Looks Like Meat's Back on the Menu (ListingTrack Daily)

Good afternoon!

Some say the extravagant WeWork Summer Camps were the downfall of the embattled office-sharing company. Others blame the frequent ganja-toking on private jets while many simply doubted the business model’s viability from the get-go. We take a different point-of-view… perhaps the die was cast back in 2018 when this controversial edict was decreed by Chief Neumann:

When the company emerges from bankruptcy, Softbank’s Masa Son will be there to rally the remaining WeWorkers. His battle cry?

In today’s letter: Shein wants to IPO at a valuation near $100B (hectocorn status — had to look that one up), FTC probes the Tapestry-Capri deal, and of course, WeWork files for Chapter 11 (as you already know from the 901 articles you’ve read today about it).

Click here to read this post in your browser. // All market data from the close of the previous trading session.

General Market Headlines

• S&P 500 rises for a seventh straight day, on pace for best winning streak of 2023 — CNBC

• EV Makers Turn to Discounts to Combat Waning Demand — WSJ

• Export Rebound Proves Elusive From China to Germany — Bloomberg

• Big Banks Cook Up New Way to Unload Risk — WSJ

 🗞️ IPO & Other Listing News ($1B+ / Prominent)

IPO/ Other Listing Plans & Rumors

• Shein Targets Up to $90 Billion Valuation in US IPO, Sources Say — Bloomberg

  • Snippet: Shein was the world’s third most valuable startup in 2022, when a funding round valued the company at $100 billion. Its valuation has since dropped along with other startups and technology companies as investors grew wary toward risk assets amid uncertain economic outlook and higher interest rates. Valuation of ByteDance Ltd., the parent of short-video hit TikTok, fell to below $300 billion in secondary market in July, down at least 25% from last year, Bloomberg News has reported.

    Deliberations are ongoing and no final decision has been made regrading Shein’s IPO including its valuation and timing, the people said. A representative for Shein declined to comment.

• Roy and Bertrand Sosa are planning another IPO for Netspend after buying their company back from Global Payments (listing timeline is 4-5 years out) — Fortune

Potential IPO Company News

• SpaceX Eyes $15 Billion in 2024 Sales on Starlink Strength (Musk previously stated Starlink spinoff IPO is possible) — Bloomberg

General IPO Commentary & Post-IPO Coverage

• Arm ($ARM), Instacart ($CART), and Klaviyo ($KVYO) report earnings this week — Bloomberg

📈 2023 IPO Trading Stats

Daily Moves of the $5B+ IPO Clan

👀 Upcoming Action

Deal Announcements / Terminations / Closings

Announcements

• Hilton Grand Vacations ($HGV) will acquire Bluegreen Vacations ($BVH), a “vacation ownership company that markets and sells vacation ownership interests and manages resorts in popular leisure and urban destinations”. — PR // SF

  • Transaction Details: All-cash at $75 per share, over 2x Friday’s closing price. Total enterprise value of $1.5B.

  • Reuters Coverage

• Crescent Point ($CPG) to buy Hammerhead Energy ($HHRS) a Calgary-based energy company, with assets and operations in Alberta targeting the Montney formation. CPG PR // HHRS PR

  • Transaction Details: Cash and stock deal —> C$15.50 per HHRS share + 53.2M CPG shares, valued at ~C$21 per HHRS share at the time of announcement. Total consideration of appx. $2.55B, including $455M in assumed net debt.

  • Bloomberg Coverage

• Kinder ($KMI) to Buy NextEra’s ($NEP) South Texas Gas Pipes for $1.8 Billion — Bloomberg

🗞️ News

Talks / Rumors and Other Potential Deals

• Cigna ($CI) explores shedding Medicare Advantage business - Reuters

  • Snippet: The discussions with interested parties, including other companies and private equity firms, are at an early stage and Cigna may decide to keep the business, the sources added, requesting anonymity because the matter is confidential.

    Cigna's Medicare Advantage business generated 4.4% of the company's $179.4 billion in revenue from external customers in 2022.

• China Buyout Firm Ascendent Offers $1.6 Billion for Hollysys ($HOLI) — Bloomberg

• Football helmet-maker Riddell (Private co) explores sale — Reuters

Deal Coverage and Updates

• Abcam ($ABCM) shareholders approve $5.7 billion Danaher ($DHR) deal — Reuters

• FTC seeks information on $8.5 bln Tapestry ($TPR) - Capri ($CPRI) deal — Reuters

  • Snippet: Tapestry agreed to buy Capri in August, as the luxury brands looked to consolidate top labels such as Tapestry's Kate Spade, Stuart Weitzman and Capri's Jimmy Choo and Versace under one roof to compete with larger rivals such as Paris-listed LVMH (LVMH.PA) in the European luxury market.

    The companies said on Monday they expect to respond "promptly" to the FTC's request and aim to close the deal as planned, in 2024.

General M&A Commentary / Post M&A Coverage

• X’s Elon Musk Hired a CEO With TV Roots. She’s Showing Them. — WSJ

📈 Live Merger Trading Stats

Daily Gainers & Losers — By Daily % Chg. among the parties (Targets/Acquirers) of active mergers valued at $5B+

SPAC Action

Approvals/ Completions

• OmniLit ($OLIT) closed its merger with Syntec Optics. The combined company will trade under the new ticker, $OPTX starting tomorrow. — PR

🗞️ News

De-SPAC Updates

• Astra ($ASTR) which previously reported it defaulted on a debt agreement, announced it secured additional debt financing and obtained waivers for existing and prospective defaults from early Astra investors. The company is continuing discussions with the investors for further debt financing. — PR

• Foxo Technologies ($FOXO) effected a 1-for-10 reverse stock split and will begin trading on the split adjusted basis today.

📈 De-SPAC Trading Stats

Daily De-SPAC Gainers & Losers — Top 3 & Bottom 3 (By Daily % Chg. among 2019- De-SPACs)

Notable Delistings, Bankruptcies

Bankruptcy News

• WeWork’s ($WE) stock was halted midday yesterday ahead of its bankruptcy filing. Last night the company officially announced it filed for Chapter 11 bankruptcy. — PR

• SoftBank makes another bet on WeWork, hoping landlords will too — Reuters

  • Snippet: WeWork's $3 billion debt for equity swap deal with its creditors marks the latest effort by top shareholder SoftBank to revive the troubled office-space provider and recoup some of the billions it has invested.

    Whether the bet succeeds now depends on WeWork renegotiating the costly long-term leases it signed during the boom years and is now unable to pay, forcing it to file for bankruptcy on Monday.

The People’s Takes — Memes and More from the Interwebs

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