The Exchange: Travel disruption, SoftBank-style 20 Jul 2021 After a dizzying expansion from China to the United States, the pandemic forced a tough reset at Oyo Hotels and Homes. The plucky Indian startup’s 27-year-old founder and CEO Ritesh Agarwal tells Una Galani about the lessons learnt, rightsizing challenges, and of his IPO plans.
Grill makers fire up for all-American IPO cook-off 19 Jul 2021 Twin listings of Traeger and Weber give investors a choice between hip and fast-growing versus large and well-known. Both firms tout tech-enabled BBQs and recurring revenue streams. The more established Weber looks more valuable unless Traeger can secure a crispy luxury premium.
Ackman music SPAC flop makes second album trickier 19 Jul 2021 The billionaire’s $4 bln blank-cheque vehicle will seek a new deal after U.S. regulators questioned its purchase of 10% of Universal Music. The false start could put off future targets. For all its investor-friendly features, the vehicle’s backers may end up singing the blues.
China’s IPO crackdown exposes U.S. weaknesses 19 Jul 2021 Several companies have spiked plans to list abroad after Beijing ramped up oversight. But the move by regulators also highlights the frailties of an American financial system that is heavily reliant on disclosure. Chinese firms have long shown that’s easy to take advantage of.
Chancellor: Robinhood is more sheriff than rebel 15 Jul 2021 Like its many antecedents during previous bubbles, the app-based stockbroker claims a mission to “democratise finance for all”. But the $40 bln startup is more a creature of Wall Street and Silicon Valley than its clients may understand. The long-term risk is a people’s revolt.
Car-battery SPAC deal is joyride at electric price 13 Jul 2021 U.S. auto charge maker SES Holdings is going public via a merger with Robert Friedland’s blank-cheque vehicle at a $3.3 bln valuation. That’s chunky given a controlling founder and zero near-term sales. Investors must hope big backers like General Motors help swerve potholes.
European IPO market feels like global leftovers 12 Jul 2021 A raft of companies like livestock firm Huvepharma and BASF had to cancel European listings. Trendier players Soho House, Turkish retailer Hepsiburada and Italian vaccine vial maker Stevanato have opted for New York. Lacklustre IPO trading makes it hard to coax back investors.
South Asia bourses face Hong Kong-style IPO test 12 Jul 2021 Bukalapak’s and Zomato’s respective debuts in Indonesia and India will help startups decide whether to list at home. The Fragrant Harbour has proven it has what it takes to attract hot tech names. Mumbai’s stellar secondary market makes it better placed to replicate that success.
Capital Calls: China’s bank reserves 9 Jul 2021 Concise views on global finance: Beijing released more cash into its financial system as growth slows.
South Korea’s Krafton plays hit-or-miss China game 9 Jul 2021 The maker of blockbuster video-game franchise "PUBG" wants to go public at a $21 bln valuation. Geopolitical tension between Seoul and Beijing hampers access to its biggest market by sales. Krafton and top backer Tencent devised a workaround, but too much depends on it.
China puts tech founders on healthier capital diet 9 Jul 2021 Beijing is moving to curb access to U.S. equity markets and squeezing the M&A route too. Such restrictions could trickle down to deter earlier-stage investors. Yet easy money underpinned too many unprofitable business models. Less cash might produce leaner, meaner startups.
Viewsroom: Grocer buyouts, More China crackdowns 8 Jul 2021 Why are private equity firms clogging the aisles at Britain’s WM Morrison to pull off a near-$9 billion purchase of the supermarket chain? Aimee Donnellan and Peter Thal Larsen explain. And our Asia columnists discuss Beijing’s new attitude to U.S.-traded Chinese companies.
Combustion shift helps electrify Volvo IPO 8 Jul 2021 The Swedish carmaker is steering its petrol engine unit into a joint venture with parent Geely before a stock market listing. Focusing on future electric car sales helps drive Chairman Li Shufu closer to a racy valuation. Still, ongoing gas guzzler sales dent green bona fides.
Capital Calls: Gates split, Chinese IPOs, Telenor 8 Jul 2021 Concise views on global finance: Bill and Melinda Gates agree a post-divorce plan for their joint charitable organisation; medical data firm LinkDoc is among the first to pull its U.S. listing; the Norwegian telco gets just $105 mln for unit hobbled by Myanmar junta.
Chinese IPO detour benefits Hong Kong only so much 8 Jul 2021 Didi’s U.S. listing debacle has lifted expectations that more mainland companies will go public closer to home. New York’s star may be dimming, but Beijing’s crackdown on overseas market debuts sounds sweeping. Even the Asian financial hub’s $80 bln bourse faces fresh hurdles.
Brand IPO hinges on Elvis not leaving the building 7 Jul 2021 The Brooks Brothers owner is prepping a float with a mooted $10 bln valuation. Its model of scooping up retail roadkill and rights to dead icons like Elvis Presley is thriving, and fresh funds will let it snap up new bankruptcies. The risk is its brands fall out of favour again.
Soho House IPO sets high price for entry 7 Jul 2021 The operator of private members’ clubs is listing at a $3 bln valuation. That depends on CEO Nick Jones pulling off a bold global expansion while reversing years of losses. Competition from hotels, doubts about its exclusive status and still-high debt are potential party poopers.
Capital Calls: U.S. jobs, Fitness IPO 7 Jul 2021 Concise views on global finance: U.S. employment vacancies tip scales towards workers; Mark Wahlberg-backed F45’s IPO values it at twice what an attempted SPAC deal did last year, justifiably.
Wise’s low-fee vision goes blurry in London float 7 Jul 2021 The money-changing app is paying Goldman Sachs and others 13 mln pounds for its direct stock market listing. That’s steep relative to the tiny number of shares on offer, though investors benefit from future liquidity. Either way, it’s more ambiguous than Wise’s cheap FX rates.
Wall Street ignores China meddling at own peril 6 Jul 2021 Didi’s shares fell by as much as 25% after app stores in the People’s Republic had to delete it, following Beijing’s crackdown last week. Investors may continue to be overly optimistic. But now the risk is that China and the United States try to one-up each other on restrictions.