Displaying items by tag: IPO

SoftBank loses $16bn following Uber IPO

Written on Wednesday, 15 May 2019 09:39

The market value of SoftBank Group, Uber’s biggest stakeholder, has decreased by $16 billion following Uber’s disappointing initial public offering.

Published in Finance

Global ride-hailing firm Uber has projected a more measured valuation ahead of its IPO debut on the New York Stock Exchange later this week.

Published in Finance

Xiaomi plans to go public

Written on Sunday, 21 January 2018 13:27

Chinese electronics and software company Xiaomi has reportedly signed on bankers to support an expected initial public offering (IPO) which could value the company at $100 billion, Bloomberg said. Goldman Sachs and Morgan Stanely have been selected by Xiaomi, with Credit Suisse and Deutsche Bank playing a role, the report speculates.

Xiaomi experienced a weak 2016 only to return to much stronger growth in 2017. Therefore, there is significant interest in the company going public. According to reports, the Chinese company is set to smash its annual target, with strong profitability. Xiaomi’s value was proposed at $50 billion in earlier reports, but now it’s being valued at $100 billion.

Xiaomi still faces challenges, however, despite its strong growth. The company will need to enter new additional markets if its smartphone segment is to keep growing, because competition in its home country of China is heavy. Xiaomi has succeeded in establishing itself in markets like India, but expanding further will not be an easy process for the company.

Working with partners and building a strong hardware ecosystem resulted in Xiaomi’s Mi smartphone brand gaining strength in the consumer space, the Bloomberg report said. It adds that Xiaomi’s strength in software has set it apart from other Chinese vendors.

Published in Finance

Uber’s newly-appointed CEO Dara Khosrowshahi has vowed to take the global ride-hailing firm public within the next three years. His appointment as CEO comes after months of unsettlement within the organization following the high-profile resignation of outgoing CEO Travis Kalanick.

Uber has been embroiled in a number of controversies and scandals that range from sexual harassment claims to engaging in illegal taxi operations. However, the new CEO who is the former head of travel website giants Expedia has declared the company ‘has to change’ in order for it to continue to grow its business and move past the issues it has encountered.

The incoming CEO is expected to take the helm at Uber next week. Reports circulating from his meeting with Uber staff in San Francisco last week are claiming that Khosrowshahi is focusing on regaining market share from its main competitor Lyft.

He has reportedly vowed to employees and stakeholders that he will take the company public in the next 18-36 months, but details on a potential IPO remain scarce. However, financial analysts have said that an Uber listing on the stock exchange would likely make it one of the biggest technology IPOs of the last decade.

Uber is the world’s most valuable private company, and is valued at $68.5 billion, and many commentators feel that its time the global ride-hailing firm went public as it could in many ways be held more accountable for the scandals that has marred the organization in the last number of years. However, Uber declined to comment when queried on a potential timeframe for the IPO.

Uber was left red faced when a leaked audio recording of his speech to staff was published by Yahoo. A fired-up Khosrowshahi told disclosed to staff how he landed the top job at Uber and outlined what workers can expect from him. He conceded in the audio recording that the company was in a battle, but insisted he would fight ferociously for all staff.

Khosrowshahi said, "I'm not going to bullshit you, and I will ask you not to bullshit me. We're in a battle here. I think everybody knows it. I'm here, I made the decision, I am all in, and I'm going to fight for you with every bone in my body."

The former Expedia boss said he was convinced by Spotify founder Daniel Ek to apply for the top job after initially telling a headhunter he wasn’t interested in the job. He also disclosed that he met with every Uber board member during an intensive interview process – and in addition to this, he also revealed how Uber co-founder and former CEO Travis Kalanick who is still a board member of the ride-hailing company persuaded him to leave his role at Expedia and become the new CEO at Uber.

The new Uber CEO said of his meeting with Kalanick, "He spun this web, this dream, of transforming cities and the transportation grid and deliveries and robots taking food from the street corner to the home. And it's just this incredible vision. And I'm like, 'Well, I sell airline tickets and you can download them onto your phone.”

Published in Apps

Poland’s second largest mobile network operator has disclosed that it hopes to raise 5.2 billion zlotys ($1.4 billion) in an initial public offering (IPO) in Warsaw later this week. Play Communications formally made the announcement this week that will represent the biggest flotation of stock on the Warsaw Stock Exchange since 2011.

