IPO

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.

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.