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Moves: Retired US Admiral Lands Cushy Wall Street Job

In yet another move demonstrating the so-called "revolving door" between government and big business, a retired four-star admiral of the US Navy has landed a cushy job as a Senior Advisor to a major financial firm. That admiral is  William H. McRaven  and the firm is Lazard . Intro  Lazard is a financial advisory and asset management firm that's a leader in its field. It's the world's largest independent investment bank, having over $235bn of assets under management.  Details McRaven has joined Lazard effective immediately as a Senior Advisor in the firm’s Financial Advisory business. It's not an unusual step for someone retiring from a top military job in 2014 now to land a top civilian job. McRaven retired as a four-star admiral in 2014, the highest rank normally achievable in the US Navy. There, he had a 37-year career that saw him command special operations forces at every level and eventually took charge of the whole US Special Operations Command.  In ea

Moves: Ex FCC Chairman Ajit Pai Lands Cushy Wall Street Job

In a move that demonstrates the "revolving door" between politics and business still being wide open, Ajit Pai, the former chairman of the US Federal Communications Commission (FCC) under Trump's administration, has landed a cushy job as a Partner at a leading private equity firm. Ajit Pai has taken a Partner position at Searchlight Capital Partners, a New York-based private equity firm with over $8 billion under management. His appointment comes just a few months after leaving the FCC following the administration change from Trump to Biden. Pai was at the FCC for nine years, first as a Commissioner nominated by Barack Obama then spent five years in that role before becoming Chairman of the commission appointed by Trump. Pai's tenure at the FCC was rocked by him overseeing the rollback of some net neutrality rules set in place under the Obama administration. That doing earned him a lot of opposition to the extremity of even a death threat . Another landmark event unde

VC Firm Bessemer Raises $3.3B, Adds Amazon's Jeff Blackburn As Partner

Silicon Valley venture capital firm Bessemer enture Partners has made new major moves that include adding $3.3 billion of capital to its investment coffers and appointing Jeff Blackburn, a long-time top Amazon executive and lieutenant of Jeff Bezos who just recently announced his departure from Amazon, now as a partner at the venture firm. Bessemer raised $3.3 billion with two separate funds, the first a fund named BVP XI  that raised $2.475 billion and the second a fund named  BVP Century II that raised $825 million. The majority of the new funds will be used for early-stage investments consistent with Bessemer's practice of starting with seed and Series A rounds for companies and then following up with late-stage investments. Bessemer now counts Jeff Blackburn as a Partner, with Blackburn joining the firm after a 22-year career at Amazon where he rose to become one of the company's highest-ranking executives. Before announcing his departure just this month, Blackburn served

Velodyne Lidar's Founder Ousted, Fights Back

Velodyne Lidar, the leading maker of lidars for autonomous vehicles in the US, is in the midst of a leadership tussle that's seen its founder and biggest shareholder David Hall pushed out from his position of Chairman at the company along with his wife Marta Hall who held the position of Chief Marketing Officer at Velodyne. David and Marta Hall were pushed out from Velodyne after a board investigation that brought accusations of the couple behaving "inappropriately" and acting without "respect, honesty, integrity and candor” when interacting with other officers and directors at Velodyne as claimed by the company's board. As they were pushed out, Velodyne named a new Chairman and another new board director. In response to his ouster, Velodyne founder David Hall put out a press statement  accusing his company of staging a "boardroom ambush" to reprimand him and his wife "based on an opaque, secret investigation into baseless, unfounded claims".

GameStop's CFO To Depart, With Big Exit Package

Barely a month after a stock trading frenzy that sent the shares of video games and electronics retailer GameStop soaring high and highly volatile to then become the talk of the town, the company's chief financial officer (CFO) Jim Bell has announced his resignation from the company, with the reason behind his departure not stated. Bell who has served as GameStop's CFO for less than two years will step down from his role formally on March 26, 2021, and leave the company. He noticeably held the role of CFO for a short period and it's unclear if GameStop's recent stock market frenzy is a contributing factor to his departure. As Bell is resigning from GameStop, he isn't leaving on shaky grounds or at least monetarily-wise. According to filings, he'll be getting an upfront $15.8 million pay package when he departs, split into $2.8 million in severance and an immediate payout of restricted shares worth $13 million once he leaves.  Then, Bell could still collect an

