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.
Japan stock market selloff is a temporary setback 19 Mar 2014 Equity indices are down more than 10 pct this year, worse than every large economy but Russia. Jitters over emerging markets and a looming sales tax hike are partly to blame. But with the central bank on standby for more easing, Japanese stocks should benefit from home support.
Weibo IPO sets low bar for Alibaba 17 Mar 2014 The Chinese microblog, which has filed for a listing, combines rapid growth with a trail of legal risks. Like Silicon Valley peers, dual-class shares restrict meddling by public investors. It’s a troubling omen for the looming Alibaba IPO, where the stakes will be even higher.
Hong Kong market’s other problem: sagging listings 17 Mar 2014 Losing the giant Alibaba IPO has overshadowed the shortcomings of recent listings on the city’s exchange. Seven of its 10 biggest offerings of the past year have sunk in secondary trading. Second-rate “cornerstone investors”, state-backed issuers, and poor advice are to blame.
Lego clan beats Goldman in $1.5 bln ISS float 14 Mar 2014 An investment by the toymaker’s founding family helped cleaning giant ISS cut debt in 2012. At IPO this brought a 41 pct annual return. That beats the result for EQT and Goldman Sachs. They can just be glad to be out after over eight years of ownership and several failed exits.
Candy Crush maker picks $7.6 bln IPO from thin air 12 Mar 2014 King Digital uses creative metrics like MGABPPU to justify its whopping valuation. But there’s no way to calculate what an enterprise is worth when its profit can skyrocket 70-fold one year and could collapse the next. Rival Zynga’s IPO flub serves as an apposite warning.
London IPO market absolves private equity 12 Mar 2014 Single-price chain Poundland leapt 30 pct after a 375 mln stg flotation, while rival new issue Pets at Home struggled. The contrasting debuts mask a common thread: both were priced richly. Long gone are the days when UK investors demanded a big discount to give PE an exit.
Unicorns stampede through tech fantasyland 10 Mar 2014 The single-horned stallions have made the leap from legend to run free through Silicon Valley, New York, London and the plains of Israel. The term unicorn is now used to describe the most successful startups. In a different and unintended sense, the trope couldn’t be more apt.
Display IPO offers turnaround lesson for Japan Inc 10 Mar 2014 Two years after scrunching together unloved parts of Sony, Toshiba, and Hitachi, Japan Display is raising up to $3.8 bln. The smartphone screen maker is an example of successful government intervention. But the model and its high-resolution returns will be hard to replicate.
Ken Moelis engineers the deal of his lifetime 4 Mar 2014 The investment banker is taking his eponymous 7-year-old firm public. It may be worth some $2 bln. By stretching the limits of corporate governance, Moelis will wield exceptional control. For potential investors this is a chance to grab onto his coattails – and not much more.
Bubbly AO float shows craving for tech hits 26 Feb 2014 Selling fridges online isn’t quite Twitter. Yet Britain’s AO popped 40 pct after floating at 1.2 bln stg. The valuation takes breakneck future expansion for granted. Investors like new stock and entrepreneurs, and will pay up for growth based on disrupting existing industries.
Weibo IPO plan stretches financial logic 25 Feb 2014 Listing a $500 million stake in China’s version of Twitter looks like a response to sky-high tech valuations. But investors can already buy shares in parent Sina, whose value is mostly made up of Weibo already. They should be skeptical about the idea that two plus two is five.
Spanish real estate offers some IPO drought relief 21 Feb 2014 Two property funds are planning Spain’s first IPOs since 2011. Investors would get a direct play on the recovery of the country’s real estate market. But prices keep falling and competition for deals is tough. Much still depends on managers’ ability to spot bargains.
Thai telco bets on yield to defy political turmoil 21 Feb 2014 Protests and low valuations make it an odd time for Jasmine to seek $1.4 bln by spinning off its broadband infrastructure assets. With interest rates expected to rise, issuers are under pressure to act while they can. But winning over investors may require a sweet dividend.
British retail IPOs: watch the back of the queue 19 Feb 2014 Investors are hungry for new issues, consumers are cheering up, and buyout firms have plenty to offload. So a whole basketful of retailers is set to float. The best have shaken things up by ruling a niche, offering bargains or embracing online. Others will be a harder sell.
Candy Crush destined to be a heartbreaker 18 Feb 2014 The addictive mobile app’s Europe-based maker is ready to capitalize on the hype with a U.S. IPO. Fast-growing King could be worth a tasty $6 bln given rival valuations. With top hit Candy Crush generating 80 pct of revenue, though, investor infatuation would be a dangerous game.
Cleaned-up ISS is finally ready to go public 18 Feb 2014 A $1.5 bln-plus IPO would amend for previous failed sales and listings. The private equity-backed “facility services” firm is a tidier story today. Luckily it’s also springtime in the markets. The Danish group’s sheer scale is a management challenge, and it still has big debts.
China copper IPO seeks gold in financial recycling 18 Feb 2014 Unloved Chinese companies with U.S. listings will be watching China Metal. Just 15 months after it quit the NYSE, the copper recycler is going public in Hong Kong at 10 times its last public market value. With earnings polished by tax refunds, any upside may be short-lived.