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F1 delays $3.7b Singapore IPO on weak markets
Formula One has dropped plans to lodge its IPO prospectus with Singapore authorities. -Reuters
Fri, Jun 01, 2012
Reuters
LONDON/SINGAPORE - Motor sport racing company Formula One has delayed its Singapore initial public offer worth up to US$3 billion (S$3.7 billion) due to weak markets, with the sport's boss and part-owner, Bernie Ecclestone, saying the firm is waiting until the time is right.
Formula One has dropped plans to lodge its IPO prospectus with Singapore authorities next week, a source familiar with the matter confirmed on Friday, becoming the fifth major IPO to be pulled or delayed in Asia over the past week alone.
On Thursday, London luxury jeweller Graff Diamonds scrapped its planned US$1 billion IPO as global markets tumbled on concerns over the euro zone crisis and a slowing Chinese economy.
Ecclestone, commercial head of the sport and also a minority owner of Formula One, signalled the delay in an interview with Reuters on Thursday, saying the owners were biding their time.
He stressed, however, that the IPO had not been pulled.
"We're going through all the normal motions ...," the 81-year-old billionaire said. "We are getting prepared so all these things are done and then whenever we want to go, we can go."
The MSCI's index for Asia ex-Japan has fallen about 11 per cent in the past month, taking a heavy toll on the region's IPO pipeline. Investors were already wary of new offers following the botched Facebook IPO.
The stock price of the biggest social media web site has fallen 22 per cent in 10 trading sessions since its debut in the United States.
Globally, the amount raised from stock market flotations is down 46 per cent this year from the same 2011 period.
Excluding Facebook, 72 US-listed firms have filed, raising US$13.1 billon (S$16.4 billion), which is down 53 per cent, according to Thomson Reuters data.
Stuck on the grid
A second source familiar with the Formula One IPO said pre-marketing for the offer would continue.
"They are still talking to investors, but they are taking a more cautious stance," this source said, adding the IPO could be launched once investors felt comfortable with market conditions.
Ecclestone said it would be wrong to talk of any delay because no firm date had been set for an IPO: "It's going to be this year, we said we would do it this year."
Formula One management has been stressing that it is keeping its options open on its future financial structure.
Chairman Peter Brabeck told Reuters last week no decision had been made whether to proceed with the IPO.
Private equity firm CVC Capital Partners, the major shareholder in Formula One, unveiled a US$1.6 billion deal last month to sell a 21 per cent stake in the business to US investments groups Waddell & Reed and BlackRock, along with Norway's Norges Bank Investment Management.
The sale cut CVC's stake to around 42 per cent and CVC Managing Partner Donald Mackenzie said last week that the agreement had eased the pressure to do an IPO. CVC has been the main owner of Formula One since 2006.
Formula One gets about a third of its revenue from race promotion fees, with countries like Bahrain and Abu Dhabi paying up to US$40 million a year for the rights to host grands prix.
Another third of revenue comes from broadcasting rights, with the rest from advertising and non-core businesses such as transportation of race teams and hospitality at race tracks.
Goldman Sachs, Morgan Stanley and UBS have been hired to lead the IPO.
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If the valuations of the IPO remain attractive, good or bad mkt conditions will be irrelevant to the success of the business. Bad mkt conditions could be affecting the owners ability to make a killing in their cashing out process, hence the delay. Moreover if the valuations is attractive, SGX may not be a destination for F1.
Case to remember was Hutch Port mega listing on SGX but not on HKSE
(01-06-2012, 02:16 PM)Musicwhiz Wrote: F1 delays $3.7b Singapore IPO on weak markets
Formula One has dropped plans to lodge its IPO prospectus with Singapore authorities. -Reuters
Fri, Jun 01, 2012
Reuters
LONDON/SINGAPORE - Motor sport racing company Formula One has delayed its Singapore initial public offer worth up to US$3 billion (S$3.7 billion) due to weak markets, with the sport's boss and part-owner, Bernie Ecclestone, saying the firm is waiting until the time is right.
Formula One has dropped plans to lodge its IPO prospectus with Singapore authorities next week, a source familiar with the matter confirmed on Friday, becoming the fifth major IPO to be pulled or delayed in Asia over the past week alone.
On Thursday, London luxury jeweller Graff Diamonds scrapped its planned US$1 billion IPO as global markets tumbled on concerns over the euro zone crisis and a slowing Chinese economy.
Ecclestone, commercial head of the sport and also a minority owner of Formula One, signalled the delay in an interview with Reuters on Thursday, saying the owners were biding their time.
He stressed, however, that the IPO had not been pulled.
"We're going through all the normal motions ...," the 81-year-old billionaire said. "We are getting prepared so all these things are done and then whenever we want to go, we can go."
The MSCI's index for Asia ex-Japan has fallen about 11 per cent in the past month, taking a heavy toll on the region's IPO pipeline. Investors were already wary of new offers following the botched Facebook IPO.
The stock price of the biggest social media web site has fallen 22 per cent in 10 trading sessions since its debut in the United States.
Globally, the amount raised from stock market flotations is down 46 per cent this year from the same 2011 period.
