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.
Viewsroom: Corporate America dumps CEO president 17 Aug 2017 Donald Trump’s inflammatory comments about white supremacists have lost him the support and advice of business leaders, leaving him increasingly isolated and ineffectual. Qatar’s stake in the LSE may prompt Saudi Aramco to shun the exchange for its IPO. Plus: M&A for the MAGA era.
Cox: Qatar kerfuffle could tip Aramco to New York 15 Aug 2017 As the Saudi oil leviathan considers where to IPO, its skirmish alongside regional allies with its Gulf neighbor may play a role. Abu Dhabi punished banks in which Qatar is a big investor. For the LSE, Qatari capital may now be a source of anxiety rather than stability.
Snap’s fade could make future IPOs vanish 10 Aug 2017 The parent of the disappearing-message app reported a second consecutive quarter of disappointing results. Slowing user growth, more losses and fresh fallout from lousy governance have erased a third of its market value. Spotify and others mulling going public may be scared off.
Signals are good for China Tower IPO 7 Aug 2017 The company that owns nearly all of China’s telecom towers is preparing a Hong Kong listing of up to $10 bln. Investors like the industry’s stability and high yields, while China Tower also boasts some growth potential. At the right price, this should get a good reception.
Search engine IPO depends on Tencent for results 2 Aug 2017 China’s Sogou is planning a U.S. listing valuing it at up to $5 bln. The firm is a distant second in mobile search behind Baidu. Sogou, or “search dog”, will have to work like one to convince investors its relationship with part-owner Tencent can justify that valuation.
Hong Kong’s IPO naming and shaming hits new low 25 Jul 2017 AMTD Strategic Capital had its listing application publicly rejected. That’s embarrassing for AMTD’s banks and its parent, a securities and fund-management firm backed by Morgan Stanley. The financial and reputational costs should prod other debutants and advisers to try harder.
Puppy love keeps IPO investors on the leash 21 Jul 2017 Snap's stumble, Blue Apron's disastrous debut and YogaWorks' yanked listing spelled doom for trendy, fast-growing businesses. Then shares of PetIQ jumped some 30 pct. More sensible pricing helped the maker of dog treats and medicine, but it also remains vulnerable to competition.
IPO baggage weighs heavier on ZTO 21 Jul 2017 A U.S. pension fund is suing the Chinese courier and its underwriters for inflating profit margins in its $1.4 bln New York debut last year. Shares have traded poorly since, and the company faces rising costs and fierce competition. Winning over sceptics will be even harder now.
Toshiba’s Swiss cast-off pits hope over experience 21 Jul 2017 The stricken Japanese group is flogging loss-making Landis+Gyr in a Zurich offering. The maker of smart meters is a technology leader in a growth market. Yet so far financial performance lags engineering expertise. The $2.4 billion price tag depends on a swift turnaround.
Let venture capitalists subsidize your life 19 Jul 2017 Frustrated by an inability to invest in unicorns? Try another strategy. VCs and other investors lose money funding vendors of meal kits, car rides, music, data storage, and even household necessities. Here’s how to live well off Silicon Valley’s obsession with the future.
Carrefour unit shows way to Brazil IPO revival 19 Jul 2017 The French supermarket chain’s local unit raised $1.6 bln in the country’s biggest stock offering in four years. Rising deal flow suggests growing confidence Latin America’s largest economy is getting back on track. But the recovery’s pace is tepid, and sensible pricing is key.
Malaysia power IPO will test 1MDB stain 19 Jul 2017 China Nuclear wants to float assets acquired for $2.3 bln from disgraced 1MDB. A Kuala Lumpur listing may smooth local misgivings over Chinese ownership. But it is unclear if investors are ready to look beyond the fund scandal. Recent listings also suggest it will be a hard sell.
Hong Kong’s regulator power grab is overdue 14 Jul 2017 The SFC will use little known rules to stop questionable listings after a spate of scandals. The bold move significantly undermines the stock exchange's role in approving IPOs and will complicate oversight in the short-term. Ultimately, the city needs a single strong regulator.
Aramco exemption bends London IPO rules to limit 13 Jul 2017 The UK regulator wants to change its listing regime to lure state-controlled groups like the Saudi oil giant. The watchdog has to keep markets clean while protecting London’s competitiveness. But making policy for a single company - especially one as big as Aramco - is a mistake.
Hong Kong gaming IPO is not Razer sharp 13 Jul 2017 The U.S.-Singaporean firm, which makes gaming keyboards and mice, is eyeing a valuation of up to $5 bln. But Razer is loss-making and expanding into areas like laptops, mobile devices and its own virtual currency. The financial reality of these businesses is underwhelming.
Alibaba’s insurer offers new play on online boom 11 Jul 2017 Zhong An is the insurer for China’s internet age, protecting Xiaomi handsets and packages bought on Alibaba. It boasts fast growth, powerful backers and a strong market position. At the right price, a mooted Hong Kong IPO of up to $1.5 bln should be well-covered.