Glaxo smartly bucks the breakup trend 6 May 2015 The British drugmaker scrapped a flotation of its HIV unit and slashed a planned cash return. That’s unfashionable in an era of spinoffs and shareholder payouts. GlaxoSmithKline, though, needs diversity and financial firepower while it tends to the core pharmaceutical business.
Focus Media’s Chinese homecoming is hard to repeat 29 Apr 2015 The advertising firm is preparing to list in Shanghai two years after it left the U.S. stock market. High valuations will tempt other Chinese companies with overseas listings to return home. For many, though, the costs and legal complexities make switching more hope than reality.
Etsy’s craftiness thwarted on Wall Street 16 Apr 2015 The online retailer of handcrafted goods priced its IPO at $16 a share, valuing it at about $1.8 bln. The stock almost doubled after trading started, leaving a lot of money on the sewing table. Even Goldman and Morgan Stanley can’t always get the measure of a bespoke bauble.
Etsy priced robustly for handcrafted profitability 2 Apr 2015 The online marketplace for homemade stuff is targeting a $1.8 bln valuation in its IPO. Etsy is certainly growing its top line fast. But for investors to profit, the Brooklyn firm will need to prove it can stitch together eBay-ish returns from selling knit caps and the like.
Coal IPO may buck broader U.S. industry downturn 1 Apr 2015 Consol is preparing to float some anthracite assets. Coal is a troubled business, but the $6 bln U.S. energy group’s mines need little investment and make money at current low prices. And the stock offering is also being packaged as an MLP, which brings some handy tax benefits.
New IPO rules won’t keep India’s Alibabas at home 31 Mar 2015 The regulator wants to ease standards to discourage start-ups from listing abroad. The catch is that the rules only apply to a junior market. Though that’s unlikely to tempt the likes of Flipkart and Snapdeal, it stops India joining the race to the bottom on governance.
China brokerage IPO a triumph of wonky markets 25 Mar 2015 GF Securities is paying a high price for foreign currency and international prestige. It will sell $3.6 bln of new shares in Hong Kong around 50 percent cheaper than those already listed in China. Investors back home get diluted – except those connected enough to play both sides.
Drugmaker IPO should ease any TPG anxiety 19 Mar 2015 The buyout firm may quadruple its investment – at least on paper – in Par Pharmaceutical, a generics maker it bought for $1.9 bln less than three years ago. The return delivers a useful lift as TPG raises a new $10 bln fund. It’s also good therapy for a dispiriting lawsuit.
Goldman’s shadow bank debuts somewhat deceptively 18 Mar 2015 In what could be seen as a bad ad for its own bankers and lead underwriter BofA, shares of the middle-market lender fell as much as 2.5 pct. Deal fees typically drag on business development company IPOs, however. And unlike some rivals, Goldman’s trades above its net asset value.
Spain has way to spread Bankia bill 24 Feb 2015 A high court judge has told the state-dominated lender and ex-management to set aside 800 mln euros for refunding investors in its botched 2011 IPO. Madrid deserves the most blame, and the biggest bill. Minority shareholders should cough up too, but with the amount capped.
Much trading is probably best left to the experts 18 Feb 2015 After its Swiss franc thwacking, FXCM is abandoning some currencies. If BATS takes another stab at an IPO, it may turn to the Nasdaq or NYSE. And Goldman is one of only a few banks powering ahead in fixed income. Competition is necessary but so is clear focus in risky businesses.
Rocket Internet exploits tech stardust 13 Feb 2015 The German tech group raised 589 mln euros in new equity just five months after its IPO. European markets are booming, venture capital is hot, and after a rash of M&A, Rocket wants to buy and build more firms. Still, the aggression and shock dilution will deter some investors.
Aena IPO marred by its success 11 Feb 2015 The privatised Spanish airports group rose 20 pct on its debut thanks to a chunky yield and faith in the Iberian recovery. The issue did not look underpriced based on fundamentals. Even so, in Spain’s politically charged atmosphere, taxpayers may feel shortchanged.
Big airports IPO requires faith in Spain’s future 3 Feb 2015 Aena, the $9 bln operator of airports in Madrid, Barcelona and beyond, needs flocking tourists to mint money. For now, it’s a safe bet. Low capex needs and ample capacity are a plus. But the state still calls the shots and a new regulatory regime stores up some uncertainty.
Swiss mobile telecoms IPO is likely to shine 28 Jan 2015 Sunrise aims to raise about $2 bln in an upcoming flotation. As No. 2 in a rich market with a benign regulator, the stock offers yield, growth, stability and a decent discount to market leader Swisscom. Just one cloud looms: the outside risk tycoon Xavier Niel causes trouble.
Telco IPO a soft test for Thailand’s Teflon market 26 Jan 2015 Shares are continuing to rally even as doubts grow about the economy’s health under army rule. Jasmine’s $1.2 billion offer of infrastructure assets looks a relatively safe bet. Even so, it needs a plump dividend to draw investors to one of Thailand’s biggest listings.
Singapore needs a new IPO story 19 Jan 2015 The city remains a gateway to Asia, but not when it comes to new listings. Singapore is losing its traditional lion’s share of initial public offerings to its up-and-coming neighbours. It’s hard to see what Singapore can do to arrest what looks like a long-term decline.
Dutch optician can pass IPO market test 12 Jan 2015 GrandVision, the world’s largest optical retailer, is planning to float. It is stable, cash-generative, and well placed to benefit from an ageing world. That augurs well for a deal which could raise about 1 bln euros. The payback in emerging markets looks further off, however.
Shake Shack IPO disappoints in taste test 30 Dec 2014 Celebrity restaurateur Danny Meyer’s global chain of burger joints is serving up some of the uncommon fixings found in new tech stocks. Two classes of shares and creative financial metrics are unappetizing. At least the bottom line offers a sweet refreshment to wash it all down.
Rampaging animal spirits birth biotech unicorn 18 Dec 2014 The public offering of Juno Therapeutics presents an apt finale to the best year for biotech IPOs. It’s only a year old and revenue free, but its cancer fighting technology is hot. Juno’s $2 bln valuation shows capitalism’s ability to catalyze investors’ hopes and resources.