Industry News

Apex Frozen Foods IPO oversubscribed on day 2

Apex Frozen Foods IPO oversubscribed on day 2.
The initial public offering of Apex Frozen Foods Pvt.
Ltd got oversubscribed 45% on the second day of the public issue on Wednesday.
So far, institutional investors have refrained from bidding for the shares of the firm.
The producer of aquaculture products on Monday raised Rs 43.57 crore (around $6.8 million) via a share sale to anchor investors ahead of its three-day IPO.
Apex Foods raised the capital from three mutual fund firms–HSBC Mutual Fund, Reliance Mutual Fund and Invesco Mutual Fund–by selling 24.9 lakh shares at Rs 175 apiece, it said in a stock exchange filing.
The shares were subscribed at upper end of the Rs 171-175 price band.
It is promoted by father-son duo Karuturi Satyanarayana Murthy and Karuturi Subrahmanya Chowdary.
The promoter group holds 99.9% stake in the company.
It plans to use the net proceeds from the IPO to set up another shrimp processing unit with a capacity of 20,000 tonnes per annum.

Sheraa-Incubated Startup Yalla Pickup Raises AED1 Million In Funding

Sheraa-Incubated Startup Yalla Pickup Raises AED1 Million In Funding.
One such enterprise is Yalla Pickup, a platform that helps you order pickup trucks to move good consignments, and in July, the company managed to secure AED1 million in funding from The Box, a provider of self-storage and goods transport services in the UAE.
This is the first funding round for the startup, which was one of the 10 graduating startups in the Sheraa (Sharjah Entrepreneurship Center) accelerator program’s inaugural batch.
El Tom adds that the funds would help Yalla Pickup “recruit staff for onboarding more vendors, [and] cater to the high demand of our clients and exceed their expectations.” Based on feedback received from some early clients, the team also wants to invest in the technology, and “release a second version of the app and web portal.” What also makes Yalla Pickup’s growth interesting is the crowded market in which they operate.
The GCC is a ripe market for logistics tech startups and the “Uber for trucks” model is also a popular route taken by most businesses.
Using our backend, we are offering our clients an end-to-end fleet management portal, which allows businesses to track their deliveries, generate invoices, delivery notes and payables to clients and vendors.
To top this all, I presented my startup to H.H.
Elie El Tom, founder and CEO, Yalla Pickup What would be your three top tips for the region’s startups to pitch and clinch funding for their ventures?
[Second], take the pitch deck very, very seriously.
Remember that you only have one chance.

Apex Frozen Foods IPO opens for subscription; here are 10 things to know

About the Issue Apex launched the public issue of up to 87 lakh equity shares which will be offered through a book-building route.
The issue would constitute up to 27.84 percent on post issue paid-up capital.
Currently sales to the USA for FY17 accounted for 82 percent of total revenue, whereas sales to UK and various European countries account for 17.77 percent of revenues, respectively.
He has an experience of 20 years in aquaculture industry.
He has an experience of 12 years in aquaculture industry.
Business and Growth Strategies Apex intends to set up new processing facility to continue to improve operational efficiencies and expand operations and sales.
It also proposes to set-up a facility for processing value-added products.
It intends to increase and enhance goodwill attached to name through various strategic branding initiatives.
Due to ease of cultivation and maintenance, white leg shrimps are produced in most of the exporting countries, leading to fierce competition.
Any disruption in labour industry or strikes by AFFL workforce may affect the production capability of the company.

