Super-apps hold back Chinese movie-ticketing IPO 22 Jan 2019 Maoyan may wind up going public below its latest $3 bln valuation. Slowing box office growth and cooling tech stocks are two problems. A bigger issue is that investors can already buy shares in backers Meituan and Tencent, whose all-in-one apps have a stronger lock on users.
U.S. shutdown’s market casualties pile up 10 Jan 2019 The SEC is operating on a skeleton staff. Would-be public companies like Uber face delayed IPOs. Seasoned firms have to make more guesses about how to comply with laws. And all but the most pressing fraud gets a pass. All three could quickly store up trouble for later.
Lyft, Uber IPOs will drain Tesla’s scarcity value 3 Jan 2019 Electric vehicles check boxes for sustainability-minded investors. But the ride-hailing firms’ ubiquity and self-driving ambitions will give U.S. public shareholders new options beyond Elon Musk’s carmaker. Lyft’s growth and ESG credentials could make it the most desirable ride.
Hong Kong’s IPO crown rests on rickety market 20 Dec 2018 The financial centre's $32 bln haul of new listings this year puts it in the global lead. Yet 72 pct of debutantes are trading below their offer prices, and overall trading is thin. Too few long-term investors and a crowded but illiquid market are to blame. Both are hard to fix.
SoftBank’s downward debut damns Japan’s IPO market 19 Dec 2018 Shares in the group’s mobile unit fell sharply on their first day of trading. It’s been a poor year for Tokyo issues, but this $24 bln float might have revived enthusiasm. Unfortunately, boss Masayoshi Son overplayed his hand. Now he’s made it harder for the rest of the queue.
Club Med embarks on overheated holiday escape 13 Dec 2018 The vacation resorts arm of Chinese conglomerate Fosun priced its IPO at the bottom end of the indicated range. A $2.4 bln market cap, however, imputes a multiple on par with its most richly valued peers. Sluggish tourism trends could leave optimistic investors scorched.
Tencent and Spotify are streaming’s dueling banjos 12 Dec 2018 Tencent Music’s IPO valued it at the same $23 bln as its Swedish rival, even though the Chinese service is profitable and Spotify is not. Their business models are worlds apart, but as one moves into video and the other builds up subscriptions they will sound increasingly alike.
SoftBank IPO investors mute shrill market signals 11 Dec 2018 The Japanese group is set to raise a whopping $24 bln in its domestic mobile business float. That makes it one of the world’s most highly valued carriers even as upstart Rakuten becomes a potential threat. Fresh jitters involving Chinese kit also may demand a greater discount.
Uber and Lyft race to get through open IPO window 10 Dec 2018 The ride-hailing apps are jockeying for pole position with public offering filings. Economic worries have put the broad market in a correction and Moderna’s plunge after a $7.6 bln IPO shows demand for cash-burning firms is limited. This duel risks a nasty collision with reality.
Beijing’s 2018 venture capital party may not last 5 Dec 2018 Chinese startups raised more cash than Silicon Valley counterparts in the first six months of this year - a first. But despite the $56 bln boost, there are signs mainland festivities are getting quieter, thanks to tighter rules and a cooling economy. A shake-out could follow.
Tencent Music strains to hit Spotify’s high notes 4 Dec 2018 China's gaming titan is floating its music-streaming arm at a valuation of up to $24.5 bln. Sales are up, and the unit has a novel, profitable business model. Still, its paying listener base is less than a third of its Swedish peer’s, making the huge premium hard to justify.
China’s video-game bulls are running out of lives 3 Dec 2018 Developer iDreamSky will list in Hong Kong at a price tag of roughly $1 bln, less than 10 times expected earnings. Its backer and larger peer Tencent trades at 30 times. The discount signals a mainland online crackdown is taking its toll: valuations have further to fall.
SoftBank gives IPO investors one number to dial 30 Nov 2018 Instead of a range to help determine the price of the mobile unit’s shares, the figure has been set at 1,500 yen. That suggests fervent demand from retail buyers inspired boss Masayoshi Son to skip the typical sale process. It all but ensures an overly generous $63 bln valuation.
GM top-tier reshuffle may both boost and backfire 29 Nov 2018 The $52 bln carmaker’s second-in-command Dan Ammann is taking the wheel at Cruise, the unit that makes self-driving vehicles. The ex-Wall Streeter is the right person to whip it into shape and prepare for a possible IPO. But GM boss Mary Barra is losing her chief problem solver.
Biotech unicorn gorges at market trough of dreams 28 Nov 2018 Moderna’s potential could merit an $8 bln IPO, even if investors often underestimate the time and cost of developing new drugs. Amid waning bullishness, the firm is wise to heed the finance commandment of the cash-hungry sector – when hors d’oeuvres are being passed, take two.
Tencent Music will sound out global IPO market 26 Nov 2018 China's answer to Spotify may push on with a $2 bln New York listing in December. It’s a bad time of year to sell new equity and Tencent has already once delayed its plans. With no obvious need for funds, a subdued deal would confirm that the window for big IPOs is closing fast.
Beyond Meat IPO could go from rare to charred 19 Nov 2018 Investors who take a bite of the plant-based meat maker could get a taste of rapid growth, top-notch leaders and a way to address the looming food crisis. But the company is restricting some shareholder rights and faces competition from traditional and fellow upstart firms alike.
Levi Strauss IPO would be financially retro 16 Nov 2018 The jeans group may go public more than 30 years after a family-led LBO. It has done well in the recent retail turmoil that hit the likes of Nordstrom and a mooted $5 bln valuation looks fair. But the skinny from Levi’s own ups and downs is that staying private is a better fit.
Asian IPO slump brings welcome valuation sanity 16 Nov 2018 Having raised $62 bln in nine months via 480 listings, economic anxieties have infected overheated equity markets in Hong Kong and beyond. Deals from Tencent and others are being delayed or repriced in an overdue correction. With luck, rationality will creep in elsewhere, too.
GE may be canary in credit market’s coal mine 15 Nov 2018 The firm’s bonds tanked this week even as an asset sale briefly lifted its shares. That’s a warning shot for all credit investors. U.S. companies carry more debt than ever, and quality has deteriorated. Rising interest rates and slowing growth could make this a big problem.