Hong Kong Raises IPO Profit Minimum in Watered-Down Move
Kiuyan Wong, 20 May 2021
Hong Kong’s exchange backed off from a proposal to double or even triple the annual profit requirement for companies seeking to sell shares on its main board following opposition from banks.
The threshold will instead be raised 60% to HK$80 million ($10 million) in the recent three financial years, effective starting next year, according to a statement released on Thursday. The exchange had proposed more than doubling or tripling the level. The bourse and the Securities and Futures Commission also issued a joint statement vowing to crack down on suspicious IPO activities such as inflating the market capitalization, executing “ramp-and-dump” schemes and unusually high underwriting commissions. Continue reading “Article: Hong Kong Raises IPO Profit Minimum in Watered-Down Move”
Sofa exporter Zoy, named in pump-and-dump scam, exposes underbelly of China’s US$11 trillion stock market
Zhang Shidong, 18 May 2021
Zoy Home Furnishing, an exporter of sofas and furniture in Zhejiang province spurned by most securities analysts, has become the public face of China’s crackdown on financial malfeasance, offering the nation’s 186 million investors a peek into the underbelly of Asia’s largest capital market. The 1.4 billion yuan (US$218 million) company, based in Anji county, was named on May 16 by the China Securities Regulatory Commission (CSRC) as the subject of an investigation into pump-and-dump price manipulation based on a whistle-blower’s report.
The scam came to light when Ye Fei, a hedge fund manager working for Huaibei Yitian Investment, wrote on his Weibo microblog that he had been owed 50,000 yuan in commission promised by Zoy for helping to prop up the stock’s prices. The asset management units of several Chinese state-owned brokerages including Shenwan Hongyuan Group and Minsheng Securities were also involved, playing the warehousing role of locking up the stocks in their portfolio to facilitate the ramping of prices, Ye said. Continue reading “Article: Sofa exporter Zoy, named in pump-and-dump scam, exposes underbelly of China’s US$11 trillion stock market”
Massachusetts May Revoke Robinhood’s Broker-Dealer Registration
PYMNTS, 16 April 2021
Regulators in Massachusetts are taking steps to pull Robinhood’s broker-dealer license, alleging that the digital trading app lures inexperienced investors and puts their money at risk, Reuters reported. Robinhood responded to the charge with a lawsuit accusing the Commonwealth officials of being “elitist.”
Massachusetts Secretary of State Bill Galvin announced in December 2020 that the state was seeking to revoke Robinhood’s license — and that was before the GameStop trading frenzy. The state instituted changes in its fiduciary rules that took effect in September, prompting the Silicon Valley startup to file a lawsuit in Boston. The company also filed a motion for a preliminary injunction. Continue reading “Article: Massachusetts May Revoke Robinhood’s Broker-Dealer Registration”
Goldman Bought $100M Of Deliveroo Shares During “Worst IPO Ever”…And Still Made Money
TYLER DURDEN, 07 April 2021
Goldman Sachs managed to avoid billions of dollars in potential losses from the implosion of highly levered hedge fund Archegos Capital Management by breaking ranks with other syndicate banks to dump large blocks of shares representing Archegos’s exposure to a coterie of tech and media names. When the dust settled, the bank told shareholders any losses would be insignificant, while Credit Suisse, the bank with perhaps the biggest exposure, said Tuesday it has booked a nearly $5 billion loss. Continue reading “Article: Goldman Bought $100M Of Deliveroo Shares During “Worst IPO Ever”…And Still Made Money”
Deliveroo Debut Declared “Worst IPO In London’s History”, Sign Of Amsterdam’s Growing Dominance
TYLER DURDEN, 02 April 2021
It’s official: the Financial Times (citing an informal polling of anonymous bankers) has declared Deliveroo’s botched London offering the “worst IPO in London’s history.”
