WeRide, the Chinese start-up which is developing self-driving car technology, is delaying its plans to list in the US. The company said it needed more time to complete the required documentation.
WeRide is expected to offer the market around 6.5mn American Depositary Receipts (ADRs) that will be priced in the range of USD15.50 to USD18.50. The listing had originally been set for this week with the Chinese tech company expected to raise in the region of USD 400mn.
WeRide specialises in technology which can be used in taxis, buses and also freight vehicle. It has been valued in the region of USD 5.1bn and so far has raised more than USD1.39bn in private capital.
One other issue that WeRide faces at the moment is the approval from the Chinese government, which technically expires at the end of the week. The company would need to re-apply if its passes this deadline. If the listing does go ahead, it would be the largest by a Chinese company on the US market since the massive Didi listing in 2021.
Pick n Pay plans to list prize asset Boxer
South African retailer Pick n Pay is planning to list its discount grocery chain Boxer in a sizeable local offering being priced at USD 450mn. This is part of a turnaround strategy for the company, which has been losing money. The Boxer IPO is anticipated before the end of the year.
Pick n Play’s plan here is to unlock some shareholder value, enhance its overall valuation and claw back some market share from competitors. Pick n Pay has been losing market share to local competitors in South Africa for some time now and is also facing international pressure.
Analysts in South Africa are seeing the Boxer IPO as a tactic to help its parent company secure investor confidence and focus the market on a prize asset.
- Sort A Brick to seek new investment for innovative LEGO sorting start-up
- Share Tip: Dutch stock is strong China tech investment play
- Meta Platforms stock hits ATH after Orion VR glasses preview
Arabian Mills see Saudi IPO fully covered in an hour
Within an hour of the books opening, Arabian Mills for Food Products saw its IPO fully covered in Saudi Arabia this week. The flour milling company is selling a 30% stake with the aim of raising USD 271mn. We are currently in the offer period and book building for institutional investors, with the retail phase anticipated on 18 September.
Arabian Mills is the fourth flour milling company to go public in the kingdom. The state-owned flour milling sector was split into four competing companies and privatised. Of the other three companies, two are already listed and the imaginatively named Fourth Milling Co received its IPO approval in June.
The speed at which the Arabian Mills deal was covered is being hailed as evidence of the health of the Saudi stock market when it comes to new offerings. Last week Saudi perfume make Al Majed for Oud Co saw its own offering sold out almost immediately.
According to Armchair Trader sources in the Middle East, local companies, especially those with a strong retail brand, are most likely to garner interest.
BRB Foods expands its Nasdaq IPO
Brazilian dry foods products specialist BRB Foods is planning to come to the Nasdaq market imminently. The Sao Paolo-based company is aiming to raise USD 12mn on Nasdaq in a share offering priced in the $4-5 range. The listing will value the company at around USD 68mn.
BRB Foods is actually now raising the size of its offering in the US by another 4%, using Network 1 Financial Securities as its sole bookrunner on the deal.
BRB Foods was founded in 2020 and generated USD 2mn in sales in the 12 months to the end of June. The company is both a manufacturer and distributor of dry food products in Brazil. It sells name brands licensed from big names in the food space like Unilever, as well as staple products for local shoppers like rice, beans, corn and cassava. It buys, processes, manufacturers and packages products for supermarkets.
