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.
SoftBank could live with a cut-price Arm IPO 30 Aug 2023 The Japanese conglomerate wants a $60-70 bln price tag for the UK chip designer, according to reports. But it has reasons to push on even at a lower value, in part because a float would boost the parent group’s creditworthiness. That gives investors an incentive to play hardball.
Instacart’s mixed bag has valuation opportunities 28 Aug 2023 The food delivery firm is worth far less than its high point in 2021. The cost to get new customers is rising, too. But a push to sell ads, a sensible business, could help bring its valuation close to $17 bln. As long as Instacart is reasonable, it can get its listing, finally.
Arm’s changing business model is wildcard for IPO 24 Aug 2023 As well as jumping on the AI bandwagon, SoftBank’s soon-to-float chip designer has altered the way it charges big customers to boost growth and smooth out revenue. If it works, a valuation north of $60 bln looks slightly less implausible. But investors lack evidence so far.
Arm’s IPO risks shine brighter than its potential 22 Aug 2023 SoftBank’s chip group is leaning on the artificial-intelligence boom to justify a hoped-for float valuation north of $60 bln. There’s no evidence to support that in the numbers, which show lumpy, shrinking sales. China risks and lack of investor control also call for a discount.
TikTok challenger backpedals into public arena 21 Aug 2023 After nixing a $5 bln reverse merger last year, Triller plans to sell shares in a direct listing. Music videos and live-streamed brawls hosted by stars such as Snoop Dogg have attracted brands. A pivot to social media tools and questionable growth, however, make it a lightweight.
SoftBank Arm deal is expensive gift to Vision Fund 21 Aug 2023 Masayoshi Son’s group bought 25% of the chip designer from its Saudi-backed investment vehicle. It puffs up the fund’s poor returns, but betrays a lack of confidence in an upcoming float. A pricey $64 bln valuation means Son’s fellow SoftBank shareholders will probably lose out.
Arm float may deepen cracks in IPO market 17 Aug 2023 The chip designer is preparing a stock market listing in the US. Orders are already being lined up from customers like Amazon.com but in this Viewroom podcast Breakingviews columnists explain why it may not get a lofty valuation and how that could put off possible followers.
Arm IPO depends on more than Big Tech support 14 Aug 2023 The UK chip designer may sell shares to Apple or Amazon as part of its $10 bln stock offering. Backing from large clients could help prop up its valuation. But antitrust concerns mean the stakes will be small. To succeed, owner SoftBank needs to win over big institutional funds.
Bubble tea will test limits of China’s consumers 8 Aug 2023 Half a dozen boba-drink makers including Mixue Bingcheng are looking to list abroad. Profit margins are low in the $20 bln sector. But as shoppers reduce higher-end spending, the cheap-and-cheerful brews can thrive – even if Beijing holds back on much-needed stimulus.
Cracking the IPO window is a tall task 3 Aug 2023 Sandal-maker Birkenstock is among those angling to defy a downturn in stock-market debuts. In this Viewsroom podcast, Breakingviews columnists discuss how corporate hopefuls on both sides of the Atlantic are trying to thaw the deepest freeze on public listings since the pandemic.
Capital Calls: Carlyle, UK SPAC deal, Beauty marks 2 Aug 2023 Concise views on global finance: The buyout shop’s fee challenge comes into sharper relief for boss Harvey Schwartz; banker Michael Klein aims to use his latest shell company to buy a British investment firm for $1.6 bln; and $7 bln cosmetics maker e.l.f. is looking glamorous.
Birkenstock kicks Europe in the rear with US IPO 2 Aug 2023 The German brand is eyeing an $8 bln New York listing. Owner L Catterton is betting on a US market uptick and publicity from the Barbie movie to double its money. Ditching Europe is not illogical. But as American luxury sales slow, dressing up its no-frills sandals looks hard.
Europe’s listless IPOs are red flag for big floats 31 Jul 2023 The region’s string of mostly mid-sized initial public offerings this year are now just 3% above their listing price on average. Such poor performance will make investors wary of backing new ones. That will give larger float candidates, like CVC and Galderma, pause for thought.
China’s crackdown on IPO risk factors is a warning 25 Jul 2023 Officials want negative descriptions of the country's policies toned down in prospectuses. It's another hoop for firms listing in Hong Kong and the US to jump through, and for regulators to spar over. For global banks and investors, it ups the dangers of doing Chinese deals.
Capital Calls: European earnings 20 Jul 2023 Concise views on global finance: Consumer-facing companies Electrolux, Essity and HelloFresh all plunged after weaker-than-expected financial reports.
Research U-turn is poor fix for vanishing stocks 18 Jul 2023 The UK and EU may let investors pay for equity analysis through trade commissions again. The hope is that this will lead to more research and help small firms list. Yet asset managers will fear higher costs, and the IPO market faces bigger headwinds than a writeup shortage.