IPO

Old-school Chinese tech IPO bedeviled by startups

19 July 2018

Valuation expectations are falling for state-owned mobile mast operator China Tower, just as they did for smartphone maker Xiaomi. A $50 bln max may now be $35 bln, with a slug heading to cornerstone investors. The techlash is bringing at least some sense back to the market.

Race to governance bottom won by China’s Pinduoduo

18 July 2018

The shopping app’s owner apes Alibaba with a partnership that controls the board and an insider committee on top. It then adds super-voting stock for founder Huang Zheng, who is a member of all three groups. Investors who buy into the $1.6 bln IPO are just along for the ride.

Chinese shopping-app IPO travels long last mile

17 July 2018

Shanghai-based Pinduoduo is seeking a $20 bln valuation in a New York debut. Sales are surging, but its social-networking e-commerce business model targeted at lesser-known areas of China may perplex overseas investors. Unwelcome comparisons to Groupon and Zynga are possible.

Aramco fail hits Saudi ambition more than coffers

10 July 2018

If the state oil firm's IPO doesn't fly, Crown Prince Mohammed bin Salman will be $100 bln short. That's huge, but higher crude prices will help the budget and Riyadh can borrow too. The bigger problem is finding other ways to lure the foreign capital his 2030 vision depends on.

Xiaomi IPO will punish bankers twice

9 July 2018

The Chinese smartphone-maker’s shares opened below the issue price in their $54 bln debut. It’s not the start tech companies covet. Advisers failed to sufficiently lower an unrealistic valuation goal. Their penalty may be that other big listings in Hong Kong are delayed.

Aramco IPO retreat would leave few losers

6 July 2018

Pinning a $2 trln valuation on a company worth $1.6 trln was always going to be risky for the Saudi oil giant’s bankers. If Aramco’s IPO is scrapped, they may get another bite at a more modest cherry. It would, though, sting regulators who bent over backwards to accommodate it.

Xiaomi humble IPO pie still good enough to eat

29 June 2018

The Chinese smartphone maker priced its Hong Kong float at the bottom end of a marketed range, valuing it at $54 bln. This isn’t a failure, and investors who believe in the company will like the discount. Missteps by executives and bankers offer lessons for those next in line.

Dinner-table loan IPO is best bet in dicey sector

29 June 2018

Listing a 1.3 billion pound consumer credit group may look risky at this stage in the economic cycle. But Amigo has expanded quickly with family-guaranteed loans that are much cheaper than regular payday lenders. That helps justify its premium valuation.

Chinese used-car sale fails timing test

28 June 2018

Online marketplace Uxin has halved the size of its U.S. float. A hefty lending business may be to blame, but its worst offense is probably picking a moment when regulatory uncertainty is already battering Chinese tech stocks. Rivals waiting in the IPO queue should take note.

Chinese bank IPO seeks to emulate its tech clients

26 June 2018

China Renaissance is preparing to go public just as Meituan Dianping and other new-economy titans do the same. The advisory shop’s slow revenue growth and small bottom line make a mooted $5 bln valuation seem punchy. Boss Fan Bao will be counting on an investment halo effect.

Xiaomi super-syndicate lifts noise-to-signal ratio

25 June 2018

The Chinese handset-maker picked 23 banks for its $6 bln Hong Kong IPO. Having so many hangers-on jostling for $76 mln of fees could make it hard to gauge demand. That has tripped up previous listings and is unhelpful for a debut that has already had to dial down its exuberance.

Jack-of-all-apps Meituan masters few for IPO

25 June 2018

The unprofitable Chinese tech firm revealed in its Hong Kong debut plans that food delivery, travel and a handful of other areas account for over 90 pct of revenue. To justify a possible $60 bln valuation, investors will have to believe it can succeed in more cutthroat markets.

Mongolian coal IPO may keep wandering

22 June 2018

The Central Asian nation revived plans to list its prize mine, seven years after it tried at a $15 bln valuation. Coal prices have rebounded from 2015 lows and Chinese demand is strong. With just one big customer and years of false starts, though, investors will need convincing.

India will test Xiaomi’s two-pronged strategy

21 June 2018

The Chinese maker of affordable phones has scaled down its IPO with plans now to raise $6 bln. Much of the valuation hangs on internet services, which Xiaomi is starting to roll out in its top overseas market. Rivals in India are plentiful, though, and hungrier for content.

High Times’ creative financing is far out

20 June 2018

The marijuana magazine is using a novel crowdfunding method to sell discounted shares before it goes public. Legalization efforts could generate buzz and draw crowds to the company’s events. But the publishing industry remains tough, and investors’ money could go up in smoke.

BJ’s goes for refreshingly no-frills IPO

19 June 2018

The discount wholesaler’s private equity owners are aiming for a $2.1 bln valuation. BJ’s resembles pile-'em-high retailer Costco, but priced much more like the more modestly rated Walmart. The lack of a racy growth story or strategic gamble makes it a rarity – in a good way.

Xiaomi resets shrill IPO tone

19 June 2018

The Chinese handset maker will delay a mainland listing instead of doing this simultaneously with a Hong Kong flotation. The valuation target also may have fallen to as low as $55 bln. It’s a bad start to a series of market debuts from a new wave of tech giants.

Chinese P2P giant Lufax dodges valuation bullet

15 June 2018

A mooted private fundraising of more than $1 bln makes sense. With regulatory change coming to peer-to-peer lenders, floating now could upset Beijing, and might only be doable at a bargain price. Abundant venture capital offers a way to keep growing without a distracting IPO.

Xiaomi IPO escalates China’s battle of the bourses

15 June 2018

The handset-maker will now sell at least half of its mooted $10 bln offering in Shanghai. That is a blow to the other listing venue, Hong Kong, which changed its rules to woo more tech IPOs. The city will have to share a lot of this business with its two mainland rivals.

Iceland’s Arion can spur rehab exit with hard cash

14 June 2018

The bank formerly known as Kaupthing will list a 25 pct stake, valuing its equity at around 135 billion Icelandic crowns (1.1 bln euros). A price of 0.6 times book reflects historical scepticism and declining margins. Overcapitalisation could make that look too harsh.