Policybazaar IPO stacks up in a price comparison 4 Aug 2021 The SoftBank-backed insurance and loans marketplace is worth 42 times sales on a mooted $5 bln valuation. Its leading digital market position and blistering growth justify the high multiple, despite rising competition from rivals like Paytm which could beat it on distribution.
Alibaba can shake off its China discount 2 Aug 2021 The e-commerce titan's shares have tumbled 40% from an October 2020 peak as Beijing cracks down on tech. It’s now trading at a big discount to Amazon even though both are growing profit at about the same rate. Alibaba's resilient businesses should help the valuation gap narrow.
Grab’s tiny deal spotlights big Indonesia turf war 30 Jul 2021 A deal to shore up ties with a Jakarta conglomerate recalls the country’s importance for the super-app’s growth ahead of its $40 bln New York debut, and as top local rivals merge. Grab’s Southeast Asian footprint has benefits, but Indonesia carries outsize strategic value.
India will give China tech a run for its money 26 Jul 2021 A hot list of upcoming Mumbai IPOs is captivating foreign funds that scored big backing startups from Shenzhen, Shanghai and beyond. First-time local investors are adding to the frenzy. Zomato’s market debut epitomises the opportunities for similar valuations and returns.
Capital Calls: Twitter, Domino’s Pizza 22 Jul 2021 Concise views on global finance: Jack Dorsey’s social network reported a 74% bump in revenue despite a slowdown in adding new users; meanwhile, Domino’s Pizza shows one thing that hasn’t abated in 2021 is customers’ love of takeout pies.
Capital Calls: Volvo, Moderna, Mediobanca 21 Jul 2021 Concise views on global finance: The Swedish automaker boosts its appeal ahead of a possible IPO by buying out its Chinese joint venture partner; joining the S&P 500 will cut both ways for the vaccine maker; another Italian tycoon ups his stake in the Italian investment bank.
Capital Calls: BBQGuys go easy on the hot sauce 20 Jul 2021 Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.
Zara’s Chinese rival threatens from the shadows 14 Jul 2021 Online fashion site Shein cranks out ultra-cheap designs at lightning speed. It discloses next to nothing about its operations and tried to scrub its Chinese origins off the internet. Its opacity is strategic, but competitors had best study its model.
South Asia bourses face Hong Kong-style IPO test 12 Jul 2021 Bukalapak’s and Zomato’s respective debuts in Indonesia and India will help startups decide whether to list at home. The Fragrant Harbour has proven it has what it takes to attract hot tech names. Mumbai’s stellar secondary market makes it better placed to replicate that success.
AirAsia super-app SPAC will require sick bag 8 Jul 2021 The Malaysian carrier led by Tony Fernandes is swapping a 4.8% stake in its fledgling e-commerce and fintech division for Gojek’s Thai business. The deal imputes a $1 bln valuation, and a sky-high multiple of sales. A planned spin into a public listing promises a dizzying ride.
Suning bailout might model China Evergrande rescue 6 Jul 2021 A public-private consortium including Alibaba has thrown the debt-laden Chinese retailer a $1.4 bln lifeline. There are now lots of cooks in Suning’s kitchen, complicating a business turnaround. But it might be a trial run for restructuring its troubled ally Evergrande.
Capital Calls: Glencore chair, Chinese e-commerce 5 Jul 2021 Concise views on global finance: The commodity giant picks a new chair familiar with its stamping grounds; Beijing cranks up the pressure on companies over data abuses.
India’s e-commerce rejig looks too protectionist 5 Jul 2021 A ban on discounted flash sales and other proposed rules shield offline sellers and squeeze Amazon and Walmart, but excessive compliance requirements will make it hard for small businesses too. It’s an ill-timed setback for one of the country’s most exciting growth stories.
China puts New York IPO fine-print risk in bold 5 Jul 2021 Chinese regulators have opened investigations into two more companies listed in the city after hammering ride-sharing app Didi just days after it raised $4.4 bln there. Investors that bought into these deals may blame Beijing or bankers, but they had ample, if indirect, warning.
Pricey Finland pulp deal offers paper-thin returns 2 Jul 2021 Shares in 5 bln euro Finnish engineer Valmet fell after it agreed an all-share takeover of valve maker Neles. Although both operate in paper, the modest cost savings on offer suggest CEO Pasi Laine may struggle to generate decent returns. Investors are right to be sceptical.
Pre-owned watch IPOs ride second-hand wave 30 Jun 2021 As with fashion, demand for “pre-loved” bling timepieces is booming. That, and a switch to online buying, underpins the mooted $1 billion-plus listing valuations of web players Chronext and Chrono24. For investors, the latter’s breadth of choice makes it more Rolex than Timex.
Sea banks on rising with fintech tide 29 Jun 2021 The Tencent-backed gaming-to-shopping group, at $147 bln, trades at a rich sum of its parts. Investors believe it can ramp up commission-based fintech services in underbanked Southeast Asia. Its trove of licences minimise risk. Boss Forrest Li has built an enviable position.
Amazon’s lax policy on waste belongs in the bin 24 Jun 2021 The $1.8 trln retailer has been destroying millions of unsold items in the UK alone, ITV says. For now Amazon is benefitting from a lack of net zero emissions-style global standards on waste, and a grey area over unsold stock liability. It should be prepared for that to change.
JD’s governance upgrade starts in Hong Kong 23 Jun 2021 The $112 bln e-tailer is adopting investor-friendly measures like holding annual meetings and allowing the board to convene without boss Richard Liu. JD now has a female director, too. The city’s listing rules are driving some changes, and more can be done. But it’s a start.
Alibaba may be Suning’s white knight in hiding 22 Jun 2021 The e-commerce giant’s 20% stake in the Chinese retailer has plunged by two-thirds in value since it bought it in 2015. The shares have further to fall as Suning faces $7 bln of debt due. Given Alibaba’s push into bricks-and-mortar commerce, a takeover could benefit both sides.