|Bid||80.30 x 0|
|Ask||80.90 x 0|
|Day's range||78.00 - 82.00|
|52-week range||72.00 - 410.00|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Earnings date||08 Aug 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||383.00|
(Bloomberg Opinion) -- It’s easy to announce an initial public offering in Europe, but far harder to complete it. Don’t be distracted by the handful of decent-sized share issues launched in January. The recent evidence suggests that the target audience for European IPOs is smaller, fussier and harder to reach than it used to be.Some 17 offerings totaling 1.4 billion euros ($1.6 billion) were unveiled in January on European bourses. Look at how deals fared in the second half of last year and it’s hard to be confident that they will all reach the finishing line. Fourteen IPOs worth more than 100 million euros debuted in the last six months of 2019 (ignoring investment companies), Bloomberg data show. But nine got pulled. That’s an uncomfortably close ratio between offerings that got away and those that failed. Glance at the U.S. in the same period, or Europe in the preceding six months, and deal failures such as WeWork were vastly outnumbered by successes like Nexi SpA.Clearly, the acute uncertainty around Brexit late last year was a dampener, making U.S. investors even more reluctant to leave their domestic market.But Brexit probably just exacerbated existing problems. The drift to passive investment strategies is gradually reducing the number of active fund managers on whose support the IPO market relies. Those active managers that remain have to run more concentrated portfolios to beat their benchmark. Gone are the days when they would automatically buy most new stock offerings put before them.The private-equity cycle hasn’t helped. Buyouts looking to go public nowadays are likely to have been purchased several years into the recovery in asset prices after the financial crisis; their owners will probably have injected more debt to juice up returns, making the assets less attractive to stock-market investors.Meanwhile, MiFID rules have led investment banks to cut back their equity sales and research staff. That, in turn, weakens relationships with the asset management community. Even before that happened, book-runner syndicates tended to be smaller in Europe than in the U.S.The spectacular losses inflicted by a handful of London deals from 2018, notably Aston Martin Lagonda Global Holdings Plc, Funding Circle Holdings Plc and Amigo Holdings Plc linger in the memory. Even that year’s star performer, cyber-security group Avast Plc, has dipped in 2020.Some of these impediments could ease. The S&P 500 index trades on 19 times expected earnings versus the Bloomberg European 500 Index’s 16 times. Maybe that discount could tempt international investors to look at European stocks and, with them, IPOs. January has seen successful share sales by companies that are already listed. But there’s still no clarity on Brexit’s final shape, and MiFID is here to stay.It adds up to a headache for companies looking to go public. One option is to hold back until the business has grown big enough to justify a decent market capitalization. Active fund managers may then be interested, knowing the shares will be liquid and will get a boost from forced buying by index funds. But for those who can’t wait, finding supportive investors has gone from shaking the tree to panning for gold.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- The bitter 2018 vintage of British initial public offerings is souring with age. After the dramatic fall of Aston Martin Lagonda Global Holdings Plc and Funding Circle Holdings Plc, yet another shock came on Monday from subprime lender Amigo Holdings Plc, which listed around the same time. The company said the environment was worsening and that its founder and 61% shareholder wanted to sell. Competition to be the most disappointing London IPO of recent years is hotting up.Amigo’s original listing seemed auspicious. It specializes in so-called guarantor loans underwritten by friends or family. The colorful founder, James Benamor, and others sold 25% of the company on its debut. The listing didn’t struggle to find committed long-only buyers, so it didn’t have to rely on capricious hedge funds. Funds run by Neil Woodford, the renowned stock-picker then still riding high, and Invesco Ltd. bought a combined 11% stake, having already invested in Amigo’s listed peers such as Provident Financial Plc. JPMorgan Asset Management purchased 4% (JPMorgan Chase & Co was also one of the banks on the deal).Small wonder that the shares climbed on day one and were up 13% within a week. That was despite the evident likelihood that Benamor would want to sell down his remaining stake.Fast forward to today and a peak market value of 1.5 billion pounds ($2 billion) has dropped to about 250 million pounds. That selloff has been driven by U.K. regulators’ increasing scrutiny of the subprime market. In July, Amigo got a new chief executive officer, Hamish Paton. The following month he cut the guidance for loan growth and rejigged the business model in anticipation of possible regulatory shifts by the U.K.’s Financial Conduct Authority. The shares more than halved. The company can’t have been helped by the liquidation of many of Woodford’s holdings after his fall from grace.Every business faces external challenges. The question is whether they can preempt them and convince investors they can muddle through. There were red flags about Amigo’s governance during the IPO, when it didn’t satisfy the U.K. governance code’s requirement that a majority of its directors be independent. The non-independent Benamor left the board subsequently and sold some stock. He has returned recently, prompting the resignation of the chairman, in place since 2016. Paton is also off, less than six months into the job.For minority shareholders it’s a mess. Amigo warned on Monday that business volumes might be affected by yet another strategic review. Meanwhile — despite the company being an obvious takeover target for some time — it confirmed there had been no approaches. That leaves it with one “willing” seller, as the statement puts it, zero buyers yet, an indeterminate standalone strategy and no permanent leadership.Every IPO prospectus contains risk factors. But in a world where long-only investors feel there’s no need to buy new issues, Amigo will have cost the IPO market friends it dearly needs. To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Britain's FTSE 100 held firmly at its six-month high, marking a strong finish to the week as better-than-expected U.S. jobs data eased fears of a global economic slowdown while the pound weakened on growing Brexit jitters and lifted exporters. The blue-chip index advanced 0.6 percent, outshining its European peers and recording its biggest weekly gain in two months, while the midcaps rose 0.2 percent as weakness in the local currency capped gains. The FTSE 100 was already cheery as international companies rose on expectations that a China-U.S. trade dispute could be nearing an end, with President Donald Trump saying a deal could be reached in about four weeks.
** Funding Circle shares down 7 pct after company says plans to close its listed fund Funding Circle SME Income Fund after just over three years ** Analysts say fund which provides loans to small businesses ...
European initial public offerings slumped to their lowest since the aftermath of the 2008 financial crisis in the first quarter of 2019, as uncertainty over Brexit and the U.S.- China trade dispute leaves companies not wanting to take their chances. Proceeds from European listings dipped to $292 million in the first three months of 2019, compared to $13.9 billion made in the same period a year ago, Refinitiv data shows. In London, Europe's biggest stock market, just two companies have listed on the LSE's main market so far this year - law firm DWF Group, which raised 75 million pounds and software company Dev Clever , raising just 678,000 pounds.