Capital Calls: CVC, Grocer wars, Atos 2 Nov 2023 Concise views on global finance: The European buyout group has postponed its plans to list in Amsterdam; British supermarket Sainsbury’s is thriving, which is bad news for rivals like CD&R-owned Morrisons; French IT firm Onepoint has grabbed a 10% stake in ailing peer Atos.
Renk blowup points to winter of IPO discontent 5 Oct 2023 The defence contractor pulled its $2 bln listing in Frankfurt. A slump in defence stocks and a selloff in bond markets explain the abrupt decision. But given the company’s growth prospects and cautious pricing, its failure is likely to deter would-be followers.
European listing exodus is just beginning 28 Sep 2023 Building materials firm CRH and packaging giant Smurfit Kappa are among a growing list of companies seeking to decamp from Europe to US exchanges. In this Viewsroom podcast, Breakingviews columnists discuss what is prompting groups to leave and why the rot is unlikely to ease.
Coty’s listing treatment is just cosmetic 26 Sep 2023 The $10 bln US-traded beauty firm is going against the tide with a dual listing in Paris. That may give it more visibility with European investors and the funds will cut its debt. But it won’t reduce the risk of its luxury clients boosting their own cosmetic and perfume arms.
Irish listing rot is symptom of wider EU malaise 25 Sep 2023 Packaging giant Smurfit Kappa may follow CRH in ditching Dublin for the US. The exodus, along with other potential defectors, will erode over half of the $172 bln exchange’s value. Without meaty subsidies or a pan-EU capital market, global firms have little reason to stay.
UK biotech sale offers cautionary spin on US pivot 29 Aug 2023 Abcam, a Cambridge-based maker of proteins for research, is selling to Danaher for $5.7 bln. Shifting listing venues from London to New York, as the seller did recently, is in vogue. But given its US buyer has got a good price, it’s a sign that doing so is far from a panacea.
ICE cuts tortuous path through frosty trustbusters 7 Aug 2023 It took 15 months, two divestitures and an 11% discount, but Black Knight’s $12 bln sale to the NYSE operator is set to close after deal enforcers dropped a lawsuit. It’s a small sign that even FTC chief Lina Khan can see clear to settle, if merger participants concede enough.
Cracking the IPO window is a tall task 3 Aug 2023 Sandal-maker Birkenstock is among those angling to defy a downturn in stock-market debuts. In this Viewsroom podcast, Breakingviews columnists discuss how corporate hopefuls on both sides of the Atlantic are trying to thaw the deepest freeze on public listings since the pandemic.
LSEG’s dealmaking payoff arrives in installments 3 Aug 2023 The London Stock Exchange owner’s growth is accelerating as it turns around the Refinitiv data business it bought in 2021. CEO David Schwimmer can point to tangible cost savings and more stable revenue. The $58 bln group’s stock, however, has yet to fully price in the benefits.
Europe’s listless IPOs are red flag for big floats 31 Jul 2023 The region’s string of mostly mid-sized initial public offerings this year are now just 3% above their listing price on average. Such poor performance will make investors wary of backing new ones. That will give larger float candidates, like CVC and Galderma, pause for thought.
Coinbase is a crypto conundrum, squared 20 Jul 2023 The exchange boasts powerful Wall Street allies like BlackRock’s Larry Fink, and a recent court decision gave its shares a boost. But its future still hangs on unpredictable judges and politicians. The real unknown? Why the market thinks Coinbase is worth anything like $25 bln.
Research U-turn is poor fix for vanishing stocks 18 Jul 2023 The UK and EU may let investors pay for equity analysis through trade commissions again. The hope is that this will lead to more research and help small firms list. Yet asset managers will fear higher costs, and the IPO market faces bigger headwinds than a writeup shortage.
Winklevoss twins take strike two with crypto hype 11 Jul 2023 The founding brothers of crypto investment firm Gemini are suing the parent of bankrupt crypto lender Genesis over a soured deal that led to almost $1 bln in losses. The twins, known for their spat with Meta’s Mark Zuckerberg, are a bellwether of another messy tech hype cycle.
Watchdog with teeth can help EU hunt unicorns 11 Jul 2023 Europe’s companies need capital to grow. Yet the bloc’s share of global capital markets is just 9%. A patchwork of national rules stymies Brussels’ efforts to foster cross-border investment. Creating home-grown corporate stars requires a securities regulator with real powers.
Hydropower IPO tests appetite for weather risks 28 Jun 2023 Hidroelectrica’s market sale in Bucharest could value the renewable energy supplier at 10 bln euros, Europe’s largest IPO so far this year. High margins, low debt and fat dividends make the offer palatable. But as droughts intensify, water scarcity may prove a headache.
Hong Kong’s yuan-trading push is a long-term bet 19 Jun 2023 The city’s bourse operator will allow investors to trade some stocks in yuan. The hope is to eventually lure more mainland Chinese and offshore investors. But as with the near decade-old trading link with China, any tangible financial benefits will take a while to flow through.
Shelved soda ash IPO is a UK wake-up call 15 Jun 2023 Turkish-owned WE Soda dropped plans for an $800 mln London listing after a cool reception from prospective shareholders. The firm blamed their cautiousness. The truth is that Britain’s attempts to fiddle with listing rules to revive the IPO market aren’t fooling shrewd investors.
Nasdaq futureproofs itself, but at 2021 prices 12 Jun 2023 Buying fintech firm Adenza for $10.5 bln adds vim to CEO Adena Friedman’s plan to reduce Nasdaq’s reliance on volatile markets. Yet the price, which includes a 15% stake for seller Thoma Bravo, is high. To justify it, Friedman needs bubbly tech valuations to make a comeback.
Coinbase investors are still aiming for the moon 9 Jun 2023 A lawsuit from the US Securities and Exchange Commission poses an existential risk for the crypto exchange. Yet it’s still valued at more than $11 bln, excluding spare cash. Loyal shareholders are betting CEO Brian Armstrong can avoid the crackdown – and find new ways to grow.
Capital Calls: Bitcoin is last crypto standing 6 Jun 2023 Concise views on global finance: SEC action against crypto exchanges Binance and Coinbase clarify the regulator’s thinking on which cryptocurrencies it deems to be securities. The lawsuits threaten every digital token except bitcoin, whose design makes it an outlier.