Reddit IPO shares end first trading day up 48%

Author

Maren Ishak
March 25, 2024

Good Morning,

This morning's news includes rising stock markets around the world, earnings reports from Tesla, Nvidia, Fisher & Paykel Healthcare and others, and Fonterra reporting a 23% profit increase. There is also news about Gucci sales, political news from New Zealand and the US, and a lawsuit against Apple.

Let’s jump in!

Before The Bell

Markets

  • Stocks rose for the week with the S&P 500 and Nasdaq hitting records on expectations of Fed rate cuts, while tech and communication services led gains. (TRP)

  • European stocks rose broadly, with the STOXX 600 near record highs, as dovish central banks boosted investor sentiment. (TRP)

  • Japanese stocks surged to record highs, with the Nikkei 225 gaining 5.6% and the TOPIX up 5.3%, due to a weak yen following the Bank of Japan's surprise rate hike (the first since 2007) and expectations of U.S. Federal Reserve rate cuts in 2024. (TRP)

Earnings & Data

  • At the close in New York, Tesla was up more than 6 per cent with Alphabet rising more than 4 per cent. Nvidia was near 1 per cent higher ahead of a speech at 8am AEDT by its CEO Jensen Huang at the company’s developer conference. (AFR)

  • Copper prices surged nearly 6 per cent last week and hit an 11-month high above $US9000 ($13,700) a tonne, fuelled by supply concerns at mines and smelters in China and optimism about a spike in demand for metals used in the energy transition and the booming artificial intelligence sector. (AFR)

  • Volume in the LIC hit 5.58 million – a whopping 1,516.6 per cent gain – while the stock was up 0.56 per cent. Sources said New York activist fund Saba Capital, which inched up to 8.05 per cent of the register on March 13, wasn’t the party buying on Tuesday. (AFR)

  • Gucci sales to fall by 20% due to Asia slowdown. In comparison, its bigger rival LVMH, which owns Louis Vuitton, Moët & Chandon and Hennessy, posted higher-than-expected sales for 2023.

    (BBC)

  • Fonterra reports $674 million profit, up 23% (Stuff)

  • The Warehouse to exit TheMarket.com after 'sobering' $23.7m loss (NBR)

  • Fisher & Paykel Healthcare reports a net profit for the year ending March was expected to be in a range of $260 million to $265m, which was a $5m to $10m improvement on its November guidance, with revenue up $30m to $1.73 billion. (RNZ)

  • Lululemon forecast annual revenue and profit below expectations, sending shares down 11%. (RT)

  • Nike shares dropped 5.6% on Thursday after a post-earnings conference call in which the CFO told investors the company was cutting back on supplies of Air Force 1 sneakers to focys on new products. (RT)

News Summary

Monday

  • Christopher Luxon says Winston Peters’ Nazi comparison not ‘helpful’ (Stuff)

  • Uber to pay $272 million to Aussie taxi operators in class action settlement (9 News)

  • Vladimir Putin claims landslide Russian election victory (Guardian)

Tuesday

  • A decision on the fate of Otago and Southland postal workers is getting closer following the end of New Zealand Post’s workforce consultation period. (Stuff)

  • Hong Kong lawmakers passed a new national security law on Tuesday that grants the government more power to quash dissent, widely seen as the latest step in a sweeping political crackdown that was triggered by pro-democracy protests in 2019. (Stuff)

  • Parents worried their children will suffer as disability services suddenly cut (Stuff)

Wednesday

  • Former Deputy Prime Minister Grant Robertson’s final message is to urge politicians to give hope to Kiwis that they will see a better tomorrow that will allow them to be who they are. (Herald)

  • Deloitte Australia chief executive Adam Powick says a global restructure a year in the making will strip out duplicated roles and make it easier to respond to client needs. (AFR)

  • Donald Trump and his co-defendants were in talks with insurance giant Chubb for a $464 million appeal bond in the former president’s civil fraud case, but the company backed out — days after it raised eyebrows for giving Trump a bond in a separate case, according to a Trump lawyer. (CNBC)

Thursday

  • No gimme: NZX directors seek $215,000 pay rise (NBR)

  • Australia to spend $5b on UK subs in AUKUS pact (AFR)

  • Nvidia’s Rise Surprises Even the Researchers Who Started AI Boom (BBG)

Friday

  • David Seymour says the public service redundancy payouts could top $100 million. (Stuff)

  • US sues Apple, alleging it illegally monopolised the smartphone market. (Herald)

  • Audi issues second electric car recall due to fire risk. (AFR)

