Key Events
👉Chinese EV company Zeekr prepares for U.S. IPO
Premium electric vehicle company and Chinese Tesla competitor Zeekr targets $5B valuation, marking the first significant IPO by a China-based company in the U.S. in over two years.
The electric vehicle maker intends to raise $367M by offering 17.5M American depositary shares (ADS) priced at $18 – $21.
What are American depositary shares and why are they important?
ADS securities represent ownership of foreign companies. The ADS are issued by American depositary banks, which hold the underlying foreign shares.
ADSs are important because they are dollar denominated, meaning that US investors can easily buy, sell, and receive dividends from foreign companies. Additionally, they trade on US exchanges, providing liquidity and ease of access for U.S. investors. This benefits both US investors and foreign companies looking to raise capital.
👉 Berkshire Hathaway reports earnings and high cash balance
Berkshire Hathaway, led by Warren Buffet, reported a strong Q1 performance with operating profit increasing 39% y/y to $11B. This growth was driven by the strength in the company’s property and casualty insurance business, as well as higher investment income.
Berkshire’s cash reserves reached a record $189B in Q1, as the company spent $3B on stock and sold approximately $20B. Buffet explained that the company’s significant cash position is due to insufficient attractive acquisition opportunities.
What are the benefits of accumulating excess cash?
- Investing in organic growth.
- Capital reserves for future investment opportunities.
- Hedging against adverse business conditions and market cycles.
- Returning capital if no attractive investment opportunities.
Fun Fact: While Buffet makes billions off dividends from positions such as Chevron and Coca Cola, Buffet has reiterated that Berkshire will NOT pay out dividends as long as he is with the company.
👉 Synopsys enters agreement to sell application security business for $2B
Semiconductor design company Synopsys has entered into a definitive agreement to sell its software integrity (SIG) business to Clearlake and Francisco Partners.
Synonpsy’s divestiture in their software integrity business comes at a critical time, as the company recently acquired Ansys in a $35B cash-and-stock deal, solidifying the company’s position in the chip design market.
The proceeds from the sale will allow Synopsys to focus on advancing its core businesses, which focus on design automation and semiconductor intellectual property.
Mergers and Acquisitions
Uniti Group merges with telecom services provider Windstream in a $13.4B cash-and-stock deal.
Private Equity
EQT Partners bought digital consultancy Perficient for $3B.
Initial Public Offerings
Tamboran Resources, a natural gas E&P filed for a $100M IPO.
Venture Capital
Allozymes, an AI biotech startup, raised a $15M Series A.
