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TPG Launches IPO Roadshow Seeking Valuation Around $9.5 Billion

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Private-equity firm TPG launched its roadshow pitch to investors Tuesday, seeking a valuation as high as $9.5 billion in its initial public offering, moving into the final stretch of a process that has been months in the making.

The firm and some of its shareholders are aiming to sell shares at between $28 and $31 apiece, it said in a regulatory filing Tuesday. It plans to trade on the Nasdaq under the ticker symbol “TPG.”

TPG—based in Fort Worth, Texas, and San Francisco—plans to price its offering next Wednesday and list shares the following day, although the timing could change, according to people familiar with the matter.

The Wall Street Journal first reported in June that TPG was in the early stages of weighing a public listing that could value it at about $10 billion.

TPG aims to sell 28.3 million shares in the offering, of which 13.6 million will be used to purchase shares from existing shareholders, while China Life Trustees Ltd. plans to sell 5.6 million shares, according to the filing.

TPG’s offering is set to be the first big IPO of 2022, and its performance will help investors, bankers and other companies seeking to go public gauge the health of the IPO market. Last year, traditional IPOs raised more than $150 billion in the U.S., according to Dealogic.

But despite the record haul, IPO performance sputtered in the final weeks of the year. By late December, roughly two-thirds of newly listed companies were trading below their IPO prices.

Shares of publicly traded private-equity firms have been on a tear of late, thanks in part to a rising market. Low interest rates also have made borrowing cheap and led yield-hungry investors to funnel hundreds of billions of dollars into the firms’ coffers.

The group’s strong performance has led others to list shares, including European private-equity firm

Bridgepoint Group

PLC and

Blue Owl Capital Inc.,

which was formed last year through a merger with a special-purpose acquisition company.

With $109 billion in assets under management and offices around the world, TPG has been one of the last of the original buyout giants to remain a private partnership. With the IPO, it will join peers such as

Blackstone Inc.,

Apollo Global Management Inc.

and

KKR

& Co., which have been public for years.

Unlike those firms, which retained their partnership structures for many years after their IPOs before converting to C-corporations on the heels of the 2017 tax cuts, TPG will debut as a corporation called TPG Inc. The decisions by its rivals to convert have contributed to the recent surge in their valuations over the past couple of years.

TPG is smaller than many of its competitors, which have built sprawling businesses investing in areas including credit, real estate and insurance. But the IPO should give it fuel to expand its already sizable segments dedicated to large-scale private equity, investing in rapidly growing companies, socially responsible investing, real estate and tailored investment opportunities in areas such as SPACs and public companies.

TPG also is building a business dedicated to buying secondhand stakes in private-equity funds, an area known as secondaries. It said Tuesday it hired a co-managing partner for that business to lead its European operations.

The offering is being led by

JPMorgan Chase

& Co.,

Goldman Sachs Group Inc.

and

Morgan Stanley.

Write to Miriam Gottfried at Miriam.Gottfried@wsj.com and Corrie Driebusch at corrie.driebusch@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the January 5, 2022, print edition as ‘TPG Launches Roadshow For IPO.’

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Teladoc Tumbled 38% After Big First-Quarter Loss. Is It Just a Pandemic Play?

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After pandemic drop, Canada’s detention of immigrants rises again By Reuters

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© Reuters. FILE PHOTO: Two closed Canadian border checkpoints are seen after it was announced that the border would close to “non-essential traffic” to combat the spread of novel coronavirus disease (COVID-19) at the U.S.-Canada border crossing at the Thousand Isla

By Anna Mehler Paperny

TORONTO (Reuters) – Canada is locking up more people in immigration detention without charge after the numbers fell during the pandemic, government data obtained by Reuters shows.

Authorities cite an overall rise in foreign travelers amid easing restrictions but lawyers say their detained clients came to Canada years ago.

Canada held 206 people in immigration detention as of March 1, 2022 – a 28% increase compared with March 1 of the previous year. Immigration detainees have not been charged with crimes in Canada and 68% of detainees as of March 1 were locked up because Canada Border Services Agency (CBSA) fears they are “unlikely to appear” at an immigration hearing, according to the data.

