Dole’s latest IPO could leave owner sucking lemons 26 Apr 2017 David Murdock wants to take his fruit and veg empire public again four years after a controversial buyout that landed him in court. Even after paying down some debt, Dole may only be worth enough for Murdock barely to break even. That’ll please the investors he stiffed in 2013.
Half-hearted crackdown dents case for Chinese P2P 26 Apr 2017 Peer-to-peer lender China Rapid Finance is set for a $100 mln-plus New York IPO. This looks badly timed: new rules last year failed to rid the industry of cowboys, and rival Yirendai trades at a low valuation. With that backdrop, sector heavyweight Lufax is unlikely to list soon.
China’s Aramco pitch puts pressure on Tokyo’s bid 20 Apr 2017 A Chinese consortium is angling for a cornerstone role in Saudi Aramco's IPO, Reuters says. This bolsters the case for a Hong Kong listing. Riyadh will like the prospect of easy money with few strings attached. Japan, also competing for the deal, may need to step up.
Used-car sales upstart requires cut-price float 7 Apr 2017 Online dealer Carvana wants to go public. It’s growing fast but losing money, putting dual-class stock in the tank and giving current owners future tax breaks. The competitive industry may be facing a slump, too. Haggling is a must before investors drive this deal off the lot.
Spotify considers listing without I, P and O 7 Apr 2017 The $8.5 bln music-streaming service may float shares without raising capital. A new deal with Universal could make cash needs less urgent. Private funding also has altered startup models. Even so, there's a reason most firms don't march to the beat of a different IPO drummer.
Fantasy gaming IPO has real-life charms 6 Apr 2017 Netmarble wants a valuation of up to 65 times last year's earnings in a $2 bln-plus IPO. The South Korean maker of online role-playing games is growing fast, and profitability is improving vastly. So that figure is not as fantastical as it looks - provided the hits keep coming.
Airline cycle goes roundtrip with Frontier’s debut 4 Apr 2017 The no-frills U.S. carrier filed for an IPO eight years after going bust. Like most airlines, Frontier has gained from efficiencies, low fuel prices and passenger growth. Its liftoff has risks, but low-cost carriers are well positioned relative to legacy operators for a downturn.
Saudi finds cheap way to be generous to Aramco 28 Mar 2017 The kingdom has slashed its oil major’s tax rate to juice up a potential IPO. That could theoretically triple the company’s market value to well over $1 trillion. Yet because Saudi will keep a 95 pct stake, the state can recoup almost all of what it appears be giving away.
Chinese broker offers investors a fair IPO trade 27 Mar 2017 Guotai Junan Securities is selling Hong Kong stock at a 25 pct markdown versus its mainland shares. That should be enough to entice buyers to the $2.1 bln offer. Investors would purchase one of China's strongest brokers, and at a bigger discount than the wider sector.
Citi’s Saudi comeback hangs on friendly oil prices 23 Mar 2017 The American lender wants a new licence to do deals in a kingdom it mostly exited over a decade ago. Economic reforms and the sale of state assets like Aramco could be rich pickings. A big variable is oil. The lower its price, the more juicy mandates banks can expect.
Big brokerage IPO requires faith in Chinese reform 22 Mar 2017 Guotai Junan Securities is poised to raise $2 bln in Hong Kong. The sector is crowded, margins are thin, and regulators are fickle. But Guotai's scale and breadth position it well to benefit from more liberalisation and better enforcement.
Ireland will struggle to recoup AIB bailout costs 20 Mar 2017 The country spent 20.8 bln euros rescuing the lender, and has so far got 6.6 bln euros back. A forthcoming listing could, under optimistic assumptions, raise the rest. The staggered nature of the sale, economic uncertainties and the need for a discount point the other way.
Stars align for Vietnam’s privatisation push 20 Mar 2017 Hanoi's desire to tame the budget deficit and boost efficiency bodes well for the sale of state assets, including big brewers. A buoyant stock market helps. But in the rush to secure fat listing valuations, Vietnam risks driving away the foreign buyers it needs.
Corona Capital, March 17: Boeing, AB InBev, Retail 17 Mar 2020 Breakingviews has launched a daily column covering pandemic-related insights that you might have missed. Throughout the day, we’ll bring you shorter-than-usual views with the same financial savvy on companies, economies and capital markets during this important unfolding story.
Hong Kong regulator makes the right noises on IPOs 16 Mar 2017 The SFC fined a Chinese sponsor for inadequate checks on a mainland firm looking to list in Hong Kong, a first since tougher listing rules were introduced. The sum seems small but the message is clear. The watchdog is willing to fight listing misconduct preemptively.
Some tech unicorns choose settling down over love 15 Mar 2017 Snap’s big float opened the gates for other highly valued private startups to go public like MuleSoft, Alteryx, Okta and Yext. All are expanding, yet lose money. The firms need cash and investors are desperate for growth. Both sides have decided they probably can’t do better.
Aramco IPO has limited destination choices 8 Mar 2017 Every global exchange would love to host the Saudi oil titan's shares. A Breakingviews analysis weighing market, political and other forces suggests New York is most attractive and Tokyo a top wild-card. Aramco's sheer size and importance mean finance fundamentals come first.
Deutsche $8.5 bln equity hike would be partial fix 4 Mar 2017 The German bank may raise funds while markets look kind. The infusion would boost creditworthiness and thus Deutsche Bank's key trading and corporate lending arms. That's fine unless investment banking falters, or Deutsche turns out to have underestimated its capital needs again.
Snap deal is latest in NBC’s Ponce de León series 3 Mar 2017 The U.S. TV network plunked $500 mln into the hyped IPO after some promising experiments with the messaging app. Comcast-owned NBC also has made big investments in BuzzFeed, Vox and other millennial-hunting firms. Beware older generations on epic quests for the fountain of youth.
Moms’ fashion chain returns going out of style 2 Mar 2017 J.Jill's IPO may quintuple its private-equity owner's investment. The company has stitched together a better set of financial threads than many rivals, but faces the same threats all retailers do. Buyers hoping to replicate TowerBrook's successful design are pushing the seams.