SEC Is Studying Spotify’s Plan to Bypass IPO in NYSE Listing

Direct-listing plan is said to draw scrutiny from regulators New York Stock Exchange rule-change proposal still pending Spotify Ltd. executives have met with U.S. regulators scrutinizing the music company’s plan to skip a traditional share sale and list directly on the New York Stock Exchange, according to people with knowledge of the matter.
Senior Spotify executives met with U.S. Securities and Exchange Commission officials last month, said the people, who asked not to be identified discussing private meetings.
Regulators asked for the meeting to get details on the plan by the world’s largest paid music streaming service to do an end-run around an initial public offering — the conventional route to listing shares.
Spotify aims to list late this year or early next on the New York Stock Exchange.
The agency has been weighing a proposed rule change at the New York Stock Exchange that would allow the listing to go forward.
Clayton, a former Wall Street deals lawyer who took over the agency in May, has for months decried a two-decade decline in the number of public companies as “a serious issue for our markets and the country.” While he hasn’t yet laid out a comprehensive policy agenda, he’s widely expected to craft rules that would encourage more companies to go public and do so sooner.
Spotify’s equity was valued at $8.5 billion two years ago when it raised $526 million.
Spotify has grown from 20 million subscribers in two years and had more than 140 million people using the service between the free and paid options as of July.
The company reported sales of 2.93 billion euros ($3.45 billion) in 2016, up 52 percent from a year earlier, and its growth has lifted the entire music industry.
Record sales have grown two years in a row for the first time since the late 1990s.

Angry Birds set to lay golden egg for Rovio with $2 billion IPO value

Angry Birds set to lay golden egg for Rovio with $2 billion IPO value.
The firm is planning an initial public offering as early as next month that could value the maker of the Angry Birds mobile games and movie at about $2 billion, said people familiar with the matter.
No final decisions have been made and the company could also choose to stay private for longer, they said.
A listing would test investors’ appetite for entertainment software, a group whose shares have declined an average of 18 percent from their offer prices following IPOs this year, according to data compiled by Bloomberg.
King Digital Entertainment Plc, the creator of Candy Crush, was acquired for a 20 percent discount to its IPO price in 2015 amid revenue declines.
And Netmarble Games Corp., the maker of the Lineage and Stone Age mobile games — and South Korea’s biggest listing in seven years — has declined 17 percent since its shares started trading in May.
He holds about 69 percent of Rovio after investing 1 million euros ($1.2 million) more than a decade ago into the company co-founded by his nephew Niklas Hed.
Proceeds from an IPO could also help the company fund the “Angry Birds Movie 2,” planned for 2019.
The company’s first film in the franchise, released last year, made about $350 million in worldwide box-office sales.
Rovio reported revenue growth of 34 percent for 2016 to 190.3 million euros and earnings before interest and taxes of about 17.5 million euros compared with a loss in the previous year.

#FlashbackFriday: Chicken Soup for the Soul Raises $30 Million in Mini-IPO

#FlashbackFriday: Chicken Soup for the Soul Raises $30 Million in Mini-IPO.
On Friday, Chicken Soup for the Soul Entertainment Inc. announced that it completed its $30 million initial public offering, selling 2.5 million shares at $12 each. “We are extremely pleased with the investor demand for our IPO,” said William J. Rouhana, Jr., chairman and chief executive officer.
Chicken Soup for the Soul Entertainment was actually created last year as a subsidiary by its then parent company, Chicken Soup for the Soul Holdings, to focus specifically on video production.
CSSE also recently launched CSS Network, which the company describes as “our branded direct-to-consumer network” that will offer “original and third-party video content on a fee-per-view, subscription or advertising-supported basis.” But the Chicken Soup brand goes back much farther.
Many of the books have become best-sellers, and the company says it has sold 11 million copies worldwide.
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What Spotify’s Un-IPO Means for Wealth Management

What Spotify’s Un-IPO Means for Wealth Management.
Spotify, the Stockholm-based streaming-music company, is exploring a solution to this problem, pursuing a plan to list its shares publicly without raising new capital.
Because if Spotify is successful, other companies will follow its lead, pay lower fees to Wall Street, and eliminate the vagaries of IPO pricing.
What do “un-IPOs” mean to wealth management?
One pointed to Facebook’s IPO as evidence of the difficulty in pricing high-growth companies.
After listing their stock on public exchanges, companies wait for their share prices to settle into a trading range.
When they need fresh capital, they sell new shares to the public.
One investment banker said that Spotify is an outlier, that most private companies lack the prerequisites to bypass traditional IPOs.
Smaller companies do not have these advantages, and he warns that their share prices would swing wildly in direct listings.
Otherwise, the new thundering herd will be Silicon Valley engineers coding better wealth management experiences for investors.

