Chinese IPO detour benefits Hong Kong only so much 8 Jul 2021 Didi’s U.S. listing debacle has lifted expectations that more mainland companies will go public closer to home. New York’s star may be dimming, but Beijing’s crackdown on overseas market debuts sounds sweeping. Even the Asian financial hub’s $80 bln bourse faces fresh hurdles.
Capital Calls: U.S. jobs, Fitness IPO 7 Jul 2021 Concise views on global finance: U.S. employment vacancies tip scales towards workers; Mark Wahlberg-backed F45’s IPO values it at twice what an attempted SPAC deal did last year, justifiably.
Wise’s low-fee vision goes blurry in London float 7 Jul 2021 The money-changing app is paying Goldman Sachs and others 13 mln pounds for its direct stock market listing. That’s steep relative to the tiny number of shares on offer, though investors benefit from future liquidity. Either way, it’s more ambiguous than Wise’s cheap FX rates.
Capital Calls: JEDI’s demise, Toyota’s weird world 6 Jul 2021 Concise views on global finance: The cancelation of a $10 bln U.S. government cloud contract shows negotiating big projects is sometimes a matter of guesswork. Meanwhile, the auto firm that pioneered just-in-time manufacturing is cashing in on a chip stockpile and red-hot market.
How much is Wise worth? 5 Jul 2021 The money-changing app is listing in London without setting a price. Its worth depends largely on how much more foreign-exchange business CEO Kristo Käärmann can win from banks. A Breakingviews calculator shows Wise is due a roughly 20% upgrade from last year’s $5 bln price tag.
Wise’s FX land grab merits $6 bln valuation 5 Jul 2021 The money-changing app is listing in London without setting a price. Its worth depends largely on how much more foreign-exchange business CEO Kristo Käärmann can win from banks. A Breakingviews calculator shows Wise is due a roughly 20% upgrade from last year’s $5 bln price tag.
Goldman’s big $62 mln China STAR deal has limits 30 Jun 2021 The Wall Street bank is investing its own funds in Beigene’s Shanghai float. It’s a requirement to lead listings on the startup market and a due diligence nightmare for banks. Goldman’s backing of an existing $34 bln client will be hard to repeat.
Profitability makes Wise a true fintech unicorn 23 Jun 2021 Like financial-technology rivals, the UK money-changing group has a snazzy app and disruptive business model. What sets it apart is healthy earnings. Big banks can’t match its service without parting with fees worth $250 bln a year. Smaller ones may end up using Wise’s service.
Fintech Wise’s hybrid IPO may be a one-off for UK 17 Jun 2021 Like Spotify in the U.S., the money transfer group will list in London without inviting bids from would-be investors. A direct listing is alluring, but only open to companies that don’t need cash and already have a base of external shareholders. Few other hopefuls fit the bill.
Capital Calls: Corporate America blowback 15 Jun 2021 Concise views on global finance: An investor lawsuit against Trump-era rules on shareholders' proposals is the latest sign of the tables turning.
Chancellor: This time isn’t different, but scarier 3 Jun 2021 By any number of proven valuation measures American stocks are poised to deliver negative returns in future years. To believe otherwise is to suggest that “this time is different” – four of the most dangerous words in investing parlance. Active managers will have their day.
Investors place bold bets in UK deal tussle 28 May 2021 Shares in five takeover targets including Spire Healthcare and John Laing are trading at or above agreed offers. Big shareholders like Allianz are protesting lowball bids while merger arbitrageurs are betting on higher prices. But buyers have plenty of reasons to hold firm.
UK sends mixed message with London IPO veto 26 May 2021 Chancellor Rishi Sunak is seeking powers to block stock market offerings that threaten national security. Even if used rarely, the move is at odds with his drive to lure firms to list in London after Brexit. It’s another sign of the government’s ideological inconsistency.
The Exchange: South Africa’s prospects 25 May 2021 Johannesburg Stock Exchange CEO Leila Fourie tells Swaha Pattanaik how South Africa’s economy has coped with Covid-19. In an interview recorded for the International Economic Forum of the Americas, she also flags sectors that will rebound fastest and discusses ESG investing.
Crazy metal prices inflate miners’ capex conundrum 14 May 2021 Sky-high copper and iron ore values should make the likes of Rio Tinto and BHP invest in extra supply for the green energy transition. But shareholders wary of past write-downs want dividends, not risky new projects. The higher prices climb, the starker the disconnect.
Viewsroom: China’s baby bust, European SPAC boom 13 May 2021 China’s census data showed the population grew just 0.53% every year in the decade to 2020, with fertility rates dropping to Japanese levels. That’s bad news for growth. And European rainmakers like Claudio Costamagna and Ian Osborne offer market-friendlier blank-check deals.
Dogecoin needn’t be any sillier than bitcoin 12 May 2021 The canine cryptocurrency lacks bitcoin’s supply limit, ethereum’s usefulness, and the heft of both. But it’s hyped by Elon Musk and others, which could help what started as a joke compete with other digital coinages. Crypto is young enough that there’s room for an underdog.
Naspers goes all-in to crush South Africa discount 12 May 2021 The $100 bln internet group will swap shares with Dutch offshoot Prosus, removing some pressure on its stock. The resulting cross-shareholding is as far as CEO Bob van Dijk can go. Shrinking Prosus’ persistent shortfall to its $212 bln stake in China’s Tencent is a harder task.
Europe’s late SPAC boom turns kinder to investors 11 May 2021 Italian banker Claudio Costamagna and British investor Ian Osborne are listing blank-cheque companies on the Continent. Their offerings try to better link founder rewards to shareholder returns. With the market for SPACs looking crowded, fairer structures will be more common.
Commerz equities deal holds lesson for big rivals 11 May 2021 The German lender is outsourcing share trading to regional broker ODDO. It’s a neat way to quit a low-margin business while keeping corporate clients happy. The logic of a consolidating sector may force others with subscale markets units, like SocGen and HSBC, to follow suit.