3 Chinese telecom carriers will be delisted from NYSE after losing appeals over a Trump-era investment rule

AP21006557939503
Staff members use their smartphones at a China Mobile display during the PT Expo in Beijing Oct. 14, 2020.

  • Shares of three Chinese telecom companies will be delisted from the New York Stock Exchange, The Wall Street Journal reported.
  • The appeals of China Mobile, China Unicom, and China Telecom against being delisted were rejected.
  • The ban was introduced during the tail end of the Trump administration.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of three major Chinese telecom carriers will be delisted from the New York Stock Exchange after their appeals against being delisted were rejected, based on separate filings in Hong Kong, The Wall Street Journal reported Friday.

China Mobile, China Unicom (Hong Kong), and China Telecom all said they expect the NYSE to request permission from the Securities and Exchange Commission to delist their American depositary receipts. This will take effect 10 days after the SEC is informed.

Former President Donald Trump on November 12, 2020, issued an order barring investments in publicly traded companies that the US government believes are owned or controlled by the Chinese military.

There had been a period of some back and forth, with the NYSE at one point reversing its decision before saying it would go ahead with the move to delist the shares. But when Joe Biden took office in January, the three companies asked the exchange to revisit its decision.

Trading of the American depositary receipts – securities that allow US investors to trade in foreign companies – of all three companies has been suspended since January 11.

But investors can still exchange those ADRs for shares by returning them to the Bank of New York Mellon, according to The Wall Street Journal.

The November order prompted index makers including FTSE Russell and MSCI to cut a dozen Chinese companies on the list from their benchmarks.

The Holding Foreign Companies Accountable Act, signed into law in December 2020, will require certain foreign companies identified by the SEC to disclose their shareholder information. This puts some Chinese companies at risk of being delisted as China in the past has been known to refuse the US Public Company Accounting Oversight Board to audit Chinese firms, often citing national security concerns.

The SEC in March said non-compliance for three consecutive years will get companies kicked off from the NYSE or Nasdaq.

Read the original article on Business Insider

The New York Stock Exchange is minting crypto art commemorating the first trades of 6 companies that recently went public

NYSE NFT
  • The New York Stock Exchange announced on Monday that it had minted six NFTs.
  • The NFTs represent the first trades of several companies that recently went public on the NYSE.
  • The crypto art pieces are not currently up for sale, but will be gifted to the companies, a source told Insider.
  • See more stories on Insider’s business page.

The New York Stock Exchange (NYSE) announced on Monday that it was getting into crypto art by minting its own digital collectibles designed to commemorate the first public trade of six stocks.

The NYSE is not only the largest stock exchange in the world, but it is also the first to get into crypto art. The collectibles will represent the first trades of Spotify, Snowflake, Unity, DoorDash, Roblox, and Coupang. NYSE said it plans to launch more first-trade collectibles in the future.

The digital collectibles will operate as non-fungible tokens or NFTs. NFTs are digital collectible tokens that allow the buyer to connect their name directly to the creator via the blockchain.

NFTs have boomed in recent months. In February, one crypto art piece sold for nearly $70 million. Since, celebrities and public figures from Twitter CEO Jack Dorsey to singer Shawn Mendes have gotten in on the trend, which has brought in millions for opportunistic creators and resellers of the pieces.

Read more: NFTs, or non-fungible tokens, are the hottest thing in entertainment, art, and crypto right now. Here’s a simple explanation of the craze.

While the NYSE appears to be getting in on the NFT trend, the exchange’s tokens are not up for sale. The NFTs are housed on Crypto.com, a less than month-old NFT trading platform that has already launched crypto art sales for several celebrities including Snoop Dogg and Boy George.

A source familiar with the matter told Insider NYSE does not plan to sell its NFTs, but has already gifted them to the respective companies. The NYSE also plans to mint future NFTs and gift those to the memorialized companies as well, according to the source.

The NFTs for each company feature a short clip containing information about the first trade, including the sale price, date, and a string of numbers representing the first trade quote code.

Stacey Cunningham, the President of NYSE, said the NFTs will help commemorate the very first moments a company joins NYSE by highlighting the data from a company’s very first trade.

“NYSE technology is processing over 350 billion order, quote and trade messages across our markets on our busiest days, more than any other exchange in the world,” Cunningham said in a LinkedIn post. “Only one of those messages marks the NYSE First Trade: the exact moment a company became public, creating an opportunity for others to share in their success.”