As we reported yesterday, shares of the food-delivery competitor, which is struggling to grow market share at all costs in a battle for survival with Uber Eats and “Just Eat Takeaway”, tanked in their public-markets debut, sliding 31% after pricing at the bottom of their range. Bankers immediately started complaining to reporters about being misled by Deliveroo’s bankers, who had initially bragged that the company would price at the high end of the range. The debut, marketed as a major coup for the LSE and London markets, which are struggling for European supremacy with Euronext Amsterdam, more generally, has turned into a major embarrassment for the industry. Continue reading “Article: Deliveroo Debut Declared “Worst IPO In London’s History”, Sign Of Amsterdam’s Growing Dominance”
“An Absolute Car Crash” – Deliveroo Shares Tumble 31% In London IPO
TYLER DURDEN, 31 March 2021
In what some might take to be the latest sign of exhaustion in global equity markets, shares of Deliveroo tumbled 31% in their market debut Wednesday after pricing at the lower end of their range.
Despite pricing near the bottom of its range, Deliveroo’s opening valuation of about £7.6 billion ($10.5 billion) was the highest in London since resources group Glencore’s 2011 IPO, according to Dealogic data.
But traders quickly wiped more than £2 billion ($2.8 billion) off its market cap as shares plunged. It’s a start contrast to the debut of DoorDash, which IPO’d in the US back in December. Its shares soared more than 86% at the open. One equity capital markets banker who was not involved in the deal described the debut to the FT as “absolute car crash”. In recent days, Deliveroo and its bankers had continued to insist that the offering had seen “very significant demand” from investors, even as its debu tprice range started to slip. Continue reading “Article: “An Absolute Car Crash” – Deliveroo Shares Tumble 31% In London IPO”
Why Is It Moving? Looking Into Why SeaChange International’s Stock is Trading Higher Today
Erin Clark, 29 March 2021
Hong Kong Is Set to Target First SPAC Listing by End of Year
(Bloomberg) — Hong Kong is expected to have its own blank check company listing framework ready in June for public feedback and targets allowing deals to start by the end of this year, according to people familiar with the matter.The city is looking at tighter rules for sponsors of special purpose acquisition company listings and their buy-out targets than those enforced in the U.S., said the people, who asked not to be named discussing internal deliberations. Continue reading “Article: Why Is It Moving? Looking Into Why SeaChange International’s Stock is Trading Higher Today”
Form 8-K American Acquisition Opportunity Inc.
EDGAR AGENTS LLC, 23 March 2021
On March 22, 2021, American Acquisition Opportunity Inc. (the “Registrant”) consummated its initial public offering (the “IPO”) of 10,000,000 units (the “Units”), each Unit consisting of one share of common stock of the Registrant, par value $0.0001 per share (the “Common Stock”) and one-half of one redeemable warrant (“Warrant”), each whole Warrant entitling the holder thereof to purchase one share of Common Stock for $11.50 per share. The Units were sold at a price of $10.00 per Unit, generating aggregate gross proceeds to the Registrant of $100,000,000.
In connection with the IPO, the Registrant entered into the following agreements, forms of which were previously filed as exhibits to the Registrant’s Registration Statement on Form S-1 (File No. 333-252751) related to the IPO, originally filed with the U.S. Securities and Exchange Commission (the “Commission”) on February 5, 2021 (as amended, the “Registration Statement”): Continue reading “Article: Form 8-K American Acquisition Opportunity Inc.”
American Acquisition Opportunity Inc – Units (1 Ord Class A & 1/2 War) (AMAOU)
Seeking Alpha, 23 March 2021
An Underwriting Agreement, dated March 17, 2021 by and between the Registrant and Kingswood Capital Markets, division of Benchmark Securities, Inc., a copy of which is attached as Exhibit 1.1 hereto and incorporated herein by reference.
A Warrant Agreement, dated March 17, 2021, by and between the Registrant and Continental Stock Transfer & Trust Company, LLC as warrant agent, a copy of which is attached as Exhibit 4.1 hereto and incorporated herein by reference. Continue reading “Article: American Acquisition Opportunity Inc – Units (1 Ord Class A & 1/2 War) (AMAOU)”
Exuberance Over Good News Drives Bionano Genomics’ Wild Week
John Alford, 04 January 2021
Bionano Genomics, Inc. (BNGO) has been on a wild, meteoric rise in the past few days, and after hours on the 31st it continued to skyrocket, rising to $4 a share. On the 31st of December alone, counting market and after-hours trading, share prices surged $1.90, almost doubling. This capped a wild week, and is a momentum-driven mania trade not based on the previous performance or long-term trend of the company. While recently reporting one good report (via a paid PR service), there are obvious issues surrounding the company to the investor that takes the time to evaluate their most recent 10-Q, recent and potential massive dilution, and decreasing revenue. Continue reading “Article: Exuberance Over Good News Drives Bionano Genomics’ Wild Week”
If you bought DoorDash at $180…
SirGasleak, 10 December 2020
No moat at all. Sure they have 50% market share but there are competitors. They’re a delivery service – anyone can do what they do. Not only does this pose a risk to market share, but it poses a huge risk to the already thin profit margins. At some point (because of 2-4 below) they will have to lower their fees and take rate, which will hurt margins even more.
