Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

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<p><a href="https://www.smartkarma.com/entities/dingdong-maicia" target="_blank" data-smartkarma-citation="entities:33461:1" rel="noopener">Dingdong Maicia (DDL US) </a>(DM), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global, General Atlantic and Softbank.</p>
<p>Dingdong Maicai is an on-demand e-commerce company in China which provides users and households with fresh produce, meat and seafood and other daily necessities via its self-operated frontline fulfillment grid. As of 1Q21, DM had 6.9m monthly transacting users, who had placed 69.7m orders during the quarter. Its FY20 gross merchandise value was RMB13bn, representing a 10%+ market share for the on-demand ecommerce fresh groceries and daily necessities market.</p>
</div><div><p>In our earlier notes, we have looked at the background and performance the company:</p></div><div><ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/dingdong-maicai-pre-ipo-increasing-market-share-fast-growth-but-no-signs-of-profit" target="_blank" rel="noopener">Dingdong Maicai Pre-IPO - Increasing market share, fast growth but no signs of profit</a></p></li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/dingdong-maicai-vs-miss-fresh-pre-ipo-one-clear-winner" target="_blank" rel="noopener">Dingdong Maicai Vs Miss Fresh Pre-IPO - One Clear Winner</a></li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/dingdong-fresh-food-competition-in-and-outside-of-frontline-warehouse" target="_blank" rel="noopener">Dingdong (叮咚买菜): Fresh Food Competition in and Outside of Frontline Warehouse</a></li>
</ul></div><div><p>In this note we will provide our earnings forecast and talk about valuations.</p></div>


Dingdong Maicia (DDL US) (DM), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global, General Atlantic and Softbank.
Dingdong Maicai is an on-demand e-commerce company in China which provides users and households with fresh produce, meat and seafood and other daily necessities via its self-operated frontline fulfillment grid. As of 1Q21, DM had 6.9m monthly transacting users, who had placed 69.7m orders during the quarter. Its FY20 gross merchandise value was RMB13bn, representing a 10%+ market share for the on-demand ecommerce fresh groceries and daily necessities market.
In our earlier notes, we have looked at the background and performance the company:
Dingdong Maicai Pre-IPO - Increasing market share, fast growth but no signs of profit
Dingdong Maicai Vs Miss Fresh Pre-IPO - One Clear Winner
Dingdong (叮咚买菜): Fresh Food Competition in and Outside of Frontline Warehouse
In this note we will provide our earnings forecast and talk about valuations.

Dingdong Maicai Pre-IPO - Thoughts on Valuation

<p><a href="https://www.smartkarma.com/entities/zomato-media-pvt" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOM IN)</a>  aims to raise US$1.1bn in its upcoming India IPO. This would be the largest listing in India from the technology sector.</p><p>Zomato operates a technology platform that provides services for restaurant partners, customers, and delivery partners. During FY20, Zomato recorded 41.5m average MAU and was one of the leading Food Services platforms in India, in terms of value of goods sold, according to RedSeer. As of 31 Dec 20, it had a presence in 526 Indian cities and had 350,174 active restaurant listings</p>

Zomato (ZOM IN)  aims to raise US$1.1bn in its upcoming India IPO. This would be the largest listing in India from the technology sector.Zomato operates a technology platform that provides services for restaurant partners, customers, and delivery partners. During FY20, Zomato recorded 41.5m average MAU and was one of the leading Food Services platforms in India, in terms of value of goods sold, according to RedSeer. As of 31 Dec 20, it had a presence in 526 Indian cities and had 350,174 active restaurant listings

Zomato Pre-IPO - Filings Lack Narrative, a Little Bit of History Helps

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

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<a href="https://www.smartkarma.com/entities/zomato-media-pvt" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOM IN)</a>, the most downloaded food and drinks application in India in each of the last three years, filed for an IPO with The Securities and Exchange Board of India (SEBI) on 28<sup>th</sup> April 2021. The offer comprises INR 75,000m ($1.0bn) worth new shares and INR 7,500m ($102m) worth secondary shares.</li>
<li>Zomato made an operating loss of INR 3.6bn in 9MFY21 (serving only about 50% of the FY20 monthly active customers) compared to INR 22.7bn in FY20. Even though this seems like a significant improvement, it is more an indication that Zomato is incapable of generating a profit even from its most loyal customers.</li>
<li>With the recent unprofitable online food delivery IPO, <a href="https://www.smartkarma.com/entities/roofoods-ltd" target="_blank" data-smartkarma-citation="entities:27468:1" rel="noopener">Deliveroo (ROO LN)</a> trading about 33% below the IPO price, we see little potential in Zomato, unless it is priced at a discount to peers.</li>
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Zomato (ZOM IN), the most downloaded food and drinks application in India in each of the last three years, filed for an IPO with The Securities and Exchange Board of India (SEBI) on 28th April 2021. The offer comprises INR 75,000m ($1.0bn) worth new shares and INR 7,500m ($102m) worth secondary shares.
Zomato made an operating loss of INR 3.6bn in 9MFY21 (serving only about 50% of the FY20 monthly active customers) compared to INR 22.7bn in FY20. Even though this seems like a significant improvement, it is more an indication that Zomato is incapable of generating a profit even from its most loyal customers.
With the recent unprofitable online food delivery IPO, Deliveroo (ROO LN) trading about 33% below the IPO price, we see little potential in Zomato, unless it is priced at a discount to peers.


