IPO Roundup March 30, 2016

Uber IPO uber-unlikely: CEO Kalanick

Investors in Uber and staff hoping for a fast flotation from the world’s biggest ride-hailing service will be disappointed, chief executive Travis Kalanick told CNBC.

In an interview set to sadden investment bankers across the globe, Kalanick told CNBC he does not expect his company to go public anytime soon.

“I’m going to make sure it happens as late as possible,” said Kalanick who has raised around $10 billion dollars for the company ‎over the last 18 months. 

Top Wall Street bankers on in the IPO market – Business Insider

Times are tough in the market for initial public offerings.

2016 has seen the fewest IPO deals, and lowest deal value, since the gloomy post-financial-crisis days of 2009.

There have been just nine IPOs this year in the US, raising a total of $1.2 billion, according to Dealogic. That’s down from 33 deals worth $5.5 billion in the same period last year and 59 deals worth $10.1 billion in the same period in 2014.

Notably, none of this year’s offerings have been in the tech space.

So what’s going on? 

Equitas to launch IPO on 5 April – Livemint

Equitas Holdings Ltd is all set to become the first listed small finance bank (SFB) in the country, as the company launches its initial public offering (IPO) on 5 April, according to three people aware of the development, who requested anonymity.

The IPO will see Equitas and its investors sell shares worth a little over Rs.2,200 crore, said the first person mentioned above.

Equitas is likely to price its shares in the range of Rs.109-110 per share, said the second person.

At Rs.110, the upper end of the price band, the share sale will value the company at a price-to-book value (PBV) multiple of about 2.2 times, he added. 

S.Korea set for record IPO year as conglomerates prepare to sell family silver | Reuters

Riding a Seoul stocks revival, some of South Korea’s biggest family firms are set to clean house this year with multi-billion dollar initial public offerings that will fire the country to a record year for new listings.

Family-run conglomerates, or “chaebols”, like Samsung, Doosan and Lotte are listing assets to streamline structures, smooth paths toward management succession or ease debt burdens. Added to other deals in the pipeline, IPOs planned by these three will take proceeds this year to at least $10 billion, bankers say, eclipsing 2010’s high of $8.5 billion.

Coming on the back of a near-10 percent rally in Seoul’s benchmark share index since mid-February, the sales will test international investor appetite for minority holdings in firms dominated by some of the best-known names in South Korean business. But the scale of the IPOs and relative stability of the domestic market compared to jitters over prospects in China this year make them a magnet for Korean investors at least. 

GoAir awaits Airbus delivery schedule to decide IPO timing – Livemint

Go Airlines (India) Ltd, which runs low-fare carrier GoAir, is waiting to hear from plane maker Airbus SAS on the delivery schedule of its fuel-efficient A320neo jets before deciding on the timing of a proposed share sale.

GoAir is expected to start taking delivery of its first A320neos by May and is expected to take delivery of at least 10 of the jets in the next financial year, according to two people aware of the situation, who spoke on condition of anonymity.

The airline, founded by the Wadia family, has placed an order for 72 A320neo planes that offer 15-20% savings on jet fuel, which makes up the largest chunk of spending by airlines.

Experts say that the fuel-efficient A320neos will boost GoAir’s profitability and share sale prospects. 

US IPO market set for weakest quarter since ‘09

With the end of the first quarter fast approaching, the drought in the US initial public offering market continues.

IPO underwriting is headed for its first sub-billion dollar quarter since Q1 2009, when the US was in the depths of the financial crisis, according to S&P Global Market Intelligence.

The 6 companies that priced this year have raised just $521m, compared with 32 companies that raised $4.8bn in the year ago quarter. That is also down sharply from the 31 companies that raised $7.1bn in the fourth quarter of last year, writes Mamta Badkar in New York. 

Crazy Domains taps Canaccord for IPO | afr.com

Australia’s No.1 domain registration and hosting company, Crazy Domains, is set to join the growing list of tech companies making a run at the ASX-boards.

Street Talk can reveal Crazy Domains has hired Canaccord Genuity to prepare the company for an initial public offering which would allow the founder to sell down after 15 years in the business and raise capital to expand into Asian growth markets.

Crazy Domains has been Australia’s top domain registration and hosting brand since 2010 with more than 30 per cent market share in the “.au” market.

It’s understood Crazy Domains will tell potential investors it has grown revenue and profitability each year since it was founded in 2000, with growth built out of operating cash flows. 

Rise of digital transactions forces ATM firms to put IPO plans on ice – Livemint

Companies that manage ATM networks and were planning share sales to the public have deferred them as banks go slow on ATMs and the number of cashless transactions rise.

Three people aware of the development said AGS Transact Technologies’ Rs.1,350 crore initial public offering (IPO) has been put on hold.

Chennai-based Financial Software and Systems Pvt. Ltd (FSS) started meeting merchant bankers last year for aRs.1,000 crore IPO but has also deferred its plans.

“We have deferred the IPO due to market conditions,” said Nagaraj Mylandla, founder and managing director at FSS. 

Saudi Arabian regulator approves Yamamah Steel IPO | Reuters

Saudi Arabia’s Capital Market Authority has approved an initial public offer of shares in Al Yamamah Steel Industries Co, the regulator said on Monday, after severe volatility in the stock market earlier this year disrupted listing plans.

The maker of steel tubes, pipes and other products with plants in Jeddah, Dammam and Yanbu will offer 15.25 million shares representing 30 percent of its capital between April 27 and May 3. Some of the shares will be allocated to institutional investors, the CMA said without giving details.

The Saudi stock index has swung wildly this year in response to low oil prices, but in the last few weeks has regained some strength, permitting IPO activity to resume. 


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