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.
Royal Mail points to lesser role for bookrunners 18 Dec 2014 Last year’s much criticised privatisation of the UK postal company did not go so badly after all, a report has found. But it still offers lessons for improving the process of IPO price discovery. Technology can help, as would bookrunners relaxing their grip on information flow.
BAIC Motor IPO offers slow road to China luxury 15 Dec 2014 The Chinese automaker’s unracy $8.6 bln valuation reflects the slowdown of China’s car market. BAIC is betting on its premium venture with Daimler for growth. That has promise, if investors can get comfortable with what’s still a mass-market firm without control where it counts.
Goldman updates IPOs for the Candy Crush era 12 Dec 2014 CEOs of firms heading for public markets are hooked on the bank’s app, which enables them to track results of roadshow book-building in real time. With Apple and IBM coding mobile software for big companies, the smartphone economy is swiftly moving from living room to boardroom.
LendingClub’s IPO brands it the Tesla of finance 11 Dec 2014 The loan platform’s shares soared after pricing above the range. Like Elon Musk’s electric carmaker, it’s now a disruptor with a good toehold in its sector and a sky-high valuation. As with Tesla, though, LendingClub’s stock market success rests on sentiment, not financials.
More Porsche than Prada: Why Ferrari’s worth $7bln 11 Dec 2014 Fiat will float the iconic sports car brand in 2015 and wants investors to see it as a luxury goods company rather than a carmaker. That’s a stretch. Building Ferraris takes more capital and R&D than handbags and shoes. Margins - and multiples - are lower for a reason.
Wanda property IPO trades price for location 8 Dec 2014 The developer’s reduced $25 bln valuation reflects well-founded worries about China’s real estate market. Wanda has a decade’s worth of building in the works. If the market worsens, the flexibility of an offshore listing will justify the pains of accepting a modest float price.
Bankia renaissance hit by sins of the past 5 Dec 2014 A high court report suggests the Spanish bank’s accounts for its 2011 IPO contained errors, and criticises current as well as past management. Bankia’s top brass should survive. The risk is that compensation has to be paid, hitting a 2015 resumption of the dividend.
Tesco’s best option in Asia is a Thai IPO 5 Dec 2014 The British supermarket wants to raise cash. Its business in Asia is healthy with good growth potential. If Tesco wants to retain control, listing 46 pct of its fast-growing Thai operations in Bangkok could raise 2 bln pounds. That’s enough to shore up the group’s balance sheet.
WH Group looks stuck in a value trough 4 Dec 2014 Shares in the Chinese-American pork producer have fallen 31 pct since its August IPO. Unusual moves by its chairman and a private equity backer are partly to blame. Though the stock now looks cheap, some long-term investors will soon be free to sell. Any recovery seems far off.
Richemont and Net-a-Porter are better as separates 3 Dec 2014 The Swiss luxury group is reportedly mulling a sale or IPO of its online subsidiary. That makes sense. The e-retailer fits awkwardly in the Cartier owner’s portfolio. A more tech savvy owner would suit Net and let Richemont focus on the high-margin luxury business it knows best.
China’s invisible tycoon centre stage in Wanda IPO 2 Dec 2014 Wang Jianlin is China’s second-richest man, and will soon be the controlling shareholder of four listed companies. Despite his high profile, he isn’t on the board and has no official role at any of them. It looks like good governance, but raises a different set of concerns.
Chinese flirt app seeks undiscerning IPO investors 12 Nov 2014 Social network Momo adds a new twist to mobile chat by helping strangers connect. But swelling losses and peculiar governance, even by Chinese tech company standards, are troubling. Investors have accepted similar risks with companies like Alibaba and JD.com, but based on Momo’s early filing, its IPO will be a date to forget.
Malaysia’s $3 bln sovereign IPO faces many hurdles 6 Nov 2014 Listing the energy arm of 1MDB will be a test for the government. The state investment vehicle is a target for Malaysia’s opposition after overpaying for assets and forking out high fees for Goldman Sachs-led bond issues. It may be hard to win investors amid the political din.