NYSE vs Nasdaq is IPO trading at the margins 30 Jun 2014 Decisions like Alibaba’s about where to list captivate investors even though exchanges no longer compete on vital matters like liquidity. The Facebook debacle did briefly revive a debate over technology. In the end, though, little things like ticker symbols can swing the vote.
Blackstone and Bain craft a crisis keepsake 20 Jun 2014 The private equity firms are taking public Michaels, eight long years after buying the U.S. art supply retailer for $6 bln. They pieced together cost cuts, growth, debt and a dividend. A 13 pct IRR won’t be their fondest memory, but the overall project is one for the scrapbook.
Markit’s Wall Street owners craft textbook IPO 19 Jun 2014 The 15 banks on the data provider’s deal priced it mid-range and increased the shares on offer. Already valued generously, the IPO also looks set for a 10 to 15 pct first-day pop. It’s a case study in what underwriters can do for clients – even if this time it’s mostly themselves.
Hong Kong’s IPO debate risks missing the point 19 Jun 2014 A government-backed body has weighed in with proposals to make the city more appealing to new listings. But it failed to take a stand on whether to relax the rule of “one share, one vote”. Following Alibaba’s defection to the U.S., regulators need to tackle the issue head on.
Alibaba’s slow unveiling shows good and bad sides 17 Jun 2014 The e-commerce giant has revealed more details ahead of its upcoming IPO. The growing importance of commission revenue is positive. But the rapid shift to mobile transactions is squeezing margins. The quartet of non-executive directors is unlikely to win over governance sceptics.
Racy debt makes the AA’s IPO a high-octane bet 12 Jun 2014 The British roadside recovery firm is floating at an enterprise value of 4.3 bln stg. Buyers could get a bargain, but they need to be comfortable with life in the fast lane. Private equity sellers have left the AA towing abnormally large debt.
Euronext IPO will be a tough sell 10 Jun 2014 The European exchanges group reckons it’s worth up to 1.8 bln euros. The pitch relies on a 5 pct revenue growth target. With turnover declining since 2011, that’s optimistic. Anchor investors have a vested interest in backing the float. For other buyers, it’s a leap of faith.
UK spoils Europe’s $29 bln IPO boom 9 Jun 2014 Is buying new issues worth it? Across Europe, yes. This year’s top IPOs have returned an index-beating 14 pct. But while London has raised the most cash, its flotation frenzy has dented the overall performance of the region’s new share sales. No wonder investors have grown picky.
Jack Ma soccer buy does Alibaba investors a favour 6 Jun 2014 The internet giant’s founder hatched a $192 mln investment in China’s most popular team during a drinking session. Though the deal is immaterial to Alibaba’s value, it shows how the group works. It’s a reminder that investors in its IPO will be little more than spectators.
GoPro pushes to questionable extremes for IPO 30 May 2014 The maker of wearable high-definition cameras is pitching itself to investors as an emerging media brand. It’s a clever trick given the limited lifespan for standalone photography hardware. GoPro’s determination gives it a shot to make the leap, but odds of a face-plant are high.
China’s state-private battle takes to the skies 27 May 2014 Spring Airlines is typical of companies taking on government-backed rivals with a good idea and a knack for cutting costs. Help can come from unexpected places, like vain local authorities. Even if the upstarts don’t win the war, China is better off for their efforts.
JD.com wins rich price despite poor governance 22 May 2014 The e-commerce group priced its $25 bln IPO above expectations. Investors seem unfazed by the revelation of a $591 mln gift of stock to boss Richard Liu. Investors are buying into his expertise, but a large, unexplained transfer of value days from going public raises red flags.
Two deals Alibaba could strike in America 15 May 2014 Yahoo’s holdings in the Chinese e-commerce giant and Yahoo Japan are valuable, but selling them brings tax pain. IPO hopeful Alibaba wants to reduce foreign internet groups’ stakes. Buying Yahoo could reduce both problems. Industrial logic, though, suggests an eBay deal instead.
China’s other e-commerce giant is priced to go 13 May 2014 JD.com sorely lags Alibaba in online retail, and its mooted $23 billion IPO valuation reflects that. But it doesn’t factor in greater mobile market share from an alliance with Tencent, or the potential for making a decent profit. Either would leave the shares with room to rise.
Markit gains require more investment bank pain 8 May 2014 The financial data firm is going public. But it’s not worth the $5 bln implied by Temasek’s 2013 investment, based on rivals’ valuations. Banks outsourcing back-office work to cut costs could bridge the gap. But that poses cultural, regulatory and competitive challenges.
Alibaba’s IPO filing has strategy-shaped hole 8 May 2014 The Chinese e-commerce giant’s disclosures make little sense of its recent investments. A near-monopoly and fat margins give Alibaba leeway with new investors, but the worry is that having other people’s money to spend isn’t conducive to discipline.
Alibaba’s big reveal: high growth, odd governance 7 May 2014 The Chinese e-commerce giant’s IPO filing shows it processed $248 bln of goods in 2013, yet squeezed just a third as much revenue from sellers as eBay. Both numbers should continue to grow. The catch is that new investors have little say: the founders are keeping firm control.
Applus better play it safe with IPO pricing 6 May 2014 The Spanish industrial testing company plans to raise 1.1 billion euros. The sector’s track record is impressive and Applus is growing faster than rivals. But it’s less diversified, and will still be saddled with debt. As such, it deserves a discount.
Dry spell may soon be over for Indian IPOs 5 May 2014 Proceeds from new listings were at the lowest level in more than a decade last year. Yet the stock market is up 22 pct since September on hopes of an election win by opposition leader Narendra Modi. If expectations become reality, India could see a shower of new offerings.
WH Group flop shows pitfalls of crowded IPOs 30 Apr 2014 The Chinese pork producer hired a record 29 banks but still failed to sell its $1.3 bln listing to investors. That undermines the received wisdom that more advisers mean less risk for issuers. For banks, it’s a reminder they can share embarrassment as well as league table credit.