Saudi Aramco IPO carries big investor risks 8 Jan 2016 Saudi Arabia has whetted the appetite of potential shareholders with the prospect of listing shares in its state oil company. A sale would give investors access to 18 pct of the world’s oil reserves but little say in how the company is run. The risks could outweigh the rewards.
Gene-editing IPO tests DNA of investors 5 Jan 2016 New disease-fighting techniques have captured the imagination of the medical community. A planned stock sale by Editas, backed by Google and Bill Gates, will see if financing follows. Though the market could be huge, patents are being challenged and therapies seem a decade away.
Hong Kong’s IPO prowess is weaker than it looks 4 Dec 2015 Despite China’s boom and bust, the bourse has hosted $30 bln of floats this year - more than any other exchange. That should ease angst about HK’s future as a capital market. But quality is a problem – post-IPO performance is patchy and “cornerstone” backers play too big a role.
Public investors lasso Square to tame the unicorns 19 Nov 2015 Jack Dorsey’s payments firm has priced below its indicated range and at less than half the value of its last funding round. A two-timing CEO, rising competition and losses provided ammunition for old-school mutual fund managers demanding big discounts to lofty private valuations.
Amundi’s so-so listing sums up Europe’s IPO market 12 Nov 2015 Shares in the Credit Agricole-owned asset manager opened just above the issue price, at the lower end of its original range. Anything less would have been a failure for the 15 banks on the deal. The valuation reflects concerns about the business – and new stocks in general.
Argus sale opens up obscure corner of oil market 12 Nov 2015 Oil price reporting agencies are the plumbing of a $2.5 trillion market – and Argus, which has put itself on the block, is one of the biggest. Expansion is an option for a buyer. Private equity should be interested, but the nuances of pricing oil may be too edgy for some.
ABN Amro IPO merits discount for ugly structure 10 Nov 2015 The Dutch state is hawking up to 23 pct of its erstwhile problem child, valuing the bank at up to 18.8 bln euros. The price range seems attractive relative to listed peers. But a markdown is warranted given an anti-takeover provision that could rescind investors’ voting rights.
Dud IPO adds fuel to Rocket’s downward trajectory 10 Nov 2015 Cash-burning e-commerce investor Rocket Internet pulled the listing of startup HelloFresh. A $2.8 bln valuation for a loss-making delivery firm of ready-to-cook meals rightly did not sway investors. Rocket shares have more than halved this year, but may have further to fall.
Match’s IPO profile is alluring but with strings 9 Nov 2015 The dating-sites owner pegs its worth as high as $3.6 bln. Much of that derives from Tinder, its fast-growing swipe-to-like app. The numbers make for an attractive and credible stock. It’s a risky proposal, though, and Barry Diller’s IAC looks like an overbearing chaperone.
Square’s down round offers cautionary unicorn tale 6 Nov 2015 Jack Dorsey’s payments firm may go public for $3.5 bln, or 41 pct below its last private valuation. Rising competition, losing Starbucks’ business and deflating markets are only partly to blame. It’s a sign to well-funded upstarts that good ideas don’t always guarantee success.
Japan Post’s red-letter day delivers a value gap 4 Nov 2015 Shares in the Japanese postal operator and its finance arms soared on their stock-market debuts. Low valuations, high yields and familiarity helped the $12 bln triple IPO to fly. Yet the share moves also reveal just how lukewarm investors are about the core postal business.
Amundi sets IPO price range with a Gallic shrug 2 Nov 2015 The French asset manager’s 8 billion euro offering suggests a valuation of about 13 times forward earnings, a discount to rival Schroder’s. A nod to the lower end of the range might be most comfortable. Owner Credit Agricole won’t care much either way.
Italy regains market cred with Poste Italiane IPO 23 Oct 2015 The 3.4 bln euro sale of shares in the post office was oversubscribed – even though the company remains mainly government-owned and it does little to cut Italy’s debt. Still, the country now looks open for business and has atoned for an earlier botched privatisation of Fincantieri.
Ferrari parks its $9.8 bln IPO in hybrid spot 21 Oct 2015 Fiat Chrysler priced its luxury unit at the top of the range and got a boost in early trading. That’s a better performance than most recent public offerings. But Ferrari doesn’t merit the Prada-like value boss Sergio Marchionne wanted. For now, it’s driving in the middle lane.
Yield and brand fuel Japan Post IPO successes 20 Oct 2015 The $12 bln deal is going well, with banking and insurance arms pricing at the top of their ranges. That says more about big dividends, low valuations and name recognition than Japan Post’s actual prospects – or the chances of a new era of widespread domestic equity ownership.
Clogged IPO exit ramp boxes in buyout barons 15 Oct 2015 Blackstone and peers have had a good run taking heavily indebted companies public again. Offerings for Albertsons and Neiman Marcus have been delayed. First Data struggled. Petco and Univision may, too. It bodes poorly for private equity when selling becomes as tough as buying.
Square float is missing three sides 15 Oct 2015 The U.S. payments upstart’s IPO narrative is based on growth, but it’s missing three other critical storylines. It’s losing money. Governance is compromised, with dual-class stock and a part-time CEO in Jack Dorsey. And the company’s allies may have incentives to become rivals.
Hong Kong IPOs leaning too heavily on cornerstones 15 Oct 2015 The practice of pre-selling shares to supportive investors is out of control. Distressed debt manager Huarong, for example, has pledged two-thirds of its $2.5 bln offering to big Chinese buyers. The cosy arrangement distorts pricing and undermines the concept of public markets.
Italian post IPO should be sealed with a discount 14 Oct 2015 Poste Italiane is Italy’s biggest privatisation in a decade, at up to 10 bln euros. Despite its brand and network, the postal service loses money and the bank is laden with Italian government debt. A more modest price would reflect that the turnaround cheque is still in the mail.
Worldpay IPO justifies owners’ sale snub 13 Oct 2015 The UK payments processor has listed with an enterprise value of 6.3 bln stg. That values it at just below the sector average – about right given modest growth – and close to what bidder Ingenico had offered. Worldpay’s private equity backers were right to float rather than flip.