Etsy Surges in Debut After Craft Marketplace’s $267 Million IPO

http://www.bloomberg.com/news/articles/2015-04-15/etsy-said-to-raise-267-million-pricing-ipo-at-top-of-range

Etsy Inc., the website founded a decade ago by a carpenter looking to sell wooden computers, nearly doubled in its trading debut after raising $267 million in an initial public offering.

A marketplace for handmade and vintage goods, Etsy opened up 93 percent at $31 at 10:49 a.m. in New York. The Brooklyn-based company and some of its backers sold 16.7 million shares for $16 apiece. Another highly watched IPO, by Virtu Financial Inc., is also expected to start trading Thursday. Like Etsy, Virtu priced its shares at the top of the marketed range.

Etsy’s offerings include a knit coffee warmer for $6.50 and a 1960 metal typewriter for $85. Etsy makes revenue by charging sellers listing fees and commissions. As a public company Etsy’s challenge will be to keep the artisans and craftmakers who sell their products on the site happy, as the it also seeks to build scale for investors.

The IPO is a first for a B Corporation, a distinction given to businesses that meet exacting standards with regard to social and environmental performance. Proceeds will be used to invest in the business, except for $300,000 which will fund Etsy.org, a non-profit for educating women and minorities on how to create their own businesses.

Manufacturing Growth
Etsy plans to invest in marketing and logistics to expand globally, as well as enhance seller services. The company also wants to develop its manufacturing program — started in October 2013 to allow sellers to outsource production and fulfillment. The policy helped some sellers become six-figure successes, while others, purely focused on handmade items, saw their sales decline amid competition from less expensive products.

Sales amounted to $195.6 million last year, a 56 percent jump from 2013. As the end of 2014, Etsy had 1.4 million active sellers and almost 20 million buyers. Women account for 86 percent of the sellers.
The company was founded in 2005 by Rob Kalin, a carpenter making handmade wooden computers with nowhere to sell them. He left the company in 2011 and was replaced as chief executive officer by Chad Dickerson, 42, a former Yahoo! Inc. executive.

Accel Partners, Index Ventures and Union Square Ventures planned to sell shares in the IPO, filings show. Accel will own 22.4 percent of Etsy after the offering, while Index Ventures will hold 10.6 percent. Union Square will have a 12.6 percent stake, while CEO Dickerson will own 1.9 percent of the company.
Goldman Sachs Group Inc., Morgan Stanley and Allen & Co. managed Etsy’s IPO. The shares are listed on the Nasdaq Stock Market under the symbol ETSY.

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Singapore’s Top 10 list of “Most-Streamed Sleep Songs”

http://www.channelnewsasia.com/news/lifestyle/spotify-says-singaporeans/1784836.html

Well, just in case you guys need a good list of smoothing music…

Spotify says Singaporeans are falling asleep to Ed Sheeran and Sam Smith

Thinking Out Loud – Ed Sheeran
I’m Not The Only One – Sam Smith
Love Me Like You Do (From Fifty Shades Of Grey) – Ellie Goulding
Stay With Me – Sam Smith
All of Me – John Legend
Tenerife Sea – Ed Sheeran
Lay Me Down – Sam Smith
Skinny Love – Birdy
Take Me To Church – Hozier
Give Me Love – Ed Sheeran

SGX

Main reason for the recent strong rally is due to the speculation of a China-Singapore Stock trading link. However, SGX refuted the “market rumours. With such rally, it is highly possible for a retracement to follow, which will be a good price entry for long term investment.

20 days ma crossed up 50 days ma
Good upwards momentum, seen from 20 days, 50 days & 200 days ma.
Stochastic signals in overbought region
Possible retracement before further upside
Entry: $8.31- $8.4

SGX

SGX refutes rumours on stock trading link with China

http://www.channelnewsasia.com/news/singapore/sgx-refutes-rumours-on/1786290.html

SINGAPORE: The Singapore Exchange (SGX) has refuted “market rumours” in news reports that it will establish a stock trading link along the lines of the Shanghai-Hong Kong Stock Connect.

