Airbnb reportedly lost money last year as costs ballooned ahead of its planned public listing this year

Airbnb reportedly lost money last year as costs outpaced revenue, casting doubt on the company’s private valuation and the timing of its planned public debut this year. According to a person cited in the report, that was down from a $200 million profit reported a year earlier. The company’s board recently questioned executives over why costs are growing more quickly than revenue, according to the report. The losses could hurt Airbnb’s valuation as it looks to go public this year. The Journal rep


Airbnb reportedly lost money last year as costs outpaced revenue, casting doubt on the company’s private valuation and the timing of its planned public debut this year.
According to a person cited in the report, that was down from a $200 million profit reported a year earlier.
The company’s board recently questioned executives over why costs are growing more quickly than revenue, according to the report.
The losses could hurt Airbnb’s valuation as it looks to go public this year.
The Journal rep
Airbnb reportedly lost money last year as costs ballooned ahead of its planned public listing this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-11  Authors: william feuer
Keywords: news, cnbc, companies, airbnbs, valuation, journal, planned, costs, revenue, money, reportedly, listing, ahead, public, ballooned, airbnb, quarter, company, report, lost


Airbnb reportedly lost money last year as costs ballooned ahead of its planned public listing this year

Airbnb reportedly lost money last year as costs outpaced revenue, casting doubt on the company’s private valuation and the timing of its planned public debut this year.

The home-sharing startup lost $322 million over the first nine months of last year, The Wall Street Journal reported, citing people close to the company. According to a person cited in the report, that was down from a $200 million profit reported a year earlier.

People cited in the report said the net loss comes despite increased revenue in the third quarter, historically Airbnb’s most profitable quarter, due to rising administrative and technical costs, among other things. The company’s board recently questioned executives over why costs are growing more quickly than revenue, according to the report.

The losses could hurt Airbnb’s valuation as it looks to go public this year. At its last funding round in 2017, the company was privately valued at $31 billion, but the Journal report says Airbnb’s most recent internal valuation is much lower. The report did not say what Airbnb’s latest private valuation is.

The company announced publicly last year that it “expects to become a publicly-traded company during 2020.”

The Journal report said Airbnb likely won’t go public until the third quarter of this year. That timing could be affected by the coronavirus outbreak that has swept across China, one person cited in the report said. China is a key growth area for Airbnb. The company’s co-founder, Nathan Blecharczyk, currently serves as chairman of Airbnb China.

Airbnb declined to comment.

Read the full story in The Wall Street Journal.


Company: cnbc, Activity: cnbc, Date: 2020-02-11  Authors: william feuer
Keywords: news, cnbc, companies, airbnbs, valuation, journal, planned, costs, revenue, money, reportedly, listing, ahead, public, ballooned, airbnb, quarter, company, report, lost


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Meet the 22-year-old who ran 3,055 miles across the US and won a ‘free year’ in NYC from ‘Million Dollar Listing’ star Ryan Serhant

The guy turned out to be Seth Phillips, known from the comedic Instagram account Dude With Sign, who teamed up with “Million Dollar Listing” star Ryan Serhant to promote Serhant’s free year in New York City contest. Bencheghib had won, and Phillips and Serhant had flown out to California to personally surprise him with the news. “He had a lot of heart, big goals and a very clear plan for what he wanted to do when he got to New York City. He was going to figure out how to come to New York City an


The guy turned out to be Seth Phillips, known from the comedic Instagram account Dude With Sign, who teamed up with “Million Dollar Listing” star Ryan Serhant to promote Serhant’s free year in New York City contest.
Bencheghib had won, and Phillips and Serhant had flown out to California to personally surprise him with the news.
“He had a lot of heart, big goals and a very clear plan for what he wanted to do when he got to New York City.
He was going to figure out how to come to New York City an
Meet the 22-year-old who ran 3,055 miles across the US and won a ‘free year’ in NYC from ‘Million Dollar Listing’ star Ryan Serhant Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-06  Authors: kathleen elkins
Keywords: news, cnbc, companies, going, ran, won, free, bencheghib, miles, york, million, star, really, city, serhant, meet, listing, ryan, nyc, running, plastic


Meet the 22-year-old who ran 3,055 miles across the US and won a 'free year' in NYC from 'Million Dollar Listing' star Ryan Serhant

On a Friday afternoon in late January, Sam Bencheghib ran alongside California Route 62. He’d already logged 15 miles and was planning on doing 10 more before sundown. It was a typical day for Bencheghib: Since July 2019, the 22-year-old environmental activist had been running 20 to 30 miles a day across the U.S., from the Atlantic to the Pacific Ocean, to raise awareness about ocean pollution. He ran in Adidas x Parley running shoes, which are made out of upcycled plastic waste. The day had started like so many before it: Bencheghib woke up in his RV, cooked breakfast and hit the pavement. But mid-run, around 2:30 p.m., he saw a guy standing on the side of the highway with a sign that read, “Which Way 2 NYC?” The flip side read, “You Win.” The guy turned out to be Seth Phillips, known from the comedic Instagram account Dude With Sign, who teamed up with “Million Dollar Listing” star Ryan Serhant to promote Serhant’s free year in New York City contest. Bencheghib had won, and Phillips and Serhant had flown out to California to personally surprise him with the news.

