Category Archives: IPO

Pinterest IPO

The biggest IPO last year was without any doubt Alibaba. It was the biggest IPO in history. How is it gonna be in 2015? Let`s face it; it`s not enough money out there to soak up all the shares, so I don`t think we will see a new Alibaba IPO in the near future.

pinterest

But there are many other interesting small companies planning to go public, and pinterest is one of them. Rumours have been in the market for a long time, but nothing have happened. They maybe think that 2015 is a bad timing?

Pinterest was first conceptualized in December 2009 by cofounders Ben Siberman, Evan Sharp and Paul Sciarra. The first prototype was launched in March 2010 and made available to a small group of colleagues and family members.

Baby photos and snapshots are still hot and people are still in love with social networking. Millions of people use social networking every day and Facebook is still the leader in this market. Facebook should pay attention to mobile social networking like Pinterest because here is where the next phase of growth is in the future.

Facebook is the biggest followed by Twitter, but what most people don`t know is that right behind Twitter is Pinterest. Facebook and Twitter is both noted on the stock exchange and the third biggest can be the next to go public.

Pinterest is revolutionising the world of interior design and the usage in Britain grew by about 130 percent last year. Millions of home dècor pins are pinned to the site every day. The site is not only a site for pinners.

It can also be a great commercial tool, and the site is one of the fastest growing platform for online content sharing, which means a good place to be for small businesses. If you ar more interesting in sport, food, cars, finance or business, you can simply save interesting articles with the Pinterest browser button.

The most popular categories on Pinterest are food & drink, DIY & crafts, woman`s apparel, home decor and travel.

Pinterest offers a visual discovery, collection sharing and storage tool, and the users can create and share the collections of visual bookmarks (boards). Boards can develop projects, organize events, or save pictures and data together.

Boards are created through a user selecting an item, page, website, etc, and pinning it to an existing or newly created board. Users save ans share pins from multiple resources onto boards based on a plethora of criteria, e.g similar characteristics, a theme, birthday parties, planning a vacation, writing a book, interior decorating or holidays.

This is a free website that requires registration to use. Once you are registered, you can upload, sort and manage images (known as pins) and other media content (video, images) through collections known as pinboards. No advertisements are displayed but companies have pinboards displaying their products.

Pinterest allows businesses to create pages aimed at promoting their companies online. Such pages can serve as a «virtual storefront». In a case study of a fashion website, users visiting from Pinterest spent $180 compared to $85 spent from users coming from Facebook. Studies also showed that Pinterest is more effective at driving sales than other forms of social media.

In early 2011, the company secured a $10 million USD Series A financing led by Jeremy Levine and Sarah Tavel of Bessemer Venture Partners. In October , after an introduction from Kevin Hartz and Jeremy Stoppelman, the company secured $27 million USD in funding from Andreessen Horowitz, which valued the company at $200 million USD. In May 2015, Pinterest was valued at $5 billion.

If you have your dream house, you should start on a Pinterest board.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Azul and Virgin America IPO

Azul SA is Brazil`s third-biggest airline after TAM and GOL, founded by David Neelman, who also founded JetBlue Airways Corp (JBLU.O). They may become No. 1 as Azul could offer about 3,000 more seats than their biggest competitors. Azul has a 15,9% market share and is the fastest growing airline in Brazil based on passenger kilometers flown, according to the National Civil Aviation Agency. Azul had $1,64 billion (4,2 billion reais) in revenue for the fist nine months in 2014.

Azul

Neelman left JetBlue Airways Corp in 2008 to launch the Brazilian carrier, which is his fourth airline startup.

David Neelman`s family is American, but he was born in Brazil and has Brazilian citizenship. That`s important, because Brazilian law forbids majority foreign ownership of airlines.

Azul SA revived plans for an IPO in Sao Paulo and New York. According to the U.S SEC filing, Azul plans to list referred shares on the Level 2 chapter of the Sao Paulo Stock Exchange, and American depositary shares on the New York Stock Exchange. It doesn`t say when the IPO will take place.

So far, they expect the IPO will be worth around $1 billion. Neelman owns 67% of voting shares and 4,58% of outstanding preferred shares. The private equity firms TPG Growth, Weston Presidio, Grupo Bozano, and Gàveo Investimentos, which is owned by J.P. Morgan, also own stakes in Azul Airline. The shareholders in Azul may sell an unspecified portion of their shares as part of the offering.

According to Azul`s prospectus, the money raised will be used to finance expansion plans and to pay down debt. They plan to buy 38 Airbus A320neo jets and lease 25 more. They have also begun international service with the first flight connecting Brazil and the U.S. In April, they announced plans to start flights to southern Florida early next year, followed by flights to New York, using a dozen leased wide-body jets, first A330-200 and then A350-900 aircraft.

