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.
Russian retail IPO offers crowded bet on misery 15 Feb 2021 Fix Price, the country’s biggest discounter, may list in London and Moscow. It’s growing rapidly, thanks to pressured incomes in its home market and resilience to online rivals. That could justify a price tag of $9 billion, so long as investors shrug off rising competition.
Vivendi’s $40 bln music spinoff is Bolloré shuffle 15 Feb 2021 The conglomerate may hand 60% of Taylor Swift’s label to investors. Eliminating a discount on the French group’s shares could unlock 7 bln euros of value. But controlling shareholder Vincent Bolloré benefits most: he gets the upside while retaining his grip on both parts.
Ex-UniCredit CEO rides first class on SPAC train 15 Feb 2021 Jean-Pierre Mustier teamed up with tycoon Bernard Arnault and fund manager Tikehau to launch a blank-cheque vehicle searching for financial services deals. He’s betting European investors will join the SPAC craze. The support of Europe’s richest man offers a good entry ticket.
Bumble gratifies Blackstone’s lust for lucre 11 Feb 2021 After a 75% first-day IPO pop, the dating app is worth quadruple what it was when the private equity firm invested a year ago. Even if Bumble’s valuation settles nearer that of rival Match, Blackstone will have made a big paper profit. Its early flirtation with tech has paid off.
London IPO overhaul could do more harm than good 8 Feb 2021 A review led by former European Commissioner Jonathan Hill may let companies going public sell fewer shares or offer stock with reduced voting rights. The decline in listings is real but reflects broad market changes. The risk is weaker corporate governance with little benefit.
Thai beer float needs market fizz for top value 8 Feb 2021 Thai Beverage’s move to float 20% of its brewing business has strong echoes of the 2019 IPO of Budweiser’s Asia unit. To reach a mooted $10 bln equity value, it will need to match a bubbly valuation too. But it’s less profitable and Singapore listings aren’t known for froth.
Hong Kong retail mania one-ups U.S. short squeeze 5 Feb 2021 Kuaishou shares nearly tripled on their $5.4 bln debut. One in four working-age Hong Kongers bid for a stake in the Chinese video app, putting up $162 bln. Dubious rallies without organised campaigns like GameStop’s provide stronger evidence of a frenzy getting out of hand.
Branson splices cash and hype into 23andMe 4 Feb 2021 The consumer genetics company is combining with the British billionaire’s SPAC in a $3.5 bln deal. Revenue from testing is shrinking, but all that personal data could be valuable. While 23andMe’s valuation looks high, the $1 bln in cash should buy some time to grow into it.
Corona Capital: McKinsey/opioids, Bumble IPO 4 Feb 2021 Concise views on the pandemic’s corporate and financial fallout: Consulting firm McKinsey settles over its role in the U.S. opioids scandal; and dating site Bumble boss Whitney Wolfe Herd looks smart to be holding back in the company’s initial public offering.
Vimeo earns its prime-time video slot 2 Feb 2021 The IAC-owned platform doubled its private market value to $6 bln in three months. That may rise further when Barry Diller’s group spins it off, given the boom in subscriptions sold to Starbucks and such. Vimeo could follow Slack as a target for business-focused tech giants.
Corona Capital: Universal Music 1 Feb 2021 Concise views on the pandemic’s corporate and financial fallout: A Universal Music IPO could close Vivendi’s conglomerate discount.
Corona Capital: Vaccines, Dr. Martens 29 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Quantity matters with vaccines, while Permira gets an extra kick from the bootmaker.
Shaky electric-car maker zips into market mania 29 Jan 2021 Faraday Future, which has yet to sell a vehicle, will get yet another lease on life by way of a SPAC. Chinese automaker Geely is also backing the $3.4 bln venture. There are red flags galore, including internal control weaknesses. The biggest may be founder Jia Yueting himself.
Corona Capital: UK’s quarantine, U.S. prisons 27 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Britain’s new quarantine rules are weak, but will still hurt the travel industry; and for-profit prisons lose business to the U.S. government.
Russian mining IPO comes with sanctions noise 21 Jan 2021 Nord Gold is planning a $5 bln listing in London, the WSJ reports. Severstal billionaire Alexey Mordashov only has a minority stake, but his sons own most of the rest. Investors need to consider the risk that the new U.S. administration decides to take a tougher line on Moscow.
Europe’s IPO early birds will catch the worm 20 Jan 2021 Six European companies have already launched floats in 2021. That’s unusual: the second quarter is usually the busiest period for IPOs. Vaccines and resilient valuations mean that those who jump the gun are likely to be the ones who end up looking smart.
Indian beauty shop all dolled up with places to go 20 Jan 2021 Nykaa makes it easy for millennials in far-flung cities to buy branded cosmetics online. The TPG-backed startup is growing fast without discounting deeply while keeping a lid on losses. That should help a mooted $3 bln IPO valuation – if it isn’t snapped up by a tech titan first.
Bumble IPO is less alluring than its profile pic 18 Jan 2021 The online matchmaking service’s upcoming offering could be worth as much as $10 bln based on competitor Match. That’s much higher than what Blackstone paid for its stake in 2019. But growth is slowing, and the aging, founder-backed firm has baggage.