Search

The article reports that companies are delaying their initial public offering (IPO) plans in the U.S. due to stock market volatility. Topics discussed include concerns over stock turbulence due to uncertainty in the presidential election in November 2024 and the Federal Reserve's interest rate cutting plans, the rebound of major U.S. stock indexes following the release of more reassuring economic data, and companies that postponed their IPOs including WeRide and StubHub.

The article reports that Andersen Global, the tax and legal services firm linked to the former Arthur Andersen, is exploring the possibility of taking its U.S. unit, Andersen, public. Topics include the firm's plan to potentially launch an initial public offering (IPO) by late 2025, the overwhelming support from U.S. partners for this move, and the strategic considerations and preparations involved, such as the formation of committees to manage the IPO process.

Healthcare-payments company Waystar is planning to launch an initial public offering (IPO) in early June. The company, backed by private-equity firm EQT, had originally intended to go public last year but postponed due to market conditions. Waystar is expected to target a valuation of around $5 billion or $6 billion, higher than its 2019 valuation of $2.7 billion. The IPO market has been improving, with several recently listed companies trading above their IPO prices. Private-equity firms are also looking to sell holdings and taking companies public has become an attractive exit strategy. [Extracted from the article]

Reddit has priced its initial public offering (IPO) at $34 per share, at the high end of its targeted range, giving the social-media company a valuation of around $6.4 billion. This suggests that investor enthusiasm for new issues may be returning. The warm reception for Reddit and technology company Astera Labs, which also had a successful IPO, indicates a potential turnaround for the IPO market. Reddit's IPO includes a large portion for its most prolific users and individual investors, which could make the stock more volatile. While some Reddit users are bearish on the stock's prospects, it remains to be seen how much influence they will have on the stock's price. [Extracted from the article]

Reddit is aiming for a valuation of up to $6.5 billion in its upcoming IPO, which is significantly lower than its previous valuation of $10 billion. The company plans to offer shares at a price range of $31 to $34 per share. Reddit's IPO is notable because it will allow individual investors and loyal users of its message boards to purchase shares, a departure from the typical practice of selling shares to large investors. The decision to target a lower valuation may increase the chances of a successful first day of trading, as well as appease Reddit's influential user base. However, it also reflects the current IPO market, where companies often trade below their issue prices, and investors prioritize profitability over growth. Reddit is currently unprofitable but has shown improvement, posting net income of $18.5 million in the last quarter of 2023. The company plans to list its shares on the New York Stock Exchange under the ticker RDDT. [Extracted from the article]

Private IPOs, also known as private initial public offerings, are being discussed on Wall Street as a way for private-equity firms to cash out of investments without going through the traditional IPO process. In a private IPO, early backers privately sell shares to longer-term investors, such as mutual funds or sovereign-wealth funds, bypassing the public markets. While some proponents argue that private IPOs can lay the groundwork for a future stock-market debut and provide liquidity for frustrated investors, skeptics view it as a marketing tactic and question the lack of liquidity. Private-equity firms like EQT and KKR have shown interest in private IPOs, but some mutual-fund managers are cautious due to the lack of clarity on when they can sell the shares. [Extracted from the article]

Reddit plans to offer shares in its upcoming IPO to 75,000 of its most active users, a move that is uncommon but could foster loyalty. These users will have the opportunity to purchase Reddit shares at the IPO price before trading begins, a privilege typically reserved for large investors. While this strategy could result in significant gains for these users if the stock performs well, it also carries the risk of angering the Reddit community if the stock falls. This approach differs from the traditional practice of selling the majority of IPO shares to institutional investors. The IPO market has been challenging in recent years, with many new listings trading below their IPO prices. Reddit, a social media company known for its message boards and digital town halls, is expected to go public in March on the New York Stock Exchange. [Extracted from the article]

