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Recent high-flying IPOs have seen their stocks return to their offer prices, 10-year yields hit a 16-year high, India-Canada tensions are growing, Apple is giving out smaller raises to its retail employees, the Saudi crown prince is pro-sportswashing, and UAW’s demand for a 32-hour workweek took a backseat in negotiation talks.

In a cutthroat business, it’s always better to be the one with the edge. Tegus has 60k+ expert interview transcripts, and the most robust benchmarking, charting and comps tooling. Kickstart your free trial today. 

Let’s dive in.

Before The Bell

Markets

• US stocks fell as Treasury yields popped to multi-year highs and investors worried over a possible government shutdown

  • The Nasdaq led indices with a 1.82% decline

• US 10Y yield hit its highest level since 2007

• US 2Y yield reached 5.16%, its highest level since 2006

• Asian stocks fell after China left its one-year and five-year loan prime rates unchanged

Earnings

• VinFast shares fell ~8% after it reported a 131% increase in Q2 revenue and a $527M quarterly loss (RT)

• Darden Restaurants topped analysts’ Q1 earnings and revenue estimates as net sales grew 11.6% YoY, while management reiterated its FY 2024 outlook (CNBC)

• Full calendar here

Headline Roundup

• Shutdown looms as US House Republicans again block own spending bill (RT)

• Hyped trio of IPOs drop toward offer price with rates still high (BBG)

• Stocks sink most in six months after recent runup in treasury yields (BBG)

• 10-year yields hit 16-year peak as Fed sees higher for longer (RT)

• Inside Apple’s spectacular failure to build a key part of its new iPhones (WSJ)

• Nvidia, other US chip stocks stall over valuation, industry worries (RT)

• Hedge fund boss who shorted oil stocks says strategy blew up (BBG)

• Here’s everything Microsoft announced at its Surface and Copilot event in New York (CNBC)

• China’s ultra-rich Gen Zs flock home as global tensions rise (BBG)

• Russia’s diesel ban threatens to roil global markets (BBG)

• India suspends visas, Canada pulls diplomats amid tensions (BBG)

• August home sales declined to slowest pace since January (WSJ)

• Former Bridgewater CEO Dave McCormick would get big money backing for Pennsylvania US Senate run (CNBC)

• Apple is giving out smaller raises to retail employees in post-pandemic slowdown (BBG)

• UAW’s demand for 32-hour work week takes back seat in talks (WSJ)

• Saudi crown prince says he will keep ‘sportswashing’ as criticism of the practice grows (CNBC)

• Migrants overwhelm Texas city of Eagle Pass (WSJ)

A Message From Tegus

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Tegus is the only end-to-end research platform that streamlines access to public financials while making it easy to understand customer perspectives, competitive landscapes, core business challenges and the drivers behind company data.

In a cutthroat business, it’s always better to be the one with the edge.

Deal Flow

M&A / Investments

• Cisco Systems agreed to acquire cybersecurity software company Splunk in a $28B deal (BBG)

• Magellan Midstream Partners' unitholders voted in favor of its sale to larger rival ONEOK for $18.8B (RT)

• An investor consortium led by Blackstone is exploring a potential acquisition of European online classifieds company Adevinta, which has a market value of $9.7B; the deal would be one of the year’s biggest buyouts (BBG)

• Canada's biggest steelmaker Stelco Holdings is pursuing a bid for US Steel, which has a market cap of ~$7B (RT)

• B.Grimm Group is considering a minority stake sale in its Thailand gas-fired power portfolio, which could be valued at $2B in a potential deal (BBG)

• Detergent maker Nirma will acquire a 75% stake in Glenmark Pharma’s life sciences unit for $680M (RT)

• Novo Holdings, the controlling shareholder of weight loss drugmaker Novo Nordisk, closed its acquisition of biopharmaceutical company Paratek Pharmaceuticals in a $462M deal (RT)

• UK oil and gas producer Waldorf Production is considering a potential sale after its growth plans were crippled by the UK’s energy profit tax (BBG)

• Japanese commercial broadcast TV network Nippon Television Holdings acquired Studio Ghibli, the animation house behind Spirited Away, My Neighbor Totoro and other movies (BBG)

VC

• UK SME lending fintech service Fleximize raised a $167M securitized round from Goldman Sachs and Citi (EU)

• CMR Surgical, a UK-based developer of surgical robotics, raised $165M in funding from SoftBank, Ally Bridge Group, and more (FN)

• Premium homeowners insurance provider Openly raised a $100M Series D led by Eden Global Partners (FN)

