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.
WH Group’s pulled pork IPO is least bad outcome 29 Apr 2014 The Chinese producer was so greedy even 29 banks couldn’t sell its $1.3 bln Hong Kong offering. Pushing ahead would have left private equity backers with a big stock overhang. A delay gives WH Group time to integrate its big U.S. deal, although it means carrying debt for longer.
China cosmetics IPO part growth, part gloss 17 Apr 2014 Online beauty retailer Jumei could command a $3 billion valuation, judging by high-valued peers like Vipshop. It has positive earnings too, unlike rival JD.com. With low barriers to entry and a brief track record, the question is how Jumei will fare as the market matures.
Count one unhappy partner among Moelis ranks 16 Apr 2014 Most of them will be thrilled at the IPO, even though to get it away the boutique adviser slashed the price and number of shares. The debut values Moelis at $1.3 bln, however, below Sumitomo’s 2012 buy-in. Greenhill, Lazard and Evercore all would have been better bets.
Hong Kong needs to defend shareholder democracy 16 Apr 2014 The stock exchange is poised to launch a debate on shareholder voting rights after Alibaba cancelled its listing in the former colony. Dumping “one share, one vote” won’t necessarily attract many new IPOs. But it would undermine Hong Kong’s already shaky corporate governance.
From Ally to Zoe’s, IPOs hint at back to basics 15 Apr 2014 Investors had an appetite for most any new issue until last week. Six of 10 offerings couldn’t fetch the desired price and six were yanked as fear again mingled with greed. A fresh crop of sellers, including Moelis and Weibo, may encounter a more rational market than expected.
WH Group’s quick pork flip serves up meaty return 15 Apr 2014 The private Chinese pork producer hasn’t had much time to justify the fat premium it paid for Smithfield last year. Yet relisting the enlarged group in Hong Kong implies the value of the U.S. business has risen at least 21 percent. Others will be tempted to try a similar trick.
China’s big pork IPO could be fat or lean 10 Apr 2014 Pig processor WH Group is hoping to raise as much as $7.1 billion in Hong Kong. But the range is huge: the maximum share price is 41 percent above the minimum. It suggests the group’s private equity backers, its 29 banks, and public investors may struggle to agree on a valuation.
China tech rout sifts IPO haves from don’t-needs 9 Apr 2014 Volatility in internet stocks is a nuisance for those with plans to list. Alibaba is big and profitable enough to wait. Rival JD.com needs the money but has rich backers. Most exposed is microblog Weibo, which has the weakest business model and least reason to go public.
Singapore’s love affair with trusts looks worn out 9 Apr 2014 Companies that pay out most of their income to shareholders have dominated stock offerings in the city. Yet rising interest rates and poor performance makes them a harder sell. Though Indian trusts may prop up activity in the short term, Singapore’s IPO prospects are bleak.
Rob Cox: Crazy valuations not only sign of bubble 8 Apr 2014 IPO investors’ willingness to accept second-class stock and governance that favors insiders suggests an imbalance between providers of capital and its consumers. The “coattails equity” peddled in the offerings of Box, GrubHub, Moelis, Virtu, and Weibo risks storing up trouble.
Weibo’s subdued IPO is no more attractive 7 Apr 2014 China’s Twitter has cut its offering from $500 to $380 mln amid a sector-wide drop in Chinese tech stocks. Investors may be right to question sky-high valuations. But a comparable drop in value in Weibo’s parent makes the spin-off, now valued at $3.9 bln, no more compelling.
Madrid’s investment bankers regain their mojo 3 Apr 2014 After some very lean years, cash-starved Spanish companies are sidestepping banks and turning to debt capital markets for funds. The IPO market is also resuscitating. Meanwhile, there’s still plenty of restructuring work to do. Growth in fees reflects this bullish recovery.
Buyers bake fat growth into Just Eat IPO value 3 Apr 2014 London’s third sizeable e-commerce debut in weeks values the online takeaway firm at 1.5 bln stg. That’s an unpalatable 15 times 2013 sales. This business is harder than it looks and Just Eat has built a strong position. But investors’ hunger for growth has led them to over-order.
Alibaba shopping spree needs better explanation 3 Apr 2014 The Chinese e-commerce group has spent $3.8 bln on acquisitions since 2013, but the strategic logic remains hazy. Other internet giants are making similar deals, and the land grab may excite prospective investors. Even so, Alibaba will eventually have to justify its purchases.
How to avoid another second-class UK privatisation 1 Apr 2014 Royal Mail’s IPO looks awfully cheap in hindsight. So an official post-mortem will embarrass politicians and bankers alike. Still, there are lessons for future privatisations. Sell down slowly, be more flexible in book-building, and handle retail offers with extreme care.
Box ties a neat bow on Silicon Valley IPOs 25 Mar 2014 The cloud storage company plans to go public with a net loss greater than its revenue. Box is growing fast, doesn’t expect to be profitable any time soon, will have two classes of shares, a CEO who is under 30 and some mysterious metrics. It’s the internet era in one package.
Reverse takeover gives New Zealand a Mega headache 25 Mar 2014 The cloud storage company founded by Kim Dotcom is planning a $179 mln backdoor IPO. The internet entrepreneur, who is fighting extradition for online piracy, has already caused much embarrassment for local authorities. A stock market listing for Mega would add a financial sore.
GrubHub IPO includes needless flavor enhancers 24 Mar 2014 Investors are surely working up an appetite for the $1.7 bln U.S. online takeout service, as well as for its European peer Just Eat. Mobile device use should feed healthy expansion. But GrubHub’s prospectus flatters its growth. There’s the latest in not-so-tasty new metrics, too.