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Lyft Just Announced Their IPO…

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…and they beat Uber to it. Just like they wanted to.

News just broke that Lyft has taken the first step towards going public by filing confidential documents with the SEC for an IPO.

Valued at $15B, Lyft didn’t reveal shares it expects to offer, nor a price range. But Lyft did say the IPO will happen as soon as the SEC finishes its review process.

According to sources, that could be as early as Q1 next year, depending on how quickly the SEC reviews its filing. Lyft’s valuation is likely to end up between $20B and $30B, one source told Reuters.

By going public first, Lyft—whose JP Morgan/Credit Suisse and Jefferies all-star banking team will underwrite the IPO—gets a big win over its chief rival Uber.

According to rumors, Lyft CEO Logan Green was caught dancing in a local Silicon Valley bar like…

These are just rumors at this stage, however.

Now we wait for Uber…

Expect Lyft’s IPO to generate massive hype, all the while setting the stage for Uber to join Lyft on Wall Street.

Two of the most hyped unicorns, Lyft and Uber have become insanely popular investment targets, even though neither have yet to turn a profit. (Unprofitable IPOs has been par for the course in 2018; nothing special there.)

As it stands now, UberEats alone is valued higher than Lyft’s $15B. Lyft will want to change that, especially as its private investors seek to score big exit bags. The $20B to $30B IPO target will accomplish just that.

Just for reference, Uber recently got a reported $76B valuation on the private markets. But according to reports, Uber’s looking for a $120B valuation on the public markets.

Still the most valuable startup in the world, Uber brass says their IPO will ultimately end car ownership.

So why did Lyft want to go to the public markets first, just for petty bragging rights?

That’s probably some of it.

But more importantly, by IPO’ing first, Lyft gains the “first-mover advantage” over Uber.

Plus, Lyft now can help steer growth expectations as well as moneymaking potential of ride-hailing services, said Rohit Kulkarni, managing director of SharesPost, which focuses on privately held companies going public.

A big question mark centers around the issue of drivers. According to one study, 96% of Uber drivers quit inside the first year.

How will this affect investor appetite in a company that relies heavily on part-time workers who tend to quit as soon as they find better paying gigs.

One MIT study said Uber drivers make a pathetic $3.37 per hour, once subtracting expenses. In fact, 30% of drivers “are actually losing money once vehicle expenses are included,” the study said.

“The ‘cab-hailing-system’ has been antiquated and left as a dinosaur of yesteryears,” Jeff Zell, senior research analyst and a partner at IPO Boutique in Florida, told Reuters. “The good news for ride-sharing is that it’s a market that has shown to be penetrable.”

The Lyft opportunity

One of Lyft’s challenges will be how to adapt to market changes like autonomous cars.

“With autonomous cars on the horizon, it is anyone’s guess where this sector goes in the future. But Uber and Lyft, as name-brand leaders, are leading the race and will have the war chest to be major players for years to come.”

Sure, Lyft still is a distant second in the ride-sharing category. But it’s been gaining market share due to a series of Uber incidents, including senior execs leaving, accidents and revelations of sexual harassment.

Next year’s IPO should bring more buzz, more attention to Lyft, which then makes more people aware of Lyft as an alternative to Uber.

Your move, Dara…

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10 Largest Banks In The World By Total Assets: China Takes Top 4

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Banking institutions are an integral part of the world economy. They have been around for centuries, and will probably be here for a long time. Here we take a look at the top 10 largest banks in the world. The ranking is based on data from S&P Global Intelligence, which publishes a report on global banking and financial services every year, ranking the world’s 100 largest banks based on total assets.

Ranked: Top 10 largest banks

American banks dominated the ranking for decades. But the emergence of China as a global economic powerhouse has helped many Chinese banks earn a place among the largest in the world. Out of the top 10 largest banks, four are from China, two from the US, and two from France.

The S&P Global Market Intelligence’s ranking is based on total reported assets. It’s not adjusted for different accounting practices. The US banks use US GAAP method while banks in most other countries use the IFRS. If American banks reported under the IFRS method, JPMorgan Chase would be the fourth biggest bank instead of sixth.

10- Credit Agricole

The second largest banking behemoth in France has total assets of $2,117 billion. It has been ranked as one of the world’s most sustainable companies. Founded in 1894, Credit Agricole has a history of providing banking and other financial services to farmers. It also happens to be the world’s largest cooperative financial institution.

9- Bank of America

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Personal finance guru Ramit Sethi has been a vocal critic of the Bank of America, calling it “one of the worst banks on the planet.” But it is one of the world’s largest banks with total assets of $2,281 billion. With a market value of $325 billion, it’s the world’s third largest bank by market capitalization. The company strengthened its investment banking arm by acquiring Merrill Lynch in 2008.

8- BNP Paribas

The largest bank in France was created in 2000 following the merger of Banque Nationale de Paris (BNP) and Paribas. It has $2,357 billion of assets under management. BNP Paris has more than 40 million customers in 75 countries across the globe.

7- HSBC Holdings

Headquartered in London, HSBC is the largest bank in Europe with total assets of $2,521 billion. It was established in 1885 as Hong Kong and Shanghai Banking Corporation in British Hong Kong. It has offices in more than 80 countries, offering consumer finance, private banking, corporate banking, and investment banking services. HSBC has found itself in the midst of several scandals including money laundering in the last few years.

