Renk blowup points to winter of IPO discontent 5 Oct 2023 The defence contractor pulled its $2 bln listing in Frankfurt. A slump in defence stocks and a selloff in bond markets explain the abrupt decision. But given the company’s growth prospects and cautious pricing, its failure is likely to deter would-be followers.
Intel’s latest breakup is a test for more to come 4 Oct 2023 The semiconductor giant will hive off more of its empire with IPO plans for its programmable chip unit. Weak markets dinged its last spinoff, but this separation can flout strong profit to highlight $18 bln of hidden value. It’s a dry run for a bigger split down the road.
Alibaba spinoff can deliver two recovery packages 4 Oct 2023 Logistics unit Cainiao’s name may mean “rookie”, but the group is profitable and weaning itself off dependence on its parent. A successful IPO valuing it at $10 bln or more would warm up Hong Kong’s market and show Alibaba’s overhaul is on track after CEO Daniel Zhang’s exit.
Capital Calls: Birkenstock IPO 2 Oct 2023 Concise views on global finance: The German footwear brand is offering shares at between $44 and $49 ahead of its market debut next week.
China plus one will lift India’s capital market 28 Sep 2023 Global funds are doubling down on India, supporting IPOs. JSW Infrastructure attracted $7.3 bln of orders for fewer than $200 mln-worth of shares. It paves the way for big debuts like Ola Electric and Reliance Retail. Investors, though, are entering a market priced to perfection.
Bankers’ IPO support could easily buckle 26 Sep 2023 Arm, Instacart and Klaviyo egged on opening pops for their listings by selling a meager number of shares, but have fallen since. While big debuts are good for the companies, their inability to outpace a still-weak market means the opportunity for others to follow remains narrow.
Hong Kong bankers play an anxious waiting game 26 Sep 2023 Fewer IPOs in the city mean firms such as UBS and Bank of America are more willing to handle middling transactions like Tuhu’s $150 mln offer. But as big deals stir in New York and beyond, the downsizing increasingly will look like an awkward stopgap for Wall Street.
Listing duo offers followers a cautious playbook 21 Sep 2023 Chip designer Arm and grocery delivery company Instacart have secured relatively successful stock launches, offering hope of a wider reopening of the IPO market. In this Viewsroom podcast, Breakingviews columnists explain how cornerstone investors and lowly valuations helped.
Instacart under-promises in hope of overdelivering 19 Sep 2023 The grocery delivery service’s shares started trading at $42 apiece, 40% higher than where it priced last night. That may seem wacky, but at $14 bln, Instacart is still reasonably valued. In this market, it’s a wise strategy for boss Fidji Simo.
IPO candidates are trying to flip the FOMO script 18 Sep 2023 Arm’s IPO investors got a 25% return on the first day. Instacart began its roadshow with a low number, only to bump it up. Klaviyo just lifted its price range. Companies and their bankers are finally getting an open window. Creating envy over big debuts will help it stay open.
Ambani’s retail backers dispel only a little doubt 15 Sep 2023 Asia’s richest man is raising funds at the shopping unit of his Reliance Industries. Infusions from KKR and Qatar signal a $100 bln pre-IPO valuation, twice some analyst estimates, but there are caveats. A few more endorsements from new financial investors would go a long way.
Arm’s $52 bln IPO value sets stage for a fall 13 Sep 2023 CEO Rene Haas convinced investors to pay the top of the range for the chip designer’s float. To justify the valuation, he’ll have to turbocharge growth while keeping a lid on costs. Anything but laser-perfect results for the next two years will cause a rapid share price tumble.
Birkenstock risks stepping into fashion fad trap 13 Sep 2023 Riding a sales boost from the Barbie movie, the German footwear brand has filed for a US listing. Its potential $8 bln valuation rests on shoppers continuing to love its iconic sandals. For IPO-hungry investors, Dr. Martens’ crushed bling ambition is a cautionary tale.
Klaviyo is better bellwether than Arm or Instacart 13 Sep 2023 Unlike its hyped peers, the marketing firm is paving the way for garden-variety tech IPOs, targeting an $8 bln valuation. It’s profitable, growing and even has its own invented metric, making it a better gauge of investor sentiment. One wrinkle is its reliance on backer Shopify.
Samsonite’s baggage is heavy with geopolitics 12 Sep 2023 Of all the global companies listed in Hong Kong mulling full or partial exits from the city, the $5 bln luggage maker has the least financial motive to move but is “evaluating” venues nonetheless. It hints at the growing pressure on multinationals to plan for extreme scenarios.
Instacart offers IPO investors a free lunch 11 Sep 2023 The grocery-delivery service is seeking a $9 bln valuation, a fifth below its last internal benchmark. Growth and high retailer concentration are risks, but its advertising business is getting unfairly short shrift. The company’s steep post-Covid discount is priced to move.
Richard Li can afford to be fifth time lucky 11 Sep 2023 The tycoon’s Asian insurer FWD looks set to let its Hong Kong listing application lapse. Ending its fourth IPO push is sensible: it doesn’t urgently need funds. Yet Li’s multi-year run at a debut for his sober business is turning into a test for the languishing capital market.
Arm’s IPO valuation rests on big dose of hope 7 Sep 2023 The SoftBank-owned chip designer is getting ready to list. In this Viewsroom podcast, Breakingviews columnists argue that even the company’s reduced price tag of $50 bln is still far too high, and debate what investors would have to believe to buy the shares.
SoftBank’s reduced Arm price tag is still too high 5 Sep 2023 The Japanese group may float its UK chip designer for $50-54 bln. That’s lower than initially hoped, but still implies an implausible future where revenue and profitability soar. If Arm merely grows at recent rates and nudges up margins, its market worth is more like $35 bln.
Nvidia gives Arm IPO a double leg-up 4 Sep 2023 The $1.2 trln semiconductor designer’s AI-inflated stock price provides a following wind for the UK group’s float. Now Nvidia and two peers may endorse its valuation by buying into Arm’s offering. Owner SoftBank will be hoping other investors buy into the somewhat circular logic.