Cancer biotech’s triple listing has singular risk 13 Dec 2021 Beigene is raising $3.3 bln on Shanghai’s STAR market, making it the first company to trade there and in New York and Hong Kong. That suits its ambition to be seen as a global business and gives it enviable funding options. But its listing largesse is at the mercy of geopolitics.
Nubank becomes LatAm’s biggest, and riskiest, bank 9 Dec 2021 An IPO worth above $40 bln tops even Itaú Unibanco. At roughly 10 times tangible book value it’s a pricey bet that a Warren Buffett-backed Brazilian fintech can disrupt the region’s market before established players react, without missteps, and with immunity from economic perils.
The Exchange: Breakingviews at Reuters Next 9 Dec 2021 At the global conference, our columnists interviewed the movers and shakers at Ola Electric, Philip Morris, ViacomCBS and Klarna about disruption at scale in India, the challenges of making bold corporate transitions in tobacco and media, and Europe’s fintech frenzy.
Porsche IPO may only partly aid VW’s odd valuation 9 Dec 2021 Volkswagen could finally list its luxury marque. Porsche may be worth up to 100 bln euros or more, making VW’s own $150 bln valuation look underpowered. The value assigned to both, however, may depend on how much control VW is prepared to give up.
Glove maker’s governance spoils pandemic bounce 9 Dec 2021 Top Glove, the world’s largest maker of protective handwear, has won investor support for a third listing in Hong Kong. Labour concerns derailed the Malaysian firm’s earlier attempt when markets were hot. With shares back near pre-pandemic levels, the delay has cost it dearly.
LG’s $11 bln battery spinoff is fully charged 8 Dec 2021 The South Korean group is eyeing a $60 bln valuation for its crown jewel in what could be the country's biggest IPO. The hot play on electric vehicles hopes to entice investors by offering a discount to peer CATL. LG's track record of recalls, though, warrants caution.
Capital Calls: Fund services M&A, Mattress mystery 6 Dec 2021 Concise views on global finance: Shareholders of Amsterdam-listed Intertrust dodge a regulatory crackdown with a 1.8 bln euro sale; the western man credited with Chinese retailer DeRucci’s success finally has his identity revealed.
China’s VIE problem is resolving itself 2 Dec 2021 Beijing may try to tighten data oversight by banning companies from listing overseas using variable interest entities. U.S. regulators are already pushing back on the structures and companies rethinking IPO venues. Another heavy-handed crackdown risks being unnecessarily clumsy.
Super-app Grab rides high into New York debut 1 Dec 2021 The Southeast Asian giant held firm in a difficult year. It’s on track to hit targets set from its record $31 bln SPAC merger, supporting a rich 13 times sales valuation multiple. Margins in its ride-hailing business show the promise of its food-delivery-to-fintech ambitions.
Capital Calls: Moderna’s $40 bln shot gain 29 Nov 2021 Concise views on global finance: News of a spreading Covid-19 variant added $40 bln to the biotech’s market value. Investors are pricing in about 3 billion extra jabs. That’s rosy given competition and uncertainty.
SenseTime IPO could help HSBC gain recognition 26 Nov 2021 It’s the only Western lead adviser on the AI dragon’s mooted $2 bln Hong Kong market debut. The issuer’s spot on a U.S. blacklist adds a degree of difficulty to the large Chinese stock sale. That makes it an especially bold way to showcase renewed investment banking ambitions.
Chobani founder seeks frothy IPO cream 24 Nov 2021 An Oatly-like valuation for the Greek-yogurt maker could make boss Hamdi Ulukaya’s stake worth $8 bln. Valued like Danone, he would be worth about a quarter of that. A valuation closer to the latter is reasonable, but Ulukaya can’t be blamed for reaching for a yogurt substitute.
Paytm battering targets raw valuation underbelly 24 Nov 2021 India’s fintech giant is worth $13 bln after a 31% post-IPO drop. That remains exuberant at 26 times sales. The company is still growing, but revenue pressure is a concern, and costs are high. Success requires official help on fees and lending. That’s far from guaranteed.
Plastic-surgery app MBO aggravates governance scar 23 Nov 2021 Boss Xing Jin wants to buy the 85% he doesn’t own of New York-listed So-Young, which matches users with beauty services. Shares have slumped since its IPO and China may regulate ads. But Xing’s supervoting stock means investors have themselves to blame for any forced face-lift.
Capital Calls: Eni spinoff 22 Nov 2021 Concise views on global finance: The $50 bln Italian oil group has a new name for the renewable energy and retail arm it plans to partially list.
Paytm IPO ends Morgan Stanley India winning streak 19 Nov 2021 The fintech firm’s 27% first-day drop contrasts with pops the Wall Street giant oversaw for Nykaa and others. Paytm execs and powerful buyers and sellers like Alibaba, SoftBank, and BlackRock all played a role in the fiasco. But as lead bank Morgan Stanley has most to lose.
Razer’s $4.5 bln buyout plan has a serrated edge 19 Nov 2021 The purveyor of pricey keyboards may swap a Hong Kong listing for one in New York as part of a management-led deal. A video-gaming fanbase gives it meme-stock potential while its Southeast Asian fintech unit might look hotter stateside. But any valuation gains may be subtle.
Capital Calls: Biden’s deficit, Austria lockdown 19 Nov 2021 Concise views on global finance: A nonpartisan analysis finds a $160 billion hole in the U.S. president’s social programs; while new Covid restrictions spark selloff in European airlines and hospitality.
Paytm IPO misery leaves Indian tech looking West 18 Nov 2021 The Alibaba and SoftBank-backed fintech company plunged a bruising 24% on its debut, in contrast to huge first-day pops for Nykaa and Zomato. The market is mispricing tech IPOs. It revives the debate about listing in a New York market more accustomed to money-losing firms.
Ariston IPO is enticing play on green energy wave 17 Nov 2021 The family-owned maker of heat pumps and water heaters is going public in Milan at a valuation of up to 4 bln euros. With demand for energy-efficient heating systems set to boom, it’s in a sweet spot. A discount to rivals A.O. Smith and NIBE Industrier should help inflate demand.