It released the following statement on Wednesday (Apr 15):

“In response to a query from our regulator, the Monetary Authority of Singapore, on 15 April 2015, Singapore Exchange Limited (SGX) wishes to make a clarification on market rumours in news reports including The Straits Times on 14 April 2015 and The Business Times on 15 April 2015, about a potential stock trading link with SGX along the lines of the Shanghai-Hong Kong Stock Connect.
SGX is not currently in the process of establishing such a link, but remains open to future collaborations which benefit our partners and shareholders. SGX will notify the market of any material developments as required under the Securities and Futures Act and the SGX-ST Listing Rules.”

A stock trading link with China will make it easier for Chinese investors to buy Singapore-listed shares.

The Hong Kong-Shanghai Stock Connect got off to a slow start when it was launched late last year. In recent weeks though, a surge of investments from mainland China has propelled Hong Kong stocks, including those of many smaller-cap firms, to multi-year highs.

SMRT and OMG team up to bid for Singapore’s 4th telco licence

http://www.channelnewsasia.com/news/singapore/smrt-and-omg-team-up-to/1786138.html

SINGAPORE: Transport operator SMRT has announced that it has entered an agreement with OMGTEL (OMG) to work exclusively with OMG in connection with OMG’s bid for Singapore’s fourth wireless telecomunications carrier licence.

OMG is a company incorporated by local tech firm Consistel on Oct 20, 2014, for the purpose of bidding for the telco licence. It had originally announced its intentions to be the Republic’s fourth telco in October.

Under the announcement, which was posted on the Singapore Exchange on Wednesday (Apr 15), SMRT and OMG will collaborate on the provision of goods and services, and will seek to leverage SMRT’s extensive media presence and commuter reach.

“The above transaction is not expected to have a material impact on the company’s financial performance for the financial year ending Mar 31, 2016,” SMRT said.

The transport operator also announced that it was offered an opportunity to invest up to S$34.5 million via an option to subscribe for shares in OMG. The exercise of the option will be at SMRT’s election, and subject to OMG obtaining the telco licence, satisfactory due diligence on OMG, and the execution of definitive agreements between SMRT and OMG, among others, it said.

Another company vying to be the fourth telco is fibre broadband provider MyRepublic.

Broker’s take: Some S-Reits may be hit by Shenzhen-Hong Kong travel restrictions, Companies & Markets – THE BUSINESS TIMES

http://www.businesstimes.com.sg/companies-markets/brokers-take-some-s-reits-may-be-hit-by-shenzhen-hong-kong-travel-restrictions

13 Apr10:25 AM

S-REITS with an exposure to the Hong Kong retail sector, such as Mapletree Greater China Commercial Trust (MGCCT) and Fortune Reit, may be affected by lower tourist numbers if a proposed move to limit mainland Chinese visitors in Hong Kong comes to pass, OCBC Investment Research said in a broker report on Monday.

Reuters reported over the weekend that China will limit visits by Shenzhen residents to neighbouring Hong Kong. It cited Michael Tien, a Hong Kong member of China’s Parliament, the National People’s Congress, as saying that Shenzhen authorities would soon restrict its residents to one visit to Hong Kong per week, from an unlimited number of daily trips.

OCBC’s report said: “We believe this new ruling, if officially passed, may impact S-Reits which have exposure to the Hong Kong retail sector.”

MGCCT’s Festival Walk retail mall has direct rail connectivity to the Shenzhen border to cater to the shopper traffic from mainland China. According to MGCCT’s latest annual report, tourists accounted for about 20 per cent of the total footfall to the mall, of which roughly eight in 10 are from mainland China.

“On a positive note, we estimate that the gross turnover rental component of MGCCT’s total revenue is less than 5 per cent,” OCBC said.

For Fortune Reit, its Fortune Kingswood shopping mall is located close to the border between Hong Kong and Shenzhen. This mall contributed 18.8 per cent of Fortune Reit’s gross revenue in fiscal 2014, OCBC said. “Fortune Reit’s business model is based on a high base rental modus operandi, and gross turnover rents form less than 5 per cent of its total gross revenue.”