The following press releases and media reports about Chinese companies were carried on September 26-28. To view a full article or story, click on the link next to the headline.
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iPhone 6s China Launch Pits Apple (Nasdaq: AAPL) vs. Analysts (English article)
Online Medical Platform Guahao Raises $394 Mln in New Funding (English article)
Postal Savings Bank to Sell 15 Pct, Possible Buyers Include Ant Financial, Tencent (Chinese article)
Everbright Bank (HKEx: 6818) to Raise $2.5 Bln Selling Shares to Parent (English article)
Huawei Reportedly Set to Cut 20,000 Jobs, Company Cites Internal “Adjustment” (Chinese article)
The following press releases and media reports about Chinese companies were carried on July 24. To view a full article or story, click on the link next to the headline.
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Walmart (NYSE: WMT) Takes Full Ownership of Yihaodian Business in China (Businesswire)
China’s H1 2015 Mobile Internet User Base Hits 594 Mln (English article)
Tsinghua Holdings Chief Says Still in Micron (Nasdaq: MU) Talks, Hopeful on Deal (English article)
China Postal Savings Bank Seeks Strategic Investors in Run-Up to IPO (Chinese article)
Uber Partners With Xiaomi for Smartphone Sales in Singapore (English article)
Bottom line: Beijing needs to roll out new rules allowing limited foreign investment in sensitive areas or risk seeing private companies like Ant Financial suffer from slower growth and artificially low valuations.
foreign investment bans need new approach
Alibaba-affiliated (NYSE: BABA) Ant Financial has been on a financial roller coaster ride over the past month, as it tries to raise billions of dollar to fund its growth en route to an IPO that will offer Chinese investors one of their first plays into the private banking sector. Some reports have said the new funding could value Ant, whose largest asset is the Alipay electronic payments service, at up to $50 billion. But others have put the figure as low as $30 billion, reflecting the intense negotiations taking place. Read Full Post…
Bottom line: Ant Financial is likely to get a low valuation from its new private placement due to the exclusion of foreign investors, but could see the figure reach up to $70 billion by the time of its 2017 IPO if it can rapidly build up its new services.
SOEs squeeze Ant Financial’s valuation
Yet another report has come out about an ongoing private placement by Ant Financial, saying the financial services affiliate of e-commerce giant Alibaba (NYSE: BABA) is now planning a domestic IPO in 2017. That’s a little later than was indicated in previous reports, which were probably a little too optimistic about a company whose various businesses are mostly less than 2 years old.
But the more interesting element in this recent flurry of reports has been what valuation the new private placement will bring for Ant, which is financially separate from the New York-listed Alibaba. Some of the earlier reports indicated Ant could be valued at up to $50 billion, which admittedly looks quite optimistic for a firm at its stage of development. But now the latest reports are bringing the number down sharply, saying the new funding will value Ant at between $35 billion and $40 billion. Read Full Post…
Bottom line: A mega IPO by Postal Savings Bank next year is likely to attract little or no interest from private investors, while an upcoming IPO by 55Tuan could do slightly better but will still get only a lukewarm reception.
55Tun misses pricing target date
A couple of unattractive IPOs are in the headlines as China gets back to work after the Lunar New Year holiday, led by a massive plan by China’s Postal Savings Bank to raise up to $25 billion as soon as next year. While that plan may be a year or more away, a more advanced listing by group-buying site 55Tuan has failed to price its shares by a previously announced target date, leading some to speculate that the deal is running into trouble. Neither of these deals looks very exciting to me, and I suspect they won’t attract much interest from private investors either. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 26. To view a full article or story, click on the link next to the headline.
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China’s Postal Savings Bank Plans $25 Bln IPO: China Daily (English article)
NetEase (Nasdaq: NTES) Expands Global Presence With First HQ In The West (Businesswire)
WeChat Speeds Holiday Cash Gifts With Shakes, Red Envelopes (English article)
China Drops Leading Technology Brands For State Purchases (English article)
SMIC (HKEx: 981) In Talks To Acquire South Korea’s Dongbu HiTek – Sources (Chinese article)
