☕️ Bad haircut

Markets have taken a little off the top.

Good morning.

InstaCart is looking to IPO two years after its last private funding round – but the ecommerce company has taken one almighty haircut to pull it off.

Back in 2021, it raised VC funds at a US$39 billion valuation. This week, it’s floating in the far more reasonable range of US$7 billion.

The 80%-plus discount is a sign of the times as markets come back to their senses amid higher rates. But investors say it’s also a crucial litmus test for new tech listings in 2023.

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Syrah Resources has closed a $234 million loan from the US government to get its Balama graphite mine, the largest outside of China, back up and running.

The miner halted production in Mozambique earlier this year as metal prices plummeted due to a glut. With summer production coming to an end, Syrah is counting on prices rebounding as inventories dwindle.

THE QUICK SYNC

  • Albemarle’s bid for Liontown Resources has ignited takeover interest in Australia’s junior lithium miners. (Capital Brief)

  • Strong interest has pushed Arm towards the top end of its share price range.(Financial Times)

  • The European Central Bank has downgraded its growth forecasts, expecting Germany to enter a prolonged recession. (CNBC)

  • Google goes to court to begin a major antitrust showdown. (Financial Times)

  • The FDA has approved new COVID-19 boosters from Pfizer and Moderna. (WSJ)

  • Nato will launch the biggest military exercise since the Cold War to prepare for possible Russian aggression. (Financial Times)

TRADING FLOOR

M&A:

  • Premier Investments has been strategically using a takeover rule exception to gradually increase his ownership stake in Myer to up around 30%. (AFR)

  • Adamantem Capital is putting Legend Corp up for sale and has Miles Advisory to present the restructured business to potential trade buyers. (AFR)

  • Joe Lewis has expanded his stake in the Australian beef giant AACo, despite facing allegations of insider trading. (AFR|SMH)

  • Intermediate Capital Group has initiated a renewed auction process for SCF Containers. (AFR)

  • Vitol is considering reducing a portion of its 40.85% stake in Viva Energy. (AFR)

  • Perpetual is urging Origin Energy's board and management to negotiate a more favourable deal with suitors Brookfield and EIG Partners. (AFR)

  • Incitec Pivot confirms that discussions are ongoing regarding the potential sale of its fertilizers business in a complex transaction. (AFR)

  • Atturra has struck an agreement with Cirrus Networks' board to acquire the company for $49m. (BNA)

Capital Markets:

  • Santos is currently issuing a 10-year US dollar bond to raise funds for future capital expenditures aimed at supporting growth projects. (AFR)

  • Investment bankers are trying to rev up interest in car parts company Bapcor. (The Australian)

  • Zen Energy has secured $54m in new debt financing. (AFR | Capital Brief)

  • Resouro Gold is steadily building a significant Australian shareholder base, with Taylor Collison actively preparing for its listing on the ASX. (AFR)

VC:

  • Slyp, a digital receipt startup supported by all four of Australia's major banks, has laid off 30% of its workforce. (AFR)

Others:

  • Navitas is showing strong signs of recovery in the post-pandemic period. (The Australian)

  • Investment bankers are still exploring ways to increase Pepper Money’s valuation. (The Australian)

  • Alibaba's shares declined by 2.9% following the resignation of its cloud division leader. (Capital Brief)

  • Sims Ltd anticipates a margin squeeze in the September quarter due to reduced steel demand and low scrap prices. (Capital Brief)

  • David Foster assumes the role of the new chair at Bendigo and Adelaide Bank. (Capital Brief)

  • Senior executive Sam Charmand resigns while Qantas awaits a High Court verdict. (SMH)

  • Guzman y Gomez (GYG) has announced a significant 32% increase in global network sales, reaching $759m in FY23. (BNA|SMH)

  • EnergyLab has introduced its inaugural Climate Tech Charge program. (BNA)

  • The new CEO of AMP Capital has a plan to restore the fallen icon (Capital Brief)

  • Auscap Asset Management is entering the long-only arena by introducing a midcap Australian equities fund. (AFR)

  • Scott Ayres, a Macquarie Private Wealth veteran is set to jump ship to Shaw and Partners this week. (AFR)

  • Alvarez & Marsal continues its expansion in the professional services sector, recruiting another partner from one of the big four firms. (AFR)

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THE WATERCOOLER