Footwear Startup Allbirds Adds Glossier's Emily Weiss To Board

Allbirds, a venture-backed startup that's carved a lucrative market for itself selling eco-friendly footwear, has added new board members including Emily Weiss, the founder and CEO of the popular venture-backed makeup brand Glossier. Weiss was added alongside Mandy Fields, the chief financial officer (CFO) of cosmetics brand e.l.f Beauty. With Weiss and Fields joining Allbirds' board, the eco-friendly footwear brand now counts eight members on its board. Though the new board additions may seemingly hint at cosmetics ambitions for Allbirds, the company's Co-CEO Tim Brown has clarified that it has no plans to get into that market. Likely, Weiss has been tapped for an Allbirds board position thanks to her position of founding and building a venture-backed, high-growth direct-to-consumer brand. It's notably her first board seat outside Glossier, the popular cosmetics brand she founded. Weiss built Glossier from the ground up starting from a beauty blog known as " Into

Electronics E-Tailer Enjoy Hires CFO, Hints At IPO

Enjoy Technology, an  online  electronics retailer founded by an executive who previously the head of Apple's retail business and also the CEO of retailer JCPenney, has moved to hire its first Chief Financial Officer (CFO) in what hints at plans to go public soon.  Enjoy has hired Fareed Khan as its CFO, with Khan joining the company from Parallel, a consumer goods company. Previously, Khan held respective roles as the CFO of the food giant Kellogg's and food distribution giant US Foods, which he guided through a public listing.  With Khan's experience in managing and guiding public companies as a finance head, it seems that Enjoy has hired him to help prepare it for a public listing. Enjoy is a venture-backed startup that's raised over $350 million in funding and it seems that its investors would likely be calling for an exit for their stakes in the company, wherein a public listing is one of the most common ways to do that. Fareed will oversee Enjoy's global finan

Private Equity Firm Apollo Adds Ex-SEC Chairman Jay Clayton To Board

It seems that the revolving door between top government jobs and those in the high classes of the finance industry is still open, as Apollo Global Management, a private equity giant with over $455 billion under management, has appointed Jay Clayton as Lead Independent Director of its board. Clayton is  the former Chairman of the US Securities and Exchange Commission (SEC) who served under the just concluded Trump administration. Apollo created a new role for Clayton, whose appointment comes shortly after the private equity firm's co-founder and long-time face of the company Leon Black penned his resignation after an investigation regarding his ties to the late American financier and convicted sex offender Jeffrey Epstein. Black was subject to an investigation after revelations of his dealings with Epstein that involved payments from Black to Epstein to the tune of $158 million . With Black's resignation, it seems that Clayton's appointment to a newly created role of Lead  I

SoftBank Poaches Microsoft's Corporate VC Head

The head of Microsoft's corporate venture capital arm, M12, is leaving the company after being hired by the SoftBank Vision Fund, the mammoth $100 billion investment fund formed by the Japanese tech conglomerate SoftBank. Nagraj Kashyap is leaving M12 to take on the role of managing partner at the SoftBank Vision Fund. Bloomberg News first reported of Kashyap's departure and new job on Monday. Joining SoftBank, Kayshap has made a significant step further in his venture capital and investment career that has spanned companies including Microsoft and the chipmaking giant Qualcomm. Before joining Microsoft in 2016 to head its corporate venture fund, Kayshap led Qualcomm Ventures for 12 years. Now, after long stints at the corporate venture arms of two tech giants, Kayshap is joining another venture arm of a tech conglomerate, this time a mammoth $100 billion fund that has deployed tens of billions of dollars into many technology companies. As a managing partner, Kayshap will over

Jeff Bezos To Step Down As Amazon CEO

In a very noteworthy move, Amazon's founder and long-time CEO Jeff Bezos has announced that he'll be stepping down from his role as CEO in the third quarter of 2021 and become the Executive Chairman of the e-commerce giant he founded. He'll be replaced by Andy Jassy, the current CEO of Amazon Web Services (AWS). Andy Jassy has for long been considered the second in command and heir to the Amazon empire after Bezos and this has just been proven. As he steps down, Bezos says that he'll remain involved in Amazon initiatives but now spend more time on his other projects such as the aerospace company Blue Origin, newspaper The Washington Post, and philanthropic initiatives. Bezos will definitely be stepping down in grand style from the mere online bookstore he founded 27 years ago and built into a mammoth e-commerce and technology company. Taken public in 1997, Amazon is currently one of the most valuable publicly-traded companies worldwide, with a market cap of $1.7 trilli

