IPO

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.

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.