E-commerce

Capital Calls: Twitter, Domino’s Pizza

22 Jul 2021

Concise views on global finance: Jack Dorsey’s social network reported a 74% bump in revenue despite a slowdown in adding new users; meanwhile, Domino’s Pizza shows one thing that hasn’t abated in 2021 is customers’ love of takeout pies.

Capital Calls: Volvo, Moderna, Mediobanca

21 Jul 2021

Concise views on global finance: The Swedish automaker boosts its appeal ahead of a possible IPO by buying out its Chinese joint venture partner; joining the S&P 500 will cut both ways for the vaccine maker; another Italian tycoon ups his stake in the Italian investment bank.

Capital Calls: BBQGuys go easy on the hot sauce

20 Jul 2021

Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.

Zara’s Chinese rival threatens from the shadows

14 Jul 2021

Online fashion site Shein cranks out ultra-cheap designs at lightning speed. It discloses next to nothing about its operations and tried to scrub its Chinese origins off the internet. Its opacity is strategic, but competitors had best study its model.

South Asia bourses face Hong Kong-style IPO test

12 Jul 2021

Bukalapak’s and Zomato’s respective debuts in Indonesia and India will help startups decide whether to list at home. The Fragrant Harbour has proven it has what it takes to attract hot tech names. Mumbai’s stellar secondary market makes it better placed to replicate that success.

AirAsia super-app SPAC will require sick bag

8 Jul 2021

The Malaysian carrier led by Tony Fernandes is swapping a 4.8% stake in its fledgling e-commerce and fintech division for Gojek’s Thai business. The deal imputes a $1 bln valuation, and a sky-high multiple of sales. A planned spin into a public listing promises a dizzying ride.

Suning bailout might model China Evergrande rescue

6 Jul 2021

A public-private consortium including Alibaba has thrown the debt-laden Chinese retailer a $1.4 bln lifeline. There are now lots of cooks in Suning’s kitchen, complicating a business turnaround. But it might be a trial run for restructuring its troubled ally Evergrande.

Capital Calls: Glencore chair, Chinese e-commerce

5 Jul 2021

Concise views on global finance: The commodity giant picks a new chair familiar with its stamping grounds; Beijing cranks up the pressure on companies over data abuses.

India’s e-commerce rejig looks too protectionist

5 Jul 2021

A ban on discounted flash sales and other proposed rules shield offline sellers and squeeze Amazon and Walmart, but excessive compliance requirements will make it hard for small businesses too. It’s an ill-timed setback for one of the country’s most exciting growth stories.

China puts New York IPO fine-print risk in bold

5 Jul 2021

Chinese regulators have opened investigations into two more companies listed in the city after hammering ride-sharing app Didi just days after it raised $4.4 bln there. Investors that bought into these deals may blame Beijing or bankers, but they had ample, if indirect, warning.

Pricey Finland pulp deal offers paper-thin returns

2 Jul 2021

Shares in 5 bln euro Finnish engineer Valmet fell after it agreed an all-share takeover of valve maker Neles. Although both operate in paper, the modest cost savings on offer suggest CEO Pasi Laine may struggle to generate decent returns. Investors are right to be sceptical.

Pre-owned watch IPOs ride second-hand wave

30 Jun 2021

As with fashion, demand for “pre-loved” bling timepieces is booming. That, and a switch to online buying, underpins the mooted $1 billion-plus listing valuations of web players Chronext and Chrono24. For investors, the latter’s breadth of choice makes it more Rolex than Timex.

Sea banks on rising with fintech tide

29 Jun 2021

The Tencent-backed gaming-to-shopping group, at $147 bln, trades at a rich sum of its parts. Investors believe it can ramp up commission-based fintech services in underbanked Southeast Asia. Its trove of licences minimise risk. Boss Forrest Li has built an enviable position.

Amazon’s lax policy on waste belongs in the bin

24 Jun 2021

The $1.8 trln retailer has been destroying millions of unsold items in the UK alone, ITV says. For now Amazon is benefitting from a lack of net zero emissions-style global standards on waste, and a grey area over unsold stock liability. It should be prepared for that to change.

JD’s governance upgrade starts in Hong Kong

23 Jun 2021

The $112 bln e-tailer is adopting investor-friendly measures like holding annual meetings and allowing the board to convene without boss Richard Liu. JD now has a female director, too. The city’s listing rules are driving some changes, and more can be done. But it’s a start.

Alibaba may be Suning’s white knight in hiding

22 Jun 2021

The e-commerce giant’s 20% stake in the Chinese retailer has plunged by two-thirds in value since it bought it in 2015. The shares have further to fall as Suning faces $7 bln of debt due. Given Alibaba’s push into bricks-and-mortar commerce, a takeover could benefit both sides.

Capital Calls: JPMorgan, French SPAC, Jessica Alba

17 Jun 2021

Concise views on global finance: Jamie Dimon bulks up his nascent UK digital banking offer by buying Nutmeg; France boosts its lowly SPAC league-table position with two blank-cheque vehicles; the Hollywood star’s consumer packaged goods company Honest encounters growing pains.

Friends-turned-foes set China’s UPS on new route

9 Jun 2021

The $51 bln SF has long thrived alongside e-commerce giants. But boss Wang Wei is now under siege as the likes of JD expand their own logistics. Plans to raise new equity and spin off a subsidiary, among other things, should help it bulk up against deep-pocketed web rivals.

Capital Calls: Warren Buffett’s taxes

8 Jun 2021

Concise views on global finance: A ProPublica report unveils the true tax rate of the Sage of Omaha, Jeff Bezos and other members of the uber-rich elite.

India Insight: Facebook losing one of its besties

7 Jun 2021

The social network’s WhatsApp messaging service is suing New Delhi over encryption. Even if it prevails, there’s growing support to get tough on foreign tech goliaths making the country their top market. Facebook’s $6 bln Reliance investment is becoming an important hedge.