Xiaomi humble IPO pie still good enough to eat 29 Jun 2018 The Chinese smartphone maker priced its Hong Kong float at the bottom end of a marketed range, valuing it at $54 bln. This isn’t a failure, and investors who believe in the company will like the discount. Missteps by executives and bankers offer lessons for those next in line.
Dinner-table loan IPO is best bet in dicey sector 29 Jun 2018 Listing a 1.3 billion pound consumer credit group may look risky at this stage in the economic cycle. But Amigo has expanded quickly with family-guaranteed loans that are much cheaper than regular payday lenders. That helps justify its premium valuation.
Chinese used-car sale fails timing test 28 Jun 2018 Online marketplace Uxin has halved the size of its U.S. float. A hefty lending business may be to blame, but its worst offense is probably picking a moment when regulatory uncertainty is already battering Chinese tech stocks. Rivals waiting in the IPO queue should take note.
Chinese bank IPO seeks to emulate its tech clients 26 Jun 2018 China Renaissance is preparing to go public just as Meituan Dianping and other new-economy titans do the same. The advisory shop’s slow revenue growth and small bottom line make a mooted $5 bln valuation seem punchy. Boss Fan Bao will be counting on an investment halo effect.
Xiaomi super-syndicate lifts noise-to-signal ratio 25 Jun 2018 The Chinese handset-maker picked 23 banks for its $6 bln Hong Kong IPO. Having so many hangers-on jostling for $76 mln of fees could make it hard to gauge demand. That has tripped up previous listings and is unhelpful for a debut that has already had to dial down its exuberance.
Jack-of-all-apps Meituan masters few for IPO 25 Jun 2018 The unprofitable Chinese tech firm revealed in its Hong Kong debut plans that food delivery, travel and a handful of other areas account for over 90 pct of revenue. To justify a possible $60 bln valuation, investors will have to believe it can succeed in more cutthroat markets.
Mongolian coal IPO may keep wandering 22 Jun 2018 The Central Asian nation revived plans to list its prize mine, seven years after it tried at a $15 bln valuation. Coal prices have rebounded from 2015 lows and Chinese demand is strong. With just one big customer and years of false starts, though, investors will need convincing.
India will test Xiaomi’s two-pronged strategy 21 Jun 2018 The Chinese maker of affordable phones has scaled down its IPO with plans now to raise $6 bln. Much of the valuation hangs on internet services, which Xiaomi is starting to roll out in its top overseas market. Rivals in India are plentiful, though, and hungrier for content.
High Times’ creative financing is far out 20 Jun 2018 The marijuana magazine is using a novel crowdfunding method to sell discounted shares before it goes public. Legalization efforts could generate buzz and draw crowds to the company’s events. But the publishing industry remains tough, and investors’ money could go up in smoke.
BJ’s goes for refreshingly no-frills IPO 19 Jun 2018 The discount wholesaler’s private equity owners are aiming for a $2.1 bln valuation. BJ’s resembles pile-'em-high retailer Costco, but priced much more like the more modestly rated Walmart. The lack of a racy growth story or strategic gamble makes it a rarity – in a good way.
Xiaomi resets shrill IPO tone 19 Jun 2018 The Chinese handset maker will delay a mainland listing instead of doing this simultaneously with a Hong Kong flotation. The valuation target also may have fallen to as low as $55 bln. It’s a bad start to a series of market debuts from a new wave of tech giants.
Chinese P2P giant Lufax dodges valuation bullet 15 Jun 2018 A mooted private fundraising of more than $1 bln makes sense. With regulatory change coming to peer-to-peer lenders, floating now could upset Beijing, and might only be doable at a bargain price. Abundant venture capital offers a way to keep growing without a distracting IPO.
Xiaomi IPO escalates China’s battle of the bourses 15 Jun 2018 The handset-maker will now sell at least half of its mooted $10 bln offering in Shanghai. That is a blow to the other listing venue, Hong Kong, which changed its rules to woo more tech IPOs. The city will have to share a lot of this business with its two mainland rivals.
Iceland’s Arion can spur rehab exit with hard cash 14 Jun 2018 The bank formerly known as Kaupthing will list a 25 pct stake, valuing its equity at around 135 billion Icelandic crowns (1.1 bln euros). A price of 0.6 times book reflects historical scepticism and declining margins. Overcapitalisation could make that look too harsh.
Hong Kong could teach China tech some manners 14 Jun 2018 Sina plans a secondary listing in the city, under new rules welcoming Chinese tech outfits traded overseas. In New York, the $7 bln web portal and its peers can issue super-voting stock on a whim and skip annual general meetings. The Fragrant Harbour will be less soft.
Adyen’s $17 bln pop flags bipolar IPO market 13 Jun 2018 The Dutch payments group’s shares doubled on its market debut, defying a recent trend for flops like publisher Springer Nature. It shows investors are putting a premium on companies that promise growth. The risk is that, as with Adyen, they end up giving away most of the upside.
Valuing Xiaomi 12 Jun 2018 The Chinese smartphone maker is heading toward one of the biggest IPOs in years. A $75 bln valuation is being reported as a possibility. Run the growth, profitability and earnings multiple numbers to see how such a lofty figure might be achieved.
Only a bold call dials up $75 bln Xiaomi valuation 12 Jun 2018 The Chinese company would have to deliver another year of soaring handset sales and double revenue from internet services. Superior profit margins and premium multiples also must be assumed, a Breakingviews calculator shows. Anything less and the IPO will have the wrong number.
China’s giant battery-maker can outrun IPO hype 11 Jun 2018 CATL shares rose by the maximum 44 pct in its market debut. While such ardour is common in China’s frothy markets, the $12 bln local champion could live up to high expectations. Its success will also rev up demand for the next listings that ride the global electric vehicle boom.
China’s $50 bln bid for market calm might backfire 11 Jun 2018 New funds will guarantee demand for a string of big tech listings. They will also lock up backers' money for three long years, to dampen a frothy market. There could be unintended results: thinly traded stocks that are more volatile and fund investors who regret being trapped.