I-AM Capital Acquisition Company Announces Pricing of $50,000,000 Initial Public Offering

I-AM Capital Acquisition Company Announces Pricing of $50,000,000 Initial Public Offering.
NEW YORK–(BUSINESS WIRE)–I-AM Capital Acquisition Company (NASDAQ:IAMXU) (“IAM” or the “Company”), a company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities, today announced the pricing of its initial public offering (“IPO”) of 5,000,000 units at a price to the public of $10.00 per unit.
The units are expected to be listed on The NASDAQ Capital Market (“NASDAQ”) under the symbol “IAMXU” beginning today.
Each unit issued in the IPO consists of one share of common stock, one warrant to acquire one share of common stock at an exercise price of $11.50 per share and one right to receive one-tenth (1/10) of one share of common stock upon the consummation of an initial business combination.
Once the securities comprising the units begin separate trading, the units will cease trading and the common stock, warrants and rights are expected to be traded on NASDAQ under the symbols “IAM”, “IAMXW” and “IAMXR”, respectively.
When available, copies of the prospectus related to this offering may be obtained from Maxim Group LLC, 405 Lexington Ave, New York, NY 10174, Attn: Prospectus Department or by Tel: (800) 724-0761.
A registration statement relating to the securities was declared effective by the SEC on August 16, 2017.
About IAM IAM, led by CEO F. Jacob Cherian and CFO Suhel Kanuga, is a blank check company, also commonly referred to as a Special Purpose Acquisition Company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities.
Forward-Looking Statements This press release contains statements that constitute “forward-looking statements,” including with respect to the proposed IPO and the anticipated use of the net proceeds.
Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the Company’s offering filed with the Securities and Exchange Commission (“SEC”).

India: Apex Frozen Foods IPO to launch on Aug 22

Aquaculture company Apex Frozen Foods Ltd Wednesday said it will open its initial public offering (IPO) on 22 August.
At the upper end of its price band of Rs171-175, the share sale will be worth approximately Rs152 crore.
The IPO will see a fresh issue of 7.25 million shares, which at the upper end of the price band will fetch the company approximately Rs126 crore.
The proceeds will be used to set up a new shrimp processing unit with a capacity of around 20,000 million tonnes per annum (mtpa) in Andhra Pradesh.
At the upper end of the price band, the share sale will fetch the promoter Rs25 crore.
Karvy Investor Services Ltd is managing the share sale.
The company sells aquaculture products under three brands, namely, Bay Fresh, Bay Harvest and Bay Premium.
“We are a hundred percent export-oriented company, with the US accounting for 82%, and the UK and European countries accounting for 17.8% of the total sales,” said Karuturi Subrahmanya Chowdary, executive director, Apex.
The IPO comes at a busy time for the primary market in India.
So far in 2017, the Indian primary market has witnessed 15 initial public offerings with companies raising Rs12,584 crore, according to data from primary market tracker Prime Database.

Peloton is Blazing a Trail for Trucking Startups

They don’t realize how much stuff is still moved by trucks.” Truck tech wasn’t on Switkes’ mind when he started working on his PhD in mechanical engineering.
Automotive tech was advancing, but talk of self-driving cars was still over the horizon.
“But with trucking, if we had the right product that could get just five percent of the market, it would be huge.” That inspired him to start his own company.
They wanted to know how they could help trucking companies today, not just in 25 years.
And the fleet owners were very open about what their challenges and opportunities were.” The co-founders decided to focus on platooning technology.
And fleet owners could benefit from fuel savings and reduced crashes in the near term.
Intel, for example had started a connected car fund in 2013.
But Intel soon broadened that mandate to include vehicle automation.
Other investors in the round included Denso International, Volvo Group Venture Capital, UPS Strategic Enterprise Fund and Nokia Growth Partners.
This past April, with Peloton getting close to releasing the product, the company raised a $60 million round of venture capital.

