geoffreythegiraffeThe Needham analyst conveyed his enthusiasm about the TRU IPO to his colleagues, as well. When a rival firm announced in early May 2010 that it was initiating research coverage of toy manufacturers and the toy industry, the Needham analyst sent an email to a colleague stating the firm’s initiation of coverage was “[s]hameless positioning to get a certain upcoming toy IPO,” and that he “would do it too. I would crawl on broken glass dragging my exposed junk to get this deal.” [Matt Levine, earlier]

toysrusThe investment banks promised favorable research to Toys “R” Us Inc. and its private-equity owners to win roles in its initial public offering, the Financial Industry Regulatory Authority said today in a statement. The regulator fined the firms a total of $43.5 million, faulting them for “implicitly or explicitly” making promises that their analysts would give positive coverage. Six of the 10 firms didn’t have adequate supervisory procedures to prevent the practice…In May 2010, Citigroup’s investment bankers hosted a chaperoned call with the firm’s research analyst, who then e-mailed a supervisor. “I so want the bank to get this deal!” the analyst said in the e-mail, according to Finra. Days later, bankers told the retailer that they could “count on Citi’s firm-wide support and advocacy for the Toys story and valuation.” Other firms contacted Toys “R” Us after making their pitches, expressing enthusiasm about the firm’s prospects and providing assurances that the views of bankers and analysts were aligned, Finra said. Toys “R” Us and investors, including KKR & Co., withdrew the IPO filing last year. [Bloomberg]

ubs1 3.13.35 PMBased on a judge’s ruling today. Read more »

The thrill of the IPO, it seems, goes only so far. Read more »

Hedge fund mogul Bill Ackman has raised a record $2.7 billion for his hedge fund IPO that will start trading on the Amsterdam stock exchange later this month. Ackman set out to raise $2 billion, but the deal’s underwriters told their clients Tuesday night that the IPO was oversubscribed and to expect the size of their orders to be scaled back. The offering is expected to hit $3.07 billion, once the “green shoe” overallotment of 10 percent is exercised. Pershing Square Holdings — the offshore fund that is going public on Oct. 13 — will start with $6.2 billion, the largest such IPO ever…The IPO will give him more firepower to take on activist campaigns because Pershing Square’s permanent capital will be equal to almost half its total. [NYP]

  • 24 Sep 2014 at 11:55 AM

The Hustler Club Is Going Public

Technically, it’s Larry Flynt’s entire empire (magazines, websites, a TV network, etc) but the thing to focus on here is that when you step into the Hustler Club, whose Greek Temple-inspired facade can be viewed from the West Side Highway, you’ll be stepping into an investment opportunity. Read more »

  • 24 Sep 2014 at 11:25 AM

Good News Keeps Rolling In For The British

First, they got to keep their country intact. Now, their IPO market is heating up. Will the good times ever stop?* Read more »

Cory Frugé is a pilot and an Alibaba enthusiast—an enthusiasm that stems from his being a pilot and his love of the cheap lighting solutions the Chinese company provided him for his backyard runway. Unfortunately for Capt. Frugé, he had planned a vacation to the Florida Panhandle the very day of Alibaba’s IPO. This was distressing to Capt. Frugé, and so he did the reasonable thing: He told his investment adviser to buy him shares when they became available.

He then also did the unreasonable thing: Sat around waiting for Alibaba shares to begin trading, delaying his flight to do so, even though he had put in place the aforementioned arrangement. Then, he got impatient and took off just in time to be 10 minutes late for the big moment. Which, again, didn’t matter, because he had already placed his order. Read more »