COMPANY NEWS IN BRIEF

Amwell to raise US$560 million

Telehealth provider AmWell said on Tuesday it expects to raise about US$560 million in its initial public offering in the United States, as the coronavirus pandemic boosts demand for virtual healthcare offerings.

The company set a price target of between US$14 and US$16 per share for its sale of 35 million shares. Amwell said it has applied to list its shares on the New York Stock Exchange under the ticker symbol "AMWL."

Shelter-in-place restrictions to control the pandemic have prompted people to turn to virtual consultation and treatment offerings, benefiting companies like Teladoc Health Inc, which last month struck an US$18.5 billion deal for chronic care provider Livongo Health Inc.

Morgan Stanley, Goldman Sachs & Co and Piper Sandler are among underwriters for the proposed offering. – Nampa/Reuters

AstraZeneca puts trial on hold

AstraZeneca Plc has paused a late-stage trial of one of the leading Covid-19 vaccine candidates after a suspected serious adverse reaction in a study participant, health news website Stat News reported on Tuesday.

It quoted an AstraZeneca spokesperson as saying in a statement that the "standard review process triggered a pause to vaccination to allow review of safety data.

The study is testing a Covid-19 vaccine being developed by AstraZeneca and University of Oxford researchers at various sites, including the United Kingdom, where the adverse event was reported.

The nature of the case and when it happened were not detailed, although the participant is expected to recover, according to Stat News. The suspension of the trial has impacted other AstraZeneca vaccine trials - as well as clinical trials being conducted by other vaccine makers, which are looking for signs of similar reactions, Stat said.

The AstraZeneca spokesperson's statement said that "in large trials, illnesses will happen by chance but must be independently reviewed to check this carefully. AstraZeneca did not immediately respond to a request for comment. – Nampa/Reuters

Tesla shed about US$80 billion

Tesla Inc shed about US$80 billion of its market value, an amount that overshadows the combined value of General Motors Co and Ford Motor Co, after its surprise exclusion from the S&P 500 index.

Tesla's shares recorded their worst single-day percentage drop ever and added to the broader sell-off in technology stocks, which have dominated Wall Street's recovery from the coronavirus-driven crash earlier this year.

The stock closed 21.06% lower, while fellow electric automaker Nikola Corp jumped more than 40% after General Motors said it was acquiring an 11% stake in the company.

Wall Street analysts and investors widely expected Tesla to join the S&P 500 after the company posted its fourth consecutive profitable quarter in July, clearing a major hurdle for its potential inclusion in the benchmark stock index.

In a surprise announcement, the S&P Dow Jones Indices decided to add online craft seller Etsy Inc, semiconductor equipment maker Teradyne Inc and pharmaceutical technology company Catalent Inc to the S&P 500 instead. Bets against Tesla's stock have also increased slightly over the last month, according to financial analytics firm S3 Partners. – Nampa/Reuters

Snowflake to raise US$2.38 billion

Snowflake Inc, backed by venture capital firm Sequoia, said on Tuesday it expects to raise about US$2.38 billion in its initial public offering in the United States, about two weeks after it made its financial documents public.

The cloud-based data warehouse firm set a price target of between US$75 and US$85 per share for its sale of 28 million shares. Berkshire Hathway Inc and Salesforce Ventures LLC, each, agreed to buy US$250 million of its stocks in a private placement, Snowflake said.

Snowflake confidentially filed to go public earlier this year, shortly after its last funding in February that valued it at over US$12 billion. Sequoia owned an 8.4% stake in the company prior to the offering.

The debut will mark yet another marquee public listing for a Silicon Valley start-up, even as all eyes are on Airbnb, Palantir and DoorDash, all expected to go public before the end of the year.

The Silicon Valley unicorns are looking to ride the stunning recovery in US capital markets from the Covid-19 pandemic that earlier this year forced several companies to postpone their debut. – Nampa/Reuters

Uber commits US$800 mln

Uber Technologies Inc on Tuesday said every vehicle on its global ride-hailing platform will be electric by 2040, and it vowed to contribute US$800 million through 2025 to help drivers switch to battery-powered vehicles, including discounts for vehicles bought or leased from partner automakers.

Uber, which as of early February said it had 5 million drivers worldwide, said it formed partnerships with General Motors and the Renault, Nissan, Mitsubishi alliance.

In addition to the vehicle discounts, Uber said the US$800 million includes discounts for charging and a fare surcharge for electric and hybrid vehicles, the cost of which would be partially offset by an additional small fee charged to customers who request a "green trip."

Uber said that vehicles on its ride’s platform in the United States, Canada and Europe will be zero-emission by 2030, taking advantage of the regulatory support and advanced infrastructure in those regions.

The deals with GM and the Renault alliance focus on the US, Canada and Europe. Uber said it was discussing partnerships with other automakers. – Nampa/Reuters