US Markets plummeted on tech selloff

U.S. stocks tumbled on the first day of the second quarter, Spotify is expected to start trading on the NYSE on Tuesday and ReNew power buy Ostro Energy in one of India’s biggest clean energy deals

Shares in the music streaming firm Spotify will be publicly traded for the first time later on Tuesday
Shares in the music streaming firm Spotify will be publicly traded for the first time later on Tuesday

US Markets plummet on tech selloff

U.S. stocks fell sharply Monday, in the latest example of heavy intraday volatility driven by both uncertainty surrounding trade policy and weakness in the large-capitalization technology and internet sectors.

The Dow Jones Industrial Average DJIA fell 1.9%, to 23,644.19. Losses were widespread in the blue-chip average, with only one of the 30 components, UnitedHealth Group Inc ending in positive territory. The S&P 500 fell 2.2% with all 11 S&P 500 sectors dropping and eight of them shedding more than 2%.

There was particular weakness in the technology and consumer-discretionary sectors, which took the Nasdaq into negative territory for the year.

NYSE sets Spotify’s price at $132 for its debut on Tuesday

Shares in the music streaming firm Spotify will be publicly traded for the first time later on Tuesday when the firm debuts on the New York market with reference price for shares set at $132.

Spotify's listing, which could value it at $20bn (£14bn), is unconventional: it is not issuing any new shares. Instead, shares held by the firm's private investors will be made available.

The opening public price will be determined by buy and sell orders collected by the NYSE from broker-dealers, the exchange said. Based on those orders, the opening price will be set based
on a designated market maker's determination of where buy orders can be matched with sell orders at a single price.

What was once a small upstart Swedish music platform, has grown rapidly in recent years, adding millions of users to its free-to-use ad-funded service, and converting many of them to its more lucrative subscription service.

It is now the global leader among music streaming companies, boasting 71 million paying customers, twice as many as runner-up Apple.

ReNew power buy Ostro Energy in one of India’s biggest clean energy deals

ReNew Power, the renewable energy company headquartered in Gurgaon – India, said on Monday it has acquired Ostro Energy Private Ltd, in one of India’s biggest renewable energy deals, which is likely to be more than 100 billion rupees ($1.54 billion), according to people with knowledge of the matter.

ReNew Power will become India’s largest renewable energy company after the acquisition with combined assets of more than 5.6 gigawatts. More than 65 percent of the assets of the combined entity are already operational, ReNew Power said in a statement.

ReNew has an almost equal number of wind and solar energy assets in terms of installed capacity, while Ostro’s business is mainly wind power.

Canada Pension Plan has invested an additional $247 million to support ReNew Power’s financing for Ostro Energy acquisition.

Prior to this deal, Tata Power Co. Ltd’s acquisition of Welspun Renewable Energy Pvt. in 2016 at an enterprise value of 92.49 billion rupees ($1.4 billion) was India’s largest green power deal.

India aims to install 175 gigawatts of renewable energy capacity by 2022.

 

Disclaimer:

This article was issued by Linda De Luca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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