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.
Spain’s $10 bln airports IPO is just shambolic 31 Oct 2014 Auditor-related technicalities have grounded one of the largest European share issues this year. The Aena airports sale will probably go ahead in early 2015. But the IPO process will be easier to re-rail if the government makes its commitment unequivocal.
Shell pipeline IPO blowout heralds more shrinkage 30 Oct 2014 The $230 bln oil giant’s tax-advantaged U.S. pipeline spinoff popped 46 pct on its debut on Wednesday. With an enterprise value of $4.6 bln, it trades on eight times the valuation ratio its parent gets. That kind of uplift makes it a no-brainer for Shell to offload more assets.
Hong Kong protests’ silver lining for umbrella IPO 22 Oct 2014 Pro-democracy demonstrators are clouding luxury sales in the Chinese territory. Yet the movement’s symbol has cast a light on Jicheng Umbrella’s upcoming listing. International brolly sales are on the up. After the smoke clears, however, the main worry is rising labour costs.
Fiat Chrysler spins onto NYSE with hefty price-tag 13 Oct 2014 Boss Sergio Marchionne wants to sell 60 pct more cars by 2018, costing perhaps $10 bln a year. That’s a big ambition for a debt-laden firm with poor margins. Yet the Italo-American carmaker, now trading in New York, sports a similar multiple to more profitable rivals Ford and GM.
European IPO wobble is about more than volatility 9 Oct 2014 New issues in France and Italy have been pulled. As ever, companies blame choppy markets. That’s partly true. But misfiring debuts from Rocket and Zalando hurt badly. Europe’s economy is faltering. And a busy year has made investors both less flush and more discriminating.
Jumbo $6 bln bank IPO shows Saudi too big to miss 7 Oct 2014 The sale of shares in the kingdom’s top bank will be the largest this year after Alibaba. A few foreign investors may share some of the upside. For most, it’s a reminder of the opportunities on offer when the $584 bln market opens more fully to outsiders next year.
Rocket and Zalando call top of Europe’s IPO market 3 Oct 2014 Despite being heavily subscribed, the tech incubator and the online retailer performed badly after listing, together wiping out 1.5 bln euros. The stock market has been the easiest exit route for European asset sales this year. Hereon, vendors won’t be able to name their price.
Global airline IPOs still need tailwind to fly 3 Oct 2014 From America to Asia, airlines are eyeing share sales. Most offers since 2010 have lost altitude. The industry’s returns are improving but remain below the cost of capital. The latest listings will need a gimmick or something special to buck the trend of value destruction.
Virgin Money float timed to beat bank IPO rush 2 Oct 2014 The Richard Branson-backed lender would be the fourth of up to a dozen UK bank floats. Virgin has done a lot with Northern Rock assets bought from the state in 2012. But needed diversification away from mortgages is embryonic. An IPO just now suits owners more than new investors.
Rival solar IPO takes shine off Elon Musk halo 2 Oct 2014 Blackstone-backed Vivint is worth $1.7 bln, nearly double where it would trade if valued on the same rather flighty multiple as SolarCity, chaired by the Tesla boss. There’s some business logic to Vivint forging ahead. But at these prices, investors in either risk getting burned.
Jimmy Choo investment case is a bet on China 1 Oct 2014 The luxury shoemaker is seeking a London float, giving its private equity owners a partial exit. A mooted $1 bln price tag values Choo at a premium to most peers. The justification could be the potential to grow in Asia. But it’s a market that can spring unpleasant surprises.
Andreessen would probably pass on Rocket Internet 29 Sep 2014 The U.S. venture capitalist is worried about cash-burning startups that grow accustomed to easy fundraising and high valuations. Berlin-based Rocket, the tech company incubator set to go public with a 6.7 bln euro market cap, exhibits some of the warning signs.
Vindication is bitter for Royal Mail privatisation 29 Sep 2014 The froth is off. Forget the 87 pct pop: a year after its frenzied IPO, shares in the UK postal service hover 20 pct above its float price. That feels about right. The snag for the state and its bankers is that it will be fiendishly difficult to shift the unsold stake.
Politics mar GSK and RBS chairman succession 25 Sep 2014 Philip Hampton is to join drug giant GSK in January, but may not succeed Chris Gent as chairman until next September. The long transition reflects the difficulty of replacing Hampton at state-backed RBS in an election year. For GSK, the ambiguity in board leadership is unhelpful.
Guest view: EU must hold firm on opening markets 25 Sep 2014 European legislation to free up the derivatives trading and clearing industry may face stiff resistance. Policymakers need to be resolute if they want to deliver a truly open market in financial services, say the CEOs of the London Stock Exchange and clearing house LCH.Clearnet.
Alibaba IPO highlights SoftBank’s value dilemma 22 Sep 2014 Following the Chinese e-commerce group’s listing, the Japanese conglomerate’s 32 pct stake is worth $75 bln. It eclipses the value of SoftBank’s core businesses. The near-5 pct drop in SoftBank’s shares after the IPO is a reminder the investment is both blessing and burden.
Magic word greed opens $228 bln Alibaba valuation 19 Sep 2014 The Chinese e-commerce giant led by Jack Ma saw its shares pop 36 pct at the open. Staggering growth and margins proved irresistible to global investors. The company’s cloudy governance, frenetic dealmaking and corporate structure could yet prove a trap.
Zalando would find air rarefied in upper range 18 Sep 2014 Europe’s No. 1 online fashion retailer is aiming for an ambitious valuation for its Frankfurt listing. Anything in the upper half of its 18 to 22.50 euro range looks rich. Zalando has yet to prove it can deliver profit as well as growth. Then there are the governance risks.