IPO

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.

Chinese pharma R&D mixes up a potent IPO formula

26 September 2018

WuXi AppTec, a $13 bln group which carries out research and clinical trials for the likes of Pfizer, will list in Hong Kong. An overhaul of mainland rules to spur local drug development means business is booming. After a healthy debut in Shanghai, investors will take note.

Dell IPO talk sounds like bluff

24 September 2018

Investors are resisting its $22 bln plan to swap VMware tracking stock for regular shares and then list them. Reports suggest the hardware group could just go public instead. But that’d crystallize a big problem with the deal now on offer: Dell’s high valuation of its own stock.

$100 bln weed company is still in the pipe

21 September 2018

Cannabis producer Tilray’s shares have risen and fallen at a rate that makes virtual currency bitcoin look lethargic. Its CEO claims it could have a 12-digit valuation. He’s half right. A producer of that size is likely one day, but assuming it will be Tilray is foolish.

Aston Martin IPO makes more sense in middle lane

20 September 2018

The high-end carmaker is aiming for a top equity value of 5 billion pounds. That would place the group above the average of luxury peers and near snazzier rival Ferrari in EBITDA multiple terms. The midpoint of the proposed IPO range looks more reasonable.

Meituan IPO shows how to tempt investor appetites

20 September 2018

Shares of the takeaway-to-taxi app rose as much as 7 pct in their Hong Kong debut, lifting its value to $56 bln. Phone maker Xiaomi’s fumbled start in July dented confidence. But Meituan anchored expectations and brought in big funds. It’s a sensible recipe for others too.

Chinese IPOs bring casino trading to New York

18 September 2018

U.S. markets are getting a taste of mainland volatility. News app Qutoutiao more than doubled on its first day before plunging on the second; carmaker Nio has also see-sawed. Small floats and untested models are partly to blame, but erratic behaviour will hamper future debuts.

German giant adds heft to IPO starting line

17 September 2018

The billionaire owner of Knorr-Bremse plans to sell shares in the maker of brakes for trucks and trains. Outside investors will get little say, making a mooted $14 bln price tag ambitious. Yet the reassuringly solid business marks a welcome shift from dicey European offerings.

Nio zooms from carmaker to tech star

14 September 2018

China’s answer to Tesla reversed out of a dismal NYSE debut as its shares jumped 76 pct in their second day of trading. That imputes a $13 bln market cap that values Nio less like a manufacturer and more like an internet darling. Production figures make it hard to justify.

Meituan Dianping feeds into Chinese tech fears

13 September 2018

The Tencent-backed super-app owner raised over $4 bln in its IPO. Big fund managers could scarcely afford not to buy shares, but mom and pop investors were less enthusiastic than for other recent market debuts in the sector. It’s a good indication of waning investor appetites.

Biotech starts Phase II Hong Kong market trial

13 September 2018

Diabetes drug developer Hua priced its shares at the bottom of the range, and halved the deal size. After peer Ascletis debuted last month to kick off an expected wave of IPOs from the sector, its value fell 50 pct. The success rate for this big experiment may be low for a while.

Didi falls way behind Uber on road to IPO

11 September 2018

Both burn heaps of cash, but new figures reveal that the $56 bln Chinese app pockets just two cents of every rider dollar. For $72 bln Uber, the roughly equal sum after subsidies is 23 cents. Differences are getting clearer even if neither looks ready to ride onto public markets.

Chinese Tesla’s $1.3 bln IPO revs up too fast

11 September 2018

Electric-car maker Nio has a rich price tag to match its premium branding. Under the bonnet, though, it looks less shiny. The group combines an opaque legal structure favoured by tech giants with dependence on a local auto partner. Sales are still nascent, and rivals abound.

Volvo’s IPO problems go beyond brewing trade war

10 September 2018

The carmaker’s Chinese owner has paused a float worth up to $30 bln. Even without America’s tariff antics, that price tag would have been far too high. Investors are unconvinced old-school auto groups will get a return for their spending on electric and autonomous cars.

Tianqi edges ahead in Hong Kong’s lithium race

7 September 2018

China’s top two producers of the battery ingredient are revving up $1 bln listings in the city. Both offer a bet on the electric car boom. But Tianqi’s quality resources give it a narrow advantage over processing giant Ganfeng, at a time when investor confidence is wobbling.