Read the original article on Business Insider

Members-only social club Soho House files for US IPO at $3 billion valuation, report says

Traders work on the floor of the New York Stock Exchange (NYSE) on November 20, 2019 in New York City
Traders work on the floor of the New York Stock Exchange (NYSE) on November 20, 2019 in New York City

  • Soho House, a network of private social clubs, filed confidential IPO paperwork with the Securities and Exchange Commission, Sky News reported.
  • The company could be valued at more than $3 billion, creating a windfall for founder Nick Jones.
  • The London-based company is part-owned by American billionaire Ron Burkle.
  • See more stories on Insider’s business page.

Soho House, a London-based network of private social clubs located worldwide, has filed to go public in the US, Sky News reported Friday.

The company this week filed confidential IPO paperwork with the US Securities and Exchange Commission. Soho House could be valued at more than $3 billion (£2.1 billion), the report said, citing banking sources.

Soho House is aiming for a listing on the New York Stock Exchange, eschewing a listing in London with Sky News noting that the company is majority-owned by Ron Burkle, a billionaire from California who is the part-owner of the Pittsburgh Penguins hockey team and co-founder of private investment firm Yucaipa Companies.

Soho House’s founder is Nick Jones, who opened the original location in the west end of London in 1995.

The company two years ago decided to raise capital privately instead of filing for an IPO, the report said.

The network includes 27 houses in 10 countries including the US, Germany, India, and in Hong Kong. It opened its first US-based house in 2003 in the Meatpacking District in New York City.

Read the original article on Business Insider

Peridot Acquisition Corp. surges as SPAC set to merge with battery recycler Li-Cycle

Lithium-ion battery factor
A trove of startups are working on a breakthrough battery technology using silicon that could make them last 20-40% longer. Here, a lithium-ion battery factory in France.

  • Peridot Acquisition Corp. stock climbed past $17 in early trading Tuesday on news it would merge with Li-Cycle. 
  • The newly combined company Li-Cycle Holdings Corp. will trade on the NYSE under ticker ‘LICY’. 
  • The deal is expected to close in the second quarter and have a pro forma equity value of about $1.67 billion. 
  • Visit the Business section of Insider for more stories.

Peridot Acquisition Corp. stock climbed Tuesday as the SPAC struck an agreement to merge with Li-Cycle, a lithium-Ion battery recycler.

The two companies said in a joint statement that the deal will result in the creation of Li-Cycle Holdings Corp. and that the combined company will have a pro forma equity value of about $1.67 billion.

Peridot stock rose by as much as 14% to $15.74 before paring the gain to 4% during the regular session. The stock ahead of the opening bell climbed as much as 28% to $17.79. 

Li-Cycle, which was founded in Toronto in 2016, has commercial contracts with more than 40 blue chip suppliers, among other business agreements, with customers including 14 of the world’s largest automotive and battery manufacturers.

The companies said Li-Cycle should receive about $615 million in gross transaction proceeds, which will be used toward the company’s plans to expand worldwide. All of Li-Cycle’s existing shares will roll into the combined company, they said.

“Li-Cycle is at the forefront of one of the most crucial and under-penetrated markets in clean technology that is growing in lock-step with the electrification of mobility,” said Peridot Chief Executive Alan Levande, who will join Li-Cycle’s board of directors.

Investors in the deal include Neuberger Berman Funds, Franklin Templeton and Mubadala Capital and Peridot’s sponsor Carnelian Energy Capital.

The newly merged company will be listed on the New York Stock Exchange and trade under the ticker symbol “LICY.” The deal is expected to close in the second quarter of 2021.

Roughly 130 SPACs have gone public in 2021, outpacing the first nine months of 2020, according to investment firm Accelerate. 

Read the original article on Business Insider

NYSE president Stacey Cunningham says the stock market is not a casino – and exchange officials have not been asked to testify at the upcoming GameStop hearing

Stacey Cunningham, First Female President of the NYSE
Stacey Cunningham.

  • The NYSE’s president told Axios stock markets are not a casino, and they are highly regulated.
  • NYSE officials have not been called to testify at GameStop’s House hearing, Stacey Cunningham said.
  • Rules on transparency around short positions held by hedge funds should be reviewed, she said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

NYSE president Stacey Cunningham told Axios in a recent interview that investing in the stock market does not resemble gambling. 

“The markets are not a casino,” she told Axios’ Dan Primack. “They are highly regulated and they’re highly overseen. We are running a market that provides opportunities for investors to come in, invest in the companies they believe in, they believe that are gonna grow, and then share in that wealth creation.”

Senator Elizabeth Warren last month slammed hedge funds and investors who criticized traders driving up GameStop for treating the stock market like a casino.

Cunningham disagreed with the sentiment, and said that what makes America so great is that “dreamers and entrepreneurs” with an idea can grow their business by getting others to invest via the stock market and share in the success.