Salesforce Shuffles Leadership Team; CFO Departs

Salesforce, the cloud enterprise software giant that's on the cusp of a deal to buy Slack for $28 billion , has shuffled its leadership team as the company's long-time chief financial officer, Mark Hawkins, has announced his departure. Hawkins is stepping down from the CFO role after over six years at Salesforce and leaving the company for said retirement. Hawkins is leaving after overseeing a period of unprecedented growth for Salesforce, wherein the company's market cap has burgeoned from around $30 billion in 2014 now to over $200 billion. As CFO, he has helped steer a lot of big acquisitions that drove Salesforce's growth. Hawkins will now be replaced in his role of CFO by Salesforce's chief legal officer, Amy Weaver. He'll remain Salesforce's CFO emeritus until October 2021 before he finally departs the company. Mark Hawkins Monetary-wise, Hawkins has done very well for himself, pulling in tens of millions of dollars in compensation over his six years

Intel Has A New CEO: VMware's Pat Gelsinger

The chipmaking company Intel has chosen a new Chief Executive Officer (CEO) to replace its current leader Bob Swan who has held his role for two years. That new CEO is Pat Gelsinger who's famous for being the CEO of VMware since 2012. He'll now leave VMware to join Intel, a company that he previously worked at in a top position. Gelsinger is well-recognized for his leadership at VMware, during which he significantly transformed the company into a global leader in the cloud infrastructure and other related markets. During his eight-year tenure, VMware's annual revenue grew from $4.6 billion to $10.8 billion. Gelsinger isn't new to Intel as he was once the Chief Technology Officer (CTO) of the chipmaking company before leaving for EMC and then VMware. Now, he's coming back as the company's CEO, hoping to position it strongly in an era of transformations and improvements in the semiconductor industry. Gelsinger began his tech career at Intel and rose to become the

Gary Cohn Appointed IBM Vice Chairman

Gary Cohn, the former President of the banking firm Goldman Sachs and economic advisor to US President Donald Trump, has been appointed as the Vice Chairman of IBM, a press statement from the company notes. Cohn will join IBM's board and its Executive Leadership Team to work as an advisor to IBM's CEO, Arvind Krishna. IBM marks the seventh board position that Cohn will concurrently hold, the other six being Abyrx, Gro Intelligence, Indago, Nanopay, Starling, and Pallas Advisors. IBM particularly will mark the second major and publicly-traded company that Cohn will help guide, the first being Goldman Sachs where he served as President and Chief Operating Officer (COO) from 2006-2016. He left Goldman to take up a job at the Trump White House administration in 2017 but only lasted a year and a few months there. As a highly recognized name in the finance industry, Cohn marks a noteworthy addition to IBM's team.  "I am honored to be joining IBM, one of the world's most

Qualcomm's CEO To Step Down

The chipmaking giant Qualcomm has kicked off 2021 with a leadership change that entails its six-year running CEO Steve Mollenkopf stepping down this year. Mollenkopf has announced that he's retiring from Qualcomm effective on the 30th of June, 2020, and will handover the CEO position to Qualcomm's current President Cristiano Amon. Mollenkopf  is leaving Qualcomm after six years as CEO and 26 years employed with the company and handing over to an incoming CEO that's spent 25 years at Qualcomm and is the company's current President. Mollenkopf began working at Qualcomm in 1994 as an engineer and worked his way up to the CEO position with a tenure that saw Qualcomm strengthen itself as a leader in chipmaking for smartphones. He was also instrumental in diversifying Qualcomm from mobile into newer segments like IoT and Autos. Under  Mollenkopf, Qualcomm notably sparred with  Apple in a legal battle that ended in a lucrative settlement of at least $4.5 billion . He also fac

VMware Sues Ex-COO Who's Now Nutanix's CEO

The cloud software giant VMware has filed a lawsuit against Rajiv Ramaswami, its former Chief Operating Officer (COO) who took up the job of CEO at a competing cloud company, Nutanix, just this December. VMware has filed a suit in the Superior Court of the State of California, County of Santa Clara, against Ramaswami, alleging "material and ongoing breaches of his legal and contractual duties and obligations to VMware." VMware claims that Ramaswami secretly met with executives and board members of Nutanix in preparations to take up the job of CEO for "at least two months" before he left VMware and at the same period wherein he worked to shape VMware's strategic direction. VMware says that Ramaswami didn't disclose his meeting with Nutanix executives and board members which posed a conflict of interest given that Nutanix is a rival to VMware. "Mr. Ramaswami demonstrated poor judgement and had a clear and extended period of conflict of interest," VMw

