Displaying items by tag: public offering

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

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

Ooredoo Maldives preps for IPO on the Maldives Stock Exchange

Written on Tuesday, 18 October 2016 12:22

Ooredoo announced that its subsidiary Ooredoo Maldives Plc. plans to offer a portion of its equity for sale to local and international investors, following its initial listing on the Maldives Stock Exchange. The announcement was made at a special ceremony that took place on Thursday, October, 13, attended by key dignitaries from the Government of Maldives and Ooredoo Group.

Attendees included the Minister of Economic Development, Mr Mohamed Saeed; Chairman of Ooredoo Group, H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al Thani; and Ooredoo Group CEO, Sheikh Saud Bin Nasser Al Thani.

Ooredoo Maldives Plc. plans to offer its equity through an Initial Public Offering (IPO) under the terms of its license obligations. The IPO will be opened to the general public of the Maldives, foreigners, local institutional and international institutional investors.

“Ooredoo Maldives has been one of our best performing assets for several years now. The business has harnessed its employees' dedication and management expertise and benefited from the power of Ooredoo Group and its brand to deliver the best telecommunications products, services and branding,” said H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al Thani, Chairman, Ooredoo Group.

“Crucially, Ooredoo Maldives has been able to develop its business in a well-regulated telecoms market based on the government’s market-driven policies.  Ooredoo Maldives’ IPO will offer an opportunity to investors in the Maldives and abroad to participate in its success as it moves to its next phase of data-driven growth.”

Sheikh Saud Bin Nasser Al Thani, Group CEO, Ooredoo said: “This exciting announcement demonstrates the remarkable extent of Ooredoo Maldives’ achievements in recent years. We look forward to further development and growth and we welcome new investors to contribute and share in our success.”

“The upcoming IPO gives the opportunity for investors to be an active part of our progress, as we move beyond profitability and towards bringing transformational opportunities to people across our communities,” he added. “Since its establishment in the Maldives, Ooredoo has played a key role in driving the telecommunication industry in the country to reach global standards of excellence.”

Published in Telecom Operators

Snap Inc., the new parent company of the popular Snapchat app, is said to be preparing for a 2017 share offering, which would bring to Wall Street one of the most prominent of the venture-backed tech ‘unicorns’, according to a report by the Wall Street Journal. Snap Inc. could be ready for its initial public offering (IPO) by March next year.

The IPO is likely to value the Californian tech company at over $25 billion, according to the report, which makes it the largest on the U.S. exchange since 2014, when China’s Alibaba hit the market. But Snap Inc. contacted AFP saying: “We aren’t commenting on rumors or speculation about any financing plans.”

100 million people are said to use Snapchat around the world, sending videos, images and text messages which vanish after a fixed amount of time after being viewed. Some reports say Snapchat generates 10 billion video views per day, which proves its popularity and worth. The company’s finances aren’t public, but research firm eMarketer estimates that Snapchat would generate nearly a billion dollars next year from advertising.

Snap has broadened its offerings to its audience, which is particularly dominated by young people who enjoy the app’s fun selfie-filters. The company is offering a variety of ‘channels’ that allow its media partners – including CNN, ESPN, Vice and BuzzFeed – to connect with its audience. In one deal, NBCUniversal is making a Snapchat version of its singing competition show "The Voice."

Published in Apps

In early September, Telefónica, the Spanish multinational broadband and telecommunications provider, said it was prepping for a public offering for Telxius, its telecoms infrastructure subsidiary. By the end of the month, the company announced that it was cancelling the public offering, after demand from investors proved inadequate.

The Spanish company said in a statement it will continue “to analyze strategic alternatives” for Telxius. The decision to cancel the IPO was agreed upon with the banks that were managing the IPO, the company said. Telefónica and its advisers were said to be struggling to rescue the deal, and considered lowering the price or reducing the size of the deal because of low demand for the stock.

Investors were reportedly taken aback by the asking price of 12 euros to 15 euros a share, and the company and its banks were unable to find a solution, Bloomberg reported. Telefónica is well-known to be financially in-debt, and the cancelled sale leaves it with few options to significantly reduce its 52.6 billion euro debt pile, while sustaining its credit rating and maintaining dividends.

Telefónica is now on the hunt for cash and it is also considering a possible listing of its British unit O2, after the European Commission blocked its sale to Hong Kong group Hutchison over fears of the impact on prices for consumers.

The company had hoped to raise up to 1.5 billion euros from the Telxius listing, which was scheduled for October 3. It had planned to float up to 40 percent of Telxius, which manages Telefonica's infrastructure assets, including over 31,000 kilometers (19,000 miles) of sea-floor fiber-optic cables and 15,000 telecom masts in Spain.

Published in Telecom Operators

Telefónica, the Spanish multinational broadband and telecommunications provider, is said to be prepping an initial public offering (IPO) for Telxius, the company’s telecommunications infrastructure subsidiary which provides wholesale services. Telefónica plans to float about 25 percent of Telxius later this year, but plans to remain its majority shareholder.

The IPO was delayed because of market turmoil following the UK’s planned exit from the European Union. Earlier this year, Telefónica said the IPO would happen as early as July. The company intends to apply for the listing of its shares on the Barcelona, Bilbao, Madrid and Valencia stock markets, and complete the operation before December, according to Rapid TV News.

Telxius’ consolidated revenue value (on a proforma basis) was 691 million euros in the year to end-December 2015, and its consolidated OIBDA (also on a proforma basis) was 323 million euros. Its assets include around 16,000 wireless towers in Spain, Germany, Brazil and Chile, as well as extensive submarine fiber cables from a network of about 65,000 kilometers and 71 points of presence in 19 countries.

The company’s growth has been attributed to the strong global demand for data according to Telefónica. Telxius’ customers include the likes of global carriers, wholesale and retail operators, and over-the-top (OTT) providers in several regions, reports Mobile World Live. The company says its reach extends across both developed and emerging markets. BBVA, Caixabank, Goldman Sachs and JP Morgan have been announced as the joint global coordinators and joint book-runners of the IPO.

Published in Telecom Operators