6- JPMorgan Chase & Co

Image result for jp morgan chase

This is the largest bank in the United States by total assets as well as by market capitalization. The company has $2,533 billion in assets under management and its market value currently stands at $390 billion. It was formed in 2000 following the merger of JPMorgan & Co and Chase Manhattan Bank. It offers retail banking, corporate banking, asset management and private wealth management services.

5- Mitsubishi UFJ Financial Group

The Japanese financial conglomerate has $2,787 billion of assets under management. It offers retail banking, corporate banking, and investment banking services. It was formed in 2005 following the merger of Bank of Tokyo-Mitsubishi and UFJ Bank. It is also the second largest public company in Japan.

4- Bank of China

Image result for bank of China

The top four largest banks on the planet are all Chinese, which are known as the “Big Four.” The Bank of China has total assets of $2,991 billion. It was established in 1912 as one of the official issuers of bank notes. The bank has a presence in more than 27 countries including Canada. Besides retail banking and corporate banking, the Bank of China is engaged in insurance and wealth management services.

3- Agricultural Bank of China

Also known as AgBank, it has $3,235 billion of assets under management. The Agricultural Bank of China was created in 1951 following the merger of the Cooperation Bank and the Farmers Bank of China. It has more than 330 million customers and 25,000 branches across China. The state-owned giant is one of the world’s top 10 largest banks.

2- China Construction Bank Corp

Headquartered in Beijing, the CCB has a staggering $3,400 billion of assets under management. It offers retail banking, corporate banking, investment banking, private equity, and wealth management services. It also operates in the treasury sector, dealing with debt securities, money markets, and currencies. Until 2013, the Bank of America owned a little over 10% of the China Construction Bank.

1- Industrial & Commercial Bank of China

Image result for industrial and commercial bank of china

China’s ICBC is the largest bank on the planet with total assets of $4,009 billion. The state-owned bank offers retail banking, corporate banking, and investment banking services. It was founded in 1984. The ICBC has close to half a million employees across China. It has subsidiaries in Canada, Macau, and Turkey.

This article originally appeared on ValueWalk. Follow ValueWalk on TwitterInstagram and Facebook.

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This Ex-NBA All Star May Just Have The No.1 Wine In The World

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Source: Forbes

Former NBA All Star Yao Ming had his career cut short by injuries. But he’s rebounded, big time, with big scores off the court.

(LOL at these sports cliches…)

Ming founded Yao Family Wines in California’s Napa Valley in 2011. Which is not a major deal; lots of celebrities make mediocre wines that eventually drop off.

Anyway, back in 2015, Ming raised $2M on crowdfunding platform Crowdfunder to scale his own wine. Here’s how it looked back then, according to the Wall Street Journal:

With Beijing’s anti-corruption campaign sapping demand for expensive wines, Yao Family Wines, the biggest seller of high-end Californian wine in China by value, is shifting its focus from Chinese banquet tables to U.S. steak houses. Now 15% of the winery’s revenues come from the US, compared to almost zero at the beginning in late 2011. The company said it has managed to grow its sales in a tough environment, without giving more details.

And now, Ming’s wine—legitimately—is now one of the best in the world, with an approval rating of 95+ from the world’s single most influential wine critic, Robert Parker of The Wine Advocate.

Here’s what he wrote:

“I am aware of all the arguments that major celebrities lending their names to wines is generally a formula for mediocrity, but that is not the case with Yao Ming. These are high-class wines. The two Cabernets are actually brilliant, and the Reserve bottling ranks alongside just about anything made in Napa.”

Another influential voice of wine the Wine Enthusiast went even further, awarding his wines 97 and 95 points respectively.

Check out his winery here.

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Uber Goes Public And Immediately Loses Over $6B In Value

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UBER just went public in the most anticipated IPO since Facebook went to Wall Street.

The ride-sharing company officially hit the New York Stock Exchange Friday, pricing its IPO at $45 a share, which put the ride-hailing company at $81B at 180M shares available—far below their initial $120B projection in their filings.

Uber ended the day at $41.60—down nearly 8% from its listing price, leading to a $6B+ valuation loss.

For perspective: Uber’s last private valuation was about $76B. It’s now worth $75.5B.

What’s happening?

Uber’s not the only one crashing out the gate. Even though Lyft beat Uber to the IPO punch, since going public in March, Lyft has lost 29% of its value.

Uber’s been plagued by a number of issues, compounded by the fact that none of the tech unicorns are profitable yet. Uber, for instance, burned through $1B in Q1 alone.

“They waited too long to go public,” Former NYSE President Tom Farley said. “Some of the issues they had — I’ll call it culture — some of the issues they had with their culture would’ve been solved in a public market. You wouldn’t show up on a quarterly conference call every quarter and have three or four new stories like they were having for 18 straight months.”

Did Uber IPO too late?

Although early investors made out like straight BANDITS—just look at Lance Armstrong—investors in the later stage haven’t been as lucky.

“I mean, you look at all the money invested in Uber — 25 billion bucks,” Farley said. “Their pre-money valuation last night was [$]73 [billion]. This is a 2.8x investment.

“That’s great and all, but the initial investors got 10,000 times their money. So the recent people, they haven’t been making money. This is a company that has needed public discipline, this is a company that has needed a public currency, and it’s a company that should have gone public three or four years ago.”

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