Excluding Facebook, 72 US-listed firms have filed, raising US$13.1 billon (S$16.4 billion), which is down 53 per cent, according to Thomson Reuters data.
Stuck on the grid
A second source familiar with the Formula One IPO said pre-marketing for the offer would continue.
"They are still talking to investors, but they are taking a more cautious stance," this source said, adding the IPO could be launched once investors felt comfortable with market conditions.
Ecclestone said it would be wrong to talk of any delay because no firm date had been set for an IPO: "It's going to be this year, we said we would do it this year."
Formula One management has been stressing that it is keeping its options open on its future financial structure.
Chairman Peter Brabeck told Reuters last week no decision had been made whether to proceed with the IPO.
Private equity firm CVC Capital Partners, the major shareholder in Formula One, unveiled a US$1.6 billion deal last month to sell a 21 per cent stake in the business to US investments groups Waddell & Reed and BlackRock, along with Norway's Norges Bank Investment Management.
The sale cut CVC's stake to around 42 per cent and CVC Managing Partner Donald Mackenzie said last week that the agreement had eased the pressure to do an IPO. CVC has been the main owner of Formula One since 2006.
Formula One gets about a third of its revenue from race promotion fees, with countries like Bahrain and Abu Dhabi paying up to US$40 million a year for the rights to host grands prix.
Another third of revenue comes from broadcasting rights, with the rest from advertising and non-core businesses such as transportation of race teams and hospitality at race tracks.
Goldman Sachs, Morgan Stanley and UBS have been hired to lead the IPO.
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Look at what happened to Facebook... This is reality of life..!
(01-06-2012, 09:26 PM)greengiraffe Wrote: If the valuations of the IPO remain attractive, good or bad mkt conditions will be irrelevant to the success of the business. Bad mkt conditions could be affecting the owners ability to make a killing in their cashing out process, hence the delay. Moreover if the valuations is attractive, SGX may not be a destination for F1.
Case to remember was Hutch Port mega listing on SGX but not on HKSE
(01-06-2012, 02:16 PM)Musicwhiz Wrote: F1 delays $3.7b Singapore IPO on weak markets
Formula One has dropped plans to lodge its IPO prospectus with Singapore authorities. -Reuters
Fri, Jun 01, 2012
Reuters
LONDON/SINGAPORE - Motor sport racing company Formula One has delayed its Singapore initial public offer worth up to US$3 billion (S$3.7 billion) due to weak markets, with the sport's boss and part-owner, Bernie Ecclestone, saying the firm is waiting until the time is right.
Formula One has dropped plans to lodge its IPO prospectus with Singapore authorities next week, a source familiar with the matter confirmed on Friday, becoming the fifth major IPO to be pulled or delayed in Asia over the past week alone.
On Thursday, London luxury jeweller Graff Diamonds scrapped its planned US$1 billion IPO as global markets tumbled on concerns over the euro zone crisis and a slowing Chinese economy.
Ecclestone, commercial head of the sport and also a minority owner of Formula One, signalled the delay in an interview with Reuters on Thursday, saying the owners were biding their time.
He stressed, however, that the IPO had not been pulled.
"We're going through all the normal motions ...," the 81-year-old billionaire said. "We are getting prepared so all these things are done and then whenever we want to go, we can go."
The MSCI's index for Asia ex-Japan has fallen about 11 per cent in the past month, taking a heavy toll on the region's IPO pipeline. Investors were already wary of new offers following the botched Facebook IPO.
The stock price of the biggest social media web site has fallen 22 per cent in 10 trading sessions since its debut in the United States.
Globally, the amount raised from stock market flotations is down 46 per cent this year from the same 2011 period.
Excluding Facebook, 72 US-listed firms have filed, raising US$13.1 billon (S$16.4 billion), which is down 53 per cent, according to Thomson Reuters data.
Stuck on the grid
A second source familiar with the Formula One IPO said pre-marketing for the offer would continue.
"They are still talking to investors, but they are taking a more cautious stance," this source said, adding the IPO could be launched once investors felt comfortable with market conditions.
Ecclestone said it would be wrong to talk of any delay because no firm date had been set for an IPO: "It's going to be this year, we said we would do it this year."
Formula One management has been stressing that it is keeping its options open on its future financial structure.
Chairman Peter Brabeck told Reuters last week no decision had been made whether to proceed with the IPO.
Private equity firm CVC Capital Partners, the major shareholder in Formula One, unveiled a US$1.6 billion deal last month to sell a 21 per cent stake in the business to US investments groups Waddell & Reed and BlackRock, along with Norway's Norges Bank Investment Management.
The sale cut CVC's stake to around 42 per cent and CVC Managing Partner Donald Mackenzie said last week that the agreement had eased the pressure to do an IPO. CVC has been the main owner of Formula One since 2006.
Formula One gets about a third of its revenue from race promotion fees, with countries like Bahrain and Abu Dhabi paying up to US$40 million a year for the rights to host grands prix.
Another third of revenue comes from broadcasting rights, with the rest from advertising and non-core businesses such as transportation of race teams and hospitality at race tracks.