No brand value or brand loyalty. People couldn’t care less who delivers their food, as long as it shows up on time and hot. Early in COVID I was using Skipthedishes until I got frustrated with poor service so I left. There is nothing to keep customers loyal to DoorDash if someone else offers better service, or the same service at a better price.
Continue reading “Article: If you bought DoorDash at $180…”
DoorDash valued at $71 billion in blockbuster market debut
Noor Zainab Hussain, Joshua Franklin, 09 December 2020
(Reuters) -DoorDash Inc shares popped more than 80% in their debut on Wednesday, valuing the food delivery company at $71.3 billion or more than four times its worth at a private fundraising round six months ago, underscoring investor appetite for technology companies boosted by the COVID-19 pandemic.
Shares opened at $182 on the New York Stock Exchange, significantly above the initial public offering (IPO) price of $102 apiece and closed at $189.51. The company had raised $3.37 billion in its IPO on Tuesday.
Such a large first-day trading gain is likely to fuel criticism from some venture capital investors, including Benchmark’s Bill Gurley, who argue investment banks underprice IPOs so their investor clients can score large gains when the stock starts trading.
Continue reading “Article: DoorDash valued at $71 billion in blockbuster market debut”
DoorDash IPO delivers billions to its Stanford founders
Tom Maloney, 09 December 2020
Stanford University students Tony Xu, Andy Fang and Stanley Tang had a revelation seven years ago in a Palo Alto macaroon store.
The shop’s owner showed them pages and pages of delivery orders she hadn’t been able to fulfill. Demand wasn’t high enough to hire a full-time delivery person, but there was no way she could drop off all the orders herself. It was a story the three heard again and again as they worked to understand how they could leverage technology to help small businesses.
They decided to build a basic web page with menus from local restaurants to see if there was demand for a delivery business. “It was super simple, ugly, and honestly we weren’t really expecting anything,” Tang said at a Stanford lecture years later. “All of a sudden we got a phone call – someone called! They wanted to order Thai food.”
Continue reading “Article: DoorDash IPO delivers billions to its Stanford founders”
DoorDash takes a hefty cut from restaurants, and risks losing them to cheaper options
Ari Levy, 08 December 2020
Salvatore Reina owns three Francesca pizzerias in New Jersey that have been closed for indoor dining during the pandemic. While much of his industry turned to DoorDash, Reina resisted.
“Third parties take a big cut,” said Reina, who opened his first pizzeria 12 years ago, about 20 miles outside of New York City. “I’d rather spend those marketing dollars to get people directly.”
As DoorDash prepares for its public market debut, an offering that could value the delivery app service at over $30 billion, the San Francisco-based company has to show that it can make enough money on every order to turn into a profitable business. Meanwhile, investors have to consider how many restaurant owners will eventually turn away from apps like DoorDash because the costs are too high for their low-margin operations.
Continue reading “Article: DoorDash takes a hefty cut from restaurants, and risks losing them to cheaper options”
DOORDASH IPO HAS ITS SKEPTICS
Joe Guszkowski, 08 December 2020
Third-party delivery company DoorDash will set a share price for its initial public offering Tuesday, riding a wave of momentum that could bring it a valuation of more than $30 billion.
In the latest sign of demand for its stock, the company on Friday raised the price range for its shares to between $90 and $95, up from $75 to $85.
But not everyone shares that enthusiasm about the IPO. Some investors question the terms of the offering and the company’s readiness for the public market, while others believe its growth runway is shrinking.
On Monday, CtW Investment Group sent a letter to DoorDash’s board raising concerns about the IPO’s share structure and how the company characterized public reaction to a former tipping policy. CtW works with union-sponsored pension funds.
Continue reading “Article: DOORDASH IPO HAS ITS SKEPTICS”