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North American markets saw various developments from deals, IPOs, central bank rates to new covid vaccine orders that dominated the sessions on Wednesday.
The following are some of the highlights.
GE to Wind Down Jet-Leasing Arm GE Capital
US multinational conglomerate General Electric Company said on Wednesday that it plans to merge its jet-leasing arm GE Capital Aviation Services with rival AerCap Holdings in a US$30 billion deal. The decision is part of its plan to reduce debts. The merger will eventually turn them into a giant leasing entity, with over 2,000 aircraft at a time, which will tower over its rivals in the industry.
General Electric to receive around US$24 billion, as well as 46 percent ownership in the new entity, it said. The company will stop reporting on GE Capital from the first quarter after collecting an initial payment of US$3 billion from AerCap. The agreement will be closed in 9-12 months.
Pic Credit: Pixabay.
Roblox Corp. Makes NYSE Debut
Shares of video-gaming company Roblox Corp. surged 54% on Wednesday after its IPO debut through a direct listing on the New York Stock Exchange (NYSE). It is the latest technology company to make a public debut after seeing a surge in its user base over the past year.
Roblox shares (NYSE:RBLX) opened at $64.50, before settling at $69.50. The company is valued at about $42 billion, based on its opening trade. Founded in 2004, the California-based company offers a range of online gaming products for users.
Bank of Canada Keeps Key Rates Unchanged
Canada’s central bank, the Bank of Canada, on Wednesday kept the key rates steady at 0.25 percent after the economy proved resilient in the second wave of covid infections in the country. It also decided to maintain its QE (quantitative easing) program to draw around C$4 billion per week.
Announcing the decision, the bank noted that the GDP forecast in the first quarter of 2021 looked now positive from the previous projection of a contraction in January. It added that while the prospects looked better, the recovery would still need some specific monetary policy support. The increased pace of vaccination, testing, and fiscal support has helped improve the economic outlook.
Pic Credit: Pixabay.
Biden to order more J&J vaccines
President Joe Biden plans to order an additional 100 million vaccines from Johnson & Johnson to ensure enough supplies for 500 million people from the registered drugmakers, a White House covid advisor told reporters on Wednesday. The J&J vaccines require a single dose for treating patients.
The US Food and Drug Administration had approved the J&J vaccine last month following domestic trials. The administration had initially placed an order of 100 million vaccines. Besides J&J, Pfizer-BioNTech and Moderna have also been selected for supplies. The Biden administration is expected to finalize the new order in the coming weeks, Mr. Andy Slavitt added.
PWP Forward Acquisition Corp. (PFAC) Announces IPO Share Price
Blank-check company PWP Forward Acquisition Corp., or PFAC, announced the price of US$10 per share for its initial public offering of 20 million shares. The company is sponsored by Perella Weinberg Partners and its partners and employees, it said on Wednesday. The Delaware-based company is led by women and helps in mergers, stock exchange, and asset acquisition, among others. According to the company, each unit consists of one Class A common stock and one-fifth of a redeemable warrant. Citigroup is the acting book-keeping manager, while Siebert Williams Shank & Co., and Tigress Financial Partners are acting co-managers for the offering.