Goldman Sachs, Morgan Stanley and UBS have been hired to lead the IPO.
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100X PER buddies anyone? more like gong kia or hoot hoot buddies. 100X PER will definitely be hard realities of life. I am sure those who monetised their paper wont be complaining
(01-06-2012, 09:53 PM)Underdogger Wrote: Look at what happened to Facebook... This is reality of life..!
(01-06-2012, 09:26 PM)greengiraffe Wrote: If the valuations of the IPO remain attractive, good or bad mkt conditions will be irrelevant to the success of the business. Bad mkt conditions could be affecting the owners ability to make a killing in their cashing out process, hence the delay. Moreover if the valuations is attractive, SGX may not be a destination for F1.
Case to remember was Hutch Port mega listing on SGX but not on HKSE
(01-06-2012, 02:16 PM)Musicwhiz Wrote: F1 delays $3.7b Singapore IPO on weak markets
Formula One has dropped plans to lodge its IPO prospectus with Singapore authorities. -Reuters
Fri, Jun 01, 2012
Reuters
LONDON/SINGAPORE - Motor sport racing company Formula One has delayed its Singapore initial public offer worth up to US$3 billion (S$3.7 billion) due to weak markets, with the sport's boss and part-owner, Bernie Ecclestone, saying the firm is waiting until the time is right.
Formula One has dropped plans to lodge its IPO prospectus with Singapore authorities next week, a source familiar with the matter confirmed on Friday, becoming the fifth major IPO to be pulled or delayed in Asia over the past week alone.
On Thursday, London luxury jeweller Graff Diamonds scrapped its planned US$1 billion IPO as global markets tumbled on concerns over the euro zone crisis and a slowing Chinese economy.
Ecclestone, commercial head of the sport and also a minority owner of Formula One, signalled the delay in an interview with Reuters on Thursday, saying the owners were biding their time.
He stressed, however, that the IPO had not been pulled.
"We're going through all the normal motions ...," the 81-year-old billionaire said. "We are getting prepared so all these things are done and then whenever we want to go, we can go."
The MSCI's index for Asia ex-Japan has fallen about 11 per cent in the past month, taking a heavy toll on the region's IPO pipeline. Investors were already wary of new offers following the botched Facebook IPO.
The stock price of the biggest social media web site has fallen 22 per cent in 10 trading sessions since its debut in the United States.
Globally, the amount raised from stock market flotations is down 46 per cent this year from the same 2011 period.
Excluding Facebook, 72 US-listed firms have filed, raising US$13.1 billon (S$16.4 billion), which is down 53 per cent, according to Thomson Reuters data.
Stuck on the grid
A second source familiar with the Formula One IPO said pre-marketing for the offer would continue.
"They are still talking to investors, but they are taking a more cautious stance," this source said, adding the IPO could be launched once investors felt comfortable with market conditions.
Ecclestone said it would be wrong to talk of any delay because no firm date had been set for an IPO: "It's going to be this year, we said we would do it this year."
Formula One management has been stressing that it is keeping its options open on its future financial structure.
Chairman Peter Brabeck told Reuters last week no decision had been made whether to proceed with the IPO.
Private equity firm CVC Capital Partners, the major shareholder in Formula One, unveiled a US$1.6 billion deal last month to sell a 21 per cent stake in the business to US investments groups Waddell & Reed and BlackRock, along with Norway's Norges Bank Investment Management.
The sale cut CVC's stake to around 42 per cent and CVC Managing Partner Donald Mackenzie said last week that the agreement had eased the pressure to do an IPO. CVC has been the main owner of Formula One since 2006.
Formula One gets about a third of its revenue from race promotion fees, with countries like Bahrain and Abu Dhabi paying up to US$40 million a year for the rights to host grands prix.
Another third of revenue comes from broadcasting rights, with the rest from advertising and non-core businesses such as transportation of race teams and hospitality at race tracks.
Goldman Sachs, Morgan Stanley and UBS have been hired to lead the IPO.
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(01-06-2012, 09:26 PM)greengiraffe Wrote: If the valuations of the IPO remain attractive, good or bad mkt conditions will be irrelevant to the success of the business. Bad mkt conditions could be affecting the owners ability to make a killing in their cashing out process, hence the delay. Moreover if the valuations is attractive, SGX may not be a destination for F1.
Case to remember was Hutch Port mega listing on SGX but not on HKSE
I think with HPH, it was the case of SGX having a business trust structure in place whereas HKSE does not have one. So quite a different issue altogether.
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Maybe we need to understand why in such competitive market, HKSE rather not to have Business Trust Structure in place.
HPH is a huge listing.
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02-06-2012, 10:43 PM
(This post was last modified: 02-06-2012, 10:43 PM by pianist.)
i tot the updated development was that HKeX has given the green light go ahead for business trust
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SEHK approved business trust listing last year. It has already seen its first billion dollar IPO half a year ago -
PCCW Raises $1.2 Billion in Hong Kong Business Trust Initial Public Offer
http://www.bloomberg.com/news/2011-11-23...range.html [Article]
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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