IPO

Ambani brothers’ mixed fortunes tell same story

18 Jan 2012

Both tales tell the same story of declining opportunities for investment in India. Mukesh may be cash rich while Anil is in stark need of funding. Some think that has the making of reconciliation. That’s unlikely. Mukesh would rather buy his own shares than those of his brother.

European IPOs may need big backers to turn corner

29 Dec 2011

In good times “cornerstone”-backed listings should get short shrift. Guaranteeing stakes to early, public backers makes investors unequal and prizes hype over substance. But Europe’s IPO market is dysfunctional. For big deals to succeed, cornerstones may be a necessary evil.

Gray market trading sucking life from IPOs

16 Dec 2011

Facebook’s float will grab headlines next year. But as Zynga’s tepid debut shows, multiple private investment rounds and the ability to trade shares before going public mean there are slim pickings when public market investors finally get their chance to participate.

Hong Kong needs to add polish to its IPO crown

9 Dec 2011

Asia’s financial centre is set to cede IPO leadership back to New York. Deal flows from China are strong and global giants like to list close to the world’s biggest growth market. But HK’s listing process may have to be shorter and simpler if it is to quickly regain top spot.

Michael Kors IPO cut from same cloth as Prada’s

6 Dec 2011

The U.S. designer’s eponymous firm is seeking a luxury price tag of up to $3.6 bln in a New York float. It’s an all-American fashion name and the high-end valuation isn’t out of line with Prada’s Hong Kong listing this year. But Kors may struggle to keep up the pace of growth.

Delay takes shine off Zynga’s IPO

2 Dec 2011

Revenue at the maker of FarmVille and other Internet games is still rising fast. But on more telling measures, growth has slowed. Zynga’s hoped-for $9 bln valuation isn’t too far-fetched. But the price tag might have been even higher had it harvested IPO investors’ cash earlier.

PCCW spinoff can’t unwind tycoon discount

23 Nov 2011

Richard Li’s conglomerate snagged a generous $3.8 bln price tag for its Hong Kong telecom business, thanks to a promise of fat dividends. But the spinoff exposes an inconvenient truth: the mogul’s own holding company is valued at almost 40 percent less than the sum of its parts.

Rights issues need a straightforward story in Asia

10 Nov 2011

Five recent equity raisings worth a total $4.5 bln triggered plunging share prices. Yet rights issues don’t themselves hurt investors. For issuers with a good story, like Thailand’s Big C, the damage will be temporary. Others, like Korea’s LG Electronics, show how not to do it.

Groupon makes IPO of scarce shares look cheap

4 Nov 2011

The Internet coupon firm’s stock popped as much as 50 pct. Short-term excitement was assured by signing up most of Wall Street to peddle 6 pct of its stock. Longer term, keeping a valuation approaching $20 bln will require more tangible things like profit.

Russian delay adds to Polyus UK listing concerns

28 Oct 2011

A regulatory delay to the gold miner’s London listing may have political motives. The timing is suggestive, coming after public outbursts by owner Mikhail Prokhorov. The setback underlines risks that make it unwise for London to waive its rules for Russian companies.

UK listing hands credit to Russia’s steely Evraz

17 Oct 2011

Another Russian minerals company is heading for the UK’s FTSE 100. Commodity worries and the involvement of Roman Abramovich means investors will approach with caution. But the company’s size, diversity and exposure to infrastructure spending tempers doubts about Evraz.

Essar’s better prepared for a second UK IPO

6 Oct 2011

India’s Essar is considering a UK listing for its infrastructure assets. With one London IPO under its belt, and lessons on governance from that experience still fresh, it should be better prepared this time around. Now there’s the small issue of timing.

It’s FTSE or bust for Russian miners in London

30 Sep 2011

Polymetal has become the latest to seek a full premium listing in London. The precious metals miner is upping its free float to get into the FTSE 100, expanding the universe of investors and boosting liquidity. It’s a reminder that the attractions of just listing GDRs are fading.

Spain’s biggest IPO runs out of luck

29 Sep 2011

The 7 bln euro Loterias IPO has been abruptly pulled. Market conditions were tough, but political pressure and liquidity-starved banks may have dealt decisive blows. Though the cancellation will have a modest impact on state finances, it will reverberate. And it is shambolic.

Man U investors can always vote with their feet

20 Sep 2011

The soccer club may list in Singapore with “stapled” securities that could entrench the Glazer family’s control. But though new investors may not get the voting power they’d like, that can be reflected in the price. If the idea sounds too tricksy, would-be backers can say no.

China’s IPO delays could worsen capital crunch

20 Sep 2011

Two heavy equipment makers, Sany and XCMG, delayed plans to raise a combined $5 billion. That suggests another door closing for Chinese companies hit by slowing demand and tighter credit at home. For those facing cash shortages, weak global capital markets may be the last straw.

Mongolia’s bounty hunters must out-tough Genghis

16 Sep 2011

The windswept, agrarian Central Asian country might make global investors very rich if plans to develop its plentiful mineral wealth come off. But the land of Genghis Khan is still pretty wild. John Foley takes a look across the steppes at the opportunities and dangers.

Frac Tech’s sellers need a racy valuation in IPO

15 Sep 2011

The U.S. fracking specialist’s debut was delayed in May by a buyout. Now it’s coming back to market. The new owners will want an equity valuation above the $3.5 bln they paid. That may be rich for a firm that, while growing swiftly, remains vulnerable to a supply glut.

Spain’s giant lotto IPO pushes its luck

13 Sep 2011

The part privatisation of Spain’s lottery couldn’t be more different to recent savings bank flotations. It’s defensive and throws off cash. But Madrid is hoping to see a jackpot of up to 7.5 bln euros. Even with so much in its favour, the deal will be lucky to raise that much.

Jingdong IPO tests U.S. appetite for China stocks

8 Sep 2011

The Amazon lookalike, unknown outside China, hopes to raise up to $5 billion in a U.S. listing. Jingdong’s scale and growth speed are exciting. But rising doubts about Chinese Internet darlings will test demand. It is a bold bet in a tough market.