Fashion giant Shein's potential initial public offering (IPO) is facing challenges due to U.S.-China tensions. The company, valued at around $66 billion, has filed for an IPO with the Securities and Exchange Commission (SEC), but the SEC has yet to respond. Shein's IPO depends on satisfying authorities in both the U.S. and China. The company's ability to navigate these tensions will be a test for how Washington and Beijing view a high-profile U.S. listing of a company with Chinese roots. Shein has also faced allegations of sourcing cotton from China's Xinjiang region, which has led to concerns over forced labor. Some U.S. lawmakers have urged the SEC to halt Shein's IPO until the company demonstrates transparency about its supply chain. Shein's rival, H&M Group, faced retaliation in China after it stopped sourcing products from Xinjiang. Shein has been working to establish itself as a global company and has increased its compliance system and lobbying efforts. The company has said it continues to engage in policy and public engagement to demonstrate transparency. [Extracted from the article]

Startup founders are increasingly concerned about the possibility of being fired by their boards, following the ousting and subsequent reinstatement of Sam Altman as CEO of OpenAI. This has sparked discussions among founders about implementing new protections, such as supervoting shares or dual-class shares, to maintain control over their companies. However, investors are less enthusiastic about these structures. Some founders are also considering softer measures, such as mission pledges or selecting trustworthy board members. The incident at OpenAI has raised awareness among founders about the need to protect themselves from similar situations. [Extracted from the article]

Chris Donini, a managing director at Raine Group, is sought after by major companies for his expertise. He has advised companies like Arm Holdings, Sprint, and World Wrestling Entertainment on significant deals. When Donini needs guidance, he turns to a few key individuals. He looks to Ari Emanuel, CEO of Endeavor Group Holdings, for his perspective on the future of media. He relies on Vikas Parekh, managing partner at SoftBank Investment Advisers, for technology insights and advice on balancing family and career. Donini also learns from Jeff Sine, co-founder of Raine Group, observing his approach to deal negotiations. Lastly, he seeks gut checks from Steve Bornstein, former CEO of NFL Network and ESPN, to ensure his plans are practical. [Extracted from the article]

Companies preparing for initial public offerings (IPOs) are spending significant time and money on prospectuses, despite the fact that few people actually read them. The prospectus is a lengthy document required by U.S. regulators that includes information about the company's business, financial statements, and legal disclaimers. While companies used to print thousands of copies for bankers to distribute, most meetings are now virtual and companies print far fewer copies. However, the estimated expenses for prospectuses have remained steady, and companies are using them as an opportunity to showcase their brand and personality. [Extracted from the article]

Shein, a China-founded online fashion company, has confidentially filed to go public in the U.S. The company, valued at $66 billion earlier this year, is expected to have one of the biggest IPOs in years. Shein has disrupted the clothing industry with its affordable and trendy clothing, and it has become one of the largest fashion brands in the world. The majority of companies that have gone public in the U.S. have performed poorly, but IPO bankers expect more companies to debut next year. Shein recorded $23 billion in revenue and $800 million in net profit in 2022, and it is the largest market for the company. Shein has faced scrutiny over its supply chain, with U.S. lawmakers questioning whether it sources cotton from China's Xinjiang region, where forced labor is alleged to occur. The company has denied these allegations and stated that it has a zero-tolerance policy for forced labor. Shein has been diversifying its supply chain and expanding into other markets, such as Turkey, Brazil, and India. [Extracted from the article]

The article discusses the delayed reopening of the IPO market, with recent IPOs trading lower. Several big companies, including Arm Holdings, Instacart, and Klaviyo, initially traded higher but now trade below their IPO prices. The disappointing performance of these IPOs has likely shut the door for the remainder of 2023. Volatile stock markets, high interest rates, and concerns about fetching higher prices have contributed to the hesitation in going public. The article also highlights the decline in the number and size of IPOs, as well as the poor performance of newly public companies. [Extracted from the article]

