The first quarter of 2016 was a bust for the 22 technology companies that filed for initial public offerings, according to a Dealogic report from the Wall Street Journal. The last time that happened was in the first quarter of 2009, following the collapse of Lehman Brothers and the beginning of the Great Recession.
None of the 22 tech companies that filed with the Securities & Exchange Commission in the first quarter have cancelled their proposed registration papers and given up the quest to become a public company. …
Global liquidity is expected to be abundant and will continue to flow into emerging markets, ensuring strong performances by the mainland and Hong Kong initial public offering (IPO) markets, according to accounting major PwC.
The strong liquidity was supported by the anticipated move by the People’s Bank of China to lower banks’ deposit reserve ratio, and the sub-zero interest rate environment in Europe and Japan.
In a report released on Tuesday, PwC said authorities in China and Hong Kong are working towards the launch of the Shenzhen-Hong Kong Stock Connect in second half of 2016, as well as the development of multi-layered capital markets in China. …
Turkey’s Sabancı Holding plans to sell a minority stake in the electricity distribution and energy retail businesses of its Enerjisa subsidiary to cut debt ahead of Enerjisa’s initial public offering, a senior executive said on April 5.
Sabancı, one of Turkey’s largest conglomerates, expects to float Enerjisa as early as the end of next year, Mehmet Göçmen told reporters in Istanbul.
Sabancı has repeatedly postponed the IPO, saying it needs to reduce the unit’s debt. Enerjisa is half owned by German utility E.ON.
“To sell a minority stake in our distribution and retail businesses is on our agenda. It will help reduce our debt and also help the IPO,” Göçmen said. …
It is no secret that the IPO market has been at a standstill in 2016, clocking in the worst start in history since the 2008 financial crisis during the first quarter of the year. To recap the lackluster activity recorded to date, there hasn’t been a single deal that has priced outside of the healthcare industry, which brought eight companies public so far this year, raising approximately $700,000 million, the smallest amount of proceeds seen in the first quarter for the past 20 years.
Of those eight deals, the companies’ performance was largely propped up by their venture backers, who bought shares during and after the IPO in seven of the eight deals, and private equity firms did not participate in any of the deals that priced. And putting this deal flow into perspective based on activity from year’s past, 2015 saw 33 IPOs close in the same period, which were worth $5.5 billion, while 59 deals were completed in during the same timeframe in 2014, totaling $10.1 billion. …
In the digital music market, $1 billion can buy you a lot of songs. At least that’s what Swedish streaming music upstart Spotify hopes.
In what seems to be a cooling market for start-up investing, the world’s largest on-demand streaming service recently raised a cool $1 billion to help cement its global lead in this increasingly important market. However, as with most things in life, Spotify’s new funding comes at a cost, the most likely of which is its status as a private company.
Spotify’s $1 billion round
According to a host of reports, Spotify recently closed its largest ever round of financing, securing $1 billion in fresh capital from a consortium of investors including Goldman Sachs, hedge fund Dragoneer Investment Group, and private equity giant TPG. The deal comes in the form of convertible debt, which, as the name suggests, contains an option for the investors to swap their promissory notes for equity under certain circumstances.
The use of convertible debt allows Spotify to maintain its June 2015 valuation of $8.5 billion without diluting the company’s existing shareholders. However, this sweetheart of a deal comes at a price for Spotify and its current investors. …
Saudi Deputy Crown Prince Mohammed bin Salman said he is pushing for Saudi Aramco‘s initial public offering (IPO) to be launched in 2017.
He said the move will form part of the Kingdom’s plans to create a Public Investment Fund (PIF), and boost privatisation in the Kingdom.
Prince Mohammed also said there “is no doubt” Aramco’s IPO will be open to foreign investors, and will “without a doubt” be in the market by 2018.
He continued: “I’m trying to push for it to be in 2017.
“Aramco will greatly benefit, not only the fund, but also the Saudi economy as a whole.”
Prince Mohammed said PIF will become “the largest fund on Earth” if Aramco’s shares are transferred to its hold.
There will be numerous benefits from Aramco’s IPO, besides simply improving Saudi’s liquidity.
“Many were saying that the idea of IPOing Aramco was just an attempt to get liquidity to cover Saudi financial needs, but that’s far from the truth,” he said.
“The objective is to diversify income. This is the main objective. …
Nutanix’s CEO is sweetening the equity pot for employees as the company waits to go public.
Dheeraj Pandey, who co-founded the data storage vendor in 2009 and is its biggest individual shareholder, voluntarily forfeited $17.5 million worth of restricted stock last month, according to Nutanix’s updated IPO prospectus, which was filed late Monday.
By returning stock to the equity pool, the San Jose, California, company has the flexibility to redistribute shares to current and future employees without creating additional shares that dilute existing stakeholders. …
The Rs 2,200 crore initial public offering (IPO) of Equitas Holdings opens for subscription on Tuesday.
The company has successfully raised Rs 652 crore by selling shares at a price of Rs 110 apiece to 15 anchor investors, including ICICI Prudential MF, Birla Sun Life Trustee, Reliance Life Insurance, SBI MF, Franklin Templeton MF, HDFC Standard Life Insurance and Sundaram MF. …