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.
Cox: Snap IPO marks moment investors donned sweats 2 Mar 2017 The "camera company" debuted successfully because buyers swapped pinstripes for baggy cotton and abrogated their right to fair treatment, good governance and reasonable valuations. If $24 bln Snap becomes the next GoPro, shareholders have only their capitulated selves to blame.
Market delivers crazy love letter to China’s FedEx 2 Mar 2017 A rally in the newly listed firm behind SF Express makes boss Wang Wei one of China's richest men. At roughly $40 bln, his company is now worth nearly as much as Deutsche Post. That looks like an overreaction, driven by hype over e-commerce and a shortage of tradeable shares.
Snapchat valuation requires different filters 28 Feb 2017 Parent Snap is set to go public this week. The traditional market cap at the top of the indicated range is $18.5 bln. Including stock promised to staff, that shoots up to $22.3 bln. Blocking out new money, it's $20 bln. All tallies demand heart-shaped, rose-tinted lenses, though.
Canada Goose IPO may lead investors on wild chase 27 Feb 2017 The fast-growing maker of downy winter coats will be controlled by backer Bain Capital using super-voting shares. High-end Italian rival Moncler offers an aspirational comparison and suggests a possible $1 bln valuation. Trendy fashion companies, however, can be fretful pursuits.
China’s unicorn shortcut sidelines IPO reform 27 Feb 2017 The securities watchdog is mulling faster listing approvals for big tech firms. Letting Jack Ma's $60 bln Ant Financial jump the queue may convince other entrepreneurs to follow, eschewing New York and Hong Kong. But this would be a poor substitute for meaningful IPO reform.
Aramco golden ticket has risks for Western banks 22 Feb 2017 JPMorgan and Morgan Stanley may have won the contest to be lead underwriters on the Saudi oil giant's $100 bln offering. The mandate could propel them to the top of the league tables, opening doors in the kingdom and elsewhere. But an IPO flop could be fatal for their franchises.
Snap’s IPO momentum could be hard to break 16 Feb 2017 The messaging app is seeking a valuation of up to $18.5 bln, less than in its last private fundraising. A cautious initial price may lure buyers. Despite Snap's fading user growth and poor governance, the hype and dearth of new issues mean investors are unlikely to disappear.
Blue-chip exodus is awkward for Singapore 10 Feb 2017 The $9 bln Global Logistic Properties could join a flurry of companies going private in the Lion City. Low valuations and poor liquidity are a problem. If even Singapore's state-backed giants are falling out of love with the exchange, luring bumper IPOs seems fantastical.
Aramco fails to make a mountain out of Moelis 8 Feb 2017 The boutique's role advising the oil giant's mooted IPO added over $100 mln to its market value. That may seem like a big jump off one mandate. The opposite could be true though – investors may be underestimating the boost to Moelis's stature from its trophy deal.
Russian toy IPO lacks a political risk discount 8 Feb 2017 Detsky Mir has priced its sale of new shares close to Lenta’s 2014 debut. Fair enough: it has a dominant position. Still, the conviction of opposition leader Alexei Navalny in defiance of a European court ruling is a reminder that Russia plays to its own rules.
Chinese countryside breeds new financial risks 8 Feb 2017 Guangzhou Rural Commercial Bank is eyeing a $1.5 bln Hong Kong IPO. Loan quality raises red flags. One problem is the group is expanding fast outside its main market through partially owned units that serve small-town borrowers. That increases the risk of a build-up in bad debt.
Jose Cuervo IPO can drink to weak peso 7 Feb 2017 The U.S. election outcome put the Mexican tequila maker's stock float on ice. It's now back at a mooted valuation of over $5 bln with a Singaporean investor ready to take a shot. New tariffs in Jose Cuervo's biggest market are a threat, but a cheap currency may be just the tonic.
External vetting is best fix for Hong Kong IPOs 7 Feb 2017 Scandals are forcing Hong Kong to overhaul its listings regime, currently run by its profit-seeking exchange. Proposed changes are unwieldy and do not remove the inherent conflict of interest. Putting IPO vetting under the regulator's roof is a simpler way to weed out bad apples.
Outsiders get a way to sample China’s biotech boom 7 Feb 2017 WuXi Biologics is preparing for a Hong Kong flotation. Innovation friendly policies have boosted the mainland drug market. But foreign investors lack ways to bet on this big part of China's new economy. They should be keen to inject money into WuXi.
Snap IPO draft is weirdly switched for GoPro’s 2 Feb 2017 The photo app aiming to raise $3 bln says it's "a camera company" while struggling GoPro claimed it was in media. Snap's cash burn is not to be confused with the wearable camera firm's pre-IPO profit, though. And at least GoPro gave investors second-class voting rights, not none.
Cisco pays fantastical price to capture unicorn 25 Jan 2017 The networking giant's core switch and router businesses face tough times. Buying software firm AppDynamics for $3.7 bln offers some respite from hardware woes. At an estimated 12 times revenue, Cisco is paying over the odds to add a bit of excitement to its story.
Blackstone prices its housing fixer-upper to move 23 Jan 2017 The biggest portfolio of U.S. single-family rental homes should tempt investors. The buyout giant is pitching the $1.5 bln IPO of Invitation Homes in line with rivals despite superior fundamentals. The cautious approach is sensible given the headwinds facing the housing business.
Snap makes any good-governance pretense disappear 20 Jan 2017 The messaging app whose photos vanish wants to sell only non-voting stock in its upcoming IPO. Facebook and Alphabet waited years to move from dual-class feudalism to such derisive treatment of shareholders. What should be designed to fade away instead is these share structures.