Levi Strauss schools Big Tech on IPO success 10 Apr 2019 The $9 bln jeans maker reported a healthy profit in its first results since going public last month, giving the stock a fresh boost. It now trades 35 pct above its initial offering price. Levi’s may not be flashy, but the company delivers the goods better than the likes of Lyft.
Online-video IPO pits greed against China fears 10 Apr 2019 Zoom may be worth more than $9 billion when it floats thanks to its astonishing growth – and, rare for a 2019 tech IPO, its profitability. Sky-high valuation multiples make the firm’s China-centered R&D effort financially appealing, but there’s significant political risk.
Payments duo hush European IPO bankers’ lament 10 Apr 2019 Nexi and Network International are selling shares worth $4 bln amid a dearth of new issues in 2019. The Italian and Middle Eastern groups have reliable revenues and high margins, drawing interest even from edgy investors. Network’s superior growth rate merits a higher multiple.
Pinterest can make a virtue of down-round IPO 8 Apr 2019 The social-scrapbooking app wants a lower value for its stock-market debut than its last price tag of $12 bln. It may bode ill for tech IPOs after Lyft sputtered. But Pinterest’s finances are healthier than other startups going public. Being conservative can work in its favor.
Viewsroom: What’s driving Lyft’s valuation? 4 Apr 2019 The ride-hailing firm is worth $30 bln after its stock-market debut, even though its losses are growing. Shareholders are betting a shift to autonomous driving will steer it to a profit, but that may be a long way off. Plus: Saudi Aramco lets investors drill into its finances.
Super leaders don’t need supervoting shares 3 Apr 2019 Lyft is one of many growth companies with dual-class stock that entrenches its creators. But Steve Jobs dominated Apple without such wheezes. Elon Musk’s survival at Tesla isn’t just down to governance quirks. And Uber seems better off freed from the control of its architect.
Aramco is just not big enough 2 Apr 2019 The Saudi oil producing giant is hyper-efficient, but it still doesn’t warrant the $2 trillion value envisaged by the kingdom’s crown prince.
Saudi Aramco is big, just not big enough 2 Apr 2019 The oil producer’s accounts show it is hyper-efficient. That helps its valuation, as does the rise in the price of crude since Aramco first flirted with an IPO. But while the company is a giant, it still doesn’t warrant the $2 trillion value envisaged by Saudi’s crown prince.
Nio’s financial road rage accomplishes very little 1 Apr 2019 As part of its IPO, China’s $5 bln Tesla wannabe blocked advisers including Citi and Goldman from working with rivals for a year, Reuters reports. Such cutthroat tactics betray a new sense of urgency in the electric-car race. Neither Nio nor bankers have much to gain, however.
Lyft gives Uber a boost along the IPO road 29 Mar 2019 New investors eagerly hopped into the ride-sharing firm’s public listing, driving Lyft’s price up by some 20 pct. It bodes well for mega-rival Uber, which on a similar multiple would be worth over $150 bln. Turning fast growth into profit, though, remains a challenge for both.
IPO wave amplifies Silicon Valley inequality 28 Mar 2019 One estimate sees 6,000 new millionaires minted from the likes of Lyft and Uber going public. It will give the overall Bay Area economy a boost but may exacerbate social problems. There’s already an affordable housing crunch, and the gap between the rich and poor is growing.
Jumia to test faith in the rare African unicorn 27 Mar 2019 The e-commerce startup from Rocket Internet is hoping for a $1.4 bln price tag when it goes public in New York. Sales are galloping but so are losses. That’s a punchy valuation given the poorest continent’s social and political problems – unless Alibaba or Amazon are the buyers.
WeWork shows benefit, and cost, of SoftBank vision 26 Mar 2019 The shared-office giant’s loss in 2018 more than doubled to $1.9 bln, outpacing the growth – and amount – of revenue. Backer SoftBank believes in investing heavily in expansion. Potential IPO investors must square that breakneck spending with a $47 bln private valuation.
Naspers relocates its Tencent discount to Europe 25 Mar 2019 The Johannesburg group is shifting internet investments, including a $134 bln stake in the Chinese web giant, to an Amsterdam-listed unit. That might tempt investors wary of South African risks. But it does little to address fears that Naspers will squander its Tencent windfall.
Pinterest’s future relies on pegging global sales 25 Mar 2019 The scrapbooking app has a healthier balance sheet than other startups going public. Ad growth has outpaced expenses, shrinking its net loss by 65 pct over two years to $63 mln. But most new users are overseas, and still far less lucrative than U.S. crafting counterparts.
Levi Strauss IPO looks a few sizes too big 21 Mar 2019 The 166-year-old jeans-to-jumpsuits maker is worth $8.7 bln after shares popped 33 pct on its return to the public market. That’s perhaps justified, but it’s a stretch, suggesting denim will remain in vogue. Recent bankruptcies of two rivals are a reminder such fashion fads fade.
Middle East payments IPO is spiciest in hot sector 21 Mar 2019 Network International is planning a London listing that values it at up to $3 bln. A focus on emerging markets, where cash dominates, leaves plenty of room for electronic payments to take off. The risk is tech firms offer Middle Eastern and African shoppers a slicker alternative.
Chinese car lender’s IPO drives a hard bargain 19 Mar 2019 Dongzheng Automotive Finance could be worth $1.4 bln after going public, valuing the company at a big premium to rivals. Its fast growth, high returns and luxury-vehicle focus may justify that. But it’s shifting into new markets and has yet to face the rough ride of a downturn.
Lyft leaves investors with options – and questions 18 Mar 2019 The ride-hailing firm’s newly disclosed IPO valuation target tops out at $23 bln. That’s compatible with a $100 bln-plus price tag for Uber. Yet both are a big stretch with no profit in sight. Lyft has flaws all its own, too, led by governance. If it’s a choice, it’s not easy.
Lyft makes flattering “contribution” to accounting 14 Mar 2019 The term commonly means revenue less variable costs. The ride-hailing firm’s take on it excludes even some of those outlays and suggests healthy profit in the future. Like WeWork’s “community-adjusted EBITDA” prospective IPO investors should probably ignore the metric altogether.