Chinese online retailer sits in lap of IPO luxury 21 Sep 2017 Secoo has carved out a nice niche, selling upscale brands such as Tod's and Versace. Its customer base is small, though, and the firm is burning cash. Even so, impressive order sizes and a clean image make it a tempting target for counterfeit-fighting Alibaba and mass-market JD.
Market returns Best’s IPO plans to sender 19 Sep 2017 The Alibaba-backed logistics firm has cut the price of its New York flotation, and slashed the deal’s size to $495 mln, IFR reports. Best has belatedly recognised it was asking too much of investors, given the poor performance of rival ZTO, and its own evolving business model.
Pirelli IPO leaves long-term questions unanswered 18 Sep 2017 The Italian tyremaker, sold to ChemChina in 2015, is seeking to raise up to $4 bln in a listing. A shift towards luxury tyres has boosted sales and margins. But growth targets look ambitious and there is no clarity on who will succeed long-term boss Marco Tronchetti Provera.
Roku IPO warrants swimming against stream 18 Sep 2017 The TV-gadget maker may capitalize further on the cord-cutting trend. Some 15 mln accounts are helping grow revenue and reshape the business model. A $1.3 bln valuation is lofty, though, if TiVo and Pandora are guides. Elusive profit and a dual-class structure are also turnoffs.
Asian bid for Pret A Manger won’t cut the mustard 18 Sep 2017 Filipino fast-food joint Jollibee is eyeing the fancy sandwich chain, says Reuters, potentially uniting Chickenjoy buckets and posh ploughman’s baguettes. But a mooted price of more than $1 bln looks far too downmarket. It might need to double that to derail Pret’s IPO plans.
Paris fashion IPO will struggle for luxe valuation 18 Sep 2017 SMCP, the French owner of the Sandro and Maje labels, is planning a listing. Pitched between luxury and the high street, the Chinese-owned group has sales growth and an efficient supply chain to rival retail leader Zara. But its smaller size and high debt will weigh on its worth.
China’s drugmakers boast Big Pharma option value 18 Sep 2017 The U.S. listing of Zai Lab highlights a new breed of innovative eastern upstarts specializing in drugs made from living cells. Some have already won financial backing by Western rivals. It is one reason to believe China can produce the world’s next blockbuster drug.
“Angry Birds” may struggle to float on thin air 15 Sep 2017 Rovio, known for the popular mobile game, plans to list with a value up to 900 mln euros. Though the price is more sensible than initial reports, it’s still flighty for a one-game franchise. Another warning sign is that many existing investors are using the offering to fly off.
Saudi can afford to scrap Aramco IPO plan 14 Sep 2017 Achieving the desired $2 trillion valuation for its crown jewel is going to be tricky. Instead of rushing the job, Riyadh may delay listing 5 percent beyond next year. Even then, political and pricing problems will remain. If it wants money, the kingdom has better alternatives.
Hong Kong is better off without dual-class shares 14 Sep 2017 Hong Kong’s securities watchdog has conceded in a battle for control over listing approvals, says the SCMP. Regulators can still reject proposals for unequal voting rights, which might lure tech IPOs at the expense of governance. But they'll need to get used to being unpopular.
Chinese web grocer’s IPO requires a strong stomach 14 Sep 2017 Food giant COFCO wants to raise up to $600 mln floating an online supermarket. Sales are growing as web shoppers splurge on fresh produce. But the group is investing heavily in logistics. Throw in a costly price war with Alibaba and others, and investor appetite may be lacking.
China’s “insurtech” star over-stresses the tech 12 Sep 2017 Banks underwriting Zhong An’s IPO value it at up to $12.9 bln, says IFR. The tech-style valuations assume years of fast growth for the group, founded by the chairmen of Alibaba, Ping An and Tencent. Ping An itself offers a cheaper way to play the same theme.
Saudi reform rethink points to Aramco IPO risks 7 Sep 2017 The kingdom may water down plans to overhaul the economy. That could have implications for the partial privatisation of Riyadh’s most prized asset. If much-vaunted reforms can be delayed, so can a problematic sale that is unlikely to deliver the desired $100 bln windfall.
Best IPO looks to repackage Chinese logistics 7 Sep 2017 The Alibaba-backed group wants to list at a market value of $5 billion-plus. Best is growing fast and pushing into new businesses, but its core delivery operation still faces rising costs and fierce competition. A big premium to U.S.-listed rival ZTO is hard to justify.
“Angry Birds” maker preps dubious market catapult 6 Sep 2017 Rovio, known for the popular mobile game, is planning a Helsinki IPO. At a mooted $2 bln valuation it would struggle to defy gravity, as investors are effectively betting on one franchise. Like peers King and Supercell, the more logical end-point may be a sale to a larger group.
Pirelli’s mooted IPO valuation looks overinflated 5 Sep 2017 The Italian tyremaker plans to relist. Pirelli’s high-end business may deserve a premium to peers, but an estimated enterprise value of 12 billion euros, far above what owner ChemChina paid in 2015, looks optimistic. High debt and complex ownership may also spook investors.
Hong Kong’s fresh Aramco pitch is flawed 5 Sep 2017 Stock exchange boss Charles Li is pushing a "Primary Connect" scheme allowing Chinese punters to buy into listings in the city. The aim is to lure the bumper Saudi IPO with the prospect of a flood of retail money. But mainland investors have a better playground at home.
Macau tycoon’s movie spinoff is worth watching 29 Aug 2017 Lawrence Ho’s Melco International wants to spin off Studio City, a film-themed resort in China’s gambling enclave. The business has been in need of a script doctor. New cash would help it stay competitive and the listing would let Studio City’s two other backers exit stage left.
Spotify’s business model is an unfinished symphony 25 Aug 2017 The streaming service is closer to an IPO after sealing deals with music labels like Warner. But Spotify’s ability to turn a decent profit is still in doubt since it may not have won much ground on royalties. Apple and Amazon also pose threats that could deter investors for now.
SPAC solves none of tech world’s hardest problems 24 Aug 2017 A new venture says its $500 mln blank-check IPO can help end the dearth of public offerings from tech startups. Yet capital is plentiful, an opaque acquisition won’t improve valuation, and the target would still be stuck with public disclosure. This solution has no real value.