Apex Frozen Foods IPO to launch on 22 August

Apex Frozen Foods IPO to launch on 22 August.
Mumbai: Aquaculture company Apex Frozen Foods Ltd Wednesday said it will open its initial public offering (IPO) on 22 August.
At the upper end of its price band of Rs171-175, the share sale will be worth approximately Rs152 crore.
The IPO will see a fresh issue of 7.25 million shares, which at the upper end of the price band will fetch the company approximately Rs126 crore.
The proceeds will be used to set up a new shrimp processing unit with a capacity of around 20,000 million tonnes per annum (mtpa) in Andhra Pradesh.
At the upper end of the price band, the share sale will fetch the promoter Rs25 crore.
Karvy Investor Services Ltd is managing the share sale.
The company sells aquaculture products under three brands, namely, Bay Fresh, Bay Harvest and Bay Premium.
The IPO comes at a busy time for the primary market in India.
So far in 2017, the Indian primary market has witnessed 15 initial public offerings with companies raising Rs12,584 crore, according to data from primary market tracker Prime Database.

Snap and Blue Apron aside, IPO-themed ETF strategies are winning in 2017

Snap and Blue Apron aside, IPO-themed ETF strategies are winning in 2017.
The Renaissance IPO ETF IPO, +0.43% has gained 24% in 2017, more than twice the 10% rise of the S&P 500 SPX, +0.14% over the same period.
(The Renaissance fund, which has under $14 million in assets, has had outflows of $1.2 million this year.)
“Apart from the fact that these were fairly high profile and known companies, their after-IPO performance isn’t really that unusual or unheard-of,” said Ryan Issakainen, senior vice president and ETF strategist at First Trust.
“This is why it doesn’t make sense to speculate on one or two IPOs: the distribution of performance from new companies is pretty wide, and if you utilize a strategy with a broad basket, the outperformers can compensate for the underperformers, as has been happening.” Snap and Blue Apron offered investors access to some of the most buzzed-about internet-related companies of recent years, at a time when other such names—like Uber and Airbnb—remain private.
At its IPO, Snap was one of the most hotly anticipated IPOs in years, and represented the largest debut since Alibaba in 2014.
However, they haven’t been able to translate their user bases into results that investors are bullish on.
Snap is the 15th-largest holding of the Renaissance fund, comprising 2.17% of the portfolio, according to data disclosed by Renaissance.
(Blue Apron’s market capitalization is about $500 million, compared with nearly $15 billion for Snap.)
The Renaissance fund holds stocks for their first two years of public trading, while the First Trust fund holds new issues—including both IPOs and spin-offs—and does so for the first 1,000 days of their trading, which roughly amounts to four years.

Team of rivals: The startups Uber competes against around the world

Team of rivals: The startups Uber competes against around the world.
The ride-hailing giant has already started its global expansion through partnerships with and investments in Uber’s other competitors around the world.
The Dubai-based ride-hailing startup founded in 2012 serves 80 cities in 12 countries and is valued at $1 billion.
Image: AP/REX/Shutterstock Grab In Southeast Asia, Grab is Uber’s biggest rival.
Like Careem, Grab got a major investment from Didi Chuxing.
The company, founded in 2010, predates Lyft, Grab, Didi, Careem and most everyone else carving out a piece of ride-hailing business.
Image: AP/REX/Shutterstock Yandex.Taxi Russia doesn’t get the most publicity in Uber’s fight for world domination, but until recently Uber was still fighting for the market.
For now, Taxify is in 18 countries across those regions.
Uber operates in most of those countries.
The ride-hailing company is a regional competitor, too: it only operates in the United States.

