Schaeffler gets second time unlucky with markets 2 Oct 2015 The German car-parts maker delayed its IPO amid a scandal at customer VW. It’s not Schaeffler’s first unhappy brush with markets. In 2009, the financial crisis foiled a hostile takeover of rival Continental, leaving the group almost bankrupt. Management again face a tough choice.
Bayer weakens itself via mistimed plastics IPO 1 Oct 2015 The German drug giant has slashed the size of its plastics arm’s listing by 40 pct and cut the price by a quarter, blaming China and VW woes. As the proceeds will be used to lower its own debt, its balance sheet will be weaker than it could have been. Bayer should have waited.
Pure Storage unicorn shivers in cooling market 29 Sep 2015 The computer-storage maker was valued at over $3 bln last year, as backers latched onto its fast growth selling flash memory that’s cheaper and more efficient than rival offerings. But losses and competition are mounting, and the risks threaten a lower valuation at IPO.
IMAX listing showcases China box office boom 23 Sep 2015 The big-screen movie company is floating its Chinese unit at a valuation of up to $1.6 bln. The offering gives private equity backers an exit and helps lock in local partners. More importantly, it allows IMAX to show shareholders back home the value of mainland audiences.
Deezer’s IPO strikes a discordant note 22 Sep 2015 The music streaming service is to list in Paris, possibly at a valuation of 1 bln euros. Deezer is profitable in France and has big music labels as shareholders. But it doesn’t make money in its 180 other markets, and mixed trends in subscriber numbers could turn off investors.
Japan Post’s mega-IPO had better be priced to go 22 Sep 2015 The landmark privatisation is Japan’s biggest listing in decades. Floating the postal operator, plus stakes in its banking and insurance arms, could raise $11.5 bln. But growth is low and follow-on share sales loom. Successful delivery requires low valuations and high dividends.
IPO adds unusual twist to Schaeffler family saga 21 Sep 2015 The closely held car-parts maker, which once sprang a surprise raid on rival Continental, is opening itself to outside shareholders. Schaeffler has strong growth and high margins. But the family, which recklessly loaded the group with debt, isn’t giving up an inch of control.
Bayer $11 bln plastic IPO looks far from fantastic 21 Sep 2015 The German pharma giant is floating its Covestro division. The unit is cash-generative and well positioned for growth. But it is also a capital-hungry and cyclical business that has destroyed value for years. Bayer might need to be more flexible on the float price.
Worldpay IPO looks surer bet than M&A 18 Sep 2015 The private equity-backed UK payments processor is pressing ahead with a $1.4 bln IPO, despite a takeover tilt from Ingenico. The French company wants to create a payments giant, but the financing could be a stretch and scupper a deal. The float is the safer option.
ABN Amro’s IPO could prove sweetly timed 21 Aug 2015 The Dutch bank’s second-quarter earnings doubled to 600 mln euros, justifying state zeal for a reprivatisation. ABN’s first sale may end up a third below the government’s in-price, like the UK’s selloff of RBS. But with the domestic economy firing, pressing ahead makes sense.
SunGard LBO club may yet find reason to cheer 12 Aug 2015 The seven private-equity owners are selling the financial software firm to FIS for $9.1 bln. The 10-year investment yielded a dismal 4 pct internal rate of return. Getting out may alone offer relief, but the firms hold a big, spun-off unit that could still sweeten the end result.
Next Neiman sale may be more luxurious than last 11 Aug 2015 Ares and Canada’s largest pension fund bought the luxury retailer from a TPG-led investor group in 2013. Growth and a plan to pay down debt with offering proceeds suggest Neiman could be worth $4.6 bln. That would be a better return than its previous buyout owners managed.
Singapore’s easiest days as a finance hub are over 4 Aug 2015 The city remains a gateway to Asia: great for regional HQs, settling lawsuits, and parking money. But investment banks are struggling and IPOs are scarce. From its up-and-coming neighbours to China’s new trade push, the risks that Singapore will be bypassed are mounting.
SoulCycle IPO endorphins inhibit pain potential 31 Jul 2015 The indoor cycling chain is inviting investors to join its “tribe” of athletes, renegades and rockstars. The company is profitable and sales accelerated by more than 50 pct in the first quarter to $35 mln. But management, growth plans and faddishness are weak points in the spin.
Billionaire’s biotech IPO rides high on hope 28 Jul 2015 Patrick Soon-Shiong, whose NantKwest just fetched a $3.4 bln value, has made minority investors rich before but also treated them poorly. His new cancer treatment lacks supportive data for such a difficult task amid stiff competition. In this market, though, almost anything goes.
Ferrari IPO customized with Fiat governance part 23 Jul 2015 The supercar maker is offering an extra vote for shares held for three years – part of its parent’s spec, too. The loyalty shares help entrenched owners keep a grip. What might make investors skittish, though, is Ferrari trying to live up to a touted 10 bln euro valuation.
KKR’s First Data charges into tech-ier second life 21 Jul 2015 Its turnaround on track, the U.S. payments processor filed for an IPO eight years after its LBO. The equity value may reach $20 bln, bringing private equity owners a modest profit despite overpaying. The credit card pioneer’s challenge, though, is to be disruptor – not disrupted.
Houlihan IPO will hoist new boutique value flag 13 Jul 2015 The U.S. advisory firm had lowish profit margins on $681 mln of revenue last year, and new owners won’t have much say. But Houlihan Lokey may weather any downturn better than other independents. That factor will make valuing Lazard, Evercore, Moelis and Greenhill even tougher.
Wreckage of failed German lender HRE offers value 10 Jul 2015 In the midst of the Greek crisis, Germany’s government is pursuing a 1.5 bln euro IPO of Deutsche Pfandbriefbank, a remnant of Hypo Real Estate, which collapsed in 2009. While still hobbled by the past, the lender is recovering. A knockdown price takes legacy issues into account.
Univision’s IPO could be just a warm-up act 7 Jul 2015 Private equity backers are finally floating the fast-growing, debt-laden U.S. Spanish-language broadcaster. Univision would make a nice fit for Disney, Time Warner or CBS. A full sale, however, may wait until the valuation – and minority owner Televisa’s position – is clearer.