News

Finance

Reuters | Equities.com |

A recent rise in U.S. bond yields and market inflation expectations has bolstered Federal Reserve officials’ hopes that the central bank’s new monetary policy approach is taking hold and could be further buoyed if a Democratic-led Congress rolls out more spending.

“I am encouraged to see the rise in market indicators of inflation expectations. ... That is what we are trying to support,” Richmond Federal President Thomas Barkin said on Thursday in an interview with Reuters.


Reuters | Equities.com |

Brazilian asset manager Patria Investments Ltd, which is backed by Blackstone Group Inc, is likely to reach a valuation of between $1 billion and $1.6 billion in its planned initial public offering on Nasdaq, Banco BTG Pactual SA said in a note to clients.

Patria , which has $13 billion under management in private equity, real estate, credit and infrastructure funds, filed for an IPO with the Securities and Exchange Commission on Dec. 30.

The document does not disclose the offering size or potential sellers, but Patria said it plans to raise money to invest in its funds and expand its operations through buying asset managers, portfolios and distribution channels.


Reuters | Equities.com |

Survey-software seller Qualtrics International Inc, owned by business software group SAP, filed for a U.S. initial public offering of up to $100 million on Monday, with tech stocks largely outperforming the broader market this year.

Qualtrics, which SAP bought for $8 billion two years ago, will have two classes of common stock upon completion of the offering, with SAP America Inc set to own all 423.2 million Class B shares and remain the controlling shareholder, according to a regulatory filing bit.ly/3hovgWM.


Reuters | Equities.com |

Companies can raise capital on the New York Stock Exchange through direct listings, without losing gains if their stock pops or forking out hefty fees to Wall Street banks, which typically underwrite such capital raisings, the U.S. securities regulator said on Tuesday.

The Securities and Exchange Commission’s approval of the NYSE’s “direct” listing plan threatens to overhaul the U.S. initial public offering market, by allowing aspiring public companies to sell shares directly to investors.


Reuters | Equities.com |

Ouster Inc, a U.S. startup that makes lidar sensors for self-driving cars and smart cities, said on Tuesday it has agreed to go public through a merger with special purpose acquisition company (SPAC) Colonnade Acquisition Corp.

The deal values San Francisco-based Ouster at around $1.9 billion and makes it the fifth lidar manufacturer this year to agree a SPAC merger to go public, following on from Velodyne Lidar Inc, Luminar, Innoviz and Aeva.

Ouster sees its digital lidar technology as having practical applications beyond autonomous vehicles and extending to areas such as drones, smart cities and robotics, according to company co-founder and Chief Executive Angus Pacala.


Reuters | Equities.com |

Shopping app Wish’s parent company ContextLogic Inc saw its share price fall more than 5% in its trading debut on Wednesday, after raising $1.1 billion in an initial public offering (IPO).

The lackluster debut comes after mega-IPOs and stellar first-day pops of companies including Airbnb Inc, DoorDash Inc and SnowFlake Inc.

ContextLogic was founded in 2010 by Chief Executive Peter Szulczewski, formerly of Google, and Yahoo veteran Danny Zhang. Its Wish app is known for selling bargains from China and boasts 100 million monthly active users globally.


AP News | Equities.com |

The Federal Reserve said Wednesday that it will keep buying government bonds until the economy makes “substantial” progress — a step intended to reassure financial markets and keep long-term borrowing rates low indefinitely.

The Fed also reiterated after its latest policy meeting that expects keep its short-term benchmark interest rate near zero through at least 2023. The Fed has kept its key rate there since March, when it took a range of extraordinary steps to fight the pandemic recession by keeping credit flowing.


Reuters | Equities.com |

U.S. gaming platform Roblox Corp has put off its planned initial public offering (IPO) until next year as it works with advisers to improve the process to benefit employees and investors, the company told employees in a memo seen by Reuters.

“We’ve seen companies take innovative approaches to creating a more market-based relationship between investors and companies,” Roblox Chief Executive David Baszucki said in the memo, dated Friday.

“We’ve decided to take this opportunity to work with our advisers to see how we can make such improvements.”


AP News | Equities.com |

Airbnb proved its resilience in a year that has upended global travel. Now it needs to prove it can live up to investors’ sky-high expectations.

The San Francisco-based home sharing company made a triumphant debut on the public market Thursday. Its shares closed at $144.71 apiece, more than double the $68 price that Airbnb had set. The closing price gave the company a valuation of just over $100 billion. The shares are trading on the Nasdaq Stock Market under the symbol “ABNB.”


Reuters | Equities.com |

Airbnb Inc on Wednesday sold shares in its initial public offering (IPO) on Wednesday at $68 apiece, above its targeted price range, to raise around $3.5 billion, according to a person familiar with the matter.

The IPO gives Airbnb a fully diluted valuation - which includes securities such as options and restricted stock units - of $47.3 billion, capping a turnaround in fortunes for the U.S. home rental firm that was hit hard by travel restrictions used to curb the COVID-19 pandemic.