Play Communications which is co-owned by Greek fund Tollerton and Icelandic investor Novator plan on selling up to 121,572,621 existing shares which equates to 48.6% of the company’s total equity. It was further disclosed that the company will not issue new shares. In addition to this, Play revealed that a maximum price has been set at 44 zlotys per-share for retail and institutional investors, while some authorized employees will be allowed to buy the shares for up to 37.4 zlotys.

The network operator has stated that implied market capitalization which is based on the maximum price will be around 11.2 billion zlotys, whilst some analysts have predicted that it would make it to the WIG20 index, which comprises the twenty biggest and most liquid organizations in Warsaw, which is the capital city of Poland.

Play is a successful entity, and its main competitors are the Polish mobile network operating arms of Deutsche Telekom and France’s Orange. It has been reported that the company has appointed J.P Morgan and UBS Investment Bank as global coordinators for the floatation of the stock and as co-offering and book building co-managers. On Monday, institutional book building will commence with it expected to cease on July 13th when the final price will be formally disclosed. However, sources close to Play Communications say they expect the firm to debut on the Warsaw Stock Exchange on July 27th.

“Part of the IPO proceeds will be used to redeem 500 million euros bonds due in 2022 issued by Play's parent company. It also plans to pay a dividend of 650 million zlotys next year. With the IPO we have a very good platform to raise financing in the future if necessary," Play Chief Executive, Jorgen Bang-Jensen told a news conference.

Published in Telecom Operators

Tanzania in southern Africa will allow investors from outside the country to take part in telecom operator listings after previous attempts fell through, Bloomberg reported, such as an IPO of Vodacom Tanzania, which struggled in the face of limited local demand.

The report noted that Vodacom hasn’t yet announced the result of its offer, leading to a delay in listing. Another telco moving toward an IPO is Millicom’s Tigo Tanzania.

“Tanzanians, Tanzanian companies, Tanzania in the diaspora, joint ventures between Tanzanians and foreigners, East Africans or companies owned by East Africans, or citizens from other countries” are anticipated to purchase the shares, according to Finance Minister Philip Mpango.

The nation has been seeking local telecom companies to list at least 25 percent of their shares on the Dar es Salaam bourse (Tanzania’s Stock Exchange) to boost domestic ownership. But this could mean the supply of telecom operator shares might exceed demand because of the limited size of the local investor pool.

Changes being made will also exempt smaller players from listing, by focusing on businesses with network facilities and services, Bloomberg said.

Published in Finance

Snap Inc., the parent company of image and video sharing app Snapchat, recently reported its quarterly financial earnings for the first time since going, and the results weren’t good. Snapchat’s user growth has stalled and the company’s revenue was below Wall Street expectations for the quarter.

The company went public with an IPO in March, and spent almost $2 billion in stock-based compensation, which in large part contributed to its net loss. Snap Inc.’s revenue was reported at $150 million, which fell $8 million short of Wall Street’s $158 million expectations. Following Snap’s earnings announcement, its stocks fell 23 percent to $17.67, bringing them dangerously close to its IPO price of $17.

Snapchat currently has 166 million daily active users, which is an increase of 36 percent from the 122 million in the same period last year. This pales in comparison to Facebook’s approximately 1.94 billion monthly active users for March 2017. Snapchat’s growth appears to have been stemmed by Facebook copying its features; for example, Instragram’s Stories feature mimics Snapchat’s disappearing video messaging concept.

It remains unclear how Snap Inc. will measure up to its heavy competition, but its foray into hardware such as Snap’s Spectacles eyewear product. Snap Inc. CEO Evan Spiegal attempted to ease concern regarding the company’s earnings results by explaining how Snapchat won’t succeed because of massive growth numbers, like its competitors. Instead, it will succeed because it offers more quality as a product.

Spiegal dismissed the practices of typical consumer apps, which he called “growth hacks” such as excessive push notifications or prompts for users to connect with everyone in their address list. Those sorts of techniques, he said, are not “very sustainable over the long term.” He said the company is more focused on making product improvements.

“The way that we try to help people understand how we think about daily active user growth is really through the lens of creativity and creation,” he said, before mentioning the app’s lenses product that lets users change their appearance for selfies. “People enjoy looking like a puppy and things like that.”

