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.
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.
SenseTime IPO could help HSBC gain recognition 26 Nov 2021 It’s the only Western lead adviser on the AI dragon’s mooted $2 bln Hong Kong market debut. The issuer’s spot on a U.S. blacklist adds a degree of difficulty to the large Chinese stock sale. That makes it an especially bold way to showcase renewed investment banking ambitions.
Chobani founder seeks frothy IPO cream 24 Nov 2021 An Oatly-like valuation for the Greek-yogurt maker could make boss Hamdi Ulukaya’s stake worth $8 bln. Valued like Danone, he would be worth about a quarter of that. A valuation closer to the latter is reasonable, but Ulukaya can’t be blamed for reaching for a yogurt substitute.
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.
Plastic-surgery app MBO aggravates governance scar 23 Nov 2021 Boss Xing Jin wants to buy the 85% he doesn’t own of New York-listed So-Young, which matches users with beauty services. Shares have slumped since its IPO and China may regulate ads. But Xing’s supervoting stock means investors have themselves to blame for any forced face-lift.
Capital Calls: Eni spinoff 22 Nov 2021 Concise views on global finance: The $50 bln Italian oil group has a new name for the renewable energy and retail arm it plans to partially 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.
Razer’s $4.5 bln buyout plan has a serrated edge 19 Nov 2021 The purveyor of pricey keyboards may swap a Hong Kong listing for one in New York as part of a management-led deal. A video-gaming fanbase gives it meme-stock potential while its Southeast Asian fintech unit might look hotter stateside. But any valuation gains may be subtle.
Capital Calls: Biden’s deficit, Austria lockdown 19 Nov 2021 Concise views on global finance: A nonpartisan analysis finds a $160 billion hole in the U.S. president’s social programs; while new Covid restrictions spark selloff in European airlines and hospitality.
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.
Ariston IPO is enticing play on green energy wave 17 Nov 2021 The family-owned maker of heat pumps and water heaters is going public in Milan at a valuation of up to 4 bln euros. With demand for energy-efficient heating systems set to boom, it’s in a sweet spot. A discount to rivals A.O. Smith and NIBE Industrier should help inflate demand.
Bitcoin miner’s green patina is fool’s gold 17 Nov 2021 In a somewhat novel twist for the power-sucking cryptocurrency business, Iris Energy relies mainly on renewables. That probably helped boost its valuation in a $1.6 bln IPO, but it feels like style over substance. And the climate hype cannot mitigate some serious risk factors.
Capital Calls: Philips, Chinese overseas IPOs 15 Nov 2021 Concise views on global finance: The Dutch electronics firm’s shares drop 11% as it faces new questions over a recall of faulty ventilators; the country’s cyberspace regulator makes clear that sensitive data questions for initial public offerings apply to Hong Kong too.
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.
Sweetgreen IPO is flavored with star power 10 Nov 2021 The Naomi Osaka-backed upstart touches all the food fads: online ordering and appeal to the health-and-time conscious. But it is asking for a premium valuation compared to established fast food companies like Chipotle as a result. Osaka can’t compensate for salads’ lack of spice.
Rivian’s IPO pushes EV optimism over the limit 10 Nov 2021 The Amazon-backed electric-car company tore past expectations in its stock market debut, hitting a valuation above $90 bln. While the $1 trln Tesla is showing that electric vehicles might be a better long-term business than gas guzzlers, enthusiasm for the sector is in overdrive.
India’s brutal tech churn washes out Paytm 10 Nov 2021 The one-time fintech star has struggled to sell its $2.5 bln IPO, a contrast to beauty shop Nykaa’s red hot offer and 80% first-day pop. The commoditisation of payments makes it harder for Paytm to profit and easy for competitors to rise. Its ragbag of businesses doesn’t help.
Hertz goes wheels off in post-bankruptcy listing 9 Nov 2021 The rental car firm inked a $20 bln valuation, including debt, in its stock deal. A rise in travel and surge in Avis’s shares helps justify the price. But a car shortage restrains growth and ride-sharing is still a secular threat, and Hertz is now worth more than in 2019.
Capital Calls: Couch-potato habits help Roblox 9 Nov 2021 Concise views on global finance: The video game app’s shares surged 36% on Tuesday after it said sales nearly doubled in the quarter.