IPO

One reason for Facebook IPO mess: Zuck didn’t care

23 May 2012

From the get-go, Mark Zuckerberg made clear he had little interest in welcoming public shareholders. His voting advantage codified the fact. A strong CEO can temper short-term urges elsewhere. But when he’s indifferent, it makes a failed process like Facebook’s more likely.

Formula One drives hard bargain with Singapore IPO

22 May 2012

Investors have pumped $1.6 bln into Bernie Ecclestone’s motor-racing circus. Now it’s seeking wider support for a pricey $9 bln-plus flotation. Juicy contracts and a famous brand help. But cracking new markets and media - not to mention succession planning - are big obstacles.

Nasdaq howler can’t explain Facebook flop for long

21 May 2012

The exchange is still clearing up after a systems snafu left the social network’s stock trading in the dark after its Friday IPO. Nasdaq’s blunder dinged confidence and the bourse may be on the hook financially. But Facebook’s valuation must soon stand, or fall, on its own.

Graff Diamonds IPO gleams but doesn’t dazzle

21 May 2012

The diamond merchant’s Hong Kong listing taps directly into the growth of the 0.1 percent. But even the super-rich are vulnerable to a financial crisis. A sober appraisal, which hinges on the value of Graff’s enormous stockpile, suggests the $4 billion price is fair but no steal.

Facebook IPO features best and worst of capitalism

18 May 2012

Execrable hype accompanies the entrepreneurial achievement. Poor governance, Silicon Valley cronyism, breathless pundits spewing misinformation, manic investors and bankers in hoodies are all on display. Yet the genius of capitalism is precisely its ability to harness excess.

Law site’s IPO evokes a future beyond dying firms

16 May 2012

It’s coincidence that LegalZoom’s $120 mln float is coming as Dewey & LeBoeuf evaporates. But the rise of the U.S. online legal document site is a warning to old-line lawyers. There’s plenty of work for savvy legal eagles, but those who aren’t lean and innovative could perish.

Facebook winning Keynesian beauty contest

15 May 2012

Investors devouring the social network’s IPO shares have pushed its top valuation to over $100 bln. To justify the lofty figure, buyers are using everything from eyeballs to credit scorers. But such analytical gymnastics are merely a way to rationalize the Facebook hype.

Facebook not only IPO to spread underwriter wealth

9 May 2012

The social network’s 33 banks make up one of the biggest cabals of late. But it’s by no means a record. Over 15 years, that belongs to Goldman Sachs. A bigger change for Wall Street is the trend toward hiring more banks to jointly lead deals. That skews fees and bragging rights.

Facebook reality tops out near bottom of IPO range

8 May 2012

The social network is aiming for an IPO at $28-$35 a share, for a value up to $96 bln. Though the final price could go higher, that’s a ratcheting down of expectations. But an update of Breakingviews’ DCF calculator shows that sanity is still at the low end of the valuation scale.

Dependence on Facebook spreads beyond its users

3 May 2012

It’s not just social networking junkies that have grown reliant on Mark Zuckerberg’s firm. Businesses such as Zynga have been created on its back. Bankers are pegging their careers on floating the firm. And California needs the impending IPO to help close its yawning budget gap.

Carlyle’s wan IPO affirms private equity thesis

3 May 2012

The firm’s underwhelming $6.7 bln value shows carried interest isn’t prized by markets the way it is by co-founder David Rubenstein and his partners. Carlyle and its ilk may have selfish reasons to float, but their model clearly still diverges from the public investor mindset.

BC Partners faces wrong kind of gym workout

2 May 2012

Just months ago Fitness First was set to IPO. Now distressed investors are taking control of the gym chain. Excess leverage and lean rivals left it out of shape. The restructuring will burn off most of private-equity owner BC Partners’ roughly 400-million-pound equity investment.

People’s Daily website shows profit in propaganda

27 Apr 2012

The flotation of People.cn, the online version of China’s People’s Daily, gives it a value larger than the New York Times. It gets government subsidies and advertisers love that it reaches so many officials. Western media companies can hardly ape its ways. But they are enviable.

BTG Pactual looks fairly priced at $14 bln

25 Apr 2012

The Brazilian investment bank’s IPO values it at three times book, way ahead of U.S. rivals. Better margins, returns and comp levels justify that. But its volatile trading desks, an ambitious regional expansion drive and CEO Andre Esteves’ tight control are reasons for caution.

Jailing IPO bankers is a step too far

25 Apr 2012

Hong Kong talk of allowing lawsuits against negligent sponsors sounds fair. Reputation isn’t the safeguard it was. But the regulator’s idea of adding criminal liability may just damage the market’s efficiency. And it misses the real problem: investors lap up overpriced deals.

Ackman gets closer to permanent capital grail

19 Apr 2012

The activist hedgie’s planned $4 bln London-listed vehicle would dwarf other public funds, which often trade at a big discount to net asset value. The scale plus fee sweeteners may give Ackman an edge. And his focus on easily priced bets could shrink the NAV problem.

Haitong IPO should benefit from China reform trend

19 Apr 2012

The Chinese brokerage aims to raise $1.8 billion ahead of impending industry deregulation. More margin financing should boost its returns on equity, and China’s gradual capital account opening will create new growth avenues. Compared to peers, the valuation looks undemanding.

Tumi IPO should bag Doughty Hanson a big return

13 Apr 2012

The high-end suitcase-maker is set for a $300 mln float. Making luggage a bit more luxurious has helped Tumi double sales under Doughty Hanson. The UK buyout firm is likely to recoup six times its original investment, a thumping 26 pct annual return.

Oaktree IPO gets marked to Howard Marks

12 Apr 2012

The investment firm’s co-founder made clear from the start that gathering assets takes a backseat to generating client returns. Investors took him to heart, buying fewer shares and now whacking them. Shareholders hungry for fees will find a growing Carlyle more to their liking.

Nigerian billionaire’s LSE-quote plan is watershed

5 Apr 2012

A mooted London listing for Aliko Dangote’s $11 bln cement group is a milestone for Nigeria and for Africa. The resource-rich continent has seen false starts before, and Dangote’s venture isn’t without risks. But a FTSE 100-sized Nigerian company gives cause for celebration.