IPO

China would be wise to limit cornerstone investors

28 May 2018

Tech stars such as Alibaba could pre-sell shares to underpin listings at home, and Foxconn just did something similar for a Shanghai IPO. The practice may prevent wild stock swings, but also distorts markets. Relying too much on such backers, as Hong Kong did, would be a mistake.

Citi’s Hong Kong slap has lesson for new IPO boom

18 May 2018

The securities watchdog fined the U.S. lender $7 mln over a troubled 2009 flotation. One failing was a lack of oversight from senior staff. As a wave of biotech outfits, many boasting complex and unproven products, prepares to list, banks in the city will have to stay vigilant.

Vivendi music IPO rests on chart-topping valuation

17 May 2018

The French media group is deciding whether to float Universal Music. A $40 bln valuation suggested by CEO Arnaud de Puyfontaine could boost its shares by 40 pct. Yet a more realistic price tag would create little value, and give shareholders less reason to own Vivendi stock.

A Hollywood star may be born in Hong Kong

16 May 2018

STX, behind movies such as Jackie Chan's "The Foreigner", is ready for a stock-market premiere. Backers Tencent and John Malone co-star but the IPO features China, where the young studio has an edge. A somewhat original script also should support a valuation of at least $2.5 bln.

Volvo’s $30 bln IPO bar is conundrum for bankers

15 May 2018

The carmaker’s Chinese owner Geely won’t sell for less, the FT reported. That means financiers have to either disappoint Chair Li Shufu and miss out on fees, or convince investors Volvo’s Autos 2.0 bets make it more a Tesla than a traditional manufacturer. Neither is palatable.

Tangled loyalties complicate China Tower IPO

15 May 2018

The mobile mast company has filed for a Hong Kong debut that could raise $10 bln. China’s big three telecoms operators are both key clients and shareholders. New investors need to be convinced the trio won’t squeeze China Tower too hard as they try to keep their own costs down.

Cut-price IPO virus infects Avast’s market debut

14 May 2018

The $3.2 bln Czech cybersecurity outfit priced shares at the bottom of its range, only to see them fall in early trading. High debt, an unfamiliar “freemium” model and governance questions merit a discount. Yet investors have erected a too-strong firewall after recent IPO flops.

Volvo IPO will open road for M&A

11 May 2018

The Swedish group’s Chinese owner Geely may list the business it bought in 2010, profiting from a turnaround. That would raise cash for research and development and facilitate dealmaking. But a mooted valuation of up to $30 billion hinges on unrealistic Tesla-style multiples.

Videogame-watching IPO magnifies clash of clans

11 May 2018

Huya is set to list at a $2.6 bln valuation, or nearly eight times revenue. The startup gives investors a shot at a market whose audiences for "League of Legends" and other games exceed the NBA's. Backer Tencent's stake in Chinese e-sports rival Douyu also offers a useful hedge.

AXA’s IPO miss is awkward reminder of XL blunder

10 May 2018

The French insurer has raised $2.8 bln listing its U.S. business. It was hoping for more to help fund the purchase of the Bermuda reinsurer. Given CEO Thomas Buberl was already overpaying, investors won’t be feeling any better about the deal.

Springer’s IPO struck down by multitude of sins

9 May 2018

The German publisher postponed a $4 bln offering. The stable, growing business should have been an easy sell. High debt, low liquidity and an accounting squabble were turnoffs. With interest rates rising, and markets more volatile, investors are less willing to take a risk.

Sickly IPO may infect Hong Kong waiting room

8 May 2018

The group behind medical app Good Doctor fell below its float price on the second day of trading. The diagnosis is simple: this was overpriced, like other recent deals. With giants such as Xiaomi set to list, bankers may want to leave more on the table to keep the market healthy.

Chinese tech stars are MAXD out beyond FANG stocks

7 May 2018

Handset-maker Xiaomi is the first of four mainland titans to unveil IPO plans. Ant, Meituan and Didi round out the quartet, whose combined valuations may exceed $400 bln. That leaves far less upside than was available to public investors in Facebook, Amazon, Netflix and Google.

Nature’s $5 bln IPO has good chance of flourishing

3 May 2018

The German science publisher is selling shares in a Frankfurt listing. A heavy debt load and a narrow focus on academic publishing are drawbacks. But Springer Nature is more cheaply valued than peers like RELX and will benefit if open-access science journals grow more dominant.

Chinese handset-maker Xiaomi wins tech IPO bingo

3 May 2018

Seeking a $100 bln valuation in a Hong Kong debut, it insists it's "more than a hardware company." Xiaomi also packed the prospectus with buzzwords like platform, cloud, big data and AI. There's super-voting stock and an internal VC fund of sorts, too. This one really has it all.

Tencent outshines Spotify in IPO sing-off

2 May 2018

The Chinese giant wants to list its music-streaming arm at a $25 bln-plus market value, similar to the unit's Swedish peer. As Spotify fights rising licensing fees, Tencent's challenge is simple: convince more users to pay. If it can, its heft in China makes it the smarter bet.

China’s Ping An peacocks for its tech feathers

30 April 2018

The finance giant has raised over $1 bln in an IPO of its medical arm, says IFR, and three more spinoffs are in the works. Ping An wants to be seen as a tech titan, not a lumbering insurer. That’s a stretch but showing off its new economy divisions is a smart and valuable move.

Xiaomi puts collective spin on tech IPO vows

25 April 2018

The Chinese firm says if net margins on its phones and gadgets ever top 5 pct, users will keep the spoils. Ahead of an IPO at a mooted value of up to $100 bln, this is a stunt worthy of Silicon Valley. It tells investors to focus on apps, and consumers that Xiaomi has their back.

Didi floors its way to a public listing

24 April 2018

The Chinese ride-hailing outfit may be steering toward an $80 bln IPO this year as Uber finds its way. Didi also is moving into Mexico, adding food delivery and exploring custom cars with the likes of Renault. It could be a bid to race to opening Hong Kong and Shanghai markets.

Vivo Energy offers pricey road to African growth

24 April 2018

The operator of 1,800 fuel stations across the continent is planning a stock market listing that values it at up to $3.3 billion. Earnings growth is healthy, and the company has scale. But a comparison with smaller regional rivals suggests the premium price tag is a stretch.