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Last Trade - 12/05/21

Sector
Financials
Size
Large Cap
Market Cap £19.36bn
Enterprise Value £17.63bn
Revenue £2.44bn
Position in Universe 459th / 6856

BREAKINGVIEWS-Capital Calls-Compass takes a realistic offer

Thu 1st April, 2021 4:06pm
(The author is a Reuters Breakingviews columnist.  The opinions
expressed are their own.)
    NEW YORK, April 1 (Reuters Breakingviews) - Concise insights
on global finance in the Covid-19 era.
 
    -------------------------------------------------
REAL DEAL. Compass, the SoftBank-backed real-estate group,
raised $450 million in its initial public offering https://www.sec.gov/Archives/edgar/data/0001563190/000119312521101664/d36119ds1a.htm#rom36119
 on Wednesday. At $18 a share, the low end of a price range that
was earlier slashed from as much as $26, the company is worth
around $9 billion allowing for dilution from restricted stock
and options.
    The company emphasized technology as a selling point
 urn:newsml:reuters.com:*:nL2N2L11I4. Investors may have seen it more as a real-estate
brokerage. At the IPO price Compass, founded by ex-Goldman Sachs
executive Robert Reffkin, is worth around 2.4 times last year’s
sales of $3.7 billion. That’s more than traditional rival
Realogy  RLGY.N , which is valued at roughly 1 times sales, but
far less than tech-based Zillow  ZG.O  at around 9 times
revenue.
    The IPO price cut may also partly reflect jitters
surrounding the implosion of Archegos Capital Management and
UK-based Deliveroo’s  ROO.L  flop in its London debut on
Wednesday  urn:newsml:reuters.com:*:nL8N2LT2P9. Still, Compass is worth more than its
last private funding round in 2019. As any good realtor would
advise, if a realistic offer beats the price last time a
property was sold, take it. (By Jennifer Saba)

    On Twitter http://twitter.com/breakingviews
    
    Earlier in Capital Calls:
    
    Brookfield digs deeper  urn:newsml:reuters.com:*:nL4N2LU3W5
    Rolls-Royce boss straps himself in tighter  urn:newsml:reuters.com:*:nL4N2LU3RV
    Mastercard opens African mobile money account  urn:newsml:reuters.com:*:nL4N2LU2QL
    Chinese loans attach unexpected strings  urn:newsml:reuters.com:*:nL4N2LU2BD
    Macquarie risk is under-calculated  urn:newsml:reuters.com:*:nL4N2LU0KK

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| Editing by Richard Beales and Amanda Gomez)
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