IPO

JD’s hyped-up spinoffs leave its basket light

29 September 2020

The Chinese web retailer is rallying on expectations it will list health, fintech and logistics units which might account for almost half JD’s $117 bln market cap. But it implies a so-so valuation for the core business. Richard Liu’s next challenge will be to set that right.

Toshiba’s pulled chip IPO is tip of its worries

28 September 2020

The Japanese conglomerate and backer Bain were too greedy, putting an electric $20 bln valuation on the chip unit spun out two years ago. Kioxia’s debut was supposed to help put scandal-plagued Toshiba back on track. The flop hands fresh ammunition to its activist shareholders.

Palantir float marks peak investor apathy

23 September 2020

The cryptic data-analytics company is setting a guide valuation of $20 billion for its direct listing next week. Its novel governance means the three founders are in control indefinitely. Incoming shareholders should assume their views won’t count.

GoodRx IPO casts vote against U.S. health reform

23 September 2020

The company, which helps consumers find discounts on prescription meds, jumped 40% on its debut. True, the market is so hot that such a pop is now ho-hum. Still, GoodRx’s $18 bln valuation is a bet that a system riddled with middlemen is here to stay, however the election goes.

Exercise apps exhaust market before race starts

17 September 2020

Online fitness app Zwift just raised $450 mln at a $1 bln valuation not long after Lululemon bought startup Mirror for $500 mln and Peloton’s value topped $23 bln. Lockdown exercise trends fuel the frenzy. But the real addressable market may be much skinnier than they claim.

Richard Branson is late arrival at SPAC party

17 September 2020

The billionaire Brit is touting his Virgin brand to raise $400 mln via a blank-cheque company. Jumping on the well-trodden bandwagon is hardly disruptive. After recent setbacks, the 70-year-old may struggle to persuade potential investors and targets he has still got his mojo.

Cox: When ’shrooms go public, markets are peaking

17 September 2020

Compass Pathways, which treats depression with a psilocybin-based compound, is raising $107 mln. It has no revenue. Its risk factors are like a bad trip. But as investors throw cash at blank-cheque firms promising visions of the future, taking a punt doesn’t seem so risky.

Snowflake takes IPO hubris into the stratosphere

16 September 2020

Shares in the data-warehouse firm, already the biggest U.S. public listing of the year, more than doubled in early first-day trading. At about $80 bln, the money-losing firm is worth some 200 times trailing sales. It’s an apt expression of the panicked greed gripping investors.

Beauty IPO is risky test for UK governance retreat

16 September 2020

The Hut Group’s shares soared after a $7 bln float. The skincare and clothing retailer’s fast growth meant investors shrugged off shaky voting rights and a watered-down listing. Its success opens the door for others, if founder Matthew Moulding can grow into his rich valuation.

Unity Software diversifies its IPO options

15 September 2020

The maker of software for creating video games is floating this week at a valuation up to $11 bln. It is trying an unusual auction process which could mean less money is left on the table than is typical and Unity has more control. The idea may only work for big-name issuers.

Big Tech eases Ant’s march into public markets

15 September 2020

A long who’s who list, including Thailand’s richest man and China’s national pension fund, stand to clean up from Jack Ma’s fintech titan. Not long ago, a $200 bln IPO might have made public investors look like suckers. This number is less scary thanks to Apple and others.

Snowflake-led IPO boomlet puts hope over profit

14 September 2020

The cloud-data firm’s $3 bln public debut will be the largest IPO this year, in the busiest week for new listings since 2014. The glut of tech-heavy deals will keep investment bankers happy. But with many of the candidates losing money, investors are betting big on fast growth.

Polish e-commerce IPO requires anti-Amazon defence

14 September 2020

Cinven-backed Allegro may be worth as much as $12 bln when it lists in Warsaw. Covid-19 helped boost net revenue more than 50% in the first half. And with only 8% of Polish retail sales online, there’s more room for growth. The danger is that global giants flood the market.

India grips too tight to keep tech IPOs at home

14 September 2020

New Delhi is considering forcing domestic companies that list shares overseas to do so at home as well. China has wooed Alibaba and others back to Hong Kong and Shanghai, but by making it easier not by fiat. A heavy-handed approach risks pushing Indian startups away even sooner.

IPO rush is mix of carrot and stick

11 September 2020

Money raised in U.S. floats is near a 10-year high, and bankers’ pipelines are full. Partly it’s venture capitalists exiting aging investments while speculative juices are flowing. But there's also urgency: The upcoming election may be chaotic, limiting the window of opportunity.

Snowflake’s $2.7 bln IPO is so hot it could melt

9 September 2020

The data-warehouse firm is growing astonishingly fast and offers clients an alternative to Amazon. But the Zoom-like valuation it’s chasing of nearly 60 times trailing sales takes it close to the sun. The imprimatur of Berkshire Hathaway and Salesforce could lift it even nearer.

What is Ant really worth?

9 September 2020

Key to the Chinese fintech giant’s success is its cut from lining up credit, insurance and wealth customers. Rivals could eat into those take rates and regulators loom large. For now, though, a Breakingviews calculator suggests a reasonable starting point would be about $275 bln.

Ant’s valuation hill

9 September 2020

The Chinese fintech giant could raise up to $30 bln in what would be the world's largest IPO. Its value is largely predicated on fees for matching customers to financial services providers. At current rates, $275 bln is possible, but even small changes could make a big difference.

GoodRx turns U.S. healthcare tangle into hot IPO

3 September 2020

America's medical system is expensive, opaque and complex. That makes it a great place for a middleman like GoodRx. The drug discount finder is growing nearly 50% annually and has 33% operating margins. The big risk is a serious political push toward simpler, cheaper options.

Quirky governance puts blemish on beauty tech IPO

2 September 2020

The Hut Group’s 4.5 bln pound London market debut is riding a pandemic-fuelled boost in online sales for own-brand products like Myprotein. But baking in a semi super-vote for founder Matthew Moulding, which effectively allows him to block takeovers, may dull future successes.