Spotify sings out of tune on earnings, governance 28 Feb 2018 The streaming-music firm cued up a poor playlist of falling revenue growth and rising costs in its filing to go public. And refusing to call insiders’ extra voting rights a class of stock sounds like bad karaoke. Spotify’s performance doesn’t deserve a round of applause.
HKEX’s hoped-for listings bonanza could fall flat 28 Feb 2018 Heavy trading and a rush of IPOs sent the Hong Kong bourse’s annual earnings soaring to $945 mln. HKEX’s stock shows investors are excited about 2018, too. That looks overdone: allowing dual-class shares will bring some flotations but bagging secondary listings will be harder.
Deutsche Bank IPO highlights capital conundrum 26 Feb 2018 The German lender may raise 2 bln euros by listing a 25 pct stake in its fund management arm, boosting already strong capital ratios. In normal times Deutsche could return some excess to shareholders. But volatile investment banking revenue means it cannot be too generous.
“Angry Birds” belongs in a bigger gaming henhouse 22 Feb 2018 Finland’s Rovio, maker of the addictive mobile game, lost half its market value after saying 2018 revenue would be flat at best. That’s what happens when a company puts all its eggs in one basket. Like “Candy Crush” maker King, a sale to a larger player may be the logical finale.
Siemens’ $50 bln IPO may be first step to breakup 19 Feb 2018 The German industrial giant’s shares could be worth 25 pct more if a sale of its healthcare unit lifts a conglomerate discount. But investors may still balk at owning a company with listed stakes in disparate sectors like wind and rail. In that case, calls for a breakup may grow.
Ant eyes land grab with $5 bln fundraising 9 Feb 2018 New money could value Alibaba’s payments affiliate at $100 bln ahead of a blockbuster IPO, Reuters says. The Chinese group is already huge and profitable. The funds will underwrite Ant’s battle with Tencent’s TenPay to win over outside apps and traditional retailers.
Airbnb wisely tidies up before guests arrive 1 Feb 2018 The home-rental app ruled out going public in 2018 after its finance chief abruptly quit. With positive cash flows, boss Brian Chesky doesn’t need to rush. The naming of a chief operating officer also shows Airbnb has learned from some of its Silicon Valley peers’ mistakes.
China’s IPO cleanup makes encouraging debut 1 Feb 2018 Beijing regulators just rejected six new-listing applications in a single day, including one from Hong Kong-traded psychiatric hospital chain Wenzhou Kangning. Enforcing tougher standards could lead to broader reforms. The risk is empowering entrenched bureaucrats even more.
Dell has no time for fantasy finance 29 Jan 2018 The U.S. tech giant needs cash to pay taxes, reduce debt and let investors exit. Reversing into its $53 bln subsidiary VMware is too complex, while an IPO would be financially unattractive because of pricey past acquisitions. There are simpler, more logical ways to raise cash.
Italo valuation underpinned by racy growth 29 Jan 2018 Europe’s first private fast-train operator will list next month. The track Italo runs on is owned by Italy’s incumbent rail group, a competitor, and a 1.7 bln euro valuation assumes rapid growth. But low-cost efficiency and EU train liberalization provide a rationale.
Viewsroom: Trump solar tax is more burn than balm 25 Jan 2018 The U.S. president seems to be trying to right past trade wrongs. But business has long since moved on, meaning tariffs on washing machines and solar panels will do more harm than good. Also, Merkel and Modi disappoint in snow-ravaged Davos. Plus: Spotify’s Wall Street snub.
Chinese gadget-maker IPO tracks Xiaomi hype 24 Jan 2018 Huami, China's answer to Fitbit, is aiming to go public ahead of a blockbuster share sale by the handset maker. It just turned a profit, thanks to growth powered by cosy ties to Xiaomi. Western hardware companies have disappointed investors, but they also didn't have an X factor.
Spotify puts IPO bankers on “disruption” playlist 23 Jan 2018 The music-streaming service may list its stock in New York without raising money or using underwriters. With private funding plentiful and business models asset-light, other tech groups could follow. It’s another threat to the high fees U.S. banks charge to take companies public.
Aramco IPO beggars needn’t feel like losers 19 Jan 2018 BAML, UBS and Barclays have missed the cut to be global coordinators on the Saudi oil giant’s mega-listing, Reuters reports. Forgoing big fees from a $100 billion IPO will be cause for garment rending. Then again Saudi is a risky client and the process is replete with uncertainty.
China’s battery champion will charge overseas 19 Jan 2018 A $2 billion IPO would give CATL a richer valuation than rivals such as Samsung SDI. To justify that price, the battery maker must thrive at home and abroad. Cracking global supply chains is hard. But where other Chinese giants have stumbled overseas, CATL might just succeed.
Alibaba rival’s switch in logistics stacks up 16 Jan 2018 Chinese web retailer JD is raising $2 billion from investors to fund its warehousing and delivery unit, Reuters says. This sensible burden-sharing brings JD and Alibaba’s business models closer together. The trade-off is diluting existing shareholders in a promising venture.
Lufax flotation offers a safer bet on China debt 16 Jan 2018 The peer-to-peer lender wants to raise as much as $5 billion from a Hong Kong IPO, says IFR. Lufax is better hedged than rivals, with the financial backing and risk acumen of insurance giant Ping An behind it. But this growing sector is volatile due to a shadow banking crackdown.
Telecoms IPO would be a smart step for SoftBank 15 Jan 2018 Floating a Japanese cash-cow subsidiary could unlock $18 bln, which boss Masayoshi Son could use for yet more bold bets on new technology. The move might help lift the unit’s performance. It could also help address the persistent discount the market applies to SoftBank shares.
Metrovacesa’s property fiesta is worth attending 11 Jan 2018 The Spanish real estate group is listing, a decade after imploding. A lack of planning permissions on its land bank warrants a discount to rival Neinor Homes’ recent IPO. Still, Metrovacesa’s domestic strength makes it a reasonable way to access a recovering Spanish market.
Jack Ma opens floodgate on Hong Kong tech listings 10 Jan 2018 The Alibaba founder could list parts of his e-commerce firm in Hong Kong. That suggests the exchange’s proposals to permit dual-class shares and more secondary listings are having their desired effect. The implications for local corporate governance will be ugly.