Capital Calls: JEDI’s demise, Toyota’s weird world 6 Jul 2021 Concise views on global finance: The cancelation of a $10 bln U.S. government cloud contract shows negotiating big projects is sometimes a matter of guesswork. Meanwhile, the auto firm that pioneered just-in-time manufacturing is cashing in on a chip stockpile and red-hot market.
China uses Didi as data law test dummy 6 Jul 2021 Cybersecurity watchdogs are revamping regulations and readying new ones as they widen their crackdown. The $75 bln ride-hailing group’s data trove and foreign backers mean it's a good candidate to make an example of. Investors may hope for more legal clarity; they might not get it.
How much is Wise worth? 5 Jul 2021 The money-changing app is listing in London without setting a price. Its worth depends largely on how much more foreign-exchange business CEO Kristo Käärmann can win from banks. A Breakingviews calculator shows Wise is due a roughly 20% upgrade from last year’s $5 bln price tag.
Wise’s FX land grab merits $6 bln valuation 5 Jul 2021 The money-changing app is listing in London without setting a price. Its worth depends largely on how much more foreign-exchange business CEO Kristo Käärmann can win from banks. A Breakingviews calculator shows Wise is due a roughly 20% upgrade from last year’s $5 bln price tag.
Capital Calls: U.S. jobs, Didi probe, Pharma LBO 2 Jul 2021 Concise views on global finance: The U.S. added 850,000 jobs in June but the recovery isn't happening everywhere. Meanwhile, Didi is hit with an investigation by a Chinese regulator days after its U.S. listing, and a pharma buyout by EQT and Goldman is a game of hot potato.
Robinhood has too many arrows pointed its way 2 Jul 2021 The trading app filed to go public and may seek a $40 bln valuation. Based on its growth, that isn’t impossible. But it is too exposed to speculative trading and some government probes look serious. It could only fetch such spoils in the vulnerable market it helped create.
Chip crisis short-circuits Kickstarter economy 2 Jul 2021 Cheap Chinese components enabled quirky upstarts making plant synthesisers and the like to thrive on crowdfunding sites. But the semiconductor shortage has pushed them to the back of the line as heavyweights like Apple muscle in. Many won’t survive, to gadget geeks’ grief.
TPG, waiting out first IPO boom, may ride another 1 Jul 2021 The private equity firm David Bonderman and Jim Coulter founded watched peers like KKR and Apollo ride into public ownership and extreme riches with the last market wave. Waiting, and watching rivals deal with growing pains and generational succession may prove to be a good call.
Robinhood float gives punters a meme stock squared 1 Jul 2021 The trading app may sell 35% of its IPO shares through its own online platform. It should improve pricing over an institutions-only offering, especially with Robinhood's name recognition. The danger is too much GameStop-like price action, too soon, and then disappointment.
Viewsroom: Communist birthday, Little guys in IPOs 1 Jul 2021 China’s Communist Party turns 100. The institution has never been so popular at home or resented abroad. Its leaders are experts at the nuances of control and long on ambition, Pete Sweeney says. Plus, Wall Street enlists individual investors to help price initial stock deals.
Pre-owned watch IPOs ride second-hand wave 30 Jun 2021 As with fashion, demand for “pre-loved” bling timepieces is booming. That, and a switch to online buying, underpins the mooted $1 billion-plus listing valuations of web players Chronext and Chrono24. For investors, the latter’s breadth of choice makes it more Rolex than Timex.
Wall Street enlists Main Street for IPO advantage 29 Jun 2021 Clear Secure’s underwriters are allocating 1% of its offering to trading platform Robinhood. That tips bankers off if the airport security firm creates retail buzz. If so, it should enable them to leave less value on the table while also giving Robinhood traders a chance to play.
Capital Calls: Teneo manages its own crisis 29 Jun 2021 Concise views on global finance: Declan Kelly, the PR firm’s chair and CEO, has quit after allegations of drunken behavior. Bad behavior is an underappreciated risk in people businesses.
Private equity offers test for IPO market hunger 29 Jun 2021 British group Bridgepoint is listing in London to expand beyond buyouts into real estate or infrastructure. Shares in bigger rivals like EQT are soaring, implying a $6 bln-$7 bln valuation. Yet its niche core business and limited diversification call for a discount.
Capital Calls: Genetic gold rush 28 Jun 2021 Concise views on global finance: A company has shown biotechnology called CRISPR can precisely edit defective genes in humans, fueling investment and squabbles.
Chinese grocery apps risk spoiling early 28 Jun 2021 Missfresh shares fell 26% on their New York debut, a worrying sign for rival Dingdong Maicai’s upcoming listing. Price wars and logistics costs have crushed margins and e-commerce giants are muscling into the sector. Joining forces may give both a better chance of survival.
Geely’s reversal clears way for STAR takeoff 28 Jun 2021 The Chinese carmaker dropped plans to list on the technology growth board citing “strategic adjustments”. Chances are strategy was adjusted by the government, which wants to prevent STAR from being overrun by mature giants. That’s mixed news for Syngenta, also in the queue.
Capital Calls: Microsoft, U.S. bank footprint 25 Jun 2021 Concise views on global finance: The $2 trillion software giant’s avoidance of antitrust scrutiny may be coming to an end; a new study challenges the received wisdom that American banks do better in faster-growing states.
Viewsroom: Wall Street is open again and booming 24 Jun 2021 From Morgan Stanley to BlackRock, the world’s top investment banks and money managers are back in their offices and super busy with mergers, IPOs, LBOs and other activities thumping. Plus, Soho House and Wise go public and green hydrogen megalomania on the Congo river.
Ackman’s un-SPAC elicits a shrug from investors 24 Jun 2021 Owners of the billionaire’s blank-cheque company get 10% of Universal Music, a possible future deal, and the right to buy into a novel acquisition vehicle. Yet the SPAC’s valuation premium has dwindled. Investors either dislike complexity or doubt Bill Ackman’s dealmaking talent.