital wallets as of December. The company views this IPO as a strategic step toward greater transparency and accountability as a public company in the rapidly evolving cryptocurrency space. (Source)

Fintech Plaid Raises $575M, Eyes Future IPO

Financial technology company Plaid has raised $575 million through a common stock offering, while eyeing a potential IPO but not for this year. The new capital will primarily address employee tax obligations and offer liquidity to the team. The funding round valued Plaid at $6.1 billion, significantly down from its $13.4 billion valuation in April 2021, reflecting the broader market contraction in tech valuations. Franklin Templeton led the common stock sale, with new investors including Fidelity Management and Research, and BlackRock joining the round. Despite the lower valuation, this substantial raise positions Plaid to potentially pursue public markets when conditions improve. (Source)

Trump Tariffs Hinder M&A and IPOs in What Was Supposed to Be a Blockbuster Quarter

Trump's trade war and resulting market turmoil are significantly impacting M&A and IPO activity in what was anticipated to be a strong quarter for dealmaking. While global M&A volume increased 12.6% year-to-date to $984.38 billion, largely driven by Asia-Pacific deals, U.S. M&A volume decreased 13% to $436.56 billion. IPO activity rose about 4.1% to $160.22 billion, but the number of offerings fell 17.7%. Recent high-profile IPOs like Venture Global and CoreWeave have underperformed, raising concerns about overall market sentiment. The uncertainty caused by tariffs and deteriorating economic conditions has made companies increasingly cautious about going public, with several European companies already delaying their IPO plans due to the heightened market volatility. This environment suggests continued challenges for the IPO market in the coming months unless market conditions stabilize. (Source)

Europe

CK Hutchison Says No Decision on Global Telecom Spin-off and London Listing

Hong Kong conglomerate CK Hutchison has denied making a decision about spinning off its global telecommunication businesses following a Reuters report that stated the company was preparing to spin off its telecom assets and list them in London. According to the report, the potential spun-off entity would include telecom businesses across Europe, Hong Kong, and South-East Asia, with a possible valuation between £10 billion and £15 billion (US$13 billion–$19 billion). In response, CK Hutchison stated that it regularly explores opportunities to enhance long-term shareholder value but has made no decision regarding such a transaction. The spin-off considerations reportedly arise amidst pressure from the Chinese government regarding the sale of CK Hutchison's ports near the Panama Canal. The company's shares fell 3.1% following the news. (Source)

Asia-Pacific

Zenergy Battery Launches HK$1bn Hong Kong IPO

Jiangsu Zenergy Battery Technologies has launched a HK$1 billion (US$130 million) Hong Kong IPO, selling 122 million primary shares at HK$8.27 each, which represents 4.8% of the enlarged share capital. The IPO price reflects a 2025 forecast P/E of 31.4 and a 2026 forecast P/E of 17.5. Three cornerstone investors—Jiangsu Mixed Ownership Reform Fund, Suzhou High-end Equipment Fund, and Southeast Investment Holding—have committed to approximately US$80 million of the deal. The offering's books are scheduled to close on April 9, with listing expected on April 14. The company plans to use the IPO proceeds for business development, capacity expansion, and strengthening its global presence in the battery technology sector. (Source)

UltraGreen.ai Plans Around S$400m Singapore IPO

Medical and surgical imaging company UltraGreen.ai is planning an initial public offering on the Singapore Exchange (SGX) expected to be around S$400 million (US$298 million). The IPO is targeted for the second half of this year, with Citigroup and DBS working on the transaction. Founded by Ravindra Sajwan, who serves as Co-CEO, UltraGreen.ai specializes in advanced imaging technologies for medical and surgical applications. The potential listing represents a significant addition to Singapore's technology sector IPO pipeline and would be one of the larger technology offerings on the SGX in recent years. (Source)

Korean Cinema Chain CGV Weighs IPO of Its Theater Effects Unit

South Korean cinema chain CJ CGV Co. is considering an initial public offering of its CJ 4DPlex theater-technology affiliate, though discussions are at an early stage with no committed timeframe or target capital raise. CJ 4DPlex licenses specialized theater technology, including 4DX, which enables effects such as moving seats, special scents, and simulated wind and snow, and ScreenX, which projects images on multiple screens for an immersive environment. The business has experienced strong growth recently, with films like Twisters and Teenage Mutant Ninja Turtles: Mutant Mayhem driving demand. In February, CJ CGV reported that CJ 4DPlex generated 123.2 billion won (US$83.7 million) in revenue in 2024 and achieved its highest-ever operating profit of 17.4 billion won. The technology has gained significant industry adoption, with AMC Entertainment Holdings Inc., the largest US theater chain, announcing last month it would install the company's technology in 65 locations worldwide. CJ 4DPlex currently has approximately 1,200 locations globally, including 370 ScreenX and 790 4DX auditoriums. (Source)

Virgin Australia Executives Set to Meet Investors Ahead of Re-listing

Virgin Australia executives are scheduled to meet with investors starting April 1st to pitch the company's surge in profitability ahead of a potential re-listing. The airline, currently owned by Bain Capital who acquired it for A$3.5 billion (US$2.20 billion) after its collapse in 2020 due to COVID-19 restrictions, had previously paused IPO preparations in 2023 due to volatile equity markets. The non-deal roadshow will be led by new CEO Dave Emerson and marks a renewed effort to gauge investor interest in the airline. This initiative comes as the Australian aviation market has stabilized post-pandemic, with Virgin Australia regaining market share and improving its financial performance under Bain Capital's ownership. (Source)

MENA

Saudi CMA Clears Flynas for Take-off

Saudi budget airline Flynas has received approval from the Capital Market Authority (CMA) for an IPO on the Tadawul exchange, expected to raise up to US$500 million. The offering will consist of nearly 51.3 million shares, representing a 30% free-float of the company. The approval is valid for six months, with the deal likely to take place in the first half of 2025. Flynas currently operates a fleet of 61 aircraft across 139 routes in 30 countries and has demonstrated strong financial performance, with 2023 revenue reaching SR6.3 billion (US$1.68 billion), a 32% increase from 2022. The airline's operational metrics are also impressive, with first-half 2024 passenger numbers increasing 47% year-on-year to 7 million travelers. (Source)

Latin America

Brazil's Aegea Awaits 'Adequate' Conditions to Move Forward with IPO

Brazilian sanitation firm Aegea is considering an initial public offering but is waiting for more favorable macroeconomic conditions before proceeding. CEO Radames Andrade Casseb stated that while discussions with financial institutions are ongoing, there is no set deadline for the potential offering. The IPO aims to improve Aegea's capital structure and lower funding costs, with market specialists anticipating improved conditions starting in 2026. Aegea's top shareholders include Equipav, Itausa, and Singapore's sovereign wealth fund GIC. Reports suggest the company aims to raise up to 10 billion reais (approximately $1.75 billion) in the potential IPO, which could occur by early 2026 if market conditions stabilize. (Source)

Disclaimer: News summaries may contain mistakes. The information does not constitute financial advice, endorsement or recommendation and should not be considered as such.