Spotify and its direct listing win popular vote 3 Apr 2018 The music service earned a stonking $29 bln valuation in its early moments as a public company. Its non-traditional float scored insiders more liquidity, while saving on fees. Was it a real success, either for the company or for its unusual method? Ask this time next year.
Siemens’ slimming strategy is half-hearted 3 Apr 2018 A part-sale of medical unit Healthineers has failed to shrink the German company’s conglomerate discount. After all, the 84 bln euro group still spans trains, energy and factories. Siemens’ exit from the lighting and mobile businesses offers CEO Joe Kaeser a useful template.
Spotify direct listing piles risks upon risks 2 Apr 2018 The music-streaming service’s market debut is unusual – both the price and the number of shares are up for grabs. And it comes as specific fears over Facebook and Amazon are spilling over into wider tech valuations. Those uncertainties could add up to a heap of volatility.
Chinese food-to-flights app offers half-baked IPO 29 Mar 2018 Meituan-Dianping may float in Hong Kong this year. That looks premature, as fights loom over takeaways and taxis. Stock investors could punish the $30 billion startup for burning cash to win market share. It would be better to stay private until it has a clearer edge over rivals.
Cancelled Swiss IPO is a bearable blow for HNA 27 Mar 2018 The embattled Chinese conglomerate wanted to raise up to $1.4 billion from Gategroup, but pulled the deal over pricing. Listing is harder than selling property or existing shares, but by holding firm on price, HNA avoids looking desperate. That could help with other disposals.
China’s Gen Z app has a lot of growing up to do 27 Mar 2018 Bilibili, a popular video site for anime-obsessed teens, wants to list at a $3 bln-plus valuation. That’s hefty considering a single mobile game accounts for 60 pct of sales. Losses may be narrowing, but Bilibili's amateur business plan doesn't warrant a premium price tag.
Spotify’s growth outlook makes a morose playlist 26 Mar 2018 The streaming-music service expects revenue to increase at most 30 pct this year, a slowdown. And although it’s adding subscribers, Spotify is collecting less money from each of them. That makes future price hikes riskier. The trends are worrisome ahead of its public listing.
Dropbox stores good news for tech IPOs 23 Mar 2018 The online-storage firm’s shares rocketed about 50 pct in its first few hours as a public company. The rousing welcome for a $12 bln tech firm aimed at consumers is heartening for Spotify. And it could accelerate IPO plans for firms like Airbnb and Lyft.
Deutsche fund IPO flaunts sickly bank 23 Mar 2018 The German bank’s IPO of asset management arm DWS has failed to create value. The rump bank and listed manager are worth at least 3 bln euros less than Deutsche was before the spinoff. The loss shows the limits of corporate rejigging, and upheaval still facing CEO John Cryan.
Tiny loans price big future for newbie India bank 23 Mar 2018 An IPO will give Bandhan a market cap of $7 bln, or almost five times book value. That sounds punchy for a microfinance lender that only became a bank three years ago. But those rich figures can be justified by low costs and pricey loans, which together produce fat returns.
Chinese drone giant DJI charts a risky flight path 22 Mar 2018 The world’s top maker of unmanned aircraft is raising money at a $15 bln valuation, Reuters says. Sales are soaring and DJI has a commanding market lead. Given drones’ data-gathering ability and military potential, though, DJI could easily hit turbulence in major foreign markets.
City’s Brexit trickle need not turn into an exodus 13 Mar 2018 Banks such as Goldman Sachs and Standard Chartered are already moving London-based bankers to Frankfurt. Losing the “passport” to the EU’s single market means more will go. But large-scale flight can be avoided – as long as UK regulators stick closely to EU rules.
Dropbox IPO comes with too much vapor 12 Mar 2018 The cloud-based, data-sharing firm reckons it’s worth $7 bln. It has positive cash flow, but slowing revenue growth, no profit, few paying users and plenty of deep-pocketed rivals. A value of six times sales implies investors have failed to upload the risks.
Chinese micro-lender’s $100 bln dream is a stretch 12 Mar 2018 Qudian’s founder CEO Min Luo will forgo his salary until the $5 bln firm tops a $100 bln valuation, bigger than backer Ant Financial. That’s unrealistic for a company trading below its New York IPO price in an industry under intense scrutiny – unless its shareholder turns buyer.
Discount fund IPO buys Deutsche Bank precious time 12 Mar 2018 Offering a stake in its DWS asset management arm will raise up to 1.8 billion euros – less than the lender had hoped. Even so, it gives CEO John Cryan a rare victory before the bank’s May shareholder meeting – and helps him argue for more time to turn around the investment bank.
UBS stands to lose more than IPO fees in Hong Kong 12 Mar 2018 The Swiss bank faces an 18-month suspension from sponsoring market debuts in the Fragrant Harbour. It could withstand the lost revenue, even amid a boom, but the advisory role puts brokers closer to clients. Preserving the brand with Asian entrepreneurs will be a challenge.
China’s iQiyi channels Netflix with a twist 12 Mar 2018 The Baidu-backed video-streaming site wants to raise at least $1.5 bln in an IPO. It's growing quickly and spending cash on new programmes for 50 mln paying customers. But iQiyi also broadcasts live events and sells ads. That makes it a tantalizing hybrid that's hard to value.
Anglo-Saudi trade love-in starts from low base 8 Mar 2018 Crown Prince Mohammed bin Salman and Prime Minister Theresa May are aiming for 65 bln pounds of new trade and investment. The kingdom’s liberalisation push could help post-Brexit Britain. But bilateral trade is just 8 bln pounds a year. And both leaders face challenges at home.
China courts tech and Taiwan with Foxconn IPO 9 Mar 2018 The Apple assembler is set to list a $50 bln-plus subsidiary in Shanghai. Speedy approval shows China is serious about luring tech giants onto mainland exchanges. The People’s Republic is also keen to deepen financial ties with Taiwan, even as diplomatic relations sour.
HNA’s Swiss airplane food IPO is far from gourmet 6 Mar 2018 The former Chinese deal machine is listing up to 65 pct of Gategroup to help ease its liquidity crunch. The maker of in-flight meals has expanded since HNA paid $1.5 bln for it in 2016. Factor in an IPO discount, though, and HNA will do well to recoup its original investment.