UK rail IPO comes with noisy fellow travellers 22 May 2019 KKR may float travel-booking company Trainline, used by Brits to book coach and train tickets, for $2 billion. It’s a rare IPO that is growing quickly and generating cash. The problem is that Trainline is pulling into the station soon after a few high-profile UK tech flops.
Luckin investors are short America, long lunacy 17 May 2019 An unprofitable Chinese coffee chain that didn’t exist two years ago was valued at $6 bln within minutes of its New York IPO. Luckin is well placed if frosty Sino-American relations ping back on U.S. rival Starbucks. Beyond that, the debut is every bit as irrational as it sounds.
MTN’s cut-price Nigerian float has silver linings 16 May 2019 The South African telecom group is listing its Nigerian unit for $5 bln. That looks cheap, but the move chimes with the government’s aim to develop local markets, and may ease a tax dispute. Exposing local shareholders to Abuja’s whims might even make it more predictable.
WeWork gets complex, but its problem is simple 15 May 2019 The shared-office firm has set up a unit to buy buildings as it readies for an IPO. It’s a way to hedge against rising lease costs and cash in on WeWork’s supposed halo effect. If tenants prove fickle or demand subsidies, though, the benefit of owning property only goes so far.
Finablr fire sale implies more than dicey markets 14 May 2019 The Travelex owner cut the price of its IPO by 17%, eating into proceeds for its billionaire owner. Had jumpy markets been the only issue, the float could have been delayed. A drastic price cut instead suggests wider investor quibbles with the currency and payments business.
Jumia reveals risky allure of big African numbers 13 May 2019 The online retailer’s first-quarter operating losses widened even though revenue doubled. After falling 63% from their post-IPO peak the shares still trade on a similar multiple of future sales as Alibaba. Africa has promise but merits a steeper discount to the Chinese behemoth.
Growth IPOs exploit total addressable credulity 13 May 2019 Uber says its “total addressable market” is $12.3 trln. Lyft is less exuberant, claiming a mere $1.2 trln TAM, while one estimate of WeWork’s global real-estate opportunity hits over $200 trln. Such heady figures show ambition, but investors need to address the built-in hype.
Uber’s dull thud may startle unicorn herd 10 May 2019 The ride-sharing service’s shares opened below its subdued IPO price, valuing the company at around $70 bln. Markets had a rocky week, but the lack of excitement for the biggest listing of a U.S. tech company since Facebook is a warning that investors are becoming more choosy.
Finablr struggles to ride payments IPO wave 10 May 2019 The Travelex owner is pursuing a London listing that will value it at a minimum of $1.9 bln. The foreign exchange and payments company’s valuation is lower than recent fintech floats. After a mixed bag of European offerings, however, investors may already have had their fill.
American markets are great again for Chinese IPOs 9 May 2019 A near-record number of Chinese firms went public on U.S. exchanges in 2018. Luckin Coffee is among those continuing the trend this year. It contrasts with sharp drops in Chinese investment amid a trade war and other strains. But the healthy pipeline faces a new Shanghai rival.
Uber has recipes to avoid delivery indigestion 9 May 2019 The ride-hailing giant hopes a $795 bln global takeout market can offset slowing growth in its core business. For now, generous incentives are gobbling profit. But the likes of Europe's Takeaway.com suggest there are ingredients for success, starting with market dominance.
Uber’s losses are nothing like young Amazon’s 8 May 2019 Some of the ride-hailing app’s boosters push a comparison with the e-commerce giant’s history: hefty losses now lay the foundation for a future profit juggernaut. That’s the wrong financial statement to look at, though. Amazon’s success and Uber’s trouble are rooted in cash flow.
Siemens self-medicates with weak activist tonic 8 May 2019 The $96 bln industrial giant’s plan to slim down by spinning off its power business looks designed to pre-empt a shareholder rebellion. But the new entity’s complex structure and its odd bundle of clean and dirty energy assets could still draw the attention of a pushy investor.
AB InBev’s debt belly needs more than fizzy growth 7 May 2019 Pricier beer helped the brewer’s first-quarter sales rise faster than expected. Yet AB InBev still has an unsightly debt pile and is battling falling volumes in key regions. An IPO of its Asian operations sooner rather than later would help investors breathe more easily.
China’s Luckin Coffee roasts a rich IPO 7 May 2019 The chain is seeking to raise up to $590 mln as it races to overtake Starbucks. Luckin is growing fast, but burning cash to do so. Although its strategy diverges from that of its Seattle rival, on a comparative revenue-per-store basis the implied $4 bln valuation is high.
Vision Fund IPO could self-disrupt 3 May 2019 SoftBank may be mulling a float of the $100 bln tech fund. That suggests rich Gulf backers aren’t a shoo-in for a second iteration. While going public would diversify ownership, the entity might trade at a big discount. That would turn off both public and existing investors.
Beyond Meat IPO flips into FOMO territory 2 May 2019 The plant-based burger firm’s stock almost tripled on its market debut. The desire for food that’s tasty, green and ethical is real, and investors are clamoring for a bite. But such big first-day pops are often driven by a fear of missing out that longer-term returns cannot sate.
Beyond Meat’s green IPO could still burn buyers 30 Apr 2019 The plant-based burger maker is seeking a $1.5 bln valuation after raising its IPO target price by 20 pct. The eco-friendly business has developed a following among consumers. But with former investor Tyson entering the alternative-meat space, investors may have tastier options.
Slack needs a channel for valuation skeptics 29 Apr 2019 The email disruptor’s revenue jumped 82 pct in the year to January. But losses held steady, leaving profit far away. Private trading in March may imply a price tag of $15 bln or so and Slack could expect even more from its direct listing. Investors may want to chat before buying.
Buyers beware Uber’s slower growth, bigger losses 26 Apr 2019 The ride-hailing app wants an IPO market value of up to $84 bln before dilution, reflecting the share-price slide of rival Lyft. Uber also lost $1 bln in the first quarter, on a top line only 20 pct up on last year. The big question: whether its heavy investment ever pays off.