☕️ Delaying IPOs

Good morning.

Despite expectations of imminent rate cuts by the US Fed, companies considering IPOs are increasingly leaning toward waiting until 2025, the WSJ reports.

Market volatility, election uncertainty and recent IPO bruises  – apparently the majority of companies that went public in the past 2½ years are trading below their IPO price – have cast doubt on the usual September rush.

Some, like WeRide and StubHub, have already postponed, while others like AI-chip maker Cerebras are reportedly on the sidelines for a late-2024 debut. Though a few like Reddit and Lineage have gone well this year, the broader IPO market remains cautious, leaving executives, bankers and lawyers debating whether to proceed or delay.

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Market movers

Nanosonics shares surged on Tuesday after the company flagged an expected 14% revenue boost in the second half of the year, alongside a full-year gross margin of up to 79%.

Investors were clearly impressed by the upbeat forecast, pushing the stock 22.6% higher as CEO Michael Kavanagh stressed “the growth opportunity for Nanosonics remains significant given the growing pipeline and and ever-increasing emphasis on infection prevention.”

The quick sync

• Ariel Investments portfolio manager Vlad Byalik reckons Southeast Asian markets offer more growth at a fraction of the cost of other markets, with opportunities like SK Hynix, a supplier to Nvidia. (Capital Brief)

• APRA warns the country’s top superannuation funds their investments in private credit are ‘‘opaque’’, echoing ASIC concerns amid a surge of money flowing into the high-risk, high-return asset class.(AFR)

• Plant-based meat producers have had a difficult run, but Aussie startups Harvest B, Vow and v2food are all betting hybrid products and cultivated meats can unlock new demand. (Capital Brief)

• Square Peg founder Paul Bassat has launched public policy lobbying initiative Amplify but remains committed to venture capital as his biggest time investment. (Capital Brief)

• Sacked CFMEU leaders vowed to campaign for the “absolute destruction” of the Labor Party, calling ACTU secretary Sally McManus a class traitor as construction workers walked off the job to attend huge rallies across the country. (AFR)(The Australian)

Trading floor

M&A

• Samsara Eco partnered with NILIT to develop the first nylon 6,6 textile recycling facility, tackling the challenge of recycling this complex fiber. (Capital Brief)

• Austin Engineering is looking for acquisitions to expand its capabilities and scale, assessing opportunities based on their potential benefits. (The Australian)

• Brookfield's $3.5bn sale of Aveo has begun, led by Morgan Stanley and Barrenjoey, with investor soundings and a preliminary sale flyer. (AFR)

• Edgar Bronfman Jr. withdrew his $6bn bid for Paramount, clearing the way for Skydance Media to acquire the studio. (Capital Brief)

• The sale of BGH Capital’s CyberCX is delayed as Telstra is too busy for a major bid. (The Australian)

• Elmo Software, owned by K1 Investment Management, is being sold with improved earnings and revenue after a strong turnaround since its acquisition. (AFR)

• MPC Kinetic is up for sale, valued at $500 million, with Macquarie Capital helping find buyers, mainly from Asia, as one of its private equity owners seeks an exit. (The Australian)

• Blackstone and an IFM-led consortium preserved AirTrunk's $8.5bn OpCo debt for their bids, with key lenders agreeing to roll over the debt pending a signed bid. (AFR)

• Yancoal may target the $3bn Kestrel coal mine if it misses out on the $4bn Anglo American assets. (The Australian)

Capital Markets

• None

VC

• WEHI has launched a $66m fund, 66ten, to support biomedical innovation and bridge the gap between research and commercial viability. (Capital Brief)

• Inform Ag raised $7m in Series A funding from Rural Funds Group, its first external investment after 12 years of bootstrapping. (Smart Company)

People moves

• Telix Pharmaceuticals reorganized its leadership, naming Richard Valeix CEO of Telix Therapeutics and Kevin Richardson CEO of Telix Precision Medicine. (Capital Brief)

• Bronwen Moncrieff, former Zenith head of research, has joined Blackwattle Partners' Investment Council. (AFR)

• Goldman Sachs' Mark Davis has hired Beatrice Tsu-Jones from Morgan Stanley for his equities team. (AFR)

• CBA's chief economist, Stephen Halmarick, will depart in 2025 after 15 years, with a successor being sought. (Capital Brief)

• Shaun Bornstein is leaving Morgan Stanley Wealth Management, with Scarlett Dorney taking over as head of investment solutions. (AFR)

The watercooler