Ryan Serhant, left, and Seth Phillips found Bencheghib on the side of Route 62 to tell him he won a free year in NYC Courtesy of Ryan Serhant

Serhant, who moved to NYC in 2006 to pursue acting with a small amount of savings, says he owes everything to New York City: “It’s what gave me my career, my family, everything,” he tells CNBC Make It. His success didn’t happen overnight, though. After two years of struggling to make a living from acting gigs, he decided to get his real estate license. He made just $9,000 his first year as a real estate agent, but he hustled to gain a foothold in the industry. Today, Serhant is one of the most successful brokers in the world. In 2020, he wants to help someone else realize their dream by giving them a “free year” in the city, which includes an apartment in downtown Manhattan and a stipend to cover food, transportation and other necessities. Plus, Serhant will mentor them along the way. After sorting through 28,000 applications, Serhant and his team chose Bencheghib. His video, which he filmed on the road outside of the RV he named Jenny, was “super genuine and very authentic,” says Serhant. “He had a lot of heart, big goals and a very clear plan for what he wanted to do when he got to New York City. What I also really loved about him was, he was going to do it anyway. He was going to figure out how to come to New York City and sleep on people’s couches if he needed to.” But the one problem with selecting Bencheghib was that he was hard to track down, says Serhant, who flew to Los Angeles and rented a car to find him on Route 62. Of the thousands of applicants, “this was the one guy who was running across the United States.”

Bencheghib will use the free year to grow Make A Change, the organization he and his two siblings, Gary and Kelly, founded 10 years ago with the mission of combating plastic pollution and cleaning up the coastlines. In the early days of the organization, they simply cleaned up the rivers and oceans in Bali, where they grew up, themselves. As they got older, they started organizing group clean-ups and shifted their focus to raising awareness around plastic pollution by speaking in schools and creating videos that spotlight the issue. They even caught the attention of the president of Indonesia after they kayaked down the world’s most polluted river — the Citarum in Indonesia — and released videos showing the massive amount of plastic floating on the surface of the water. The president responded and promised to hire thousands of military troops to do a seven-year, full-scale clean up of the river. “That was when we came up with this concept of combining our passion for the environment and adventure,” Bencheghib tells CNBC Make It. During his senior year at Lehigh University, he started thinking, “What crazy idea can I do in the U.S. to raise awareness about this cause that I’m passionate about? I thought running across America on shoes made out of 11 plastic bottles was the way to do it.” Bencheghib completed his run across the U.S. on February 1 in Santa Monica, Calif., where he dove into the Pacific Ocean. He ran 3,055 miles over 191 days.

Sam Bencheghib finished his run across America, which spanned six months, in Santa Monica, CA Courtesy of Jacqueline Verdugo

He’ll fly to NYC in mid-February to start his “free year” from Serhant. “We’re going to follow Sam for a year, we’re going to help him and do as much as we possibly can and then it’s going to be up to him to determine how he wants to proceed after that first year,” says Serhant, who also selected two runner-ups, both of whom he’ll bring to New York for a day. Bencheghib, who spent two months in NYC before his run to train, knows firsthand how expensive the city is. It makes him all the more appreciative for the opportunity to work on Make A Change without having to stress about money. “I have always seen myself living in New York, but the conditions I saw myself living in were: somewhere deep in Bushwick, where the rent is as cheap as it gets, probably working on side projects just to pay the bills,” he says. “To get to focus only on what I’m really passionate about — to put 100% of my time and effort into what I think really matters — without any financial burdens, is life-changing.”

To put 100% of my time and effort into what I think really matters, without any financial burdens, is life-changing. Sam Bencheghib


Company: cnbc, Activity: cnbc, Date: 2020-02-06  Authors: kathleen elkins
Keywords: news, cnbc, companies, going, ran, won, free, bencheghib, miles, york, million, star, really, city, serhant, meet, listing, ryan, nyc, running, plastic


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Airbnb hires Disney veteran to lead Experiences division ahead of expected public listing this year

The home-sharing company announced Wednesday that it has hired 15-year Disney veteran Catherine Powell to lead its Experiences division, which offers tours and other activities for guests such as cooking classes. The Experiences division could play an important role as Airbnb eyes an expected public listing later this year. Airbnb said Wednesday it has expanded the Experiences division to offer more than 40,000 experiences in more than 1,000 cities. The news comes after Airbnb announced earlier


