U.S. IPO market expected to end strong in 2023 amid flurry of listing activity


Wall Street sign outside the New York Stock Exchange

Pictured is the Wall Street sign outside the New York Stock Exchange in New York.Reuters/Carlo Allegri/File photo

NEW YORK — U.S. investors are awaiting a slew of initial public offerings (IPOs) in the coming months, hoping to capitalize on the recent stock market rally.

The deals could revive demand for new listings, which has been sluggish for nearly two years due to rising interest rates, rising inflation, geopolitical tensions and the Russia-Ukraine conflict.

Here are the highlights:

Arm Holdings

Smartphones bearing the Arm Ltd logo

In this illustration taken on March 6, 2023, a smartphone displaying the Arm Ltd logo is placed on a computer motherboard.

Arm Holdings, a British chip design company owned by Japan's SoftBank Group, has launched what is expected to be the largest IPO this year, potentially raising about $5 billion in funds and valuing the company at as much as $52 billion.

The company publicly filed an IPO application with the U.S. Securities and Exchange Commission (SEC) last month and launched an IPO roadshow this week in Baltimore, where influential asset management firm T Rowe Price is headquartered.

Arm said it has signed up a number of major customers as cornerstone investors, including Apple, Nvidia, Alphabet, Advanced Micro Devices, Intel and Samsung Electronics.

Arm is considered key to the global semiconductor industry as its chip designs are widely adopted by most product manufacturers, including Nvidia, Intel, AMD, Samsung and TSMC.

Barclays, Goldman Sachs, JPMorgan Chase and Mizuho Financial Group are the lead underwriters of the offering.

Arm is expected to list on Nasdaq in the coming weeks under the trading symbol “ARM.”

Instant shopping cart

Grocery delivery service Instacart announced its long-awaited IPO filing last month, more than a year after it filed with the U.S. Securities and Exchange Commission.

Instacart's business has boomed amid a surge in online orders during the COVID-19 pandemic. But as lockdown restrictions eased, the company's growth slowed and it responded by cutting costs and laying off workers.

The company was last valued at $10 billion in December 2022, according to internal estimates reported by media company The Information, well below the $39 billion valuation the company received after a 2020 funding round.

Instacart said Norges Bank Investment Management, a unit of Norges Bank, and entities affiliated with venture capital firms TCV, Sequoia Capital, D1 Capital Partners and Valiant Capital Management have agreed to participate in the IPO as cornerstone investors.

Former Facebook executive Fidji Simo was hired as Instacart CEO in 2021 as part of preparations for its IPO. The company was established in 2012.

Instacart said Goldman Sachs and JPMorgan were the lead underwriters of the offering, adding that its shares will be listed on Nasdaq under the symbol “CART.”

Clavijo

Data and marketing automation company Klaviyo disclosed its IPO filing in August, months after filing confidentially to go public.

Klaviyo did not disclose the size, timeline or other details of the offering. However, Reuters reported in May that the company plans to go public as soon as this year and aims to raise at least US$750 million. The company raised $320 million in its last funding round in 2021, valuing it at $9.15 billion.

Founded in 2012, Klaviyo's platform allows e-commerce companies to send personalized marketing emails and messages to potential customers. It is backed by affiliates of Canadian e-commerce giant Shopify and investment firm Summit Partners.

Goldman Sachs, Morgan Stanley and Citigroup are lead underwriters on the offering, the company said in the filing. Its shares are expected to begin trading on the New York Stock Exchange under the ticker symbol “KVYO.”

VirtualNG

Vietnamese Internet company VNG Corp has applied to list on Nasdaq, making it the first Southeast Asian country's technology company to be listed in the United States.

Founded in 2004, VNG is Vietnam's first unicorn company, a new startup valued at US$1 billion or more. The Ho Chi Minh City-based company's businesses include online games, payments, cloud services and Zalo, Vietnam's most popular messaging app.

VNG aims to raise as much as $150 million and plans to go public by the end of September or October, according to Reuters. Its backers include Chinese social media and gaming giant Tencent and Singaporean state investor Temasek.


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Citigroup, Morgan Stanley, UBS and Bank of America are the underwriters of the IPO, documents show.





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