Azul`s president Antonoaldo Neves said they are going to grow the cake, not steel from their competitors. He also said there`s no reason the market can`t double. Brazil`s airline association has said domestic demand is expected to rise to about 200 million passengers by 2020. That`s up 100%.

The IPO comes during a periode with few Brazilian offerings, as the equity issuance market stagnated this year as the economy slipped into a technical recession in the first half of 2014. The falling petroleum prices is helping airline stocks around the world, so the timing could be good. (Read my article “Airlines hammered”, October 14, 2014).

Sir Richard Branson know that. Delta (DAL) and JetBlue (JBLU) are both up over 50% this year. He`s low-cost airline Virgin America (VA) made an impressive debut on Nasdaq. The stock jumped 30,43% to close at $30 on November 2014. Virgin America raised $307 million through the offering.

Virgin America is the U.S offshoot of Branson`s London-based Virgin Group. Branson, through VX Holdings LP, own 24,8% stake after the IPO. The biggest shareholder with 32,8% is the Hedge fund Cyrus Capital Partners LP.

Virgin America has had a troubled time ever since its launch in 2007, and witnessed profits for the first time in 2013. Third quarter profits climbed about 24% buoyed by an increase in passenger traffic and higher fare rates. Revenue was up 4,7%, totaling $405,5 million.

Take note that Virgin America is the only U.S airline company to have gone public since another low-cost carrier, Spirit Airlines went public in 2011. Can Virgin America win this battle with their Wi-Fi service and comfortable leather seats? Will a hip airline work on Wall Street?

Anyway, it`s gonna be hard for Virgin America to fight with big players like American Airlines, Delta Airlines and United Airlines. It`s not going to be easy for Azul either, but investors will not ignore their growth in the future. Nor Azul and Virgin`s competitors.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Airbnb IPO

Sharing economy has become very popular and companies like Uber and Airbnb has caused a paradigm shift in the travel business, and Airbnb are now planning to go public. That can happen as soon as next year.

airbnb

The privately owned company Airbnb is founded in 2008 by Brian Chesky (CEO), Joe Gebbia and Nathan Blecharczyk. The firm is headquartered in San Francisco, California.

Airbnb is a website for people to rent out lodging. Users of the site must register and create a personal online profile before using the site. Every property is associated with a host whose profile includes recommendations by other users, reviews by previous guests, as well as a response rating and private messaging system.

Airbnb have just completed its latest round of fundraising, giving it a valuation of more than $10 billion. The company serves 1 million guests each month, with over 800,000 listings in more than 190 countries.

As of July 2011, the company had raised $119,8 million in venture funding from different partners. In April 2014, Airbnb closed on an investment of $450 million by TPG Capital at a valuation of approximately $10 billion.

Revenue is expected to reach as much as $1 billion in 2015, and that`s a big jump from $250 million in 2013. Airbnb could be the worlds second largest «hotel» company if it surpasses Starwood and Marriott, trailing only Hilton. It`s already bigger than Wyndham and Hyatt hotel chains with their valuation of $10 billion.

Airbnb is growing. In May 2011, they acquired a German competitor, Accoleo. That`s their fist international Airbnb office in Hamburg. In October same year, they established its second international office in London.

In 2012, they opened six more offices in cities like Paris, Milan, Barcelona, Moscow, Sao Paulo and Copenhagen. Their European headquarters would be located in Dublin. In 2012, they said they had focus on Australia, the second largest Airbnb market behind the United States, as well as Thailand and Indonesia.

They have earlier announced its strategy to move more aggressively into the Asian market with the launch of their newest headquarers in Singapore. The company`s goal is to acquire an additional 2 million properties within the continent.

I have earlier talked about Uber and their challenges. Some people say their business is illegal and so is it about Airbnb. Other people say their business model has raised legal concerns. Especially in New York, where state Attorney General Eric Schnederman launched a probe into the business. He suggest that more than half of Airbnb`s New York listings could be illegal.

Airbnb still belive in their business model and continue to work on an IPO.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Ferrari IPO

Ferrari S.p.a is an Italian luxury sports car founded by Enzo Ferrari in 1929. Ferrari road cars are generally seen as a symbol of speed, luxury and wealth. Fiat acquired 50% of the company in 1969, and expanded its stake to 85% in 2008. Earlier this year Fiat announced its intention to sell its share in Ferrari. Piero Ferrari have a 10% stake in the company, while Fiat Chrysler Automotives have 90%.

Ferrari-Aurea-Spider-DGF-FA-1280x960

(Picture: Ferrari Aurea spider)

Ferrari is a strong brand, and the famous symbol of the Ferrari racing team is the Cavallino Rampante (prancing horse) black prancing stallion on a yellow shield, usually with the letters S F (Scuderia Ferrari), with three stripes of green, white and red (the Italian national colors at the top).

Ferrari sold 7,318 units in 2012. The sale dropped down to 6,922 last year, and the revenue was €2,3 billion in 2013. Up 5% from 2012. The company is struggling and in an U.S IPO they hope to raise at least $1 billion.

