IPO

Mafia and Cyprus may release IPO animal spirits

22 Apr 2013

High debt didn’t deter buyers from Intelsat and SeaWorld stock sales. Now comes Qiwi, a Cyprus-domiciled, Russian payment system warning about risks from organized crime, the island’s bailout, money laundering and dual-class shares. It puts investor appetite to the ultimate test.

Turkish IPO market faces key test in Pegasus sale

22 Apr 2013

The low-cost carrier’s $360 mln IPO is the largest deal in Turkey’s lumpy new-issues market since 2010. Secondary offerings dominate the equity pipeline but success could encourage other families to IPO big businesses - and help Istanbul’s ambition to be a major financial centre.

Bausch & Lomb IPO should be seen through new lens

10 Apr 2013

Warburg Pincus bought the eye care company for $3.7 bln during the buyout boom. The private equity firm is reportedly seeking a price tag of up to $10 bln. Even after fixing Bausch & Lomb’s problems, it’s still not worth a premium to, say, Merck. About $8 bln makes more sense.

Satellite IPO launches risk tolerance into orbit

9 Apr 2013

Intelsat is seeking a valuation on a par with listed rivals for equity worth $2.4 bln. However, the company, backed by BC Partners and Silver Lake, carries over $15 bln of debt. Growth also has been slow. If investors are ready to buy, it suggests confidence is heading sky-high.

How to go public and private all in one go

27 Mar 2013

Brazilian ethanol producer Biosev is preparing to sell new shares, with parent company Louis Dreyfus offering to buy them back in 15 months. It’s essentially an IPO, a convertible bond and a potential buyout packaged together. It’s an overly clever solution to a unique problem.

Moleskine turns over new leaf with ambitious IPO

13 Mar 2013

The maker of sleek black notebooks wants a Milan listing. Scribblers at one bank suggest it might be worth a hefty 515 to 775 mln euros. Strong branding, growth and margins argue for a premium valuation, but not all tales of consumer infatuation end well for investors.

Stock sales make IPO rebound more than a pipedream

12 Mar 2013

Two 500 mln pound UK deals in 24 hours have given equity bankers something to cheer. Markets may be hungry, but the placings in landlord British Land and wealth manager St. James’s Place are chunky nonetheless. That augurs well for a rebound in the new-issues market this year.

Esure’s IPO demands careful risk assessment

8 Mar 2013

An IPO could value the British motor and home insurer at 1.15 bln pounds. Rival Direct Line’s successful recent float helps, but the sector is undergoing dramatic changes. Investors need to believe esure when it claims that those will help, not harm, its business.

Evonik finally gets its IPO chemistry right

26 Feb 2013

The German specialty chemicals group has aborted IPO plans three times since 2008. As it prepares to try again, investors should think afresh. Evonik is handsomely profitable and well positioned for growth. It looks like an attractive investment.

Qatar seeks to spread the wealth with IPO bonanza

21 Feb 2013

The emirate is planning a series of new listings that could allow Qataris to participate in the country’s global expansion. The move by the absolute monarchy looks like an attempt to modernise its traditional relationship with citizens. Financially, it looks a bit ambitious.

LEG is a bet on German property, good and bad

1 Feb 2013

Today’s flotation of LEG is the first big German IPO of 2013. While the German residential landlord won’t be cheap, investors are keen on the business. LEG’s long-term outlook is muddier, though. One-third of the portfolio’s apartments are in poor and declining areas.

Ice cream and vodka could endorse the Oaktree way

31 Jan 2013

The U.S. group has helped pioneer a mixture of private-equity and distressed-debt investing in Europe. Hard cash returns aren’t yet huge but now Oaktree may sell big ice cream and spirits companies, and float an estate agency. That would help affirm the hybrid approach.

Iraq bourse braces for milestone $1.3 billion IPO

31 Jan 2013

Iraq’s first listing since the U.S.-led invasion is fully subscribed. That’s a surprise given the full valuation, and the size of the offer which will double the market value of the bourse. Whatever the mix of investors, the issue will bring welcome diversity to the exchange.

Homebuilder IPO may add to recovery exuberance

29 Jan 2013

The monthly leap in U.S. home prices and a big quarter from builder D.R. Horton underscore buoyant attitudes about the housing market. Developer Tri Pointe could be capitalizing with a richly valued share sale. Investors should beware getting swept up in premature euphoria.

Big Oil and MLPs on verge of beautiful friendship

23 Jan 2013

The likes of BP own mature wells that often don’t generate a decent return. Until now they had few options for offloading them. But the emergence of tax-exempt partnerships that pump oil and gas provides buyers that can pay top dollar and extract fat returns for investors.

India’s plan to shield IPO investors has merit

11 Jan 2013

A proposal to allow small shareholders in flopped IPOs to claim a refund smacks of regulatory overkill. But the plan might help restore faith in markets. And unless company owners face consequences for ultra-aggressive pricing, they won’t stop abusing their information advantage.

This time it’s different for capital-markets cycle

10 Jan 2013

History rhymes, even in the capital markets. Issuance in some asset classes has followed a pattern after the traumatic years of 1989, 2001 and, to an extent, 2007. By this logic, 2013 could mark a rebound for IPOs. Shame, then, for equities bankers that investors may disagree.

SeaWorld IPO may not make second investment splash

3 Jan 2013

Blackstone is ready to take public amusement parks it bought in 2009 from Anheuser-Busch for a headline price of $2.3 bln. Including dividends already taken, the buyout shop could end up trebling its money. But new buyers expecting similar returns should beware getting soaked.

SolarCity IPO valuation approaches earth

12 Dec 2012

The U.S. solar panel installer slashed its expected sale price by more than 40 pct at the last moment. The old price, some six times 2012 revenue, always looked starry-eyed - even with the involvement of Tesla guru Elon Musk. The new price merely requires optimism.

Musk elan powers SolarCity IPO valuation

28 Nov 2012

The solar panel installer backed by Tesla’s billionaire founder is clouded by complex accounting and government-related risks. The mooted share price puts SolarCity at six times revenue, far exceeding what similar business models elsewhere fetch. Elon Musk moon dust costs extra.