IPO

ISS deal clears path towards fresh listing

16 Aug 2012

Previous attempts to sell or float the Danish cleaning giant flopped. Now two blue-chip investors are taking 500 mln euros of equity in a private deal. ISS will use the proceeds to get rid of costly junk bonds. That means any future listing becomes a smaller, simpler task.

Archstone IPO makes Lehman look only mostly wrong

13 Aug 2012

The real-estate company could be worth $9.7 bln or more. That’s in line with the Wall Street firm’s valuation of its stake before collapsing. But ex-CEO Dick Fuld has no reason to crow. Hubris, lack of capital and poor risk controls landed Lehman with assets it couldn’t handle.

Facebook’s market meltdown is far from over

6 Aug 2012

All the red flags apparent at the IPO - overpriced stock, shoddy governance, huge challenges to the business and a damaged brand - still fly today. The most shocking thing about the social network’s $50 bln conflagration of shareholder wealth is that anyone might be surprised.

Investors may be happy to ride on renovated JAL

3 Aug 2012

The airline’s plans to raise roughly $8.5 bln in an IPO may seem a heavy lift amid weak markets and a perennially limping industry. But big funds will likely clamor for seats on a flight fueled by a mix of government largesse and one of Japan’s most promising turnaround stories.

Man Utd counts on investors behaving like fanatics

2 Aug 2012

The English soccer club’s supporters expect nothing but success. That ethos carries over to Manchester United’s IPO, which seeks to value the enterprise at an optimistic 22 times EBITDA. Though Man Utd fans are rarely disappointed, buyers of the stock at the mooted price will be.

Amazon and Facebook divide is a matter of faith

27 Jul 2012

Both companies’ quarterly reports showed strong sales growth, feeble earnings and heavy investment. Yet the online retailer’s stock rose and the social network’s plunged. Investors believe Amazon will stick around to reap the benefits. They may have more doubts about Facebook.

Facebook loses more friends with fizzle

26 Jul 2012

The social network’s revenue grew 32 pct in its initial quarterly report. That’s not bad. But profit and margins took a hit, even when stock compensation is ignored. Facebook is investing heavily, but investors counted on having cake and eating it. Instead, they’re going hungry.

Do-it-yourself law firm IPO looks a bit too feisty

24 Jul 2012

Bankers are valuing LegalZoom at a whopping 40 times last year’s earnings. That’s justifiable if the U.S. online legal site can turn impressive revenue growth into consistent earnings. But rising competition and potential lawsuits are just two of the company’s biggest risks.

Anil Ambani under pressure after IPO flop

23 Jul 2012

Reliance Communications’ shelving of a $1 bln listing for its undersea cable assets is an embarrassing setback for its majority owner. And it heaps even further pressure on the badly indebted Indian telco. With Anil’s brother sitting on a cash pile, is it time to phone a friend?

Review: A woman’s view of the boys at Facebook

13 Jul 2012

Katherine Losse was Facebook’s 51st employee, so she is in a good position to chronicle the company’s long adolescence. “The Boy Kings” is the story of a culture that mixed Peter Pan with “Mad Men.” The preparation for the IPO brought some maturity, but may have ruined the dream.

Man U’s New York listing crowns race to the bottom

25 Jun 2012

Most of the $24 bln raised by the 21 top U.S. IPOs this year consisted of shares with lousy voting rights. Greater leeway for poor governance in the Big Apple rather than Americans going gaga for the sport is likely to be the greater driver of the UK soccer club’s market debut.

Domestic demand blesses $3 billion Felda IPO

14 Jun 2012

Malaysian palm oil supplier Felda priced near the top of the range, making it the second biggest offering of 2012, and propelling Kuala Lumpur to the top of Asia IPO tables. The reason isn’t just demand for oil but for stocks. South-East Asia’s investors are still hungry.

Man Utd’s IPO transfer keeps owners in control

13 Jun 2012

The English soccer club may switch a $1 bln listing from Singapore to New York. So much for brand-building in Asia. Despite public indifference, U.S. investors will see value in a strong global franchise. And the owners can bring over the lopsided governance in the original plan.

Nasdaq pours gasoline on Facebook fire

7 Jun 2012

The exchange offered brokers a measly and controversial $40 mln to compensate them for over $120 mln of losses derived from the badly botched IPO of the social network. That has galvanized customers and rivals against Nasdaq. Boss Bob Greifeld is starting to look more exposed.

Facebook’s short-term greed carries long-term harm

5 Jun 2012

Going public is more than just a one-time money-raising event. Facebook is a case in point. Debuting at a lofty valuation helped insiders. But the 30 pct stock plunge has hurt the social network’s reputation, a new Reuters poll shows. That’s bad for a consumer brand.

Eike Batista’s EBX feijoada gets harder to stomach

1 Jun 2012

The Brazilian billionaire’s latest IPO, of a coal subsidiary, went down badly, with shares tumbling 29 pct. Most of his other listings have done poorly, too, including 50 pct falls for the shipbuilding and logistics arms. Even optimistic investors can’t keep digesting such slop.

Glitzy F1 falls behind steady palm oil in IPO race

1 Jun 2012

Like Facebook and Graff Diamonds, the race operator hoped a flashy name would lure in investors. Formula One decided to wait for better times, but Malaysia’s palm oil giant Felda is pushing ahead with a $3 billion offering. In a gloomy market, solid assets are still appealing.

Graff’s new luxury paradigm hits the rocks

31 May 2012

Falling markets and the Facebook IPO flop have helped sink Graff Diamonds’ $4 billion Hong Kong listing. But Graff came with hard-to-sell quirks. The bet that investors would buy into a “new” kind of luxury at a time of risk aversion was too optimistic.

CIC investment could improve Alibaba’s prospects

25 May 2012

A possible $2 billion investment from China’s sovereign fund would help Alibaba fund its buyback of half of Yahoo’s stake. Alibaba can appear patriotic by becoming more Chinese. It might also help the group reclaim its valuable and politically sensitive payment division, Alipay.

Facebook flop damages friends and enemies alike

23 May 2012

Shares of Zynga, Yelp and Renren were proxies for the social network before its IPO. But the benefits of such firms are less obvious. Facebook’s debut sucked capital from them and growing skepticism over its future may translate into pessimism about these companies’ prospects.