IPO

SoftBank investment lines get blurrier at edges

9 November 2018

The nearly $100 bln Vision Fund held 38 stakes at the end of September, but some of the biggest and best-known, like Uber and Didi, weren’t among them. Though they may be transferred by SoftBank later, how investors can plan for that isn’t clear. It’s an uncomfortable blind spot.

Cloud-software IPO deserves an equivocal “yes”

6 November 2018

Qualtrics wants a valuation of more than $4 bln in its upcoming offering. The firm is larger, more profitable and growing faster than recently listed rival SurveyMonkey. But its undemocratic, double-barreled supervoting stock limiting outsiders’ say should give investors pause.

Xi enters Shanghai in high-stakes tech IPO race

6 November 2018

China's leader granted the city a new board to compete with Shenzhen and Nasdaq for startups. It also will test a looser U.S.-style registration system for new listings. The steps are overdue, but officials may rue the governance risks and trading volatility they’re apt to bring.

Hollywood rewrites Hong Kong IPO script

26 October 2018

STX, the studio behind “Bad Moms,” abandoned plans to go public in the Asian financial hub. A rocky market and new story are easily blamed, but losing an international issuer with Chinese backers will sting the exchange, which has struggled to escape its parochial proclivities.

Bharti Africa sets punchy tone for future IPO

24 October 2018

SoftBank and Temasek are part of a group injecting $1.25 bln into the indebted unit of India’s largest telecom operator. A valuation of eight times EBITDA exceeds that of rivals MTN and Vodacom. It’s a helpful endorsement of super-fast growth ahead of an expected London listing.

Signal is patchy for SoftBank’s jumbo IPO

23 October 2018

A mooted $27 bln listing of the mobile unit is key to Masayoshi Son’s vision for the Japanese group but problems are piling up for what could be the world’s biggest IPO. A new rival, high phone fees, and links to Riyadh could all prevent Son dialling up a premium reception.

Cooled coal IPO singes commodities exuberance

22 October 2018

Private equity-backed Coronado shrunk a $1 bln share sale Down Under to just $550 mln and priced it at the bottom of the range. A rosy comparison to Rio Tinto’s recent asset sales came up short. And it is the latest sign of shakier prospects for steel and China demand.

Movie-themed casino IPO sticks to messy script

19 October 2018

Macau-based Studio City, part of Lawrence Ho’s $9 bln gambling empire, made a stellar New York debut with a 24 pct pop. The listing provides some needed capital and could help existing minority investors eventually stage an exit. It also features Melco’s costly complex structure.

Uber starts IPO journey with its destination

16 October 2018

The cash-burning car service may be worth up to $120 bln according to bankers – nearly twice as much as a recent funding round. It’s risky to start with a big number, as Saudi Aramco found recently. Justifying it may call for imaginative views of the markets Uber can disrupt.

IPO procrastinators face a long wait on the shelf

15 October 2018

Oil group Cepsa, LeasePlan and Tencent Music have delayed floats due to the stock market selloff. That reasoning is dicey when others have listed without much of a hitch. Tricky IPOs need buoyant investors. With rates rising and Brexit looming, they may have missed the window.

Biotech unicorn takes rare, rapid road to IPO

11 October 2018

Allogene hopes to sell off-the-shelf cancer immunotherapies. But the firm is under a year old and its treatments may take 10 years to reach the market. Going public bucks the trend of startups staying private for longer. Its founders are striking while their reputations are hot.

Storage IPO makes sense in a smaller container

8 October 2018

Shurgard, which rents storage lockers to urban dwellers, is raising 575 mln euros to pay off debt and expand. It operates in more countries than UK rivals, with high occupancy rates and margins. At a valuation of 2 bln euros, the low end of the range, it should be a safe choice.

Europe’s IPO investors get Brexit present

4 October 2018

Companies are rushing to list while stock-market valuations are rich and before Britain crashes out of the EU. The deluge means bankers have to price offerings modestly, and investors can afford to be picky. Hairier issuers, like Aston Martin or Funding Circle, face a bumpy ride.

Fiat car-parts sale needs private equity mechanics

3 October 2018

The carmaker may spin off or sell its Magneti Marelli unit. Handing it to shareholders would let them keep any upside. But the outlook for parts makers is mixed, and valuations low. Selling to the likes of KKR makes more sense, even if CEO Mike Manley has to accept a price cut.

Bitmain mines for a more precious currency

3 October 2018

The world's top crypto equipment maker collected a third of its $2.5 bln in sales last year in bitcoin and its ilk. Converting some of it into cash has helped fund the profitable business. As prices of virtual money fall, though, raising $3 bln in an IPO would be a sweet trade.

There’s something off-key in Tencent Music’s IPO

2 October 2018

The Chinese web giant’s music service claims 800 million users, and super-fast revenue growth. It’s bigger than Sweden’s Spotify, and profitable too. But there are many gaps, like how it makes money, who those users actually are and what they’re prepared to pay for.

Cepsa prices itself to avoid IPO oily patches

2 October 2018

The Spanish oil group is going public at a valuation of 7-8 billion euros, the lower end of expectations. That will allow owner Mubadala to sell the required 25 percent at a premium to rival Repsol. Anything richer would have been risky among the current rush of listings.

Perella Weinberg IPO path already well trodden

28 September 2018

The M&A advisory boutique may be the next to list its shares. It has some differentiating factors, including a strong energy business. But boutiques come with lumpy revenue and people risk. Founder Joe Perella’s own journey shows how big a challenge the latter can be.

Swiss packaging IPO defies anti-waste threat

28 September 2018

SIG Combibloc is unwrapping a $3.7 bln Swiss listing. Record sector valuations have helped owner Onex more than double its money in almost four years. Growing demand and green credentials should allow the Tetrapak rival to deflect concerns about a crackdown on throwaway plastic.

Chinese investment bank sells itself poorly in IPO

27 September 2018

China Renaissance fell 20 pct on its Hong Kong trading debut, valuing the tech advisor at less than half its original $5 bln target. A shaky outlook is partly to blame, but Renaissance also overpriced itself. For an investment bank, such a fumble is hard to explain to clients.