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.
Soho House depends on IPO to keep the party going 23 Jun 2021 The private club founded in London in 1995 now has 28 outlets and 119,000 members. It’s also highly leveraged and loss-making. A $3 bln New York listing will fund post-virus expansion, but delay addressing the key issue of whether scale, profit and exclusivity are compatible.
Syngenta plants listing seed in rich Chinese soil 23 Jun 2021 The Swiss agrochemical giant’s Beijing-backed owners are cultivating a Shanghai IPO with a possible $60 bln valuation. That’s punchy. But with local investors desperate for global exposure and farm-produce prices soaring, an ambitious price tag may be achievable.
Profitability makes Wise a true fintech unicorn 23 Jun 2021 Like financial-technology rivals, the UK money-changing group has a snazzy app and disruptive business model. What sets it apart is healthy earnings. Big banks can’t match its service without parting with fees worth $250 bln a year. Smaller ones may end up using Wise’s service.
Capital Calls: Schwarzman’s double tax speak 23 Jun 2021 Concise views on global finance: The founder of Blackstone has a love-hate relationship with capital gains changes.
Tea chain IPO steeped with exuberance 23 Jun 2021 Nayuki's market debut should reflect the popularity of the beverage’s modern boba twist. The Chinese company could be valued at $4.4 bln, on a higher multiple of sales than Starbucks. Keeping the kettle hot without getting burned by expansion costs, however, will be a tough brew.
Dan Loeb cybersecurity IPO has winds at its back 22 Jun 2021 SentinelOne is targeting a $7 bln valuation, 100 times its worth when Third Point first invested. The fund is buying more. Connected devices and cyberattacks are both proliferating. The company is also gaining market share. If that continues long enough, the bet will pay off.
Vaccine vial maker needs to take IPO shot quickly 22 Jun 2021 Italy’s Stevanato is surfing the pandemic wave to a U.S. listing. Valued alongside high-flying medical-kit supplier West Pharmaceutical, it could be worth over $7 bln. But as the virus recedes, sales may ebb while rivals muscle in on its turf, pricking holes in the price tag.
Capital Calls: GameStop is a SPAC now 22 Jun 2021 Concise views on global finance: The meme-stock video-game retailer has raised more cash, making it look like an overvalued cash shell.
Barry Diller’s IAC leads the spinoff sweepstakes 21 Jun 2021 The group created 11 public companies, including Vimeo and Match, worth some $100 bln for investors since the media mogul took over 25 years ago. Yet the conglomerate trades at a near-25% discount to its parts. Given the performance, investors should give IAC a bit more credit.
Airport security fast-tracker jumps the IPO line 18 Jun 2021 Clear, the U.S. firm that allows people to cut security lines for $179 a year, wants to go public. With vaccine checks on the horizon and the U.S. government as a new client, it has a promising path to fly as a public company, so long as its valuation stays in the $2 bln range.
Hong Kong scion cedes hometown IPO premium 18 Jun 2021 Richard Li, the entrepreneurial son of tycoon Li Ka-shing, plans to list his pan-Asian insurer FWD in New York instead of the city where he’s a familiar face to investors. He is sacrificing both brand recognition and higher valuations. It’s a steep price for keeping more control.