Zomato IPO: Improving Unit Economics Could Be Misleading & There Could Be Goodwill Write-Offs

<p>One of London’s most anticipated tech IPOs in recent history, <a href="https://www.smartkarma.com/entities/roofoods-ltd" target="_blank" data-smartkarma-citation="entities:27468:1" rel="noopener">Deliveroo (ROO LN)</a>, tumbled 26.3% on first day after pricing its shares at £3.90 per share, at bottom end of the lowered IPO price range. The share price went down to £2.71 per share in early trading before eventually ending the day at £2.87 per share.</p><p>Deliveroo managed to narrow losses last year, however if Deliveroo is requested to treat its riders as employees, all that could be easily undone. Therefore, we expect shares to remain under pressure medium term with additional pressure from retail selling towards mid next week as shares bought via the Deliveroo app becomes tradable from 7<sup>th</sup> April.</p>

One of London’s most anticipated tech IPOs in recent history, Deliveroo (ROO LN), tumbled 26.3% on first day after pricing its shares at £3.90 per share, at bottom end of the lowered IPO price range. The share price went down to £2.71 per share in early trading before eventually ending the day at £2.87 per share.Deliveroo managed to narrow losses last year, however if Deliveroo is requested to treat its riders as employees, all that could be easily undone. Therefore, we expect shares to remain under pressure medium term with additional pressure from retail selling towards mid next week as shares bought via the Deliveroo app becomes tradable from 7th April.

Deliveroo IPO First Day Trading: Too Risky to Hold Long Term

Equity Bottom-Up

<p>The US Customs and Border Protection Agency (CBP) ordered its ports to begin seizing all disposable gloves produced in Malaysia by <a href="https://www.smartkarma.com/entities/top-glove-corp-bhd" target="_blank" data-smartkarma-citation="entities:20759:1" rel="noopener">Top Glove Corp (TOPG MK)</a>, citing that CBP has found sufficient evidence to determine that the imported goods were produced using forced labour practices. Top Glove shares sank 5.3% yesterday and another 5.4% today to close at MYR 4.52 per share.</p><p>Even though the immediate financial impact from the above order is some what limited, we believe the order to have a significant impact on Top Glove’s financial performance in the post COVID era. Moreover, it could affect the company’s proposed Hong Kong Offering and also risk getting thrown out of ESG indices.</p>

The US Customs and Border Protection Agency (CBP) ordered its ports to begin seizing all disposable gloves produced in Malaysia by Top Glove Corp (TOPG MK), citing that CBP has found sufficient evidence to determine that the imported goods were produced using forced labour practices. Top Glove shares sank 5.3% yesterday and another 5.4% today to close at MYR 4.52 per share.Even though the immediate financial impact from the above order is some what limited, we believe the order to have a significant impact on Top Glove’s financial performance in the post COVID era. Moreover, it could affect the company’s proposed Hong Kong Offering and also risk getting thrown out of ESG indices.

CBP to Seize Goods Over Forced Labour: The Impact Limited in The Short Run & Severe in The Long Run

United Kingdom

Deliveroo PLC provides software solutions. The Company offers an online food delivery platform which allows users to order meals from partner restaurants, grocery stores, and other food suppliers. Deliveroo serves customers worldwide.

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Deliveroo (ROO LN)

Dingdong Maicai Pre-IPO - Thoughts on Valuation

Dingdong Maicia (DDL US), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global,...

Sumeet Singh

Zomato Pre-IPO - Filings Lack Narrative, a Little Bit of History Helps

Zomato aims to raise US$1.1bn in its upcoming India IPO. This would be the largest listing in India from the technology sector.

Sumeet Singh

Zomato IPO: Improving Unit Economics Could Be Misleading & There Could Be Goodwill Write-Offs

Even though Zomato's 9MFY21 results seems like a significant improvement in unit economics, it is more an indication that Zomato is incapable of...

Oshadhi Kumarasiri

Deliveroo IPO First Day Trading: Too Risky to Hold Long Term

If Deliveroo is requested to treat its riders as employees, the company's path to profitability is going to get impaired significantly. Therefore,...

Oshadhi Kumarasiri

CBP to Seize Goods Over Forced Labour: The Impact Limited in The Short Run & Severe in The Long Run

The immediate financial impact from the CBP order is limited. Yet we believe it to have a significant impact on Top Glove’s financial performance...

Oshadhi Kumarasiri

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