Ginni Rometty Out As IBM Chairman

Ginni Rometty, the former longtime CEO and Executive Chairman of IBM, will now step down from her role as Chairman effective on the 31st of December, 2020, IBM has announced . The role will be transferred to IBM's current CEO Arvind Krishna who has held his position for less than a year. Rometty had been IBM's chief executive officer since 2012 before she stepped down in January this year. During her tenure, she oversaw major changes and initiatives at IBM including the $34 billion acquisition of Red Hat that marked IBM's biggest acquisition in its 200-year plus history. Rometty stepped down from her CEO position and handed the role to Krishna, an IBM veteran who has been with the company for three decades. Before becoming CEO, he had been a senior vice president at IBM and helped steer the company's acquisition of Red Hat. Recently, Krishna made a landmark decision, announcing a spin-off of IBM's $19 billion Managed Infrastructure Services business as a separate pu

Oracle Moves HQ To Texas

The enterprise software giant Oracle has indicated in a filing to the SEC that it's relocated its headquarters from the state of California to Texas, making it the latest among a handful of companies that have moved their headquarters out of California this year. Oracle has changed its corporate headquarters from Redwood City in California to Austin in Texas. Oracle already has a huge campus in Austin with thousands of employees so it doesn't seem that the company will be making extensive employee relocations as it's moved to the city. The company has simply changed its corporate headquarters from Redwood City, where it houses 6,500 employees and is the largest employer in the city, to Austin where it opened a campus in 2018 that it said would house 10,000 employees. Oracle's move comes in a year wherein a Covid-19 pandemic has accelerated remote work across the US and provided more flexibility for employees, particularly those from the tech industry, to work from vary

Elon Musk Said To Plan Move To Texas

The Tesla and SpaceX founder Elon Musk has told several of his close associates and friends that he's looking to officially move to the state of Texas, CNBC reports , whereas such a move wouldn't be surprising, given that Musk has hinted at moving to the state in the past. Earlier this year and in the early months of the Covid-19 pandemic, Musk notably tweeted that the electric maker he chairs, Tesla, will move from California to Texas after he got into a spat with regulators in California over Covid-19 restrictions. Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA. — Elon Musk (@elonmusk) May 9, 2020 Also this year, Musk put up his seven California homes for sale  after tweeting that he's selling "almost all physical possessions" and "

Tanium, HPE Move HQ From California

The cybersecurity company Tanium and the IT giant Hewlett Packard Enterprise (HPE) are the latest companies to announce the move of their headquarters away from the state of California, with Tanium departing from the city of Oakland to Kirkland in the state of Washington and HPE departing from the city of San Jose to Houston in Texas. The move from Tanium and HPE comes as the acceleration of remote work spurred by the Covid-19 pandemic have made companies to reconsider staying in higher-cost cities. Tanium will now move to an office building in Kirkland that'll serve as its headquarters while HPE will maintain its already-large office presence in Houston but now as its headquarters. For HPE, the company says no layoffs will be made as part of its move and that it'll retain its Silicon Valley campus as a major R&D center. HPE notably employs tens of thousands of people worldwide with a majority in the US while Tanium employs a much lesser 1,500 people globally, also majorly

FCC Chairman Ajit Pai To Leave Next Year

Ajit Pai, the current Chairman of the US Federal Communications Commission (FCC), has formally announced plans to leave the commission when the next US administration led by President-elect Joe Biden is inaugurated on the 20th of January. He'll leave after three years as the FCC's Chairman and eight years in total serving at the commission. “It has been the honor of a lifetime to serve at the Federal Communications Commission, including as Chairman of the FCC over the past four years,” Pai said in a statement. “To be the first Asian-American to chair the FCC has been a particular privilege. As I often say: only in America.” Pai joined the FCC under the administration of then-President Barack Obama in May 2012. He was appointed five years later as the commission's Chairman under the [now outgoing] Trump administration.  As Chairman under Trump, Pai oversaw landmark events including the merger of the two telecom giants T-Mobile and Sprint. He notably put into place new measur

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Alert: Nikola Founder Trevor Milton Indicted On Fraud Charges

