Dell IPO talk sounds like bluff 24 Sep 2018 Investors are resisting its $22 bln plan to swap VMware tracking stock for regular shares and then list them. Reports suggest the hardware group could just go public instead. But that’d crystallize a big problem with the deal now on offer: Dell’s high valuation of its own stock.
$100 bln weed company is still in the pipe 21 Sep 2018 Cannabis producer Tilray’s shares have risen and fallen at a rate that makes virtual currency bitcoin look lethargic. Its CEO claims it could have a 12-digit valuation. He’s half right. A producer of that size is likely one day, but assuming it will be Tilray is foolish.
Aston Martin IPO makes more sense in middle lane 20 Sep 2018 The high-end carmaker is aiming for a top equity value of 5 billion pounds. That would place the group above the average of luxury peers and near snazzier rival Ferrari in EBITDA multiple terms. The midpoint of the proposed IPO range looks more reasonable.
Meituan IPO shows how to tempt investor appetites 20 Sep 2018 Shares of the takeaway-to-taxi app rose as much as 7 pct in their Hong Kong debut, lifting its value to $56 bln. Phone maker Xiaomi’s fumbled start in July dented confidence. But Meituan anchored expectations and brought in big funds. It’s a sensible recipe for others too.
Chinese IPOs bring casino trading to New York 18 Sep 2018 U.S. markets are getting a taste of mainland volatility. News app Qutoutiao more than doubled on its first day before plunging on the second; carmaker Nio has also see-sawed. Small floats and untested models are partly to blame, but erratic behaviour will hamper future debuts.
German giant adds heft to IPO starting line 17 Sep 2018 The billionaire owner of Knorr-Bremse plans to sell shares in the maker of brakes for trucks and trains. Outside investors will get little say, making a mooted $14 bln price tag ambitious. Yet the reassuringly solid business marks a welcome shift from dicey European offerings.
Nio zooms from carmaker to tech star 14 Sep 2018 China’s answer to Tesla reversed out of a dismal NYSE debut as its shares jumped 76 pct in their second day of trading. That imputes a $13 bln market cap that values Nio less like a manufacturer and more like an internet darling. Production figures make it hard to justify.
Meituan Dianping feeds into Chinese tech fears 13 Sep 2018 The Tencent-backed super-app owner raised over $4 bln in its IPO. Big fund managers could scarcely afford not to buy shares, but mom and pop investors were less enthusiastic than for other recent market debuts in the sector. It’s a good indication of waning investor appetites.
Biotech starts Phase II Hong Kong market trial 13 Sep 2018 Diabetes drug developer Hua priced its shares at the bottom of the range, and halved the deal size. After peer Ascletis debuted last month to kick off an expected wave of IPOs from the sector, its value fell 50 pct. The success rate for this big experiment may be low for a while.
Didi falls way behind Uber on road to IPO 11 Sep 2018 Both burn heaps of cash, but new figures reveal that the $56 bln Chinese app pockets just two cents of every rider dollar. For $72 bln Uber, the roughly equal sum after subsidies is 23 cents. Differences are getting clearer even if neither looks ready to ride onto public markets.
Chinese Tesla’s $1.3 bln IPO revs up too fast 11 Sep 2018 Electric-car maker Nio has a rich price tag to match its premium branding. Under the bonnet, though, it looks less shiny. The group combines an opaque legal structure favoured by tech giants with dependence on a local auto partner. Sales are still nascent, and rivals abound.
Volvo’s IPO problems go beyond brewing trade war 10 Sep 2018 The carmaker’s Chinese owner has paused a float worth up to $30 bln. Even without America’s tariff antics, that price tag would have been far too high. Investors are unconvinced old-school auto groups will get a return for their spending on electric and autonomous cars.
Tianqi edges ahead in Hong Kong’s lithium race 7 Sep 2018 China’s top two producers of the battery ingredient are revving up $1 bln listings in the city. Both offer a bet on the electric car boom. But Tianqi’s quality resources give it a narrow advantage over processing giant Ganfeng, at a time when investor confidence is wobbling.
Farfetch IPO carries luxury price tag 6 Sep 2018 The deluxe clothing website may be valued at $4.6 billion. That makes sense if it can outgrow rivals. A model that links buyers and boutiques potentially means higher profit, but gives it less control over stock and prices. Well heeled customers may be tempted to go elsewhere.
UK peer-to-peer IPO needs to shrug off dicey label 3 Sep 2018 Funding Circle’s valuation of up to $2.1 bln seems steep compared with U.S. marketplace lenders. The UK group is growing faster and, unusually for the sector, has avoided scandals. A better question is how regulation and rising competition affect its ability to turn a profit.
“No” is the best answer for SurveyMonkey IPO 30 Aug 2018 The online survey firm is nearly two decades old, but it continues to lose money and releases little of its historical financial results. That’s presumably because growth isn’t impressive for a tech firm, and the key to turning a profit remains elusive.
Aston Martin IPO relies on turbo-charged profit 29 Aug 2018 The British luxury sports-car maker wants to list in London. Promises of Ferrari-like profitability and rapid growth could easily justify a more than 5 bln pound valuation, but look a stretch after this year’s flat margin. Investors will want more clarity on Aston’s growth path.
Babytree’s Hong Kong IPO robs the cradle 24 Aug 2018 The Alibaba-backed Chinese parenting site wants to raise up to $1 bln. Targeting tiger mothers might seem timely, given Beijing’s fertility push. Yet the chat-and-shopping combination is unprofitable after 11 years, and its desired value exceeds the wildest demographic optimism.
Chinese news app IPO delivers hilarious feed 23 Aug 2018 Tencent-backed Qutoutiao, or "fun headlines", filed to go public in New York hours after raising money privately. The unprofitable outfit pays users to read, lacks important licenses to operate in China, and even rights to its name are shaky. The prospectus befits the business.
Viewsroom: Amazon’s JEDI rebellion 23 Aug 2018 Amazon looks set to win the Pentagon’s $10 bln JEDI cloud contract, but Oracle is fighting back. Plus: Is it time for Airbnb to sell its China business? And should Elon Musk be worried about a Chinese Tesla lookalike listing in New York?