Tech Unicorns Are Going Public at an Unprecedented Rate

That was double what was seen in the first quarter, and equal to the number of unicorn IPOs for the entire year in both 2015 and 2016, according to data compiled by Goldman Sachs.
These IPOs have seen mixed success.
Here’s a breakdown of the four former unicorns that made it to market in the second quarter, with all valuation data from Goldman: Okta — Completed IPO in April, valued at $1.8 billion, above its last funding round, which put it at $1.2 billion Stock has surged 42% since pricing Cloudera — Completed IPO in April, valued at $1.9 billion, well below its last funding round, which implied a $4.1 billion valuation Stock has climbed 19% since pricing Delivery Hero — Completed IPO in June, valued at €4.4 billion, above its last rounding round, which put it at €3.1 billion Stock has risen 6.6% since pricing Blue Apron — Completed IPO in June, valued at $1.9 billion, slightly below its last funding round, which implied a $2 billion valuation Stock has plummeted 46% since pricing It’s worth noting that while Blue Apron’s final valuation doesn’t look particularly weak relative to its last private funding round, the company had a hellacious time going public.
As a result, Blue Apron took a cleaver to its IPO range, cutting it to $10 to $11 a share, down from $15 to $17.
The company ultimately priced at $10 a share — 40% below the maximum it had sought.
It shows that industries of all types can prove fickle to external pressures, and stresses just how important it is for companies to exercise caution when trying to time their IPOs.
After all, 13 new ones emerged during the second quarter, more than offsetting the four that went public.
There are now 168 unicorns out there.
The biggest single funding round for a software and internet company in the second quarter was a $400 million Series E for Houzz, a popular photo site used by homeowners to plan renovations.
Here’s a look at their trend over time:

Vodacom Completes Largest Initial Public Offering On The Tanzanian Stock Exchange

Vodacom Completes Largest Initial Public Offering On The Tanzanian Stock Exchange.
This week Vodacom Tanzania completed the largest initial public offering ever seen on the Dar es Salaam Stock Exchange (DSE) in its 19 years of existence.
Vodacom raised $219 million for the listing, becoming the first to comply with new regulatory changes requiring telecoms companies in the country to list at least 25 percent on the Dar es Salaam Stock Exchange, according to TechCentral.
The South African telecoms giant is listed on the Main Investment Market Segment of the Dar es Salaam Stock Exchange under the ticker ‘VODA’.
Vodacom was trading at a six percent premium to the offer price by the close of the market on Tuesday, according to BusinessTech.
Vodacom initial public offering interests Tanzanian people Over 40,000 Tanzanian investors were involved in the initial public offering, while the country’s major pension funds also chose to invest in the new listing.
Vodacom Group chief executive officer Shameel Joosub commented on the listing, saying that numerous local investors have now become first-time participants in the Tanzanian exchange through the telecommunications company’s listing.
The listing on the Dar es Salaam Stock Exchange follows a busy period of focus on East Africa for Vodacom, as the telecoms giant recently completed their largest ever acquisition with a fellow telecoms market leader in the region.
Vodacom’s $2.6 billion share acquisition of Safaricom was finalized a week ago, with the South African company now owning a 35 percent stake in the Kenyan telecommunications and mobile operator.
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Andrew Ng is raising a $150M AI Fund

