IPO

AB InBev checks into prolonged debt detox

15 July 2019

Cancelling the IPO of its Asian unit leaves CEO Carlos Brito with few options to quickly reduce net debt of $102 bln. Flogging Budweiser and Corona should bring borrowing below 2 times EBITDA, but not until 2023. The deal-happy group has no choice but a period of abstention.

Morgan Stanley’s Asian crown gets Bud-shaped dent

15 July 2019

The Wall Street bank, along with JPMorgan, led AB InBev’s now-scrapped $9.8 bln listing of its Asia unit. The bankers either misread the market, or caved into the clients’ pricing demands. Either way, it takes the shine off Morgan Stanley’s local league-table pre-eminence.

Tencent holds key to China’s e-sports bonanza

15 July 2019

DouYu, which lets fans live-stream top video gamers, wants to raise $1 bln in a New York IPO. Competition for star players has crushed margins. Investors will bet backer Tencent, which also owns a stake in a rival, can limit the destruction and push for consolidation.

Budweiser’s IPO swagger turns into a drunk stumble

12 July 2019

AB InBev delayed pricing a $9.8 bln listing of its Asia unit, hinting at poor demand for the year’s biggest float. Boss Carlos Brito and his bankers didn’t leave room for manoeuvre, setting a punchy price range and shunning cornerstone investors. The result is an early hangover.

Old buyouts surf software’s frothy wave

11 July 2019

McAfee may return to public markets three years after TPG bought it from chipmaker Intel. Private equity ownership and M&A have buffed the firm up, even as PC anti-virus software has matured. But the idea McAfee’s value has doubled also rests on voracious demand for tech stocks.

WeWork debt plan veers into circularity

8 July 2019

The shared-office provider may borrow up to $4 bln against profitable buildings before its IPO. Adding to its roughly $6 bln pot of cash might perhaps make the money-losing WeWork’s path to profitability more credible, and so attract more investment. But the logic has big flaws.

Muji wannabe’s $1 bln IPO tests power of mimicry

5 July 2019

Miniso, brash Chinese rival of the minimalist chain, is considering a listing. The Tencent-backed seller of toys and gadgets cultivates a Japanese feel. The challenge will be to convince investors that its valuation belongs with slick Tokyo peers, not pile-em-high 100-yen shops.

Wanda’s Ironman IPO could lose a little weight

4 July 2019

The triathlon-to-soccer arm of tycoon Wang Jianlin’s empire plans a $500 mln U.S. listing. China's legions of fans and the prospect of the 2022 Olympics in Beijing will be a draw. But a share sale eases only some of its debt load; less burdened rivals may beat it to the finish.

Budweiser serves up a pricey pint in Hong Kong

2 July 2019

AB InBev values its Asian unit at up to $65 bln, or about 20 times EBITDA. That’s close to multiples of rivals in fast-growing emerging markets like China, but half the business is in slower, more mature ones. The IPO will seem less giddy if Carlos Brito pours on M&A next.

Swiss Re takes out insurance on its own IPO

27 June 2019

The reinsurer is listing nearly 30% of its UK life arm. Of late, investors have backed Trainline’s IPO growth plan and been cooler on that of fellow UK listee Finablr. Swiss Re will hope that a discount to listed peer Phoenix and 9% yield is enough to get investors on side.

European IPO investors show reassuring rationality

27 June 2019

VW’s truck unit and telco Africa Airtel will sell shares at the bottom of their respective ranges while Global Fashion Group cut its price. Unlike recent U.S. mega-floats such as Uber, valuations were cheap. It’s a welcome sign credulity has limits despite buoyant stock markets.

Rocket exerts downward drag on German fashion IPO

26 June 2019

A clothing site in which Oliver Samwer’s tech investor owns 20% is struggling to float. Global Fashion Group was tainted by association with Home24, another Rocket-backed group which flopped, despite their differences. Investors’ growing aversion is a big problem for Samwer.

KKR’s $3 bln rail float helps to clear IPO line

21 June 2019

UK website Trainline priced near the top of its range and popped 20% after listing in London. Its rapid growth and positive cash flow make an alluring combo, but investors also looked past risks including shifting UK rail policy. That bodes well for fellow IPO travellers.

Slack debut takes direct listing closer to a trend

20 June 2019

The work-messaging service’s early trades gave it a valuation of some $24 bln. That’s more than three times its worth a year ago. Like Spotify before it, Slack’s decision to opt out of a full-blown IPO paid off. Airbnb could be the one to make direct listing almost mainstream.

Ride-hailing misses the U.S. IPO bus

17 June 2019

Lyft and Uber are rare laggards among 2019 debutants. Plant-based burger maker Beyond Meat is the top performer, but others involve video chats, online retailing, cybersecurity, and plain old blue jeans. Investors see a bright future – except perhaps in the overhyped gig economy.

VW $17 bln IPO gets reform drive back on the road

14 June 2019

The German carmaker is offering a smaller slice of its truck unit at a lower valuation, after delaying the float in March. It’s a sign that CEO Herbert Diess wants to simplify the group even if proceeds are less than hoped. That’s encouraging for VW’s often-ignored investors.

China’s UK stock debutante lacks a return ticket

14 June 2019

Huatai Securities is set to become the first Shanghai-listed company to offer depositary receipts in London, raising up to $1.7 bln. Its pioneer status should be good marketing for the broker. Plans by UK-listed companies to make the reverse trip, however, remain a distant dream.

Pulled IPO sets grim tone for Hong Kong markets

13 June 2019

Warehouse operator ESR shelved plans for a $1.2 bln float, a day after police and demonstrators clashed violently in the Asian financial centre. A high price was one issue, but unrest plus economic headwinds formed a perfect storm. It’s a bad sign for others in the queue.

CrowdStrike shows IPO window is open for buzzwords

12 June 2019

The cloud-based data-security outfit saw its stock nearly double in its market debut, giving it a $12 bln market cap. The money-losing firm is growing fast. But valued at 40 times revenue it’s a case study in investors’ willingness to suspend disbelief for appealing stories.

Credit Suisse gets closer to real Alibaba trophy

12 June 2019

The tech giant has picked the Swiss bank, along with part-owned CICC, to lead a $20 bln Hong Kong share sale. Both have largely stayed clear of Alibaba rivals, suggesting loyalty is being rewarded. They are now positioned to contest a bigger prize: $150 bln Ant Financial’s IPO.