The home-sharing company announced Wednesday that it has hired 15-year Disney veteran Catherine Powell to lead its Experiences division, which offers tours and other activities for guests such as cooking classes.
The Experiences division could play an important role as Airbnb eyes an expected public listing later this year.
Airbnb said Wednesday it has expanded the Experiences division to offer more than 40,000 experiences in more than 1,000 cities.
The news comes after Airbnb announced earlier
Airbnb hires Disney veteran to lead Experiences division ahead of expected public listing this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-29  Authors: deirdre bosa william feuer, deirdre bosa, william feuer
Keywords: news, cnbc, companies, veteran, lead, hires, experiences, public, division, airbnb, powell, real, disney, paris, listing, catherine, expected, estate, company


Airbnb hires Disney veteran to lead Experiences division ahead of expected public listing this year

Euro Disney S.A.S President Catherine Powell attends the presentation of a study on the economic and social contribution of Disneyland Paris in Paris on February 24, 2017, as a part of the 25th anniversary of Disneyland Paris’ events.

Airbnb is making some big hires ahead of its expected public debut later this year.

The home-sharing company announced Wednesday that it has hired 15-year Disney veteran Catherine Powell to lead its Experiences division, which offers tours and other activities for guests such as cooking classes. Powell most recently ran the U.S. and Paris theme parks for Disney.

The Experiences division could play an important role as Airbnb eyes an expected public listing later this year. Investors will look to see if Airbnb has successfully expanded into new services and offerings.

Airbnb launched Experiences in 2016 to diversify beyond its core offering of accommodations and capture more of the travel economy.

It remains unclear if Experiences is a meaningful source of revenue for the company, which is privately valued at more than $30 billion. Experiences brought in $15 million through the first three quarters of 2018, The Information reported, the most recent figures available. Airbnb said it brought in more than $1 billion in total revenue for the second quarter of 2019.

Airbnb said Wednesday it has expanded the Experiences division to offer more than 40,000 experiences in more than 1,000 cities. The company pushed into new categories of Experiences last year, such as cooking and animal experiences.

“Catherine is the perfect person to lead this business,” Airbnb co-founder and CEO Brian Chesky said in a statement. “Some people can come up with creative ideas. Others know how to run big teams and scale big businesses. Catherine can do both.”

Joe Zadeh, who was among the first 10 Airbnb employees, spearheaded the launch of the Experiences initiative in 2016 and is still listed on the company’s site as vice president of Experiences. The company announced earlier this month that Zadeh will transition out of the Experiences division to lead a team meant to serve stakeholder interests.

“Airbnb is a truly inspiring company with a mission that sits at the heart of the Experiences Economy,” Powell said. “I’ve seen firsthand how Experience Hosts take Guests on amazing adventures and I know Airbnb has a unique opportunity to deliver experiences that are distinct, authentic, immersive, and memorable. The potential for this business is virtually unlimited.”

The news comes after Airbnb announced earlier this month the hiring of Jesse Stein, a former executive of the real estate private equity firm KHP Capital, as global head of real estate. Stein will be tasked with establishing new real estate development projects as Airbnb looks to break into traditional real estate investing to supplement the supply of listings on its site.


Company: cnbc, Activity: cnbc, Date: 2020-01-29  Authors: deirdre bosa william feuer, deirdre bosa, william feuer
Keywords: news, cnbc, companies, veteran, lead, hires, experiences, public, division, airbnb, powell, real, disney, paris, listing, catherine, expected, estate, company


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

‘Million Dollar Listing’ star Ryan Serhant is giving away a free year in NYC—here’s how to win

And, in 2020, Serhant wants to help someone else realize their dream by giving them a “free year” in the city. His success didn’t happen overnight: After two years of struggling to make a living from acting gigs, he pivoted and decided to get his real estate license. He made just $9,000 his first year as a real estate agent, but he hustled to gain a foothold in the industry . Serhant understands first-hand how difficult it can be to try to build a career in such an expensive city. Don’t miss: ‘M


And, in 2020, Serhant wants to help someone else realize their dream by giving them a “free year” in the city.
His success didn’t happen overnight: After two years of struggling to make a living from acting gigs, he pivoted and decided to get his real estate license.
He made just $9,000 his first year as a real estate agent, but he hustled to gain a foothold in the industry .
Serhant understands first-hand how difficult it can be to try to build a career in such an expensive city.
Don’t miss: ‘M
‘Million Dollar Listing’ star Ryan Serhant is giving away a free year in NYC—here’s how to win Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-03  Authors: kathleen elkins
Keywords: news, cnbc, companies, listing, dream, star, serhant, city, york, vlog, nyc, free, giving, dollar, million, nycheres, youtube, ryan, real, estate, win


'Million Dollar Listing' star Ryan Serhant is giving away a free year in NYC—here's how to win

“Everything I have, over the last 10 years that I’ve built up — I really owe it to New York City,” he says in a vlog posted to his YouTube channel. And, in 2020, Serhant wants to help someone else realize their dream by giving them a “free year” in the city.