The Waystar initial public offering (IPO) has been delayed until at least December 2023 or possibly 2024 due to the recent poor performance of IPOs and the stock market decline. Waystar, a healthcare-payments company, was expected to have a valuation in the high-single-digit billions. The decision to delay the IPO was influenced by factors such as the decline in stock market prices, comments from Federal Reserve officials about interest rates, and geopolitical tensions. This delay reflects the fragility of the U.S. IPO market, which has seen a rebound but still faces challenges. [Extracted from the article]

Sarah Dorsett, the CEO of Nanit, a high-tech baby-monitor company, prefers not to use email and instead relies on other communication methods. She spends an average of 2 hours and 50 minutes each day on her iPhone 13, using apps like Messages, Waze, YouTube, Mail, Slack, and Messenger. Dorsett finds instant messaging more convenient and manageable than traditional email and enjoys monitoring Nanit's sales on Shopify. She values real-time sales data and appreciates the sound of a completed sale on the Shopify app. [Extracted from the article]

Birkenstock shares experienced a significant decrease in their stock-market debut, which is concerning for the IPO market. The German shoe maker's stock closed at $40.20, down 13% from its offering price of $46. This is unusual for large companies like Birkenstock, and it may discourage other companies from considering late-2023 offerings. The IPO market has been recovering, but the performance of companies after their IPOs is crucial, as many have traded below their initial prices. [Extracted from the article]

German shoemaker Birkenstock has priced its initial public offering (IPO) at $46 per share, with the stock set to begin trading on the New York Stock Exchange under the symbol BIRK. The IPO comes after a period of quiet in the market and will be closely watched to determine the tone of the IPO market going forward. The offering was led by Goldman Sachs, JPMorgan Chase, and Morgan Stanley. Concerns about the health of the US consumer and high interest rates have influenced some fund managers' views on Birkenstock's worth. [Extracted from the article]

Arm's ARM 24.69% increase; green up pointing triangle first-day pop also bodes well for grocery-delivery company Instacart and marketing-automation platform Klaviyo, which are preparing for stock offerings next week. Keywords: wsjfinance-ws; Artificial Intelligence Technologies; Semiconductors; Lodgings/Restaurants/Bars; Restaurants/Caterers; Industrial Electronics; Industrial Goods; Leisure/Arts/Hospitality; Technology; Corporate Changes EN wsjfinance-ws Artificial Intelligence Technologies Semiconductors Lodgings/Restaurants/Bars Restaurants/Caterers Industrial Electronics Industrial Goods Leisure/Arts/Hospitality Technology Corporate Changes N.PAG N.PAG 1 09/19/23 20230915 NES 230915 Increase signals continued revival of lackluster new-issue market Executives at British chip designer Arm rang the Nasdaq opening bell Thursday. [Extracted from the article]

NYSE Amex has introduced a new way to distribute money for payment-for-order-flow programs that allows electronic specialists to participate. --Corrie DriebuschNYSE Amex has introduced a new way to distribute money [...]

Lime Brokerage has launched a platform that allows trading firms to co-locate at major U.S. trading venues while resolving the issue of the pending ban of naked sponsored access, according [...]

The International Securities Exchange now offers functionality that allows members to enter stopped crossing orders. --Corrie DriebuschThe International Securities Exchange now offers functionality that allows members to enter stopped crossing [...]

Nasdaq OMX BX is extending a pilot to receive inbound routes of equities orders from Nasdaq Execution Services to June 23. --Corrie DriebuschNasdaq OMX BX is extending a pilot to [...]

Investment Technology Group plans to offer its POSIT Marketplace platform in Australia within the next 30 days, according to Clare Rowsell, head of client relationship management for Asia. Investment Technology [...]

Tullett Prebon is ramping up its hiring efforts following a restructuring of its Americas Executive Committee. --Corrie DriebuschTullett Prebon is ramping up its hiring efforts following a restructuring of its [...]

Direct Edge will conduct Saturday tests Street-wide over the next 60 days in preparation for launch of its EDGA and EDGX exchanges, according to Bryan Harkins, head of sales and [...]