Published in Apps

Snap Inc. the parent of the app Snapchat saw its shares drop on the New York Stock Exchange on Monday, March 6, as the momentum of its debut on Wall Street the previous week died down. The company’s shares were down 2.26 percent to $23.77 at the close of formal trading on the Stock Exchange.

Snap’s shares jumped 44 percent to close at $24.48 in its inaugural trading day, after raising $3.4 billion in the largest US tech company public listing since Facebook in 2012. The company, known for its popular disappearing messaging application, had priced its offering at $17 to give it a market value of $24 billion.

Snap’s strong debut on Wall Street lifted the company’s value to $28 billion - more than double that of social media rival Twitter, which went public in 2013. The following day, Snap’s shares climbed even higher.

The company boasts over 158 million daily active users who create 2.5 billion "snaps" a day in 20 different languages, generating an expected $936 million in revenues in 2017, according to a report by venture equity firm Goodwater Capital. The report reads, "Snapchat is well-positioned to scale rapidly and take market share in the $652 billion global advertising market."

However, some aren’t so enthusiastic about Snapchat’s potential, referencing Twitter, which has struggled to grow its user-base since its 2013 IPO, and now trades well below its offering price.

On March 6, five of seven financial analysts covering Snap advised investors to "sell" the stock, and none were advising buying shares, according to data compiled by Bloomberg. It remains unclear if Snap can expand beyond its core base of young users or how it will fare in many international markets in a competitive social media landscape.

Published in Apps

Instant messaging application Snapchat's parent company Snap Inc. debuted on the New York Stock Exchange on March 2, and it surged more than 40 percent from the level set in the initial offering the night before. The company soared as its IPO raised $3.2 billion with a price of $17 a share.

Snap Inc. was up about 45.4 percent to $24.72 near 16:30 GMT, shortly after logging its first trades. It was the largest public offering of a US tech firm since the debut of Facebook in 2012. Snap's arrival has been seen by some supporters as an opportunity similar to that of Facebook and its continued success.

The company boasts over 158 million daily active users who create 2.5 billion "snaps" a day in 20 different languages, generating an expected $936 million in revenues in 2017, according to a report by venture equity firm Goodwater Capital. The report reads, "Snapchat is well-positioned to scale rapidly and take market share in the $652 billion global advertising market."

However, some aren't so enthusiastic about Snapchat's potential, referencing Twitter, which has struggled to grow its user-base since its 2013 IPO, and now trades well below its offering price.

There are concerns that Snapchat's user engagement has peaked and could become stale, according to Lou Kerner, manager of the Social Internet Fund and a partner in the venture investment firm Flight VC.

"We know all products have life cycles – you can look at Twitter for a lesson," he said. It isn't a good sign that Snap's IPO didn't include details about historical trends for user metrics, he added.

Published in Finance

Snapchat’s corporate parent Snap Inc. reportedly seeks to raise over $2 billion for the fast-growing social media group in the technology sector’s largest public offering in nearly three years. Filed documents showed that Snap Inc. expects net proceeds of some $2 billion.

The Snap Inc. IPO will provide 145 million new shares and sell 55 million from existing share owners, with an expected price range of $14 to $16, according to the documents filed with the Securities and Exchange Commission. The IPO – confirmed with a public filing on February 2 – would be the largest in the tech sector since the Chinese e-commerce giant Alibaba hit the US market in 2014.

According to a Wall Street Journal report, the listing would value Snap Inc. at between $19.5 billion and $22.2 billion. Wall Street and the technology sector are expected to follow the move closely, with other highly valued companies such as Uber and Airbnb said to be considering going public themselves.

The app Snapchat, known for its disappearing photo and video messages, has become hugely popular with young smartphone users. The company began raking in revenue once it expanded its offerings to enable publishers to deliver content on the platform. Some 158 million people use Snapchat every day, according to Snap’s filing, with more than 2.5 billion Snaps created daily.

The company has partnered with various publishers and organizations, including one recently announced by the New York Times. Some analysts have suggested Snap has the potential to challenge Facebook, while others insist Snap will end up like Twitter, consistently losing money with its existence as an independent firm in peril.

Published in Finance
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