Capital Calls: Defence IPO, ViacomCBS and GameStop 24 Mar 2021 Concise views on global finance in the Covid-19 era: Italy’s Leonardo postpones the initial public offering of its U.S. unit; ViacomCBS and GameStop's rising stocks give them both a chance to raise fresh cash.
Frontier gets lift from puffed-up airline stocks 23 Mar 2021 The budget air carrier may be worth around $4.5 billion in its IPO, putting its valuation slightly higher than big peers like American. That’s a warranted premium when taken in isolation. But airlines have higher valuations than before the pandemic. That tailwind will disappear.
Capital Calls: Leon Black, Happiness index 22 Mar 2021 Concise views on global finance in the Covid-19 era: Apollo’s founder still has his imprint on the Museum of Modern Art and Dartmouth College; people are proving surprisingly resilient in the pandemic, a recent poll suggests.
Capital Calls: Bank M&A, Wine trades 19 Mar 2021 Concise views on global finance in the Covid-19 era: Sabadell’s decision to keep its UK unit nixes hopes of a deal with BBVA; U.S. vintner Duckhorn’s IPO ups pressure on Treasury Wine.
Capital Calls: Airline IPO, Turkey’s central bank 18 Mar 2021 Concise views on global finance in the Covid-19 era: U.S. regional air carrier Sun Country Airlines’ IPO pop is justified by positive cash flow; Turkey shows how emerging-market policymakers face trickier choices than their rich-world peers.
China’s Tesla wannabes will drive closer to home 18 Mar 2021 The country’s electric-vehicle makers have so far chosen New York to charge up on capital. Now three of them, Nio, Li Auto, and Xpeng, may plug into Hong Kong to raise some $6 bln. If green-car exuberance follows in their wake, the trio will open a new venue in the race for cash.
Capital Calls: Elon Musk, AstraZeneca 15 Mar 2021 Concise views on global finance in the Covid-19 era: The electric-vehicle maker’s jocular new title of “Technoking of Tesla” tests the theory that deeds matter more than words; fears over the drugmaker’s vaccine risk further delaying the re-opening of Europe’s economy.
Coupang and Roblox fuel anti-IPO fire 12 Mar 2021 Two stock-market debuts support the notion that initial public offerings leave too much on the table. South Korean retailer Coupang’s huge initial price pop is Exhibit A. Games platform Roblox’s steadier first day suggests direct listings are better for finding a market price.
Japanese bank repositions Aussie lender’s owners 12 Mar 2021 Latitude Financial fetched a A$3 bln valuation from a Shinsei Bank investment. That’s about what KKR, Deutsche Bank and Varde were aiming for in previously aborted IPOs. The sums imply a decent return even after a rocky six years, assuming a successful third attempt to go public.
Coupang lives up to Masayoshi Son’s vision 11 Mar 2021 The South Korean e-commerce phenomenon is worth $109 bln after its shares popped 81% on their New York debut. Coupang has qualities synonymous with SoftBank tech bets: fast growth, lofty valuation, and a hyped-up founder. At least its path to profit has been modelled by Amazon.
Cash flow sets runaway Roblox debut apart 10 Mar 2021 The games platform’s NYSE direct listing kicked off at a $42 bln valuation, up 43% from a funding round in January. With support on Reddit forums like those that boosted GameStop shares, the spike may be overdone. Still, at least Roblox has the rare quality of throwing off cash.
JDE Peet’s spilt milk has lessons for IPO hopefuls 9 Mar 2021 Shares in the $19 bln JAB-backed coffee group dived after weak 2021 guidance. Rivals Illy and Unilever, which may spin off its tea arm, will shudder at the L’OR maker trading below its May IPO. More marketing spends and premium drinks could set them apart in any future listings.
Capital Calls: TV’s royal boost, Shared offices 9 Mar 2021 Concise views on global finance in the Covid-19 era: Oprah Winfrey’s interview with Prince Harry and his wife Meghan is a boon for ViacomCBS’s streaming ambitions; IWG’s revamp depends on a workplace revolution.
Capital Calls: American Airlines, Crypto PayPal 8 Mar 2021 Concise views on global finance in the Covid-19 era: The U.S. carrier is issuing new debt and hocking some airline miles to pay back the U.S. Treasury loan that carried restrictions on pay and dividends; PayPal investors give a shrug over another dive into bitcoin-land.
Britain’s zeal for financial reform could backfire 8 Mar 2021 Finance minister Rishi Sunak has endorsed changing rules to promote stock market listings and fintech. Insurance may be next. The drive not only risks a return to the pre-2008 “light touch” approach to oversight. It also makes financial services deals with other countries harder.
U.S. SPACs are a first step for Asian tech giants 8 Mar 2021 Walmart’s Indian e-tailer Flipkart is mulling a New York debut via a blank-cheque firm valuing it at $35 bln. Other wannabe issuers in emerging Asia are eyeing dual listings to stay close to home. If China’s any guide, complex structures will materialise sooner rather than later.
Compass IPO value is all about location 4 Mar 2021 The SoftBank-backed realtor may be worth $37 bln if it is benchmarked against Zillow. As a regular realtor, though, its value drops 90%. Compass is growing like a tech company but also paying for the privilege. That suggests it could be the worst property on the best block.
Market jitters make energy IPOs suddenly look good 4 Mar 2021 Wintershall Dea is preparing to list. Fears over higher borrowing costs make cash-generative oil and gas companies look relatively attractive compared to the high growth stocks investors have been dumping this year. Stabilising crude prices could make for an even sweeter spot.
Capital Calls: OPEC+, Michaels 4 Mar 2021 Concise views on global finance in the Covid-19 era: Recovery concerns keep a lid on the oil cartel’s supply taps; Apollo tries its hand at craft retailer Michaels.
UK used car IPO may be more Mini than Maserati 4 Mar 2021 Founder Alex Chesterman may list online car seller Cazoo for a mooted 6 bln pounds. The pandemic has accelerated disruption in the 78 bln pound market. But U.S. peers like Carvana show it takes years to build market share. Prospective investors should be prepared to haggle.