Read More: GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target them – and the group has already nearly doubled over the past 3 months

The CEOs of Robinhood, Reddit, hedge fund Citadel, and investment-management firm Melvin Capital are expected to testify as part of a House hearing on the GameStop saga this Thursday, along with YouTube streamer Roaring Kitty.

Cunningham said NYSE officials have not been summoned to testify at the hearing, even though GameStop, AMC and other so-called “meme-stocks” trade on the exchange. “This is not really so much a New York Stock Exchange issue,” she said.

However, she believes regulators should review transparency requirements around short positions held by hedge funds. 

Read More: Canadian regulators just approved the world’s first Bitcoin ETF. Here are the 5 things investors need to know about the outlook for a US version

Read the original article on Business Insider

China has accused Trump of trying to start a new Cold War, after the New York Stock Exchange confirmed plan to delist three Chinese firms

trump china
  • China on Saturday accused the Trump administration of attempting to “suppress” foreign companies, as the New York Stock Exchange moved to delist three China-based firms. 
  • Wang Yi, China’s foreign minister, said Trump’s economic policies amount to an “attempt to suppress China and start a new Cold War.” 
  • “This kind of abuse of national security and state power to suppress Chinese firms does not comply with market rules and violates market logic,” a spokesperson for the Chinese Ministry of Commerce said in a statement, according to Reuters
  • Visit Business Insider’s homepage for more stories.

China on Saturday accused the Trump administration of attempting to suppress foreign companies, as the New York Stock Exchange moved to delist three China-based firms. 

The delisting came after months of mounting pressure, including an accusation from President Donald Trump that China uses US markets to raise money for its military. 

“This kind of abuse of national security and state power to suppress Chinese firms does not comply with market rules and violates market logic,” a spokesperson for the Chinese Ministry of Commerce said in a Saturday statement, according to Reuters

Separately, Wang Yi, China’s foreign minister, said on Saturday that Trump’s policies amount to an “attempt to suppress China and start a new Cold War.” 

“China-US relations have come to a new crossroads, and a new window of hope is opening. We hope that the next US administration will return to a sensible approach, resume dialogue with China, restore normalcy to the bilateral relations and restart cooperation,” Wang said in an interview with state-sponsored Xinhua News Agency. 

President-elect Joe Biden has said the US should work closely with its global allies as disputes with China crop up. 

“And as we compete with China and hold China’s government accountable for its abuses on trade, technology, human rights, and other fronts, our position will be much stronger when we build coalitions of like-minded partners and allies to make common cause with us in defense of our shared interests and values,” he said last week in Delaware, according to his prepared remarks

Officials in Beijing on Saturday said they would take “necessary measures” to support delisted Chinese companies, according to Reuters. 

Biden Xi Jinping China
Chinese President Xi Jinping, then-Vice President Joe Biden, Peng Liyuan and Jill Biden stand for the US National Anthem at Andrews Air Force Base in Maryland, September 24, 2015.

In November, President Donald Trump issued an executive order accusing Chinese officials of “increasingly exploiting” US markets. The order read: “Those companies, though remaining ostensibly private and civilian, directly support the [Chinese] military, intelligence, and security apparatuses and aid in their development and modernization.”

In December, US legislators passed the Holding Foreign Companies Accountable Act, a measure that requires listed firms to show proof they’re not owned or controlled by foreign governments. 

“Communist China has been the bully on the playground of America’s stock exchanges for years, and that stops today,” said Sen. John Kennedy, the bill’s author, in a statement.  

As a result, China Unicom Hong Kong, China Mobile, and China Telecom will each be delisted early this month, said the NYSE in a statement posted after markets closed on Thursday.

Trading in the company’s American Depositary shares will be suspended before markets open on January 7, according to the NYSE.

Each company is also listed in Hong Kong, according to Reuters. 

As of October, there were 217 China-based companies listed on the three biggest US stock exchanges, according to US statistics. Their total market value was about $2.2 trillion. 

 

 

Read the original article on Business Insider

DoorDash makes trading debut 78% above IPO price

DoorDash delivery driver courier brooklyn bike
  • DoorDash commenced public trading on Wednesday, opening at $182, which was 78% above its initial public offering price.
  • The food-delivery company raised roughly $3.4 billion with its initial public offering after pricing shares at $102 each on Tuesday.
  • The IPO kicks off a slew of debuts slated for December, including offerings from Airbnb and Wish-parent ContextLogic.
  • DoorDash trades on the New York Stock Exchange under the ticker “DASH.”
  • Watch DoorDash trade live here.

DoorDash commenced public trading on Wednesday, opening at $182, which was 78% above its initial public offering price. The stock is listed on the New York Stock Exchange.