They struggle to compete with other automakers in Europe and the U.S, and the competition is tough. Tesla have great success with their new electric car with good comfort, technology and over 700 horsepower. Ferrari is also seen as a luxury car with a great vehicle (V8 and V12), but they are struggling. Why?

When you ask people about Ferrari, they think racing cars and especially Formula One, and that is probably an image problem. Formel One and Racing cars is not something for you and me. It`s something for Schumacher. Some people love Formel One and racing cars, but the market is unfortunately not big enough?

Ferrari F430 Spider runs on ethanol, and that hybrid will be in production next year. LaFerrari was put into production this summer. It`s called HY-KERS Concept, and the hybrid system adds more than 100 horsepower on top of the 599 Fiorano`s 612 HP.

The company has produced a number of concept cars such as Ferrari P4/5 and Ferrari SP12 EC, which have been commissioned by wealthy owners. Other quite radical cars is Ferrari Mythos and Ferrari Modulo, but the most recent concept car was produced in 2010, which is Ferrari Millechili.

The special projects program is a collaboration by Ferrari with Italian automobile coachbuilders such as Fioravanti, Pininfarina, and Zagato to build custom cars using selected Ferrari modes as a structural base. The first car under this program is the SP1, commissioned by a Japanese business executive. The second is the P540 Supersfast Aperta, commissioned by an American enthusiast.

Ferrari`s former CEO and Chairman Luca de Montezemolo, resigned from the company after 23 years, and is to be succeeded by Sergio Marchionne, CEO and Chairman of Fiat Chrysler Automobiles, Ferrari`s parent company. Marchionne merged Fiat and Chrysler into the world`s seventh-largest carmaker to better compete with leaders such as General Motors, Volkswagen AG and Toyota Motor Corp.

On 29 October 2014, the FCA group, resulting from the merger between manufacturers Fiat and Chrysler, announced the split of its luxury brand, Ferrari. The aim is to turn Ferrari into an independent brand which 10% of stake will be sold in an IPO next year.

Fiat Chrysler`s brands include Jeep, Fiat, Maserati, Alfa Romeo, Chrysler and Dodge, which all strong brands. They sold about four million cars and trucks in 150 countries last year. Fiat Chrysler declared bankruptcy right after the financial crises in 2009.

Marchionne want to raise cash to cover its expenses and said that the company will spend money on R&D and capital expenditures. The stock rose after the IPO news and Marchionne has stated that he want to increase production to 10,000 cars a year. That`s music in investors ears.

Fiat is putting its jewel on the market.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Zalando IPO

Zalando listed about 10% of its shares in the public offering on the Frankfurt Stock Exchange yesterday. The company`s €21,50 issue price was set at the upper end of its bookbuilding range, but their debut was described as disappointing by analysts yesterday. It seems like they all are preparing for the coming battle in this e-commerce business. Zalando is a big e-commerce retailer in Europe.

Zalando

Zalando is founded in 2008 by David Schneider and CEO Robert Gentz. Zalando is a multinational e-commerce company that specialises in selling shoes, clothing and other fashion and lifestyle products online. In addition they are a tech powerhouse, leading Berlin`s startup scene to the Frankfurt floor.

It is a German company and has since their start expanded to offer its retail services in a total of fourteen European countries. The company`s headquarter are in Berlin. They are inspired by US online retailer Zappos.com.

They started initially specialised in the sale of footwear but has since grown to encompass other areas of fashion, lifestyle and sports. Schulze said that Zalando is a European online retailer and not a pure German one.

Zalando`s offering is one of Germany`s most significant e-commerce IPO to date. Revenue from online shopping in the country is expected to grow 22% this year and 16% next year ($73,5 billion). More than half of Zalando`s revenue comes from Germany, Switzerland and Austria. They had 2 billion euros in sales for the 12 months ended in June.

Zalando shares rose 14% in their IPO debut in Germany. Nothing compared to Alibaba`s smashing success. As you know, Alibaba now are flush with cash and I think they will spend most of it in the overseas markets.

This could leasd to M&A activity. Wayfair.com is still unprofitable, but they will try to raise $350 million and that is about 2x estimated 2014 revenue. That`s a $2,35 billion valuation. Zalando is a Zappos.com clone in Europe, but both Wayfair.com and Zalando are growing fast, and much faster than Overstock in the U.S. Zalando`s sale rose 30% in the first six months this year. 3X revenue for Zalando will be about $7 billion valuation. Far away from Alibaba.

A lot of things will happen in this market in the future. M&A is the key to grow fast and be big and I will be impressed if Alibaba can deliver the goods as fast as they do in China. The same day, within a few hours. Impressive! This is the reason why eBay was kicked out of the market in China, according to Jack Ma. It will interesting to follow this business in the future. This is only the beginning of a success story.

Web investor Rocket Internet is also poised to list today.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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