Oscar’s $8 bln IPO is triumph of hope over scale 3 Mar 2021 The tech-driven newbie has made a start on disrupting U.S. healthcare. But bigger groups can offer more choice in care, negotiate better prices, and keep more premiums to themselves. Customer growth alone doesn’t make Oscar's 2020 revenue worth more than 10 times rivals' sales.
London IPO shakeup is more about SPACs than tech 3 Mar 2021 Finance minister Rishi Sunak plans to overhaul stock market rules to attract more listings. The changes may prevent some UK startups from defecting. But they also allow London to join the craze for blank-cheque offerings. The costs of weaker regulation will become apparent later.
Hey Hong Kong, leave those SPACs alone 3 Mar 2021 The Asian financial centre may ape Wall Street by letting blank-cheque firms list on its bourse. Yet it only recently squished a boom in shifty shell companies. And the issues SPACs claim to avoid aren’t relevant for Hong Kong IPOs. The exchange is better off steering clear.
Top Glove triple listing bid is a stretch 3 Mar 2021 The world’s largest rubber-handwear maker wants to sell shares in Hong Kong on top of Malaysia and Singapore. Firms with small home markets must often move to grow but few can juggle the complexities of three bourses. That may provide cover for it to ditch the least useful.
Coupang’s next delivery: better disclosures 2 Mar 2021 South Korea's e-commerce darling is seeking a $50 bln valuation. It boasts heady growth and hefty losses. Metrics such as fulfillment costs, reported by peers like Amazon, are missing from its prospectus, though. Scant detail on new bets also makes the IPO math hard to justify.
Capital Calls: Sarkozy’s trial 1 Mar 2021 Concise views on global finance in the Covid-19 era: the former French prime minister’s conviction for trying to bribe a judge creates a new dilemma for the companies on whose board he sits, including hotel chain Accor.
Airbnb’s post-IPO showing is a pre-SPAC throwback 25 Feb 2021 The home-sharing app’s quarterly revenue fell 22%, yet still beat rivals. Because it went through its growing pains in private, Airbnb’s first results as a listed company show an already solid business. Many startups taking the blank-check route to market won’t have that luxury.
Coinbase’s listing is a cryptic way into crypto 25 Feb 2021 The exchange for bitcoin may ink a $100 bln valuation in an upcoming listing. Growth and profit are encouraging. But its model relies on transactions, and past crashes are a problem. More disclosure would be reassuring. The prospectus leaves room to assume the worst.
Viewsroom: Electric cars share some market fever 25 Feb 2021 Toyota, Ford and GM are all trading at their highest level in years as investors start to pick some winners among traditional automakers. Fear of missing the next Tesla, though, means shareholders are keeping the heady valuations for upstarts like latest SPAC target Lucid Motors.
Klarna listing would be a mixed blessing 25 Feb 2021 The Swedish fintech’s next funding round could value it at $30 bln, and it’s mulling a direct listing. Allowing early investors to cash out carries obvious appeal. The downside is there would be a daily commentary on Klarna’s regulatory risks and shortcomings relative to rivals.
Afterpay zealots buy now and will pay later 25 Feb 2021 The $30 bln Aussie fintech champ reported more impressive growth as installment-plan purchases swell. A deal to buy out its U.S. business raises fresh valuation questions, however, as do bigger losses, PayPal’s entry and regulatory concerns. A reckoning for investors awaits.
Oatly value ingests Beyond Meat’s bloat 24 Feb 2021 The Oprah-backed oat milk maker can hit a $9 bln valuation in an IPO based on its faux meat rival’s multiple. That’s an almost fivefold increase from last year. Big partnerships help justify growth. But using one inflated stock to validate another is too much of a good thing.
Vodafone mast carve-out sharpens growth challenge 24 Feb 2021 The 39 bln euro phone firm’s Vantage Towers unit may be worth 14 bln euros when it lists in March. Selling a stake helps CEO Nick Read cut debt but gives him less protection from disgruntled investors. Fortunately, Vodafone’s core service business is recovering just in time.
Drinks-can SPAC offers a healthier kind of bubble 23 Feb 2021 Packing firm Ardagh’s metal unit differs from some blank-check targets in that it’s profitable and tangible. The $8.5 bln valuation relies on punchy assumptions, but is less fizzy than, say, rockets or genetic testing. It’s the kind of thing SPACs need to build credibility.
JD offers peek into China’s e-commerce machine 23 Feb 2021 The $160 bln web retailer is spinning off its logistics arm. Upgraded delivery systems have supported an online shopping boom that is driving yet more growth in the sector: a virtuous cycle. JD's high-tech operation and shrinking losses should excite investors.
Porsche IPO would be valid twist in VW soap opera 19 Feb 2021 More than a decade ago the sports-car maker’s parent tried to buy Volkswagen but wound up ceding control of the brand instead. VW is now mulling a partial float to fund an electric push. A mooted 100 bln euro value looks set to revive old wrangling over what Porsche is worth.
Viewsroom: Breakingviews’ new SPAC needs a name 18 Feb 2021 Blank check mania has crossed the Atlantic, bringing with it hopes of riches for well-connected financiers, underwriters, startup founders and ordinary investors. The U.S. example, though, offers some warning signs, our columnists suggest, as they ponder a vehicle of their own.
Darktrace is ultimate test of IPO risk appetite 17 Feb 2021 The cyber group’s top investor, Autonomy founder Mike Lynch, is facing U.S. extradition on fraud charges. Its top ranks are packed with his former colleagues. UBS has dropped out of the $5 bln listing. Pushing ahead despite such red flags suggests investors may pinch their noses.
Parental anxiety complex births $1.4 bln SPAC deal 16 Feb 2021 Baby monitor firm Owlet is listing through a blank check firm with a valuation that puts a high price on parental paranoia. Baby spending is rising, and Owlet promises to be the “digital nursery of tomorrow.” But its projections are as unrealistic as new parents’ expectations.
South Korea’s Coupang is less Amazon, more Walmart 16 Feb 2021 The e-commerce group might be worth over $50 bln in its New York IPO valued as the former, or about $10 bln as the latter. Coupang is loss-making in a small retail market. Success in new areas like food delivery could justify a premium but the growth outlook deserves caution.