The food-delivery company raised roughly $3.4 billion in its initial public offering, selling shares at $102 each. The final pricing exceeded its previously expected range of $90 to $95 per share, and gave DoorDash a valuation of roughly $34.2 billion. That sum handily surpasses the $15 billion valuation it achieved in the private market earlier this year.

DoorDash’s IPO marks one of the year’s biggest offerings and caps a historic year for public debuts. US listings already raised a record $156 billion in 2020, according to Bloomberg data. Airbnb and Wish-parent ContextLogic are still poised to enter the market this month, with the former set to begin trading on Thursday.

Read more: We spoke with Wall Street’s 9 best-performing fund managers of 2020 to learn how they crushed the chaotic market – and compile the biggest bets they’re making for 2021

Overwhelming investor demand placed shares on track to open as high as $195 before trading began. Its ultimate opening level of $182 is more than double the $75 to $85 range DoorDash expected to price shares as recently as Thursday.

DoorDash’s debut establishes it as the highest-valued food-delivery company. The firm trades under the ticker “DASH.” 

While the coronavirus slashed sales across the US economy, stay-at-home orders led DoorDash to thrive through the pandemic. Third-quarter revenue leaped 268% from the year-ago period as a larger portion of Americans turned to food delivery services. 

Read more: Ron Baron earned a $4.2 billion windfall just from investing in Tesla. The legendary investor told us why he still expects a 30-fold return from Elon Musk – and shared the biggest lessons and mistakes of his career

The distribution of a coronavirus vaccine might cut down on deliveries, but soaring COVID-19 cases and reinstated lockdown measures stand to keep the company’s hot streak alive into 2021.

DoorDash climbed as much as 92%, to $195.50, on Wednesday. Goldman Sachs and JPMorgan served as the IPO’s lead underwriters.

Now read more markets coverage from Markets Insider and Business Insider:

Morgan Stanley is warning that the stock market’s economic recovery trade may soon be over. Here are 4 strategies they recommend for finding the returns that still exist.

Legendary investor Jeremy Grantham made an accidental $265 million profit on a SPAC bet after previously criticizing blank-check companies

Stocks could stumble in early 2021 as investor sentiment surges past market fundamentals, Goldman Sachs says

Read the original article on Business Insider

DoorDash prices IPO at $102 per share, will raise $3.4 billion

doordash delivery driver
  • DoorDash priced its shares at $102 apiece on Tuesday ahead of its IPO, CNBC’s Leslie Picker reported. That comes in well above the expected range.
  • The offering is expected to raise $3.4 billion, and it gives the food-delivery company a valuation of $32.4 billion.
  • DoorDash lifted its pricing range on Friday to $90 to $95, from $75 to $85. Its new pricing sets the company up to be one of the year’s biggest debuts.
  • DoorDash is set to trade on the New York Stock Exchange under the ticker “DASH.”
  • Visit the Business Insider homepage for more stories.

DoorDash priced its shares at $102 each on Tuesday ahead of its highly anticipated initial public offering, CNBC’s Leslie Picker reported. The final pricing comes in well above the expected range.

That pricing will allow the company to raise $3.4 billion when it begins trading on Wednesday, according to a regulatory filing. It also gives the firm a $34.2 billion valuation, based on common stock outstanding, and $38.7 billion on a fully-diluted basis. It will mark one of the year’s largest market debuts.

The pricing brings DoorDash well above the roughly $15 billion private valuation it achieved earlier in 2020, which was already a major increase from the $1.4 billion it was worth in 2018.

DoorDash is poised to become the highest-valued food-delivery company when it debuts on the New York Stock Exchange. The company is set to trade under the ticker “DASH.”

Read more: Goldman Sachs says buy these 25 stocks it expects to pay big dividends that will keep growing over the next decade

DoorDash lifted its IPO price range on Friday to $90 to $95, from $75 and $85 per share. Its latest target sets it up to be among the year’s five largest offerings.

IPOs from DoorDash, Airbnb, Wish-parent ContextLogic, and others are set to drive the busiest December on record for public offerings. US listings have already raised a record $156 billion in 2020, according to Bloomberg data, partially fueled by the year’s blank-check frenzy.

Goldman Sachs and JPMorgan will serve as the offering’s lead underwriters.

Now read more markets coverage from Markets Insider and Business Insider:

Market wizard Chris Camillo grew his trading account by $9.7 million in 2020. Here’s the simple strategy he’s using to mint millions.

The most effective stimulus bill will boost unemployment benefits and PPP in order to drive economic growth, JPMorgan says

One gauge of stock-market valuation has reached its highest point since the dot-com bubble – and exceeds levels seen before the 1929 crash

Read the original article on Business Insider