Didi faces long and perilous journey to Hong Kong 3 Dec 2021 The $38 bln ride-hailing group is eschewing its New York listing for one in the Asian hub amid pressure from Beijing. A take-private would be costly; migrating American depositary receipts could be tricky. Didi will have to navigate Hong Kong's tougher IPO requirements too.
Alibaba looms larger than Beijing in Weibo IPO 3 Dec 2021 China's $8 bln answer to Twitter is readying a secondary listing in Hong Kong. The company’s sway over public opinion means it is a frequent target of censorship campaigns and regulatory crackdowns. That makes the e-commerce giant's 30% stake a political liability for both.
Super-app Grab gets rear-ended 3 Dec 2021 The group’s shares plunged 20% on debut following its $31 bln SPAC merger. Unlike China’s Didi or India’s Paytm, the crash wasn't so much its fault; the Altimeter- and Temasek-backed deal was well-enough constructed. But Grab is in a market pile-up that won’t clear soon.
Super-app Grab rides high into New York debut 1 Dec 2021 The Southeast Asian giant held firm in a difficult year. It’s on track to hit targets set from its record $31 bln SPAC merger, supporting a rich 13 times sales valuation multiple. Margins in its ride-hailing business show the promise of its food-delivery-to-fintech ambitions.
Inditex injects doubt into smooth-running machine 30 Nov 2021 Spain’s $100 bln fast fashion group replaced Executive Chairman Pablo Isla with founder Amancio Ortega’s daughter, Marta. Its valuation reflects investor faith in Isla’s digital strategy, which helped Inditex weather Covid-19. The abrupt pivot to untried leaders will test that.
Retail has golden opportunity to stay in the black 29 Nov 2021 American consumers are on track to spend record amounts during the holiday season, despite scarce discounts and low confidence. That suggests retailers have some pricing power, which at least gives them some room to offset the squeeze they’re facing from workers and suppliers.
Capital Calls: Moderna’s $40 bln shot gain 29 Nov 2021 Concise views on global finance: News of a spreading Covid-19 variant added $40 bln to the biotech’s market value. Investors are pricing in about 3 billion extra jabs. That’s rosy given competition and uncertainty.
Pinduoduo’s strategy sows further seeds of doubt 25 Nov 2021 The Chinese e-commerce company rocketed to relevance by single-mindedly challenging Alibaba. Following policy crackdowns and rising costs, it’s expected to swing back to a quarterly operating loss. New boss Chen Lei would benefit from looking beyond farming for additional growth.
Paytm battering targets raw valuation underbelly 24 Nov 2021 India’s fintech giant is worth $13 bln after a 31% post-IPO drop. That remains exuberant at 26 times sales. The company is still growing, but revenue pressure is a concern, and costs are high. Success requires official help on fees and lending. That’s far from guaranteed.
Capital Calls: Risky banks, UK SPAC, AO World 23 Nov 2021 Concise views on global finance: A global watchdog reckons JPMorgan is once again the world’s most systemically important lender; investment firm Hambro Perks launches a UK blank-cheque vehicle; the British online retailer issues its second profit warning in two months.
Bezos could be $90 bln richer with Amazon breakup 19 Nov 2021 The $1.8 trln giant manages its AWS cloud group separately from e-commerce. On its own, the former may be worth as much as the entire company is now. J&J, GE and Toshiba are heading to splitsville. The world's richest man could become even wealthier by adding Amazon to the list.
Paytm IPO ends Morgan Stanley India winning streak 19 Nov 2021 The fintech firm’s 27% first-day drop contrasts with pops the Wall Street giant oversaw for Nykaa and others. Paytm execs and powerful buyers and sellers like Alibaba, SoftBank, and BlackRock all played a role in the fiasco. But as lead bank Morgan Stanley has most to lose.
JD looks sturdier than Alibaba in Beijing’s storm 18 Nov 2021 Quarterly earnings at the Chinese e-commerce giants fell as regulatory and other woes take their toll. But the smaller e-retailer is gaining market share while revenue at Alibaba’s core online shopping unit barely grew. The diverging fortunes will bolster JD’s valuation premium.
Paytm IPO misery leaves Indian tech looking West 18 Nov 2021 The Alibaba and SoftBank-backed fintech company plunged a bruising 24% on its debut, in contrast to huge first-day pops for Nykaa and Zomato. The market is mispricing tech IPOs. It revives the debate about listing in a New York market more accustomed to money-losing firms.
Capital Calls: Stadium naming, Diageo, Evolution 17 Nov 2021 Concise views on global finance: Crypto.com is paying heavily to rename Staples Center; The drinks maker plans to grow its market share by 50% in the next decade; the $36 bln Swedish gambling firm lost $2 billion of its market capitalisation after accusations of illegal gambling.
Richemont beats orderly retreat from digital fight 12 Nov 2021 Under pressure from activists, the Cartier owner plans to spin off its loss-making online arm to rival Farfetch and others. If valued in line with peer Zalando it would be worth a respectable 4.7 bln euros. A sale should help Richemont close the valuation gap with luxury rivals.
Capital Calls: Lordstown Motors, CVC 12 Nov 2021 Concise views on global finance: Shares of the short seller-targeted electric vehicle startup are falling as it drifts into the slow lane; the private equity company aims to bulk up with a 1.6 billion euro offer for Amsterdam-listed Intertrust.
India’s record IPO sets tough stage for next one 11 Nov 2021 Unprofitable Paytm sold $2.5 bln of shares at a dizzying valuation multiple but a muted reception defied the payments giant’s early buzz. It suggests another household name, state insurer LIC, whose issuance will be multiples larger, faces a slog unless it checks its ambition.
Beijing gaming curbs raise Tencent overseas stakes 10 Nov 2021 The Chinese tech giant’s quarterly adjusted earnings suffered a rare fall as a regulatory crackdown weighed on domestic video game sales. It adds urgency for Tencent to find growth in new markets, including by acquisition. But even small deals face scrutiny from U.S. regulators.
Indian startup repackages deliveries for investors 9 Nov 2021 Delhivery has grown its reach by relying on partners for warehousing and last mile, so it owns fewer assets than FedEx and Chinese peers. That leaves it more dependent on tech and exposed to volatile costs like rising rents. A $5.5 bln IPO valuation might be slow to stack up.