IPO

Discount fund IPO buys Deutsche Bank precious time

12 March 2018

Offering a stake in its DWS asset management arm will raise up to 1.8 billion euros – less than the lender had hoped. Even so, it gives CEO John Cryan a rare victory before the bank’s May shareholder meeting – and helps him argue for more time to turn around the investment bank.

UBS stands to lose more than IPO fees in Hong Kong

12 March 2018

The Swiss bank faces an 18-month suspension from sponsoring market debuts in the Fragrant Harbour. It could withstand the lost revenue, even amid a boom, but the advisory role puts brokers closer to clients. Preserving the brand with Asian entrepreneurs will be a challenge.

China’s iQiyi channels Netflix with a twist

12 March 2018

The Baidu-backed video-streaming site wants to raise at least $1.5 bln in an IPO. It's growing quickly and spending cash on new programmes for 50 mln paying customers. But iQiyi also broadcasts live events and sells ads. That makes it a tantalizing hybrid that's hard to value.

Anglo-Saudi trade love-in starts from low base

8 March 2018

Crown Prince Mohammed bin Salman and Prime Minister Theresa May are aiming for 65 bln pounds of new trade and investment. The kingdom’s liberalisation push could help post-Brexit Britain. But bilateral trade is just 8 bln pounds a year. And both leaders face challenges at home.

China courts tech and Taiwan with Foxconn IPO

9 March 2018

The Apple assembler is set to list a $50 bln-plus subsidiary in Shanghai. Speedy approval shows China is serious about luring tech giants onto mainland exchanges. The People’s Republic is also keen to deepen financial ties with Taiwan, even as diplomatic relations sour.

HNA’s Swiss airplane food IPO is far from gourmet

6 March 2018

The former Chinese deal machine is listing up to 65 pct of Gategroup to help ease its liquidity crunch. The maker of in-flight meals has expanded since HNA paid $1.5 bln for it in 2016. Factor in an IPO discount, though, and HNA will do well to recoup its original investment.

Spotify’s tippy valuation requires more top line

2 March 2018

The streaming-music firm may be worth $23 bln when it goes public. To justify that value, Spotify needs to almost double revenue and turn a profit, a back-of-the-envelope analysis suggests. Pulling it off would involve gobbling up more than half of the global music market.

Battery-powered IPO should be handled with care

2 March 2018

Ganfeng Lithium is coming late to the electric vehicle party. The Chinese miner and battery maker wants to raise at least $1 bln in Hong Kong as competition to make power cells intensifies and prices are peaking. Investors will want to know it isn't just cashing out at the top.

Spotify sings out of tune on earnings, governance

28 February 2018

The streaming-music firm cued up a poor playlist of falling revenue growth and rising costs in its filing to go public. And refusing to call insiders’ extra voting rights a class of stock sounds like bad karaoke. Spotify’s performance doesn’t deserve a round of applause.

HKEX’s hoped-for listings bonanza could fall flat

28 February 2018

Heavy trading and a rush of IPOs sent the Hong Kong bourse’s annual earnings soaring to $945 mln. HKEX’s stock shows investors are excited about 2018, too. That looks overdone: allowing dual-class shares will bring some flotations but bagging secondary listings will be harder.

Deutsche Bank IPO highlights capital conundrum

26 February 2018

The German lender may raise 2 bln euros by listing a 25 pct stake in its fund management arm, boosting already strong capital ratios. In normal times Deutsche could return some excess to shareholders. But volatile investment banking revenue means it cannot be too generous.

“Angry Birds” belongs in a bigger gaming henhouse

22 February 2018

Finland’s Rovio, maker of the addictive mobile game, lost half its market value after saying 2018 revenue would be flat at best. That’s what happens when a company puts all its eggs in one basket. Like “Candy Crush” maker King, a sale to a larger player may be the logical finale.

Siemens’ $50 bln IPO may be first step to breakup

19 February 2018

The German industrial giant’s shares could be worth 25 pct more if a sale of its healthcare unit lifts a conglomerate discount. But investors may still balk at owning a company with listed stakes in disparate sectors like wind and rail. In that case, calls for a breakup may grow.

Ant eyes land grab with $5 bln fundraising

9 February 2018

New money could value Alibaba’s payments affiliate at $100 bln ahead of a blockbuster IPO, Reuters says. The Chinese group is already huge and profitable. The funds will underwrite Ant’s battle with Tencent’s TenPay to win over outside apps and traditional retailers.

Airbnb wisely tidies up before guests arrive

1 February 2018

The home-rental app ruled out going public in 2018 after its finance chief abruptly quit. With positive cash flows, boss Brian Chesky doesn’t need to rush. The naming of a chief operating officer also shows Airbnb has learned from some of its Silicon Valley peers’ mistakes.

China’s IPO cleanup makes encouraging debut

1 February 2018

Beijing regulators just rejected six new-listing applications in a single day, including one from Hong Kong-traded psychiatric hospital chain Wenzhou Kangning. Enforcing tougher standards could lead to broader reforms. The risk is empowering entrenched bureaucrats even more.

Dell has no time for fantasy finance

29 January 2018

The U.S. tech giant needs cash to pay taxes, reduce debt and let investors exit. Reversing into its $53 bln subsidiary VMware is too complex, while an IPO would be financially unattractive because of pricey past acquisitions. There are simpler, more logical ways to raise cash.

Italo valuation underpinned by racy growth

29 January 2018

Europe’s first private fast-train operator will list next month. The track Italo runs on is owned by Italy’s incumbent rail group, a competitor, and a 1.7 bln euro valuation assumes rapid growth. But low-cost efficiency and EU train liberalization provide a rationale.

Viewsroom: Trump solar tax is more burn than balm

25 January 2018

The U.S. president seems to be trying to right past trade wrongs. But business has long since moved on, meaning tariffs on washing machines and solar panels will do more harm than good. Also, Merkel and Modi disappoint in snow-ravaged Davos. Plus: Spotify’s Wall Street snub.

Chinese gadget-maker IPO tracks Xiaomi hype

24 January 2018

Huami, China's answer to Fitbit, is aiming to go public ahead of a blockbuster share sale by the handset maker. It just turned a profit, thanks to growth powered by cosy ties to Xiaomi. Western hardware companies have disappointed investors, but they also didn't have an X factor.