Equities

Hyundai Eyes $25B Valuation for India IPO in June

Hyundai Motor plans $2.5 billion IPO for India unit, seeking $25 billion valuation.

By Bill Bullington

6/11, 00:49 EDT
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Key Takeaway

  • Hyundai Motor Co. plans to file for a $2.5 billion IPO for its India unit in June, seeking a valuation of up to $25 billion.
  • StubHub is preparing for a US IPO with $350 million EBITDA and $1.4 billion revenue, potentially listing as soon as July.
  • Alumis and Upstream Bio have confidentially filed for US IPOs amid signs of recovery in the biotech market, which has raised $1.7 billion this year.

Hyundai Motor's India IPO Plans

Hyundai Motor Co. is preparing to file for an initial public offering (IPO) for its India unit, potentially as soon as this month, according to sources familiar with the matter. The automaker aims to raise approximately $2.5 billion through the IPO, which would make it one of the largest offerings in India, following Life Insurance Corp. of India’s $2.5 billion IPO in 2022. Hyundai is seeking a valuation of up to $25 billion for its India unit. The Economic Times reported that Hyundai’s India unit is likely to file a draft prospectus with the market regulator within the next two weeks.

Hyundai’s advisers for the IPO include Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Kotak Mahindra Bank Ltd., and Morgan Stanley. While final decisions on the size and timing of the IPO have not been made, the proceeds are expected to be used to expand operations. Hyundai Motor India Ltd. is currently the second-largest carmaker in India by sales. A Hyundai representative did not respond to a request for comment.

StubHub's IPO Preparations

StubHub, the operator of ticketing resale platforms StubHub and Viagogo, is preparing for a US initial public offering (IPO) with earnings before interest, taxes, depreciation, and amortization (EBITDA) of $350 million for the year ending in March. The company saw $1.4 billion in revenue and $505 million in unlevered free cash flow during the same period. StubHub is in early discussions with prospective investors and is working with Goldman Sachs Group Inc., JPMorgan Chase & Co., and Bank of America Corp. on the planned listing, which could occur as soon as July.

The ticketing business is currently facing challenges, including a US Department of Justice-led lawsuit against Live Nation Entertainment Inc., which seeks to force the sale of its ticketing arm, Ticketmaster. This development could create an independent rival to platforms like StubHub and Viagogo. StubHub had previously explored going public via a direct listing in 2022, which could have valued the company at more than $13 billion. Shares of Vivid Seats Inc., a competitor to StubHub, have declined about 60% since its listing in 2021. StubHub and Viagogo’s ticket reselling operations span more than 90 countries.

Biotech IPO Activity

Alumis and Upstream Bio, two US start-ups developing medicines for inflammatory diseases, have confidentially filed for initial public offerings (IPOs) as the US biotech IPO market shows signs of recovery. Both companies submitted private filings with the US Securities and Exchange Commission in recent months, with public offerings expected before the November presidential election. Alumis completed a $259 million funding round earlier this year at a valuation of around $1 billion, driven by investor interest in its lead drug for severe plaque psoriasis. Upstream’s lead drug targets severe asthma and is in mid-stage trials. Both companies are likely to list on Nasdaq.

The IPO market has been slow to recover after a downturn and rapid interest rate rises in 2022, but there have been signs of improvement. Biotechs have raised $1.7 billion through US IPOs so far this year, up 64% year on year, according to Dealogic data. Fundraising by previously listed companies has rebounded faster, with follow-on deals rising more than 100% year on year to $16.5 billion. Mike Perrone, a biotech analyst at RW Baird, noted that the listings market is healthier than it has been in the past two years, but investor enthusiasm has dampened in the second quarter due to expectations about Federal Reserve interest rate cuts.

Most biotechs that have listed in the US this year are trading below their IPO price, with exceptions like CG Oncology, which has seen an 80% increase. Johnson & Johnson-backed Rapport Therapeutics raised $136 million and saw a 22% increase on its first day of trading. Australia-based Telix Pharmaceuticals also plans to list on Nasdaq soon. Companies with less urgent funding needs may delay listing until after the presidential election for more clarity on rate cuts. Alumis and Upstream declined to comment.