Listing Aramco in Tokyo has logic on its side 29 Aug 2019 In its lengthy quest to decide where and when it will list its shares, the Saudi oil giant may be leaning towards Japan. Tokyo’s reliance on Riyadh for oil supplies has always made it a valid choice. With other international bourses out of the picture, that may be reason enough.
Peloton’s tech claims depend on too much spin 28 Aug 2019 The stationary bike outfit calls itself a technology, media and software firm in its IPO prospectus. True, it burns lots of cash and gives founders supervoting rights. But Peloton needs to retain online customers in an exercise market prone to fads. That’s far from a sure bet.
Permira plans $5 bln test of EU software appetite 28 Aug 2019 The buyout shop may list Germany’s TeamViewer, which sells technology for remote computer access. It’s part of a trend for enterprise-software groups offering just one service. U.S. peers have bumper valuations. The risk is that Europe’s sickly IPO market dents Permira’s returns.
Chinese AI listing concentrates risk factors 26 Aug 2019 Artificial intelligence startup Megvii has filed for a Hong Kong IPO even as protests rock the city. Controversial facial recognition technology and scrutiny from Washington may alarm investors, as could plans for super voting stock. To fundraise now looks brash, or rushed.
Rivals expose WeWork’s low defensive walls 22 Aug 2019 Flexible-office provider Knotel just raised $400 mln. Coworking upstart Industrious could soon make money. WeWork’s huge losses and flawed governance are already enough to undermine its $47 bln pre-IPO valuation. The fragility of its first-mover advantage is another weakness.
Viewsroom: WeWork unfurls the red flags 15 Aug 2019 The shared-office provider’s long-awaited IPO filing is packed with pointless life-affirming tropes. But it also details a host of conflicts of interest and other risks that should send investors running. Plus: India’s powerhouse Reliance is building a war chest for dominance.
WeWork offers convincing case to avoid its IPO 14 Aug 2019 The shared-office provider’s prospectus displays a convoluted ownership structure, reams of related-party transactions, conflicts and absurd estimates of addressable markets, topped out with inspirational gibberish. What’s simple, however, is its continued massive cash burn.
Aramco’s valuation dreams become quasi-reality 12 Aug 2019 Put the Saudi oil giant’s latest dividend on Exxon’s forecast yield, and its equity nears Crown Prince Mohammed bin Salman’s desired $2 trillion valuation. Yet Aramco’s first-half payout was unusually fat. A more realistic approach would put a lower price tag on the delayed IPO.
J.C. Flowers’ Japan sale marks timely end of era 9 Aug 2019 The U.S. firm, once called a “vulture” by local press, is selling most of its stake in Shinsei Bank after 19 years. With Japanese lenders staggering, cashing out now of what has overall been a lucrative deal makes sense. Foreign funds owe Flowers for giving them a better name.
Shiny Shanghai tech market needs a reality check 5 Aug 2019 China's freshly minted STAR board saw shares hold on to triple-digit gains after a week of regular trading. It passed the first test: volatility was manageable, even if valuations now look alarmingly inflated. Fixing that may require an overpriced listing to founder.
Viewsroom: Is Beyond Meat worth a bite? 1 Aug 2019 The meatless-burger maker is the best-performing IPO of the year by far. Now insiders are selling stock early as the company deals with rising competition, regulations and even a potential pea shortage. Plus: Using wine goggles to look at Western firms’ joint ventures in China.
Beyond Meat backers take the money while it’s hot 30 Jul 2019 The meatless-burger maker's CEO and other insiders are selling shares early. That looks like a signal that the near-800% jump in the stock since May's IPO is overcooked. Since Beyond Meat is still serving lashings of revenue growth, investors are unlikely to pay much heed.
Chinese IPOs get a red card from foreign investors 26 Jul 2019 Wanda Sports raised $190 mln in a downsized New York listing, following DouYu and other companies that have shelved or valued offers cheaply due to poor demand. The U.S.-China trade war is making buyers wary of mainland issuers, and better returns can be found elsewhere.
China’s new tech bourse too much of a good thing 22 Jul 2019 Shares of all 25 firms on China’s answer to the NASDAQ at least doubled on their debut. Dig beneath the speculative mania, though, and there is a lot to like about the new board. Letting more companies list, and sticking to reforms, may be the best way to tame the price swings.
Asahi Aussie deal passes all but one sobriety test 22 Jul 2019 The Japanese brewer is buying AB InBev’s Australian unit for $11 bln. It’s a highly profitable business that ticks lots of boxes for Asahi, but justifying the price requires clever cost savings. Asahi will have to take a more proactive approach than usual to make the deal work.
AB InBev’s deal machine goes into smart reverse 19 Jul 2019 The brewer’s sale of its Aussie unit to Asahi for $11 bln will cut debt. The Japanese are paying a valuation less than AB InBev wanted from its botched Asia IPO but probably more than investors ascribed to the unit. It keeps the door open for boss Carlos Brito to try again.
Aramco gives bankers new scope for Saudo-masochism 19 Jul 2019 A second crack at the Saudi oil giant’s stalled $100 bln IPO could mean different bankers. Spurned advisers can comfort themselves that the listing won’t be lucrative and may never happen. The reputational and other issues that plagued the first attempt have only intensified.
Viewsroom: AB InBev’s stubborn financial beer gut 18 Jul 2019 The $150 bln brewer of suds like Budweiser and Stella has scrapped its Asia unit’s Hong Kong float. CEO Carlos Brito now needs new ways to reduce the company’s debt. And as the second pulled IPO in weeks amid civil unrest, it puts the city’s financial hub under a spotlight.
SoftBank’s robotics IPO faces a reality check 17 Jul 2019 China’s CloudMinds, 35% owned by Masayoshi Son’s Vision Fund, is seeking $500 mln in a U.S. float. The loss-making robot startup reckons AI-powered androids are tomorrow’s cleaners. It’s a tough sell in the real world, where most Chinese tech floats this year are now underwater.
China’s Topsports takes eye off e-commerce ball 17 Jul 2019 Two years after a $6.8 bln buyout of Belle, the shoe retailer has unveiled IPO plans for its athletic-wear chain. A Beijing-backed fitness push should help sustain sales growth. A dependence on Nike and Adidas is a worry, though, as is the lack of emphasis on its online strategy.