Newest burger kings get Whopper of a finder’s fee 4 Apr 2012 The public return of Burger King via a tie-up with a London SPAC gives financiers Bill Ackman, Nicolas Berggruen and Martin Franklin something to relish: a finder’s fee of stock worth some $160 mln. And the hamburger chain gets a far meatier valuation than just two years ago.
IPO feeding frenzy isn’t quite ready for Facebook 29 Mar 2012 Investors are devouring stock debuts. Even shares of a humble mac ’n’ cheese maker like Annie’s almost doubled. But that’s more a sign of recovery than exuberance. Most recent deals have been small and only just started popping. A hefty sale like Facebook’s has yet to be tested.
Bertelsmann’s IPO groundwork signals new ambition 28 Mar 2012 The new CEO of the German media group is making his mark, changing its structure to enable a float without immediately compromising family control. There’s also a new urgency to finding sources of growth. Equity-financed M&A seems likely to be the eventual outcome.
Ziggo should accept modest IPO price tag 15 Mar 2012 Europe’s new issues market is fragile, and the Dutch cable firm plans several share sales. Ziggo’s private-equity owners shouldn’t be too greedy first time round. A 3.4 bln euro equity value, just below the middle of the price range, should be enough to warm up cold IPO buyers.
Facebook’s underwriter friends are cheap insurance 12 Mar 2012 The social network’s IPO now has 31 banks working on it. There’s no evidence having more underwriters affects early stock performance either way, and some may be friends of convenience rather than necessity. But for Facebook it’s extra reassurance at little, if any, cost.
Gulf healthcare IPO looks tempting but risky 8 Mar 2012 Abu Dhabi medical group NMC wants to raise $250 mln in a London IPO. The move would connect a firm with a clear growth story to an investment community that understands healthcare. But qualms over governance and stock overhangs mean a big discount may be needed to get it away.
Brazilian banking star puts $15 bln value to test 1 Mar 2012 In three short years, André Esteves has dealt his way to a six-fold increase in the price of his BTG Pactual. Wall Street can only dream of such riches. Former owner UBS must be quietly weeping. But the planned IPO will reveal just how solid the investment bank’s foundations are.
Scarce U.S. small-cap IPOs need nurturing 1 Mar 2012 Efforts in Washington to cut regulation for emerging firms won’t reverse a decade-long slide in smaller offerings. Technology has done more to keep companies away from public markets than red tape. One way to escape the hyper-liquidity squeeze may be to embrace the past.
Yelp IPO: four reviews, 2 stars out of 5 29 Feb 2012 Categories - user review websites, stock sales, unprofitable enterprises, Google rivals. Location - Silicon Valley and New York Stock Exchange; Attire - casual; Price range - $ to $$ per share; Good for bankers and backers - yes; Good for investors - no.
Dutch cable IPO shouldn’t want for subscribers 29 Feb 2012 Ziggo dominates Dutch cable TV and generates lots of cash. That’s why the company, worth maybe 7.5 bln euros with debt, is a clear IPO candidate. The record of peer Kabel Deutschland helps too. But a decent discount may be required to re-open Europe’s fragile new-issues market.
JLR flotation would make sense for Tata Motors 15 Feb 2012 Jaguar Land Rover contributed 95 percent of the combined group’s profits last quarter. A minority listing of the UK firm would let Tata book a healthy return on its $2.3 bln purchase, and allow JLR to raise cheap capital overseas. There’s no need to keep this gem hidden.
Empire State Building better to visit than buy 13 Feb 2012 The iconic edifice that King Kong climbed almost 80 years ago is set to go public. Tourism and broadcasting make it the biggest revenue generator of Empire State Realty Trust’s 12 buildings. But with a rising challenge downtown, fans may prefer scaling the tower to investing in it.
Groupon’s growth spurt nearing the end 9 Feb 2012 The newly-public online coupon firm increased sales five-fold in 2011 and even turned slightly profitable. But its first results since the IPO also show revenue growth slowed for a fifth consecutive quarter. Groupon will have to get a move-on to justify its $15.7 bln valuation.
How does a $31 bln mega-LBO become an $18 mln IPO? 7 Feb 2012 What sounds like a gambling tragedy is the perplexing, yet true, story of the buyout of Caesars Entertainment by TPG and Apollo. The deal, struck at the height of the bubble, has been a tough one. Co-investors are in such a hurry to get out, they’re actually paying to exit.
Facebook’s biggest risk lies in palm of your hand 3 Feb 2012 Half of the social network’s 845 mln users now access it through a phone, and that number is surging. Yet Facebook receives virtually no display advertising revenue from small screens. The shift to mobile Internet use could be Mark Zuckerberg’s biggest threat - and he knows it.
Facebook needn’t envy life inside China firewall 3 Feb 2012 About half the world’s Internet users live in China, where soon-to-IPO Facebook is banned. But the potential is uncertain anyway. China’s social networking scene is competitive; Facebook would be a latecomer. Google and Groupon show it’s hard to succeed inside the Middle Kingdom.
Too much success is priced into Facebook’s IPO 2 Feb 2012 That’s the message from the social network’s numbers and Google’s precedent. Growth and margins need to track the search giant’s trajectory to justify a $100 bln price tag. Investors will have to decide if much more than $50 bln leaves enough room for uncertainty and upside.
Facebook IPO lays bare Wall Street’s laggards 1 Feb 2012 Goldman losing the top spot after leading last year’s investing round is a mild embarrassment. More startling are the absences of Citi and Credit Suisse from the lineup. Shunned by Facebook and falling in the league tables, both risk losing their bulge bracket status.
Facebook IPO will put public markets to shame 30 Jan 2012 Unlike Google’s 2004 stock sale, everyone who’s anyone has already made a killing on the social network, from sharp VCs to Chinese and Russian billionaires to Goldman’s top clients. Hell, even Microsoft is up big. At $100 bln, it’s hard to imagine much is left for the hoi polloi.
Iraq should cut down telco listing ambitions 26 Jan 2012 The country’s three big telecom operators must list to meet their licence agreements. But the $5 bln move would overwhelm Iraq’s tiny exchange. With little need for cash, the companies are stalling. If Iraq wants to see action, it should at least cut the offer size.