The founder of embattled electric car startup Nikola Corp. has been formally indicted on fraud charges by the US Justice Department months after resigning from the company. Trevor Milton by name, he's been accused of securities and wire fraud in connection with a scheme to defraud and mislead investors. Milton is accused of misleading investors by making false statements regarding Nikola's products and capabilities. Notably, most of the investors allegedly misled were on the retail side. The DOJ alleges that Milton made false claims regarding "nearly all aspects" of Nikola's business. Milton founded Nikola in 2014 and led it through a public listing via a merger with a special-purpose acquisition company (SPAC) last year. The DOJ threw an apparent jab at SPACs in his indictment, asserting that he made 'many' of his false and misleading claims  during a period where he would not have been allowed to do so under rules that govern traditional IPOs were he

Earnings: AMD Doubles Revenue, Triples Profit

In this earnings season, companies all over are dropping their latest quarterly results and we're here equally reporting on them. We've touched on social media companies Snap Inc and Twitter , electric carmaker Tesla , and iPhone maker Apple . Now, the next is chipmaker AMD Inc . AMD has dropped its earnings for the second quarter of 2021, showing strong prospects as revenue doubled year-over-year and net income more than tripled.   Details AMD posted $3.9bn in revenue in Q2, up 99% year-over-year and 12% from the preceding quarter. For the same period, the company's net income was $710mn , up 352% year-over-year and 28% from the preceding quarter. Doubling its revenue and nearly quadrupling net income indicates AMD has a strong yet fast-growing business. It's bound to grow even more as the company is set to complete its acquisition of rival chipmaker Xilinx . AMD makes money selling high-performance chipsets used in computers, consoles, data centers, and the likes

Antitrust: Amazon Fined $900M By EU For Privacy Violations

Tech behemoth Amazon is for the nth time in the crosshairs of the European Union (EU). The latest saga in that arena is that Amazon has been fined a record-breaking amount for alleged privacy violations, according to an SEC filing from the company. Amazon has been fined the sum of €746 million ($888mn) by the Luxembourg National Commission for Data Protection (CNPD) for not complying with data privacy laws. It's the largest fine imposed under Europe's data protection law.  The fine originates from the CNPD accusing Amazon of processing customers' personal data in violation of the EU's famous-cum-infamous General Data Protection Regulation (GDPR) laws.  In June, it was reported ( WSJ )  that the Luxembourg data protection agency had sanctioned Amazon's privacy practices and proposed a fine topping $425mn to the EU's other two-dozen or so national data protection authorities. Now, it appears that the final fine is much larger than that.  Before now, the bigges

Deal: Qualtrics Buys CX Startup Clarabridge For $1.1B

Months after getting spun out of SAP into a separate public company, Qualtrics , a major provider of online survey software, has made a major acquisition. It's agreed to buy Clarabridge , a startup that does similar work to Qualtrics in the field fondly referred to as "customer experience (CX)". Qualtrics will pay $1.1bn all with shares to buy Clarabridge. The acquisition is a major strategic play for the company, pairing Qualtrics' customer survey business with Clarabridge's similar business of measuring customer sentiment from various sources like social media posts and customer support calls. Basically, Qualtrics is in the business of weighing customer surveys directly and Clarabridge in the business of doing so indirectly . Pairing both businesses represents a major strategic play for Qualtrics. In an investor presentation, Qualtrics said that Clarabridge has $100mn in annual revenue, implying an 11x multiple that it's paying to buy the company. That&#

Deal: Amgen Buys Biotech Startup Teneobio In $2.5B Deal

It appears that this Covid era has led to a boom for companies that work on  antibodies , which are protective proteins produced by the human immune system to tackle foreign substances, usually viruses. Antibodies are very useful in the research and treatment of viruses such as Covid. There are companies that specialize in antibodies and one of them, BioLegend , was recently bought for a whopping $5.3bn . Now, another such company, Teneobio , is getting bought for a big amount. Teneobio has agreed to be acquired by Amgen , an American biotech giant. Amgen is paying $900mn upfront for the company, then an additional $1.6bn in cash contingent on the company hitting certain milestones. It sums up to a $2.5bn deal . Teneobio is a clinical-stage biotech startup working on antibodies aimed at treating cancer, autoimmunity, and other infectious diseases. As it's still in the clinical trial stage with no viable product yet, it appears that Amgen is betting big on Teneobio's trials b