The rise puts Canada at odds with Amnesty International and other human rights groups that have urged Ottawa to end its use of indefinite immigration detention, noting CBSA has used factors such as a person’s mental illness as reason to detain them.

A CBSA spokesperson told Reuters that “when the number of entries (to Canada) goes up, an increase in detention is to be expected.” CBSA has said in the past it uses detention as a last resort.

A lawyer told Reuters her detained clients have been in Canada for years.

In the United Kingdom, too, immigration detention levels rose last year after dropping earlier in the pandemic, according to government statistics. Unlike Canada, the United States and Australia, European Union member states have limits on immigration detention and those limits cannot exceed six months.

The rise in detentions puts people at risk of contracting COVID-19 in harsh congregate settings, refugee lawyers say.

Julia Sande, Human Rights Law and Policy Campaigner with Amnesty, called the increase in detentions “disappointing but not surprising,” although she was reluctant to draw conclusions from limited data.

The number of immigration detainees in Canada dropped early in the pandemic, from a daily average of 301 in the fourth quarter (January through March) of 2019-20 to 126 in the first quarter (April through June) of 2020-21.

FEW NO-SHOWS AS DETENTIONS DROPPED

Detaining fewer people did not result in a significant increase in no-shows at immigration hearings – the most common reason for detention, according to Immigration and Refugee Board data.

The average number of no-shows as a percentage of admissibility hearings was about 5.5% in 2021, according to that data, compared to about 5.9% in 2019.

No-shows rose as high as 16% in October 2020, but a spokesperson for the Immigration and Refugee Board said this was due to people not receiving notifications when their hearings resumed after a pause in the pandemic.

Refugee lawyer Andrew Brouwer said the decline in detention earlier in the pandemic shows Canada does not need to lock up as many non-citizens.

“We didn’t see a bunch of no-shows. We didn’t see the sky fall … It for sure shows that the system can operate without throwing people in jail,” Brouwer said.

He added that detainees face harsh pandemic conditions in provincial jails – including extended lockdowns, sometimes with three people in a cell for 23 hours a day.

Refugee lawyer Swathi Sekhar said CBSA officials and the Immigration and Refugee Board members reviewing detentions took the risk of COVID-19 into account when deciding whether someone should be detained earlier in the pandemic but are doing so less now.

“Their position is that COVID is not a factor that should weigh in favor of release,” she said.

“We also see very, very perverse findings … [decision-makers] outright saying that individuals are going to be safer in jail.”

The Immigration and Refugee Board did not immediately respond to a Reuters request for comment.

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Nasdaq futures rise as market attempts comeback from April sell-off, Meta shares soar

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Stock futures rose in overnight trading as the market shook off the April sell-off and investors reacted positively to earnings from Meta Platforms.

Futures on the Dow Jones Industrial Average added 70 points or 0.2%. S&P 500 futures gained 0.7% and Nasdaq 100 futures jumped 1.2%.

The moves came as shares of Meta surged more than 18% after hours following a beat on earnings but a miss on revenue, a sign that investors may see signs of relief in the beaten-up tech sector. Shares were down 48% on the year heading into the results.

Meanwhile, shares of Qualcomm gained 5.6% in extended trading on the back of strong earnings while PayPal rose 5% despite issuing weak guidance for the second quarter.

“I think a lot of people want to believe that earnings are going to pull us out of this, but earnings are not what got us into this,” SoFi’s Liz Young told CNBC’s “Closing Bell: Overtime” on Wednesday. “… But the reality is there are so many macro headwinds still in front of us in the next 60 days that the market is just hard to impress.”

The after-hour activity followed a volatile regular trading session that saw the Nasdaq Composite stoop to its lowest level in 2022, as stocks looked to bounce back from a tech-led April sell-off. The index is down more than 12% since the start of April.

In Wednesday’s regular trading, the tech-heavy Nasdaq ended at 12,488.93, after rising to 1.7% at session highs. The Dow Jones Industrial Average rose 61.75 points, or 0.2%, to 33,301.93 propped up by gains from Visa and Microsoft, while the S&P 500 added 0.2% to 4,183.96.

Investors await big tech earnings on Thursday from Apple, Amazon and Twitter, along with results from Robinhood. Jobless claims are also due out Thursday.

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