Weekend

  • Kiwi town sitting on a rare mineral the world wants (Stuff)

  • WA’s ‘$1b’ TAB deal in strife as bookie dollars dry up (AFR)

  • Trump Media merger wins investor approval (AFR)

Deal Flow

Investments / M&A

Australia & New Zealand

  • Perseus raises stakes in $258m OreCorp gold bidding war (AFR)

  • Superloop tells Aussie Broadband to slash stake below 12pc (AFR)

  • Dunedin City Council will investigate selling lines company Aurora Energy. The company has a forecast debt of $576 million (Stuff)

  • Australia's MinRes to develop a lithium processing hub in Goldfields region (RT)

  • Fresh claims in Satori Holdings liquidation saga (NBR)

  • Morrison offers listed global infrastructure fund to Kiwi investors (NBR)

  • Brookfield’s Healthscope kicks off lender negotiations amid restructure (AFR)

  • Australian billionaire family-owned Seven valued Boral at A$6.67 billion. The latter’s board believes the company is worth at least $7.17b. (NBR)

  • Listed micro cap Avada Group, which offers integrated traffic management services in Queensland and NSW, found itself in the middle of one on Tuesday evening as Regal Funds Management, owner of a 15.4 per cent stake in the company, pressed sell. (AFR)

  • Macquarie and PSP Investments have fired the starters gun on selling down a slice of data centre tearaway AirTrunk, in a much-anticipated deal that is expected to value the company at as much as $15 billion. (AFR)

  • CVC Capital Partners’ run at APM Human Services may have hit a hurdle after its period of “hard exclusivity” – whereby the target signs a written commitment that it will refrain from engaging with another party – ended last Thursday. (AFR)

  • Campus Living Villages, which runs 46 on-campus student accommodation facilities across the world, is ready to test bidder appetite after bedding down a restructure. (AFR)

Key Global

  • Aviva sells Singlife joint venture stake for $1.2 bln (RT)

  • Mater Health, a Catholic not-for-profit hospitals group that traces its history back to 1906, has been working with KordaMentha’s restructuring experts to help it through a rough patch for the industry. (AFR)

  • Swiss financial regulator FINMA said on Wednesday it plans to carry out 40 reviews of UBS (UBSG.S), opens new tab and two stress tests this year on the bank after its 2023 takeover of rival Credit Suisse heightened concerns about "too big to fail" lenders. (RT)

Other Global

  • Reddit IPO Prices at Top of Range to Raise $748 Million (BBG)

  • Astera Soars 72% on AI-Fueled Demand After $713 Million IPO (BBG)

  • Tritax Big Box's $1.2 bln takeover of rival gets board backing (RT)

VC & Fundraising

  • Small beer! Sydney Beer Co upsizes fund-raising target (AFR)

  • Sydney private debt house Revolution Asset Management has pulled the trigger on a new fund for the New Zealand market, where it already lends to classifieds giant Trade Me. (AFR)

  • Former Wilsons stockbroker and Australian national swimmer Luke Trickett has raised $16 million for his invoice payments start-up Marmalade, which he co-founded alongside two Afterpay executives. (AFR)

  • Australian workforce management software maker Deputy has cracked the billion-dollar valuation milestone, with its first external investment in six years making it the first private technology “unicorn” company to emerge since the tech funding market soured in early 2022. (AFR)

  • SafetyCulture, a $2.7 billion workplace compliance software company, is lending its staff money to buy shares in the firm, as it tries to attract 200 workers globally over the next 18 months. (AFR)

  • Ex-JPMorgan Chase & Co. banker Ryan Holsheimer is starting a new firm that will make early-stage investments and plans to start fundraising over the next two months. (BBG)

  • Call recording app for law firms funding entrepreneur’s moonshot (NBR)

Equity Raises

Australia & New Zealand

  • Cybersecurity roll-up Sovereign Cloud Holdings launches rights issue (AFR)

  • Electro Optic Systems is capitalising on a massive run-up in its share price, with the ASX-listed defence and communications outfit tapping Bell Potter and Canaccord Genuity to launch an equity raise. (AFR)

Key Global

  • Social media platform Reddit's shares ended their first day of trading in New York up 48%. (RT)

Debt, Restructuring & Bankruptcy

  • Lawyers swarm Healthscope’s $1.6b debt restructure (AFR)

  • The International Monetary Fund on Wednesday said it had reached a staff level agreement with Pakistan, which if approved by its board, will disburse $1.1 billion for the indebted South Asian economy also saddled with a balance of payment crisis. (RT)

  • MoneyMe on international roadshow for new ABS deal (AFR)


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