Antitrust: UK Probes Facebook's $1B Kustomer Acquisition

The UK's antitrust agency has launched a probe into Facebook's latest acquisition, that of chatbot platform Kustomer Inc , which Facebook agreed to buy last November for a reported $1bn. The UK's Competition and Markets Authority (CMA) on Friday, the 30th of July, released a statement  indicating it had opened an inquiry into Facebook's purchase of Kustomer, regarding if it'll result in "a substantial lessening of competition" within the market Kustomer operates in. Such probes aren't out of the norm and are routine for big acquisitions. For Facebook, it speaks to the fact that antitrust agencies are watching the company's moves, especially regarding acquisitions. To note, two of Facebook Inc's biggest products outside the main Facebook platform, Instagram and WhatsApp , were acquisitions. In fact, it's primarily acquisitions that have propelled the company's growth. As with such probes, the UK will first seek comments from the public

Hollywood: Reese Witherspoon's Media Co. Sold In $900M Deal

A media company founded by superstar actress Reese Witherspoon has sold for a large amount to a company still in its infancy that hasn't even been named yet. That company is Hello Sunshine , a media company that produces content distributed across various platforms; movies, TV shows, podcasts, et al. Hello Sunshine has been sold to a newly-formed media venture t hat's backed by investment capital from Blackstone , the private equity giant.  The venture is led by ex Disney honchos Kevin Mayer and Tom Staggs .  As it is, the Blackstone-funded venture is acquiring a majority stake in Hello Sunshine from a group of external investors while anchor shareholders like Witherspoon and her founding partners will roll over and retain their equity stakes in the newly-formed venture. Officially, the deal's financial terms weren't disclosed, but a report from The Wall Street Journal says it's a $900mn deal. According to the report, the Blackstone-funded venture will pay $500mn

Earnings: Shopify Beats Estimates, Reaches Major Milestone

In this season of earnings results and we at The Techee  reporting on them, we're here with a beat on Shopify , which has released its earnings statement for the second quarter (April-June) of this year. In Q2, Shopify beat revenue expectations from analysts and as well achieved a major financial milestone by crossing $1bn in quarterly revenue for the first time. Shopify had $1.1bn in revenue in the quarter, up 57% year-over-year. Net income for the same period was $897mn , most of which was due to a $778mn gain in equity investments, likely from Shopify's stake in Affirm , a major 'buy now, pay later' lender. As usual, most of Shopify's sales ( $785mn ) came from "Merchant Solutions", which groups additional services the company offers atop recurring subscriptions charged to online retailers. Sales from subscriptions came at $334mn in the quarter. Gross Merchandise Volume (GMV), representing the total worth of transactions made on the Shopify platform,

Alert: Square Buys Australia's Afterpay For $29B

It's a big day in the fintech world. There's been a major acquisition with a major American fintech company, Square , buying Australia's foremost fintech startup, Afterpay , a 'buy now, pay later' lender. Square has reached an agreement to buy Afterpay for a whopping $29bn , marking one of Australia's biggest buyouts. It's a big deal that a startup founded barely seven years ago is selling for $29bn.  Square will pay the $29bn all with shares. It means that shares of Afterpay, which are traded on the Australian Securities Exchange, will be exchanged for Square stock traded on the New York Stock Exchange (NYSE). Afterpay is Australia's foremost 'buy now, pay later (BNPL)' lender in online retail. For the uninitiated, the 'buy now, pay later' business is a relatively young one providing alternatives to credit cards for consumers to shop online. It provides loans for consumers to shop online and then pay back in installments. Usually, credi

Markets: US SEC Takes Aim At Chinese IPOs

The US Securities and Exchange Commission (SEC) has taken a swipe at Chinese initial public offerings (IPOs) after regulatory hiccups in China have affected many Chinese stocks listed on US markets and American stockholders holding them. The SEC has issued new guidance on Chinese companies seeking to list shares in the US, requiring them to make certain disclosures to investors or otherwise refrain from listing in the US markets. First of all, usually, Chinese companies listing in the US don't actually sell shares of the operating companies but that of shell companies with contractual relationships with the operating companies. These shell shares, known as American Depositary Receipts (ADRs) , are used to circumvent restrictions on foreign ownership of Chinese shares imposed by the country's government. Now, the SEC in a statement has made it clear that Chinese companies seeking to list in the US must provide clear descriptions of the shell operations involved in such listing