IPO

Lyft leaves investors with options – and questions

18 March 2019

The ride-hailing firm’s newly disclosed IPO valuation target tops out at $23 bln. That’s compatible with a $100 bln-plus price tag for Uber. Yet both are a big stretch with no profit in sight. Lyft has flaws all its own, too, led by governance. If it’s a choice, it’s not easy.

Lyft makes flattering “contribution” to accounting

14 March 2019

The term commonly means revenue less variable costs. The ride-hailing firm’s take on it excludes even some of those outlays and suggests healthy profit in the future. Like WeWork’s “community-adjusted EBITDA” prospective IPO investors should probably ignore the metric altogether.

Botched Korean IPO puts buyout shop in a bind

14 March 2019

Weak demand forced MBK to pull a $1.5 bln listing of hypermarket buildings owned by Homeplus, which the private equity firm bought from Tesco. Now the retail chain has to repay a buyout loan, but banks might not help. While embarrassing, an asset sale could be the only option.

Lyft maps route to place where all is relative

8 March 2019

What’s the ride-hailing app worth on the stock market: Is it $15 billion, its private value mid-last year, or $25 billion? And will larger Uber top $100 billion? All the players are still private, so there’s nothing to compare. They’d better hope Lyft does a good marketing job.

Blackstone’s Tradeweb inhibits post-IPO governance

7 March 2019

The unit, owned by the buyout firm’s Refinitiv, is going public, using proceeds to reduce the stake held by banks. Supervoting stock will augment Refinitiv’s already 54 pct control over the electronic-trading platform. That’s one reason investors may mark down Tradeweb’s worth.

Lyft IPO has fewer Wall Street seats than it seems

6 March 2019

The ride-hailing firm has booked a staggering 29 banks for its trip to the public market. But only three, led by JPMorgan, will earn a decent fare. That’s an unusually small group. If Uber sticks with recent practice, there will be more wannabe drivers clamoring for their share.

Lyft and Uber could leave other IPOs idling

5 March 2019

The two ride-hailing firms could between them raise twice as much as the $7.1 bln tech debutants managed on U.S. exchanges last year. With Airbnb, Pinterest and others hoping to take similar trips to the public markets, Wall Street needs to get a lot more demand on the roads.

Lyft IPO promises roads to everywhere

1 March 2019

The firm is growing fast in a huge market, and there’s a glimmer of a path to profit. But Lyft is also hemorrhaging cash, faces frightful competition and is dependent on robo-cars arriving soon. Wall Street is along for the ride, but public investors will need strong stomachs.

Universal Music auction could end on bum note

28 February 2019

Buyout group KKR and China’s Tencent may bid for part of Vivendi’s label, Reuters reports. On paper it’s the best way to gain exposure to fast-growing streaming. That means getting emerging market fans to pay for music. Investing alongside Vincent Bolloré also brings risks.

Payments IPO can shrug off sluggish Italy

26 February 2019

Domestic market leader Nexi is seeking a listing that may value it at some 7 billion euros including debt. Cash-loving Italians have traditionally shunned bank cards and digital transactions, but that’s changing. Closing the gap promises decent growth, even in a slowing economy.

Homeplus shopping pain will resist Korean IPO cure

22 February 2019

Asian buyout firm MBK will list some of the hypermarket buildings it bought from Tesco. This $1.5 bln REIT should fly in yield-hungry Seoul. Yet the split could make it harder to sell the rest. Separating property and operating units was a boom-era trick that ended badly.

Levi’s IPO fails the Marie Kondo test

14 February 2019

The denim maker plans to list its shares after decades in private hands. But the super-voting stock and staggered board that entrench the family owners detract from its strong growth. To quote the Japanese wardrobe-sifting guru: Does it spark joy? As it stands, the answer is no.

Foreign IPO tide flows back into Hong Kong

14 February 2019

Global Switch and Home Credit are eyeing $1 bln floats in a city which has struggled to attract interest offshore. AB InBev might list its Asia operations too. Rule changes letting the benchmark index include overseas-based firms are one incentive. A thin China pipeline is another.

China cigarette IPO offers unfiltered Beijing bet

4 February 2019

The overseas arm of China Tobacco will list in Hong Kong. Sales abroad are growing. But most of its revenue comes from importing leaves for its parent, a monopoly in a country where 300 million people light up. That's a lot of risky exposure to dated anti-smoking policies.

Sinochem’s backtrack sends a fresh IPO warning

31 January 2019

The Chinese chemicals and oil giant has paused plans to float its refining and trading unit in Hong Kong. Beijing’s behemoths once listed regardless of market conditions, thanks to government-backed peers. The $2 bln U-turn should worry hopefuls without state support.

WeWork offers glimpse of conflicts to come

23 January 2019

The shared-office upstart and potential IPO candidate rents buildings part-owned by its co-founder and CEO. Private-company trends arguably encourage such blurred lines, but public investors tend to distrust them. It’s another reason to doubt WeWork’s high-rise valuation.

Super-apps hold back Chinese movie-ticketing IPO

22 January 2019

Maoyan may wind up going public below its latest $3 bln valuation. Slowing box office growth and cooling tech stocks are two problems. A bigger issue is that investors can already buy shares in backers Meituan and Tencent, whose all-in-one apps have a stronger lock on users.

U.S. shutdown’s market casualties pile up

10 January 2019

The SEC is operating on a skeleton staff. Would-be public companies like Uber face delayed IPOs. Seasoned firms have to make more guesses about how to comply with laws. And all but the most pressing fraud gets a pass. All three could quickly store up trouble for later.

Lyft, Uber IPOs will drain Tesla’s scarcity value

3 January 2019

Electric vehicles check boxes for sustainability-minded investors. But the ride-hailing firms’ ubiquity and self-driving ambitions will give U.S. public shareholders new options beyond Elon Musk’s carmaker. Lyft’s growth and ESG credentials could make it the most desirable ride.

Hong Kong’s IPO crown rests on rickety market

20 December 2018

The financial centre's $32 bln haul of new listings this year puts it in the global lead. Yet 72 pct of debutantes are trading below their offer prices, and overall trading is thin. Too few long-term investors and a crowded but illiquid market are to blame. Both are hard to fix.