Exchanges/Platforms

UK’s Labour takes dicey punt on a laxer City

11 Jul 2024

Chancellor Rachel Reeves’ endorsement of pre-existing regulatory proposals to boost London’s stock market will endear her to bankers working on deals and IPOs. But asset managers dislike plans that involve diluting shareholder rights. And Labour needs their help to boost growth.

Drugmaker’s US listing journey starts with failure

9 Jul 2024

Shares in $2 bln Indivior, which in June switched its primary venue from London to New York, fell 42% after flagging slower opioid-treatment sales. Investors may fear that CEO Mark Crossley took his eye off the ball. With little broker coverage, it risks becoming an orphan stock.

Wanted: A buffed-up board to put a sheen on Shein

28 Jun 2024

The $63 bln fast-fashion giant needs to find a chairman and board directors ahead of a London IPO. Providing comfort to fund managers jittery about Shein’s supply chain and cheap clothes will be tough. Breakingviews imagines how a headhunter might approach potential candidates.

Revolut’s desired $40 bln price tag is a stretch

24 Jun 2024

The UK fintech group wants to sell $500 mln of shares at a valuation far above its last level. To get to $40 bln, investors need to assume it’s like payment giant Adyen. With a lower margin and discounts warranted in other areas, Revolut’s value looks more like $20 bln.

A warning from history about large-cap stock booms

21 Jun 2024

Five decades ago, shares in a handful of large companies like IBM and McDonald’s propelled the US stock market to new highs before collapsing. As investors pile into tech giants led by $3.3 trln Nvidia, the earlier period may be instructive for those who believe history rhymes.

European bosses can only envy Elon Musk

20 Jun 2024

The Tesla chief’s $56 bln pay package is particularly vertiginous, but even less-blessed US CEOs do far better than their European peers. In this Viewsroom podcast, Breakingviews columnists discuss how the pay gap shapes executive habits across the Atlantic.

Net zero arbitrage is large, but no one-way bet

14 Jun 2024

There’s a big gap between the rich world’s ambitions to reduce carbon emissions and the ability of governments to achieve that goal. Investors can try to exploit that disconnect. However, economic, technological and geopolitical constraints can quickly change in unexpected ways.

Golden Goose IPO to test its Super-Star status

11 Jun 2024

The maker of pricey sneakers liked by Taylor Swift will list in Milan. But sales are slowing and keeping a 34% profit margin while investing in growth is hard. As a luxury boom flags, a relatively discounted IPO value of 2 bln euros including debt is appropriately conservative.

Investors are hunting securitization’s oddballs

4 Jun 2024

Whether a bundt cake bakery or an internet address, if it generates steady cash, it can be diced up in the financial alchemy of securitization. In this Exchange podcast, Janus Henderson’s John Kerschner explains the promise and perils, and why the oddest assets can be the best.

CEO pay is hidden factor in US relisting trend

29 May 2024

Plumbing supplier Ferguson almost doubled its boss’s compensation after moving to New York, while $55 bln CRH is reviewing its remuneration after switching too. It’s not something boards like to talk about. But investors might support US-style pay if it attracts the best talent.

Ethereum set to stress test US crypto deregulation

22 May 2024

Congress wants to dilute the SEC’s power over digital currencies. Its proposal could pave the way for new ETF products, which have turbocharged bitcoin. Financial wreckage from past laxity, and the industry’s own sketchy history, justify agency boss Gary Gensler’s resistance.

A confident India can afford to squeeze investors

21 May 2024

Finance Minister Nirmala Sitharaman dismissed reports the government, if re-elected, will majorly alter how asset sales are taxed. There is merit to the idea, however. It could help deepen the $550 bln corporate bond market. The buoyant rally in stocks provides an opportunity.

Japan’s value push will turn into a shove

16 May 2024

Shareholder meetings next month will help gauge progress in the official campaign to boost corporate performance. Toyota, SoftBank and Fast Retailing have not signed up. Given the importance of ensuring resilience in the $4.2 trln economy, Tokyo is likely to apply more pressure.

Total’s US re-listing idea could backfire

8 May 2024

The $170 bln oil major is considering decamping to the United States to court oil-friendly investors. Yet getting included in the big stock index would mean cutting French roots, and a valuation boost looks unlikely. Staying at home may also be better for its growing power unit.

L’Occitane sets a high bar for Hong Kong exits

30 Apr 2024

Chairman Reinold Geiger’s offer to take his skincare group private values it at 6 bln euros, a decent 30% premium. Funding led by Blackstone might help keep a lid on interest expenses while the company restructures and seeks a listing in Europe. Other buyouts will be trickier.

CVC insiders’ delayed payday is still pretty sweet

22 Apr 2024

The soon-to-list buyout shop will bar employees from selling stakes for three years, and then only let them do so slowly. It helps get IPO investors on board, and suits bosses too. By the time they cash out, CVC should be worth a lot more than its 13 to 15 bln euro float price.

Shell’s value gap is more strategy than geography

19 Apr 2024

CEO Wael Sawan may shift the $230 bln UK oil giant’s listing to New York if a discount to rivals like Exxon Mobil persists beyond 2025. But Shell’s shifting priorities, slower growth, and unreliable dividends weigh on its valuation. Those factors defy a superficial fix.

Rabanne-owner IPO offers a scent of prestige

9 Apr 2024

Perfumes-to-skincare conglomerate Puig wants to list in Madrid. At a discount to beauty giants L’Oréal and Estée Lauder, the Spanish group may be worth $18 bln. European markets remain fragile, but premium fragrances’ rising appeal may turn the listing into a rare bright spot.

US bid has paper-thin lead in packaging M&A race

5 Apr 2024

Tennessee-based International Paper pegged the savings from a proposed all-share deal with DS Smith at $500 mln. If they’re viable, they help keep the US group’s investors on side. The onus is now on rival bidder Mondi to offer more, or show its own cost cuts would be higher.

Europe’s IPO window opens slowly for buyout barons

28 Mar 2024

CVC floated beauty retailer Douglas, whose shares fell, while EQT received a warmer welcome for skincare group Galderma. In this Viewsroom podcast, Breakingviews columnists explain how to interpret the mixed message for private equity groups sitting on $3 trln of unsold assets.