Europe’s listless IPOs are red flag for big floats 31 Jul 2023 The region’s string of mostly mid-sized initial public offerings this year are now just 3% above their listing price on average. Such poor performance will make investors wary of backing new ones. That will give larger float candidates, like CVC and Galderma, pause for thought.
China’s crackdown on IPO risk factors is a warning 25 Jul 2023 Officials want negative descriptions of the country's policies toned down in prospectuses. It's another hoop for firms listing in Hong Kong and the US to jump through, and for regulators to spar over. For global banks and investors, it ups the dangers of doing Chinese deals.
Capital Calls: European earnings 20 Jul 2023 Concise views on global finance: Consumer-facing companies Electrolux, Essity and HelloFresh all plunged after weaker-than-expected financial reports.
Research U-turn is poor fix for vanishing stocks 18 Jul 2023 The UK and EU may let investors pay for equity analysis through trade commissions again. The hope is that this will lead to more research and help small firms list. Yet asset managers will fear higher costs, and the IPO market faces bigger headwinds than a writeup shortage.
VinFast’s $27 bln SPAC deal belongs in scrapyard 17 Jul 2023 Most of the acquiring blank-cheque company’s investors opted for their money back rather than own the Vietnamese EV maker. The buyer could try to trim the heady valuation. But with the Tesla wannabe’s low US sales and poor reviews, ditching the deal is better than patching it up.
Seed funding valuations sprout a bubble 13 Jul 2023 New data shows VCs are being less generous with the earliest-stage startups but paying the highest prices in a decade. A slump in late-stage investing due to some mishaps and a less welcoming IPO market is boosting competition down the chain. That means the tech bubble has moved.
Watchdog with teeth can help EU hunt unicorns 11 Jul 2023 Europe’s companies need capital to grow. Yet the bloc’s share of global capital markets is just 9%. A patchwork of national rules stymies Brussels’ efforts to foster cross-border investment. Creating home-grown corporate stars requires a securities regulator with real powers.
Drone IPO gives wings to India’s defence industry 11 Jul 2023 IdeaForge’s shares have nearly doubled since their debut, giving the government supplier a $586 mln valuation – or 151 times trailing earnings. It’s a bet that New Delhi will upgrade its military amid tensions with neighbours. India’s defence stocks look primed for takeoff.
AI hype embellishes Il Makiage IPO 6 Jul 2023 It’s a good time for Oddity Tech, the fast-growing makeup brand’s owner, to highlight its machine learning algorithms for new investors. These features should help put a dewy finish on a $1.5 bln valuation from January 2022. In time, however, the techy gloss will fade away.
Capital Calls: Diverse workforces 5 Jul 2023 Concise views on global finance: The court’s ruling against affirmative action could make future workforces more homogeneous. That’s a bitter pill for the US Federal Reserve, which has pushed for a more inclusive labor market.
Hydropower IPO tests appetite for weather risks 28 Jun 2023 Hidroelectrica’s market sale in Bucharest could value the renewable energy supplier at 10 bln euros, Europe’s largest IPO so far this year. High margins, low debt and fat dividends make the offer palatable. But as droughts intensify, water scarcity may prove a headache.
Capital Calls: Eli Lilly gorges on obesity options 27 Jun 2023 Concise views on global finance: The drugmaker found patients losing an incredible 24% of their weight on one of its latest treatments. First-movers don’t always win out in pharma, however, as Pfizer proved with Lipitor. That’s why Lilly is wise to keep investing in alternatives.
Thyssenkrupp hydrogen IPO calls for leap of faith 22 Jun 2023 The German conglomerate has resumed efforts to list electrolyser firm Nucera, hoping to raise $650 mln. Green hydrogen was once seen as the Swiss army knife of climate change. But market sentiment has soured and Thyssenkrupp’s alkaline technology faces competition from China.
Thrift-store IPO dresses up old model in new style 21 Jun 2023 Secondhand retailer Savers Value Village is seeking a market value as high as $2.7 bln. Its pile of debt is a well-worn problem. At the same time, an ESG strand and Gen Z’s zeal for recycled goods give the 69-year-old business a fresh look.
Reddit’s golden geese foul up its IPO plans 16 Jun 2023 The social network differs from peers like Facebook in its reliance on moderators – effectively unpaid employees, many of whom are on strike. Until CEO Steve Huffman can align their interests with his future investors, it’s hard to see Reddit as ready for public-company life.
Capital Calls: Virgin Galactic 16 Jun 2023 Concise views on global finance: Shares of Richard Branson’s space tourism company rocketed 30% higher on news it would launch its first commercial flight in two weeks. The customer demand required alongside competition from Elon Musk and Jeff Bezos make the valuation a moonshot.
Shelved soda ash IPO is a UK wake-up call 15 Jun 2023 Turkish-owned WE Soda dropped plans for an $800 mln London listing after a cool reception from prospective shareholders. The firm blamed their cautiousness. The truth is that Britain’s attempts to fiddle with listing rules to revive the IPO market aren’t fooling shrewd investors.
Moncler can inspire Golden Goose’s next step 15 Jun 2023 Skirting a pandemic and war, the maker of Super-Star sneakers doubled sales to 500 mln euros in three years, with rich margins. That’s where Remo Ruffini’s down jackets brand stood before its 2013 IPO. It may tempt owner Permira into a $3 bln sale, or Moncler into a purchase.
SoftBank’s Arm IPO set for double stroke of luck 13 Jun 2023 The chip designer may score Intel as an anchor investor in its planned US float. Meanwhile, customers like $975 bln Nvidia have soared amid an artificial-intelligence frenzy. It makes the company’s puffy valuation hopes slightly less implausible – but not necessarily sustainable.
Byju’s fight with lenders is a lose-lose scenario 13 Jun 2023 Creditors want the Prosus-backed education tech company – once India’s most valuable startup – to repay its punchy $1.2 bln loan early. It’s a technical default at most but digging very deep to clear the debt might help founder Byju Raveendran improve his company’s mixed marks.