IPO

Geely’s $5 bln carve-out slows down to speed

13 May 2024

The automaker's electric-vehicle unit Zeekr rose 35% after pricing its IPO at less than half its 2023 valuation. That suggests group Chair Li Shufu has learned from his overpriced deals to take Lotus and Polestar public and found a way to coax investors wary of China risk.

Swiggy IPO serves next dish in Indian food wars

9 May 2024

The Prosus-backed delivery app is readying a $1 bln float after its private-market price tag hit $13 bln. Heady growth and its rival's rich valuation will help. But Zomato's stronger financial health ups pressure for unprofitable Swiggy to manage costs amid a looming price war.

Ship IPO puts wind back in Korea Inc’s sails

8 May 2024

KKR-backed HD Hyundai Marine Solution surged more than 40% in the largest float on the bourse in two years. The successful $540 mln listing will spur some IPO momentum, and might even help the $1.8 trln stock market catch up with regional peers.

Bain could be third time lucky in Japan

2 May 2024

It's pushing an IPO of Kioxia again after talks to merge the chipmaker collapsed last year. A deal would help pare a $6 bln company loan. Timing is on the sellers' side; demand for chips and Japanese stocks is robust. Rival buyout firms will cheer a successful selldown too.

CVC’s Darwinian pay policy puts rivals on the spot

26 Apr 2024

The buyout shop, which manages $200 bln, allocates 40% of fund profits to staff on a deal-by-deal basis, rather than pooling the spoils. Rivals say it hurts teamwork, but CVC’s returns suggest it works. If the newly public firm keeps out-raising peers, others may follow suit.

Cruise-ship IPO bets the rich will always float

23 Apr 2024

Viking is seeking an $11 bln valuation in its US listing — a premium price relative to the larger Carnival and Royal Caribbean. As ballast, it offers a focus on high-end customers and less debt than peers. Investors will be reliant on the whims of the few, in more ways than one.

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.

Walmart-backed IPO makes brick-and-mortar AI pitch

17 Apr 2024

Ibotta is chasing a $2.6 bln public valuation for one of marketing’s oldest tricks: rebates on in-store purchases. Its data-gathering is simple – customers scan receipts – yet solid and profitable. But efforts to cover the company in a high-tech sheen look like a stretch.

Microsoft-backed IPO breaks rule of 40 at bad time

16 Apr 2024

Cybersecurity firm Rubrik is going public despite failing the sector’s metric to judge success. Sure, the company backed by the $3 trln giant is starting to rely on stable subscriptions. But it’s burning cash. Based on others that flout the rule, a low valuation is in store.

CVC may leave some money on the table – for once

15 Apr 2024

Valued in line with private-market peers EQT and Blackstone, the group could be worth 20 bln euros. Yet its IPO is raising little new money, and selling shareholders will keep big stakes. That gives CVC a reason to play it safe, unlike when it’s selling portfolio companies.

Tech FOMO prices at a disturbingly high level

9 Apr 2024

Destiny Tech100, a newly listed fund with only $53 mln of stakes in private firms such as SpaceX and OpenAI, is now worth about $700 mln. Investors are clearly overeager to get in earlier on hot trends. A multiple of 13 times net asset value resets the Silicon Valley hype bar.

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.

A Dr Martens sale may cause multiple blisters

4 Apr 2024

An investor thinks the struggling $1 bln UK bootmaker could sell itself. Low valuations may woo buyers, but a bid is unlikely to make up for a 75% share slide since the group’s IPO. A rushed exit may also dampen top investor Permira’s effort to list sneaker brand Golden Goose.

GameStop saga ends. Winner: capital markets

3 Apr 2024

The game retailer cashed in on meme stock mania, revamped management, but failed to reinvent itself. Reddit-fueled investors, eager to fight shortsellers, may just lose their shirts. It would be a costly lesson that, some broken pockets aside, the market was working all along.

Shein’s fast fashion comes with fast-finance risks

28 Mar 2024

Influencers and US shoppers love the online retailer, but the one product that’s not yet for sale is the company’s shares. If all goes very right, a $200 bln valuation in a mooted IPO isn’t unthinkable. Yet Shein’s business model may shift as quickly as its cut-price clothing.

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.

Tata’s forced IPO will only bring problems

28 Mar 2024

A central bank decision requires the $194 bln holding company of the Indian cars-to-tech conglomerate to list. It could lump Tata Sons with a huge discount and also spotlight the special tax treatment the group’s ultimate owners enjoy. That could force an even bigger upheaval.

Commodity trading giants get in cotton M&A spin

26 Mar 2024

Singapore's Olam has bested Louis Dreyfus' offer for one of Australia's largest processors of the fibre. The two suitors have battled Down Under in the past, and Olam looks to have the edge for a second win. But the volatility of earnings in this small deal warrants caution.

European private equity IPO door is only half open

22 Mar 2024

Buyout firms tested the market with cautious pricing for two beauty companies’ listings. Although Galderma performed, Douglas’s debt pile spooked investors. For sellers sitting on $3 trln of unsold assets the message is clear: discounts work, but only for healthy businesses.

Reddit looks awkward in its new business suit

21 Mar 2024

Going public at a hefty $6.4 bln shows investors think the social media site can turn a profit. But Reddit still looks a poor fit for public markets given its reliance on moderators who manage its forums for free. Their interests are at odds with advertisers and shareholders.