Hong Kong’s IPO market is turning Chinese 8 Nov 2017 China Literature smashed the chandeliers in its $1.1 billion Hong Kong debut, soaring more than 80 pct in early trade. As local punters swarm into mainland tech, the new-issue market is mimicking distortions common in China. For the exchange, it's a good problem to have.
BP offers window into slippery pipeline valuations 7 Nov 2017 The oil giant recently seized on an uptick in oil prices to list pipeline assets, but its shares have disappointed. One problem is the fact it's so dependent on BP. But given recent issues, investors are also wise to be cautious about pipeline operators' balance sheets.
Hong Kong tech fervour defies Western IPO wobbles 7 Nov 2017 Investors have snapped up shares in Razer, a maker of keyboards for gamers, and China Literature, an electronic publisher backed by Tencent. That contrasts with signs of IPO fatigue in New York and London. Limited supply, particularly in tech, has helped keep the market healthy.
Bumper listing in Vietnam sets speedy precedent 7 Nov 2017 Byzantine rules have discouraged flotations, subduing trading and deterring foreign investors. The faster, simpler structure used by Warburg Pincus for a $700 mln deal is a step towards changing that. More private equity-backed debuts could follow.
U.S. rally, pain at home deter China tech’s return 5 Nov 2017 After a bold take-private deal last year, software maker Qihoo’s $8 bln backdoor listing has hit a regulatory snag. Meanwhile, shares of U.S.-listed Chinese outfits are outperforming those on the mainland. Tech firms considering an escape from New York might rethink their plans.
Chinese auto-trading IPO may prove to be a lemon 5 Nov 2017 Yixin is preparing a Hong Kong IPO. Connecting auto buyers, sellers and lenders is good business as China’s car market booms and millennials embrace debt. But a mooted value of up to $6.5 bln sounds over-revved. Even if the float goes well, the stock could later go into reverse.
Private equity taps new pockets to extend water bet 3 Nov 2017 Investors led by a Rockefeller, Mellon and Harriman family LBO vehicle have made a sixfold paper profit on their 2014 buyout of Evoqua. IPO buyers won’t get near that even after a decent debut. But Evoqua’s status as a takeover target should make both sets of owners happy.
Wall Street gets reminder IPOs are no child’s play 3 Nov 2017 Goldman Sachs, JPMorgan and BofA presided over a 41 pct drop in pop-culture dollmaker Funko’s shares, the worst first-day showing in 17 years. Pharma firm Allena fell 29 pct. Faddish, highly leveraged and speculative firms can find a buyer – if bankers price them right first.
Europe’s IPO failures are a problem overshared 3 Nov 2017 Two UK companies scrapped their offerings, while Russian power group En+ priced at the bottom of its range. Several recent listings have flopped in their first days of trading. The one thing still rising is the number of banks working on IPOs. That’s part of the problem.
Tencent’s hit spinoff reads like a prologue 1 Nov 2017 China Literature’s $1.1 bln IPO priced at the top of the range. That could encourage parent Tencent to list other units, which would both raise capital and lessen the regulatory scrutiny on some businesses. The most radical move would be floating crown jewel WeChat.
Glencore’s Hong Kong exit sends message to Aramco 31 Oct 2017 The secondary listing touted as a gateway to Chinese investors during the miner's 2011 IPO never lived up to the hype. The same goes for Coach and others, who could be forgiven for following Glencore out. It's also a good sign the Saudi oil titan can cross Hong Kong off its list.
Hong Kong’s dual-class plans go from bad to worse 30 Oct 2017 Shares with weighted voting rights could be heading for Hong Kong’s main board, says SCMP. A prior controversial plan proposed to insulate the wider market from governance headaches by hiving such stocks off in a separate venue. This latest idea is the greater of two evils.
Warburg Pincus bucks mall trend in Vietnam 27 Oct 2017 The U.S. private-equity firm is floating Vincom. The $3.4 bln mall operator is a way to bet on booming consumption, and has safeguarded itself against the rise of e-commerce by carefully picking key tenants. No wonder investors were queuing up.
Kool-Aid on tap in Saudi Arabian desert 26 Oct 2017 The crown prince’s vision for a $500 bln mega-city may have generated even more buzz than the mooted IPO of oil behemoth Aramco. But any kind of success depends on people wanting to do business and live there. The kingdom faces a tough uphill road on competitiveness and freedom.
Saudi utopia plan is so bonkers it just might work 26 Oct 2017 The nation’s crown prince plans to build NEOM, a shining $500 bln city on the Red Sea where entrepreneurs draft the rules and robots outnumber people – and which one day will be a publicly listed company. Dreamers are welcome, but he'll need capable doers above all else.
Deutsche Bank’s next problem may be excess capital 25 Oct 2017 The German lender wants to float a 25 pct stake in its asset management arm next year. An IPO could raise around 2.2 bln euros, Breakingviews calculates. Deutsche would dilute its exposure to its best business – but would once again be able to give shareholders a dividend.
Arqiva’s old-school TV vibe creates IPO static 24 Oct 2017 The UK broadcast and mobile masts company plans to raise 1.5 bln stg. An order book of mostly inflation-proofed long-term contracts and the pledge of big dividends are appealing. Less so is its reliance on TV towers rather than the cell ones that are tomorrow’s money spinners.
Cox: Aramco clouds Saudi’s coming-out party 24 Oct 2017 The kingdom’s crown prince is hosting a mini-Davos this week to showcase Riyadh's charms as a financial center. From Masayoshi Son to Steve Mnuchin, participants may mostly avoid questions about one of his key goals: the touted but uncertain market debut of oil giant Aramco.
Tencent’s books are less gripping than its games 24 Oct 2017 Publishing unit China Literature wants to list in Hong Kong at a value of up to $6.4 bln. Sales and earnings are taking off. But e-books are less lucrative than online games, with a smaller market and a shorter track record. This does not merit a valuation to match its parent.
Stitch Fix IPO fits better than Blue Apron 23 Oct 2017 The personal-clothing shopping service faces tough competition. Yet unlike the meal-delivery service whose public offering flopped in June, it has largely financed rapid growth through profit. Success depends on its shoppers and algorithms continuing to nail fickle fashion.