His success didn’t happen overnight: After two years of struggling to make a living from acting gigs, he pivoted and decided to get his real estate license. He made just $9,000 his first year as a real estate agent, but he hustled to gain a foothold in the industry . Today, Serhant is one of the most successful brokers in the world.

“This city has given me everything I have — a career, the most amazing family and the ability to follow whatever dream I have every single day,” says the 35-year-old “Million Dollar Listing” star , who moved to NYC in 2006 to pursue acting with just a small amount of savings.

Serhant plans to pay for one person’s rent for 12 months, plus provide a generous stipend: “They’ll have spending cash, they will have everything they need to not have any financial stress for 12 months,” he tells YouTube star Casey Neistat, who he’s teamed up with to promote the contest.

Applications are due Wednesday, January 8, 2020, and the winner will be announced later in the month. Here are the stipulations:

You have to be 21. You have to have “massive dreams,” says Serhant, and a passion for wanting to be in NYC. Your dream could be “literally anything,” he adds. “You could want to be a scientist or an actor or a content creator.” You have to be able to explain why you deserve this opportunity.

“It’s an application-based competition where someone will be hand picked by our team,” Serhant explains on the contest site, adding: “This is your chance to go all-in on yourself and focus solely on making it happen without any personal financial constraints.”

Serhant understands first-hand how difficult it can be to try to build a career in such an expensive city. “It’s hard to come here,” he says in his vlog, “especially when you’re young, if you can’t afford it.” But he also believes that he wouldn’t have been able to achieve his goals anywhere else in the world: “Yes, I work my ass off, but the city has helped — and now I want New York City to help somebody else.”

Find out more information about how to apply here.

Don’t miss: ‘Million Dollar Listing’ star Ryan Serhant started in real estate the day the market crashed 10 years ago — here’s what he learned

Like this story? Subscribe to CNBC Make It on YouTube!


Company: cnbc, Activity: cnbc, Date: 2020-01-03  Authors: kathleen elkins
Keywords: news, cnbc, companies, listing, dream, star, serhant, city, york, vlog, nyc, free, giving, dollar, million, nycheres, youtube, ryan, real, estate, win


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

This overlooked local trend will drive Chinese stocks higher in the new year, says China-focused ETF issuer

So says KraneShares’ Brendan Ahern about his bullish forecast for Chinese stocks in 2020, which he’s attributing to the largely overlooked strength of the consumers who are fueling the world’s second-largest economy. “From just an economic perspective, the trade war has been an inhibitor to growth,” Ahern said Wednesday on CNBC’s “ETF Edge.” Alibaba’s recent secondary share listing in Hong Kong confirmed both the company’s strength and the appetites of its customers. As investors increasingly ta


So says KraneShares’ Brendan Ahern about his bullish forecast for Chinese stocks in 2020, which he’s attributing to the largely overlooked strength of the consumers who are fueling the world’s second-largest economy.
“From just an economic perspective, the trade war has been an inhibitor to growth,” Ahern said Wednesday on CNBC’s “ETF Edge.”
Alibaba’s recent secondary share listing in Hong Kong confirmed both the company’s strength and the appetites of its customers.
As investors increasingly ta
This overlooked local trend will drive Chinese stocks higher in the new year, says China-focused ETF issuer Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-21  Authors: lizzy gurdus
Keywords: news, cnbc, companies, higher, etf, chinafocused, local, chinese, china, investors, hong, drive, ahern, trend, stock, stocks, overlooked, trade, listing, issuer


This overlooked local trend will drive Chinese stocks higher in the new year, says China-focused ETF issuer

Chalk it up to the Chinese consumer.

So says KraneShares’ Brendan Ahern about his bullish forecast for Chinese stocks in 2020, which he’s attributing to the largely overlooked strength of the consumers who are fueling the world’s second-largest economy.

“From just an economic perspective, the trade war has been an inhibitor to growth,” Ahern said Wednesday on CNBC’s “ETF Edge.”

But as the chief investment officer of his firm, which manages a suite of China-focused exchange-traded funds under the credo that “the relationship between the United States and China will be the most important economic partnership of our lifetimes,” Ahern says the trade war’s overhang on the Chinese stock market could soon dissipate.

“The consumption side of China is alive and well, as evidenced by Singles Day, by U.S. multinationals doing business [in China], so, I think as the cloud goes away, you’re going to see investors come back into the China equity market in a big way. We’re already seeing that,” he said.

Ahern may just be right. Singles Day, Alibaba’s online shopping holiday, raked in $23 billion in sales in its first nine hours and a record $38 billion in total. Competitors JD.com and Pinduoduo also reaped billions of dollars in sales.

Alibaba’s recent secondary share listing in Hong Kong confirmed both the company’s strength and the appetites of its customers. The blockbuster listing marked one of the largest share offerings in 2019, second only to Saudi Aramco’s trillion-dollar IPO, according to FactSet.

“Alibaba went and listed in Hong Kong…because, one, the local investors know Alibaba has nothing to do with the trade war. It has no revenue here,” Ahern said. “It’s growing like gangbusters and yet, investors, because it has a China name, didn’t want to hold it.”

Next year will bring another “major catalyst for the stock” when Alibaba is included in the Stock Connect program, which links mainland China’s Shanghai and Shenzhen exchanges with Hong Kong’s Hang Seng index, enabling investors to more easily trade stocks across those borders, Ahern said.

“Mainland China still can’t buy the Hong Kong listing. That will happen, probably, in Q1 of next year,” he said. “Big, big move once that happens.”

In short, “the Chinese consumer is alive and well,” and “they’re leapfrogging over the big-box retailer, big-box mall” by shopping online, Ahern said. “That’s what we want to hold.”

KraneShares’ CSI China Internet ETF (KWEB) does just that. Up over 30% for 2019, its top holdings are a mix of U.S.- and China-listed stocks including Alibaba, Tencent, Meituan Dianping, Baidu, and JD.com.

As investors increasingly take note of China’s “consumption story,” KWEB and even KraneShares’ broader China ETF, the Bosera MSCI China A-Share ETF (KBA), should see more traction, Ahern said.

“KWEB holds those companies that are the transmission engines” for Chinese e-commerce and the growth of China’s economy, Ahern said. “So, we’re very positive for both of these trends going forward.”

KWEB closed up about 0.5% Friday, while KBA fell by roughly one-tenth of 1%.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-12-21  Authors: lizzy gurdus
Keywords: news, cnbc, companies, higher, etf, chinafocused, local, chinese, china, investors, hong, drive, ahern, trend, stock, stocks, overlooked, trade, listing, issuer


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

SEC reportedly investigating Slack and other unicorns’ market debuts on the NYSE

Pedestrians pass in front of a Slack Technologies signage displayed outside of the New York Stock Exchange during the company’s initial public offering in New York, on Thursday, June 20, 2019. The Securities and Exchange Commission is investigating the market debuts of certain initial public offerings, including Slack, the Wall Street Journal reported on Friday. The SEC requested electronic messages and emails from right before Slack started trading from electronic-trading firm Citadel Securitie


Pedestrians pass in front of a Slack Technologies signage displayed outside of the New York Stock Exchange during the company’s initial public offering in New York, on Thursday, June 20, 2019.
The Securities and Exchange Commission is investigating the market debuts of certain initial public offerings, including Slack, the Wall Street Journal reported on Friday.
The SEC requested electronic messages and emails from right before Slack started trading from electronic-trading firm Citadel Securitie
SEC reportedly investigating Slack and other unicorns’ market debuts on the NYSE Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-20  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, securities, investigating, debuts, york, initial, trading, exchange, wsj, public, market, nyse, unicorns, slack, journal, listing, reportedly, sec


SEC reportedly investigating Slack and other unicorns' market debuts on the NYSE

Pedestrians pass in front of a Slack Technologies signage displayed outside of the New York Stock Exchange during the company’s initial public offering in New York, on Thursday, June 20, 2019.

The Securities and Exchange Commission is investigating the market debuts of certain initial public offerings, including Slack, the Wall Street Journal reported on Friday.

The investigation reportedly focuses on the first day of trading of work-messaging company Slack and a few other unicorns, companies with a valuation above $1 billion, on the New York Stock Exchange, and how the initial public offerings were handled, sources familiar with the matter told WSJ. The NYSE is owned by the Intercontinental Exchange.

The SEC requested electronic messages and emails from right before Slack started trading from electronic-trading firm Citadel Securities, the WSJ said.

Slack went public on June 20 in a direct listing. The SEC declined to comment.

“The direct listing of slack was a tremendous success for the company, its shareholders and our nation’s capital markets. From our vantage point, we stand firmly behind the integrity and transparency of the listing and pricing process on this important transaction,” Citadel Securities spokesperson Zia Ahmed told CNBC.

The Journal later added that GTS, another trading firm, received a similar request from regulators asking for messages and NYSE compliance policies, citing people familiar with the matter. A spokesperson for GTS had no comment when reached by CNBC.

Slack didn’t immediately respond to CNBC’s request for comment.

— read the full Wall Street Journal story here.

— with reporting from CNBC’s Ryan Ruggiero.


Company: cnbc, Activity: cnbc, Date: 2019-12-20  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, securities, investigating, debuts, york, initial, trading, exchange, wsj, public, market, nyse, unicorns, slack, journal, listing, reportedly, sec


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w


A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018.
“It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul.
In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w
Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, shares, trading, listing, aramcos, price, analyst, saudi, free, dhabi, ipo, oil, international, recordbreaking, aramco, market, exactly


Aramco's record-breaking IPO is 'not exactly a free market price,' analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. Christopher Pike | Bloomberg | Getty Images

ABU DHABI, United Arab Emirates ⁠— Saudi Arabia made history this week as it debuted its crown jewel, Saudi Aramco, for public trading on the kingdom’s stock exchange. Shares shot up to the maximum allowed for the world’s largest-ever IPO at its launch, surging 10% on Wednesday and again on Thursday to briefly hit a valuation of $2 trillion before paring gains. The listing of 1.5% of the kingdom’s state-run oil giant reached a $1.88 trillion market cap on its first day of trading, putting it well above that of Microsoft and Apple. The astronomic $2 trillion figure, long pursued by Saudi Crown Prince Mohammed bin Salman since he announced his idea of the float in 2016, defied the expectations — and the ridicule — of much of the global finance community. But weak international interest, suspicions of heavily government-influenced local demand and scrapped plans to book-build outside the Gulf region have raised the question of how genuinely successful the public listing really is ⁠— and whether it could perform similarly if tested in international markets. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. “I think it was a managed sale with a lot of government involvement,” said Rutledge, who served as an economic advisor to three U.S. administrations and the government of Kuwait. “They managed creating the book of buyers, but they also determined how many shares were sold. And so with that, you’ve got both levers. You can make the market cap almost whatever you want at that level.”

In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a wide range of institutions reflects trust in our long-term strategy.” After shares began trading Wednesday, Aramco CEO Amin Nasser told CNBC that the initial pricing of 32 riyals per share ($8.53) “was agreed based on full analysis and evaluation” and that the IPO on the Tadawul is “a sign of how strong the stock exchange is.” Nasser noted that local demand for shares was five times oversubscribed and said the listing “embodies Vision 2030,” the agenda set out by the crown prince to diversify the Saudi economy. Still, market and regional analysts were quick to point out that the listing fell short of the crown prince’s grand vision, which initially targeted an international listing. The kingdom had to rely predominantly on local investors after canceling roadshows in London and New York due to paltry foreign investor interest.

“It’s a success on paper. They delivered on a complicated IPO, the largest in the world,” said Ayham Kamel, head of the Middle East and Africa practice at Eurasia Group. “But the key risk facing Mohammed bin Salman is that a small IPO does not really move the needle on his diversification program, even if readjusted as part of a new Vision 2030. He needs to sell more of the company and begin to attract foreign investors.” Saudi Arabia’s recently announced 2020 budget revealed a budget deficit increase to 6.4% of gross domestic product from 4.2% in 2019, as its economy feels the pain of fiscal tightening and lower oil prices. The International Monetary Fund says Saudi Arabia needs oil at $78 a barrel to balance its budget ⁠— a level not seen in five years, and far from the $58 to $63 range of the last few months. Several energy forecasters see oil reaching only $70 a barrel by the end of 2020.

Amin H. Nasser, President and CEO of Aramco, rings the bell during the official ceremony marking the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019. Saudi Aramco | Reuters


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, shares, trading, listing, aramcos, price, analyst, saudi, free, dhabi, ipo, oil, international, recordbreaking, aramco, market, exactly


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w


A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018.
“It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul.
In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w
Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, exactly, trading, ipo, listing, saudi, international, market, aramcos, aramco, oil, recordbreaking, price, shares, free, dhabi, analyst


Aramco's record-breaking IPO is 'not exactly a free market price,' analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. Christopher Pike | Bloomberg | Getty Images

ABU DHABI, United Arab Emirates ⁠— Saudi Arabia made history this week as it debuted its crown jewel, Saudi Aramco, for public trading on the kingdom’s stock exchange. Shares shot up to the maximum allowed for the world’s largest-ever IPO at its launch, surging 10% on Wednesday and again on Thursday to briefly hit a valuation of $2 trillion before paring gains. The listing of 1.5% of the kingdom’s state-run oil giant reached a $1.88 trillion market cap on its first day of trading, putting it well above that of Microsoft and Apple. The astronomic $2 trillion figure, long pursued by Saudi Crown Prince Mohammed bin Salman since he announced his idea of the float in 2016, defied the expectations — and the ridicule — of much of the global finance community. But weak international interest, suspicions of heavily government-influenced local demand and scrapped plans to book-build outside the Gulf region have raised the question of how genuinely successful the public listing really is ⁠— and whether it could perform similarly if tested in international markets. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. “I think it was a managed sale with a lot of government involvement,” said Rutledge, who served as an economic advisor to three U.S. administrations and the government of Kuwait. “They managed creating the book of buyers, but they also determined how many shares were sold. And so with that, you’ve got both levers. You can make the market cap almost whatever you want at that level.”

In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a wide range of institutions reflects trust in our long-term strategy.” After shares began trading Wednesday, Aramco CEO Amin Nasser told CNBC that the initial pricing of 32 riyals per share ($8.53) “was agreed based on full analysis and evaluation” and that the IPO on the Tadawul is “a sign of how strong the stock exchange is.” Nasser noted that local demand for shares was five times oversubscribed and said the listing “embodies Vision 2030,” the agenda set out by the crown prince to diversify the Saudi economy. Still, market and regional analysts were quick to point out that the listing fell short of the crown prince’s grand vision, which initially targeted an international listing. The kingdom had to rely predominantly on local investors after canceling roadshows in London and New York due to paltry foreign investor interest.

“It’s a success on paper. They delivered on a complicated IPO, the largest in the world,” said Ayham Kamel, head of the Middle East and Africa practice at Eurasia Group. “But the key risk facing Mohammed bin Salman is that a small IPO does not really move the needle on his diversification program, even if readjusted as part of a new Vision 2030. He needs to sell more of the company and begin to attract foreign investors.” Saudi Arabia’s recently announced 2020 budget revealed a budget deficit increase to 6.4% of gross domestic product from 4.2% in 2019, as its economy feels the pain of fiscal tightening and lower oil prices. The International Monetary Fund says Saudi Arabia needs oil at $78 a barrel to balance its budget ⁠— a level not seen in five years, and far from the $58 to $63 range of the last few months. Several energy forecasters see oil reaching only $70 a barrel by the end of 2020.

Amin H. Nasser, President and CEO of Aramco, rings the bell during the official ceremony marking the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019. Saudi Aramco | Reuters


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, exactly, trading, ipo, listing, saudi, international, market, aramcos, aramco, oil, recordbreaking, price, shares, free, dhabi, analyst


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Saudi Aramco shares surge 10% as historic IPO begins trading

Saudi Aramco, the world’s largest initial public offering (IPO), surged past expectations as it debuted on the country’s stock exchange on Wednesday morning. Shares of the state-owned oil company rose to 35.2 Saudi riyals ($9.38) from 32 riyals in early deals in Riyadh, up 10% and hitting their daily limit. It gives it a valuation of $1.88 trillion and makes it the largest listed company in the world. The launch follows a weeks-long local roadshow around the Middle East that saw Aramco’s local l


Saudi Aramco, the world’s largest initial public offering (IPO), surged past expectations as it debuted on the country’s stock exchange on Wednesday morning.
Shares of the state-owned oil company rose to 35.2 Saudi riyals ($9.38) from 32 riyals in early deals in Riyadh, up 10% and hitting their daily limit.
It gives it a valuation of $1.88 trillion and makes it the largest listed company in the world.
The launch follows a weeks-long local roadshow around the Middle East that saw Aramco’s local l
Saudi Aramco shares surge 10% as historic IPO begins trading Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-11  Authors: natasha turak
Keywords: news, cnbc, companies, valuation, company, shares, public, trading, local, results, market, aramco, listing, saudi, surge, trillion, riyals, ipo, begins, historic


Saudi Aramco shares surge 10% as historic IPO begins trading

Saudi Aramco, the world’s largest initial public offering (IPO), surged past expectations as it debuted on the country’s stock exchange on Wednesday morning. Shares of the state-owned oil company rose to 35.2 Saudi riyals ($9.38) from 32 riyals in early deals in Riyadh, up 10% and hitting their daily limit. It gives it a valuation of $1.88 trillion and makes it the largest listed company in the world. Aramco’s public debut, which listed 1.5% of its shares locally on the Saudi Tadawul, is the largest on record — topping the $25 billion Alibaba raised when it went public in September 2014. The oil giant’s IPO has surpassed its earlier valuation of $1.7 trillion, announced when share pricing was disclosed last week at the top of market range. But the $1.88 trillion valuation remains below what the kingdom had initially been targeting and relied heavily on local investors after canceling international roadshows due to lackluster foreign interest.

Aramco CEO Amin Nasser told reporters at the event that the company was pleased with the day’s results. “We are progressing based on what was decided, which is to (price) Aramco at 32 riyals per share, which was agreed based on full analysis and evaluation,” Nasser said. “We are happy on the results today. And you have seen the market responds to our results, the company will continue to be the leader globally when it comes to the energy sector and at the same time we are looking at sustained and growing dividends to our investors. At the same time we continue our growth strategy, increasing profitability across cycles.” The long-awaited IPO of world’s most profitable company forms the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 aimed at transforming the Saudi economy. The crown prince first floated the idea in 2016, stunning market observers by suggesting a head-spinning valuation of $2 trillion. That figure was brought down by financial advisors and banks earlier this year to a range of between $1.5 trillion and $1.7 trillion.

The launch follows a weeks-long local roadshow around the Middle East that saw Aramco’s local listing many times oversubscribed, according to banks advising the listing. But regional and market experts have thrown cold water on the celebrations, calling the valuation a “hollow win” and acknowledging that while historic, much of the local investor demand was “manufactured.” Gulf allies the United Arab Emirates and Kuwait are believed to have made substantial commitments to the Saudi project, with the Kuwait Investment Authority and Abu Dhabi reportedly investing up to $1 billion and $1.5 billion in the public offering, respectively, though they have not commented publicly on the matter. Samba Capital, one of Aramco’s advisors, said in a statement last week that 10.5% of the offers came from foreign investors, while most were from Saudi funds and companies. Saudi Arabia has also turned to wealthy local families and Saudi billionaires to drum up support for the listing, according to reports.

Investor risks?


Company: cnbc, Activity: cnbc, Date: 2019-12-11  Authors: natasha turak
Keywords: news, cnbc, companies, valuation, company, shares, public, trading, local, results, market, aramco, listing, saudi, surge, trillion, riyals, ipo, begins, historic


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Saudi Aramco shares surge 10% as historic IPO begins trading

Saudi Aramco, the world’s largest initial public offering (IPO), surged past expectations as it debuted on the country’s stock exchange on Wednesday morning. Shares of the state-owned oil company rose to 35.2 Saudi riyals ($9.38) from 32 riyals in early deals in Riyadh, up 10% and hitting their daily limit. Aramco CEO Amin Nasser told CNBC at the event that the company was pleased with the day’s results. The launch follows a weeks-long local roadshow around the Middle East that saw Aramco’s loca


Saudi Aramco, the world’s largest initial public offering (IPO), surged past expectations as it debuted on the country’s stock exchange on Wednesday morning.
Shares of the state-owned oil company rose to 35.2 Saudi riyals ($9.38) from 32 riyals in early deals in Riyadh, up 10% and hitting their daily limit.
Aramco CEO Amin Nasser told CNBC at the event that the company was pleased with the day’s results.
The launch follows a weeks-long local roadshow around the Middle East that saw Aramco’s loca
Saudi Aramco shares surge 10% as historic IPO begins trading Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-11  Authors: natasha turak
Keywords: news, cnbc, companies, aramco, shares, valuation, public, trading, saudi, begins, market, results, riyals, surge, company, historic, listing, ipo, trillion, local


Saudi Aramco shares surge 10% as historic IPO begins trading

Saudi Aramco, the world’s largest initial public offering (IPO), surged past expectations as it debuted on the country’s stock exchange on Wednesday morning. Shares of the state-owned oil company rose to 35.2 Saudi riyals ($9.38) from 32 riyals in early deals in Riyadh, up 10% and hitting their daily limit. The price gives it a valuation of $1.88 trillion and makes it the largest listed company in the world, comfortably ahead of Microsoft and Apple. Aramco’s public debut, which listed 1.5% of its shares locally on the Saudi Tadawul, is the biggest on record — topping the $25 billion Alibaba raised when it went public in September 2014. The oil giant has also surpassed its earlier valuation of $1.7 trillion, announced when share pricing was disclosed last week at the top of the market range. But the $1.88 trillion valuation remains below what the kingdom had initially targeted and relied heavily on local investors after the company canceled international roadshows due to lackluster foreign interest.

Aramco CEO Amin Nasser told CNBC at the event that the company was pleased with the day’s results. “We are progressing based on what was decided, which is to (price) Aramco at 32 riyals per share, which was agreed based on full analysis and evaluation,” Nasser said. “We are happy on the results today. And you have seen the market responds to our results, the company will continue to be the leader globally when it comes to the energy sector and at the same time we are looking at sustained and growing dividends to our investors. At the same time we continue our growth strategy, increasing profitability across cycles.” The long-awaited IPO of world’s most profitable company forms the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 program aimed at transforming the Saudi economy. The crown prince first floated the idea in 2016, stunning market observers by suggesting a head-spinning valuation of $2 trillion. That figure was brought down by financial advisors and banks earlier this year to a range of between $1.5 trillion and $1.7 trillion.

The launch follows a weeks-long local roadshow around the Middle East that saw Aramco’s local listing many times oversubscribed, according to banks advising the listing. But regional and market experts have thrown cold water on the celebrations, calling the valuation a “hollow win” and acknowledging that while historic, much of the local investor demand was “manufactured.” Gulf allies the United Arab Emirates and Kuwait are believed to have made substantial commitments to the Saudi project, with the Kuwait Investment Authority and Abu Dhabi reportedly investing up to $1 billion and $1.5 billion in the public offering, respectively, though they have not commented publicly on the matter. Samba Capital, one of Aramco’s advisors, said in a statement last week that 10.5% of the offers came from foreign investors, while most were from Saudi funds and companies. Saudi Arabia has also turned to wealthy local families and Saudi billionaires to drum up support for the listing, according to reports.

Investor risks?


Company: cnbc, Activity: cnbc, Date: 2019-12-11  Authors: natasha turak
Keywords: news, cnbc, companies, aramco, shares, valuation, public, trading, saudi, begins, market, results, riyals, surge, company, historic, listing, ipo, trillion, local


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post