Chrysler impasse needs Fiat to make first move 24 Sep 2013 A year-long shareholder dispute about the value of the U.S. automaker has now led to an IPO filing. Listing would be an expensive waste of time. The sensible road out of this boggy no man’s land is marked “compromise”. Fiat is best placed to crank the process into first gear.
Foxtons makes fittingly brash London market debut 20 Sep 2013 The estate agent’s IPO got its full price and a 649 mln stg valuation. The stock popped 21 pct. BC Partners even sold a majority stake, a bit of a no-no for private equity nowadays. It’s London property all over: a sale at the asking price and the buyer still gets a quick flip.
Huishan Dairy IPO comes with full-fat premium 19 Sep 2013 The Chinese farm operator’s $1.3 billion Hong Kong listing taps a growing thirst for milk. Huishan squeezes more revenue from its herds than rivals, and relies less on commodity markets. But the growth plan looks ambitious for a company with little in the way of a track record.
Twitter prospectus edits will be worth following 13 Sep 2013 New U.S. rules mean there’s scarcely 140 characters so far about the micro-messaging service’s IPO. When changes are made public, it will repay investors to comb SEC modifications for red flags. On the checklist will be funny financial metrics and multiple share classes.
Blackstone engineers an upgrade during Hilton stay 12 Sep 2013 The private equity firm is starting the checkout process with an IPO six years after its $27 bln buyout. At current industry values, Hilton would bring Blackstone an IRR of about 13.5 pct. That’s no five-star return but it’s quite a turnaround from how prospects once looked.
AMC offers investors back-row seats, no popcorn 5 Sep 2013 The debt-laden cinema chain has filed for an IPO just a year after the Chinese owners bought it. AMC needs to reduce its borrowings in order to meet ambitious investment plans. In return for helping out, investors get shares with few votes and few rights. It’s a poor showing.
Investors finally getting the biotech IPO joke 22 Aug 2013 It’s the best year in a decade for such companies to go public. While quantity has gone up, though, quality has not. Biotechs offering barely more than science experiments appear able to attract funding. History suggests buyers may be disappointed. They may be starting to notice.
Letter to the Editor: Another Twitter IPO idea 22 Aug 2013 A consultant on Google’s initial stock sale says a Dutch auction, as suggested in a Breakingviews article, is only partly right. Finance professor Ann Sherman recommends a hybrid model used globally by the likes of SingTel to welcome both institutional and individual investors.
Pattern Energy IPO has market wind at its back 20 Aug 2013 Past efforts to lure public investors to the wind sector have been met with a stiff breeze. A 32 pct rally in renewable stocks this year gives Pattern a chance to break the mold. Despite heavy debt, its solid cash flow and tax breaks make the sales pitch more than just hot air.
Maybe Twitter should Google its IPO 15 Aug 2013 In anticipation of the $10 bln social network going public, the search engine’s 2004 example is worth considering. Google catered to individual investors with an auction-style sale. Though flawed, the approach would be a solid one for Twitter, especially after Facebook’s debacle.
Music raves better off in clubs than Wall Street 23 Jul 2013 Just don’t tell Robert F.X. Sillerman, who’s rolling up the electronic dance music business under one big disco ball the way he did rock concerts. Much of the $175 mln SFX Entertainment wants to raise in an IPO is already committed to deals. This party promises a bad hangover.
European IPO market still open – for the realistic 3 Jul 2013 The failure of Terra Firma’s German property IPO follows several touch-and-go new issues. Deutsche Annington faced specific challenges - size, a private equity vendor and bad markets. But the ultimate problem was value. The reality is that fairly priced IPOs will still fly.
Bitcoin ETF signals time to make market in cash 2 Jul 2013 A virtual currency fund IPO means there will now be an index tracker for almost everything. Except that financial engineers have ignored the most important asset class of all. No more. Say hello to the Breakingviews Dollar Trust. It makes holding cash as easy as trading a stock.
German property IPO is in danger of falling flat 2 Jul 2013 Deutsche Annington, the largest residential real estate landlord in Europe’s strongest economy, is preparing to float. The company, which will have equity worth about 4.3 bln euros, specialises in small flats at the budget end of the market. Shares, however, look pricey.
IPO investors sober up as punch bowl drains 27 Jun 2013 CDW and HD Supply both were forced to slash their debut stock prices. Buyers had been lapping up new issues at a pace not seen in six years. Without the intoxicating effect of low rates, though, revenue-free startups and heavily indebted buyouts will be harder to serve up.
AIG buys itself some dividend payment insurance 24 Jun 2013 Returning capital to shareholders may hinge on divesting aircraft lease unit ILFC. The $4.2 bln deal with a Chinese group is wobbling, so AIG is prepping alternatives. Choppy markets could make an IPO tough but values also have jumped. A Plan B looks doable if time-consuming.
Belgian postal IPO lacks the promise of parcels 20 Jun 2013 Bpost is delivering a 2.9 bln euro Brussels flotation. The warm reception it is receiving augurs well for UK peer Royal Mail. Both face falling letter volumes but promise big dividends. Yet Royal Mail is stronger in parcels and could benefit more from e-commerce.
Home Depot out-flips and strips private equity 19 Jun 2013 A Carlyle-led group bought the retailer’s wholesale arm for $8.5 bln just before the real estate bubble burst. The firms should recoup on paper their HD Supply investment in the IPO. Home Depot fared better. With the proceeds, it bought back shares – which have since doubled.
For Kion, the heavy lifting will begin after IPO 14 Jun 2013 The world’s second-largest maker of forklift trucks is preparing a Frankfurt listing. Having endured a tough restructuring, the group is producing strong growth in revenue and profit. Kion’s challenge is to prove the successes are sustainable.
Coty owners get consolation prize with IPO launch 13 Jun 2013 The billionaire family behind the fragrance maker nets nearly $800 mln in its market debut. A cost-crunching reverse takeover of rival Avon might have been the preferred route for the Reimanns. But that option is still open even after taking money off the table.