• DalCor Pharmaceuticals, a precision medicine startup focused on cardiovascular disease, raised an $80M Series D led by Investissement Quebec and Fonds Propres d’Investissement Quebec (FN)

• Curve, a financial super app that connects cards from multiple issuers, raised a $71.2M Series C extension led by Britannia, IDC Ventures, Cercano Management, and others (PRN)

• Autonomous trucking startup Fernride raised a $50M Series A led by Deep Tech and Climate Fonds (FN)

• Multifamily investment firm Ashcroft Capital received $50M in growth capital from Temerity Strategic Partners (FN)

• Inbound Health, a startup enabling health systems to offer acute and post-acute care in the home, raised a $30M Series B led by HealthQuest Capital (FN)

• Diligent, an Austin-based nursing robot startup, raised a $25M round led by Canaan (TC)

• Corsair Pharma, a biotech company developing a transdermal treprostinil prodrug, raised a $23M Series B led by New Rhein Healthcare Investors (FN)

• Osteal Therapeutics, a clinical-stage biopharmaceutical company developing new musculoskeletal therapeutics, raised a $23M Series C led by Asteroid Partners (VC)

• Mesh, a startup helping customers transfer and manage digital assets, raised a $22M Series A led by Money Forward (TC)

• Atropos Health, a startup helping unlock real-world data for healthcare, raised $21M in funding led by Presidio Ventures and Samsung Next (BW)

• Lynk Pharmaceuticals, a China-based clinical-stage biotech company, raised a $20M Series C-2 led by China Grand Prosperity Investment, Haibang Venture, and others (FN)

• KYP.ai, a data-driven insights platform for process automation, raised an $18.7M Series A led by OTB Ventures (FN)

• Day Zero Diagnostics, an infectious disease diagnostics company, raised a $16M round led by New Enterprise Associates (VC)

• Data search and cataloging platform Secoda raised a $14M round led by Craft Ventures (TC)

• Atlys, an Indian startup building a digital platform to make the visa process easier, raised a $12M Series A led by Peak XV Partners and Elevation Capital (BW)

• Allocate, a platform providing investors with a streamlined way to invest and manage private investments, raised $10M in financing led by Gopher Asset US, an affiliate of Noah Holdings International (PRN)

• Rocket.Chat, a Wilmington-based startup providing an open-source chat platform, raised a $10M Series A led by Alexia Ventures, Endeavor Catalyst, and more (FN)

• Rain, a startup building aerial wildfire containment tech, raised a $9.7M seed round led by DBL Partners (BW)

• Rencore, a Munich-based provider of software for secure collaboration in the cloud, raised an $8M round led by UVC Partners (FN)

• Medeloop, a startup providing an AI-driven platform to integrate, harmonize, and analyze health data, raised an $8M seed round led by General Catalyst (FN)

• The Bettering Company, a luxury cannabis edibles brand, raised a $6.7M round led by Peter Rahal (FN)

IPO / Direct Listings / Issuances / Block Trades

• Chipmaking equipment maker Kokusai Electric will list on the Tokyo Stock Exchange on October 25th, raising $750M at a ~$3B valuation (RT)

• Chinese artificial intelligence startup Beijing Fourth Paradigm is set to price its IPO on the low end of its price range and raise $131M (RT)

• US beauty and fragrance company Coty is moving forward with a proposed Paris listing that could take place in the coming weeks (BBG)

Debt

• Banks including Goldman Sachs and JPMorgan Chase sold $9.7B worth of debt to fund the partial LBO of Worldpay (BBG)

• Goldman Sachs kicked off the sale of a $1.7B leveraged loan to support Formula 1’s efforts to reprice an existing loan (BBG)

• A group of banks led by Deutsche Bank sold a $550M leveraged loan to support Bain Capital Private Equity’s acquisition of Brazilian restaurant chain Fogo de Chão (BBG)

Fundraising

• Kurt Baker, a Millennium Management alumnus and former head of Morgan Stanley’s Asia prime brokerage, is seeking to raise ~$3B for a multi-manager hedge fund 30th Century Partners (BBG)

Crypto Corner

• An appeals court upheld a judge’s ruling to jail SBF ahead of his October 3 fraud trial (RT)

• US crypto firm Galaxy Digital aims to grow in Europe (RT)

• 95% of digital collectibles may now be worthless (BI)

Exec’s Picks

• This Axios piece explained Airbnb’s plan to make users fall in love with their company once again.

• Shopify was one of the biggest winners of the Klaviyo IPO, according to The Information.

• Morgan Housel joined the Odd Lots podcast to explain how the pandemic changed how we think about money.

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