The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Big Business on the IPO Train | Advantage Zyaada

The references are on the dealbook and PE pages, if you need to refer to ‘parent’ stories.

March seems to be going down as the month when you woke up to bigger deal announcements and lesser on the table in the US. With the HEalthcare bill almost out of the way and Financial regulation making sunlight in due course ( as law, not as debate) attention has shifted to gettinto the bigger pipelines and Euromoney lists tat award you as adviser for being greedy and on the mark with investors. Asia is in the roving eye as Life Insurance Company Dai Ichi Life has overtaken the $8 billion Chna Mobile, China Life and any other real estate IPOs out of Hong Kong with a $1553 per share tag.

Dai Ichi Mutual Life is not the biggest Life Insurer in Japan but is going to be the largest IPO at $11 billion from the land in a decade and is going to be the largest after the November 2008 Visa IPO of $19.7 billion. With Virginia, Florida, Texas and Pennsylvania getting ready to file lawsuits against the Democrat Health Bill once it becomes law, the US bankers remain a little fogged in the recovery..BofA’s new CEO Moynihan visiting the Middle Kingdowm to put international acceleration back on the agenda after having paid off TARP money. It is going to be difficult for BofA as it gets hammered in the home market by Wells Fargo and the new look HSBC and ING Direct competition to meaningfully extend its dream in China, but it may be able to get local incorporation in China as a gift from the government. Then you can expect another round of funding for Asian banks with these American roots as well.

The Dai Ichi Life IPO will list the demutualised shares on the Tokyo Stock Exchange on Fools day having distributed its shares to 90% of its own policy holders, while no. 1 in Japan Nippon Life is still unlisted as a Mutualised company.

Bloomberg/Business Week

The Tokyo-based company will have 10 million shares, 5 million of which were sold in Japan and 2.1 million overseas, according to statement. The company will issue 100,000 shares in an overallotment and another 2.9 million will be distributed to policyholders.

Prudential Plc of London, the U.K.’s biggest insurer, paid 1.69 times the embedded value of New York-based American International Group Inc.’s Asian life insurance unit in its takeover announced this month.

Insurer Valuations

T&D Holdings of Tokyo has a market capitalization of 684.9 billion yen, or 0.47 times its embedded value, based on a sale document distributed by banks involved with the Dai-ichi offering. Tokyo-based Sony Financial, the insurance and banking unit of Sony Corp., has a ratio of about 0.84 times.

US IPOs have raised $3 billion in 2010 yet with 15 fund raisings.

Meanwhile, the Fashion houses continued their express PE and IPO commitments, with Zale Jewelers landing a $50-$100 million deal with Sun Capital and Berkshire Hathaway got into the buying circle again with its subsidiary McLane acquiring a wholesale distribution house for food Services specialising in Liquors in Kahn Ventures’ Empire Distributors. Kahn distributes the good stuff in Georgia and North Carolina. The sum is yet undisclosed.

Also in the most important news item for the budding recovery explosion in the lifestyle sector was the news that Spyker’s prize jewel Saab would be planning gto go public in Stockhom and London this year itself and take the burden off its thin pockets.  Spyker continues to be housed in Amsterdam.

Also in other islands, UK’s Legal and General listed itself in profitable firms as the local Warehoue 13 candidate Online Grocer Ocado Ltd made plans to go public. Singapore’s no. 2 Bank DBS, 28% owned by Temasek, also came out with recession beating results in an all round comeback year while China is still tightening mortgage loan conditions upping down payments to 40% and 60% for second time and third time homeowners

Investors are also responding, with more Mutual Funds going expansive in their strategies according to Morningstar in Marketwatch

The number of mutual funds attempting to replicate hedge fund strategies has risen dramatically, with 80% of today’s long-short funds launched in just the past few years. The funds have come from both mutual fund firms branching into a new area and hedge fund managers making their strategies available in mutual fund formats.

Investors have responded: in 2009 long-short mutual funds and saw more than $10 billion in net inflows, double their previous annual high, in 2006, according to investment researcher Morningstar Inc.

Also mid tier banks in the US are not missing in the fun with $130 mMM IPO from the First Interstate Bancorp. On the other hand Time Warner and Len Blavatnik, still think there is plenty of juice in Old hock Metro Goldwyn Mayer, bidding around $1.5 billon for the once great studio for its archives I guess.


This entry was posted on March 23, 2010 by in O'nomics, Real estate, Retail Lifestyle, Uncategorized, US and tagged , , , , , , , .


%d bloggers like this: