the brand new IPO unicorn paradigm: wait years, then pass public at 1/2 your valuation.

We additionally have the problem of the unicorns—over a hundred U.S. tech groups that have beengiven massive amounts of personal funding and understandably had been reluctant to go public as long as they maintain getting private money.

however the public market is more disciplined than the non-public marketplace. there has been issuesthese unicorns will take haircuts if they are attempting to move public, and Line may be a leading indicator of that subject.

“This isn’t always going to help the case for the unicorns,” Kathleen Smith from Renaissance Capitalinstructed me. “The more you wait, the more the competitors pop out.”

here are the information. this may be a dual listing in the big apple and Tokyo. it’ll fee July 11 and startbuying and selling at the NYSE July 14 and the next day in Tokyo. no longer clean how the stocks can be cut up, but assets inform me -thirds will probable be on the NYSE, one third at Tokyo.

the entire imparting might be 35 million stocks at $25-$28—at the midpoint of the company‘s estimate ($26.30). The providing is valued at $928 million, making it the most important tech IPO in the U.S. in view that Alibaba.

The corporation says they’ll have a complete of 209.ninety nine million stocks. At $26.30, themarketplace cap comes to $five.52 billion.


Line, the japanese messaging app, has sooner or later filed for its IPO. I say “ultimatelydue to the factthe company has been putting round for more than years without going public. they have got in view that replaced their CEO.

years ago, diverse analysts and commentators envisioned that Line may be really worth $nine to $10 billion.

years have surpassed, and we finally have a criminal report from the enterprise approximately how an awful lot the organisation is really worth: $5.fifty two billion.

Huh? From $nine to $10 billion estimated fee two years ago to $5.52 billion?

What passed off? Time, competition and valuation. two years ago, Line was one of the global leaderswithin the then-hot messaging app space; now it is one in every of many competition.