Andrew Ng is raising a $150M AI Fund.
We knew that Andrew Ng had more than just a series of deep learning courses up his sleeve when he announced the first phase of his deeplearning.ai last week.
It’s clear now that the turn of Ng’s three part act is a $150 million venture capital fund targeting AI investments.
Ng, who formerly founded Google’s Brain Team and served as chief scientist at Baidu has long evangelized the benefits AI could bring to the world.
During an earlier conversation, Ng told me that his personal goal is to help bring about an AI-powered society.
In the last few months we have seen Google roll out Gradient Ventures, Basis Set Ventures hall in $136 million, Element.AI raise $102 million, Microsoft Ventures start its own AI fund and Toyota corral $100 million for AI investment.
It’s unclear at this point how Ng’s AI Fund will differentiate from the pack.
Many of these funds are putting time and resources into securing data sets, technical mentors and advanced simulation tools to support the unique needs of AI startups.
Of course Ng’s name recognition and network should help ensure solid deal flow and enable Ng to poach and train talent for startups in need of scarce deep learning engineers.
Featured Image: Dawn Endico/Flickr UNDER A CC BY-SA 2.0 LICENSE

Taxpayer-funded investment firm to get more ‘active’ picking winning start-ups

Taxpayer-funded investment firm to get more ‘active’ picking winning start-ups.
A taxpayer-funded investment company will be able to take a more hands-on approach to investing $50 million in smaller high-growth start-ups in the hope of getting in early on “the next Rocket Lab or Trade Me”.
The New Zealand Venture Investment Fund (NZVIF) was set up by the Labour government in 2002 to help plug a perceived gap in the market by investing alongside private investors in young, cash-starved high-tech businesses.
But Economic Development Minister Simon Bridges said NZVIF would be allowed to take a more “active” approach investing the $50m that had previously been allocated to its Seed Co-investment Fund, which is the smaller of two funds NZVIF operates, targeting earlier-stage investments.
* Government would seek ‘commercial return’ if NZVIF reinvented * Venture capitalists could be crowded out by Crown company * Government to wean venture capital industry off taxpayer support Rather than having to only invest alongside established private sector “angel” investors with whom it had established a partnership, it would also be able to invest alongside any investors that it deemed had the right capabilities.
The cap on the seed funding it can provide to any firm will also be raised to $1.5m.
NZVIF chief executive Richard Dellabarca indicated in April that NZVIF might want to play a role establishing a new $300m to $500m “Series A” venture capital fund that would provide funding of the order of $5m to $30m to Kiwi companies.
However, Venture Capital Association chief executive Colin McKinnon voiced concern that could lead to NZVIF competing against the private venture capital funds it was originally set up to encourage.
But McKinnon said his concerns did not apply to the rule changes for NZVIF’s seed fund, which were “a positive step” that could help plug a gap for “follow-on” investment in companies that had already received angel investment.
– Stuff

Online travel firm Despegar aims to raise $100 million in IPO

Online travel firm Despegar aims to raise $100 million in IPO.
(Reuters) – Latin American online travel provider Despegar.com Corp on Tuesday filed to raise up to $100 million in an initial public offering on the New York Stock Exchange.
The company, which applied to be listed under the symbol “DESP,” operates in more than 20 countries.
Despegar entered into talks with investment banks late last year to be listed on the Nasdaq under its previous corporate name, Decolar.com Inc, which is the name it also uses in Brazil.
Despegar is controlled by New York-based investment firm Tiger Global Management LLC, one of the largest investors in Brazilian startups.
Other shareholders include U.S. online travel provider Expedia Inc (EXPE.O) and investment firms General Atlantic LLC, Sequoia Capital LLP, Insight Venture Partners LLC and Accel Partners Management LLP.
Despegar, which was founded in 1999, had 2.5 million customers who helped generate $248.5 million in revenue during the first half of 2017, according to its F-1 filing with the U.S. Securities and Exchange Commission.
Its primary customer base is travelers from Latin America, and it had $2.1 billion in gross bookings during the first half of 2017.
The company attributed this to economic weakness in Brazil and Argentina, its largest markets.
Underwriters for Despegar’s IPO include Morgan Stanley (MS.N), Citigroup Inc (C.N), Brazil’s Itau BBA, UBS Investment Bank, Cowen and Keybanc Capital Markets.