IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/dada-nexus-ltd" target="_blank" data-smartkarma-citation="entities:28961:1" rel="noopener">Dada Nexus Ltd (DADA US)</a> is seeking to raise as much as $521 million (at the last close price) through an issue of 9 million ADSs. The funds will be used for implementing its marketing initiatives and growing its user base, for investing in technology and research and development, as well as for general corporate purposes.The follow-on offering comes just five months from the June IPO, where Dada Nexus raised net proceeds of $297.9 million at $16 per ADS. The shares have been of a tear and have risen 3.6x since the IPO. The net cash including lease liabilities stood at $450 million at the end of 9M20. <div class="content-highlight">We remain bullish on Dada Nexus’ prospects and believe that the company remains on track to combine its fast-paced growth with profitability. Notwithstanding, the strong share price run, the shares continue to look attractive for the growth on offer. Overall, we would participate in the placement.</div>

Dada Nexus Ltd (DADA US) is seeking to raise as much as $521 million (at the last close price) through an issue of 9 million ADSs. The funds will be used for implementing its marketing initiatives and growing its user base, for investing in technology and research and development, as well as for general corporate purposes.The follow-on offering comes just five months from the June IPO, where Dada Nexus raised net proceeds of $297.9 million at $16 per ADS. The shares have been of a tear and have risen 3.6x since the IPO. The net cash including lease liabilities stood at $450 million at the end of 9M20. We remain bullish on Dada Nexus’ prospects and believe that the company remains on track to combine its fast-paced growth with profitability. Notwithstanding, the strong share price run, the shares continue to look attractive for the growth on offer. Overall, we would participate in the placement.

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

In a new filing on Monday, US online food delivery giant DoorDash disclosed additional details of its planned IPO. The company hopes to sell 33 mn new shares at between US$75 and US$85 per share, raising over US$2.4 bn and valuing the company at US$25 bn or more. In this note we compare it to other listed online food delivery firms, and discuss which factors could justify either higher valuation multiples (strong revenue growth) or lower valuation multiples (US restaurant closures) versus global peers.

In a new filing on Monday, US online food delivery giant DoorDash disclosed additional details of its planned IPO. The company hopes to sell 33 mn new shares at between US$75 and US$85 per share, raising over US$2.4 bn and valuing the company at US$25 bn or more. In this note we compare it to other listed online food delivery firms, and discuss which factors could justify either higher valuation multiples (strong revenue growth) or lower valuation multiples (US restaurant closures) versus global peers. 

DoorDash IPO: First Take on Proposed IPO Price Range of US$75-85 Per Share

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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.

In this follow up report on DoorDash we focus on the financials of the company to assess the degree of operating leverage that can be brought to bear on its path to profitability. We further compare DoorDash’s progress compared to beleaguered peer Grubhub.

In this follow up report on DoorDash we focus on the financials of the company to assess the degree of operating leverage that can be brought to bear on its path to profitability. We further compare DoorDash’s progress compared to beleaguered peer Grubhub.

DoorDash is joining the long list of unprofitable companies touting revenue growth and the now customary “contribution margin” improvement as reasons to favour their stock. The timing is opportune given a nice boost to demand from lockdowns and the punchy looking growth numbers that have been the result of this. However, there are some concerns as well. Below we examine the company’s business model and flag some interesting points in the S-1.

DoorDash is joining the long list of unprofitable companies touting revenue growth and the now customary “contribution margin” improvement as reasons to favour their stock. The timing is opportune given a nice boost to demand from lockdowns and the punchy looking growth numbers that have been the result of this. However, there are some concerns as well. Below we examine the company’s business model and flag some interesting points in the S-1.

DoorDash IPO – Unprofitable Despite Pandemic Boost

US-based online food delivery company <a href="https://www.smartkarma.com/entities/doordash-inc" target="_blank" data-smartkarma-citation="entities:28881:1" rel="noopener">DoorDash Inc (0881510D US)</a> has filed to go public. In this note we describe the company's operations and compare its scale and efficiency to other online food delivery companies in the US and around the globe. 
Intensely focused and increasingly dominant in its home market, DoorDash has made admirable progress toward profitability by focusing on smaller cities and suburban areas in the US. This approach is the opposite of conventional wisdom, which suggests that only a handful of large US cities can generate the order density necessary to make online food delivery economically viable. 
DoorDash is seeking growth from new market segments adjacent to its core operation even as it faces the threat of a large, disruptive new entrant in US online food delivery. Last valued at US$16 bn in June 2020, we believe DoorDash's unorthodox approach deserves to be thoroughly understood by investors. We will write more about DoorDash as the IPO process moves forward.

US-based online food delivery company DoorDash Inc (0881510D US) has filed to go public. In this note we describe the company's operations and compare its scale and efficiency to other online food delivery companies in the US and around the globe. 
Intensely focused and increasingly dominant in its home market, DoorDash has made admirable progress toward profitability by focusing on smaller cities and suburban areas in the US. This approach is the opposite of conventional wisdom, which suggests that only a handful of large US cities can generate the order density necessary to make online food delivery economically viable. 
DoorDash is seeking growth from new market segments adjacent to its core operation even as it faces the threat of a large, disruptive new entrant in US online food delivery. Last valued at US$16 bn in June 2020, we believe DoorDash's unorthodox approach deserves to be thoroughly understood by investors. We will write more about DoorDash as the IPO process moves forward.

DoorDash IPO Context: What It Is & How It Compares to Online Food Delivery Universe

United States

DoorDash, Inc. provides restaurant food delivery services. The Company develops technology to connect customers with merchants through an on-demand food delivery application. DoorDash serves customers in the United States.

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DoorDash (DASH US)

Dada Nexus Placement: Ascend and Deliver

Dada Nexus is seeking to raise as much as $521 million through an issue of 9 million ADSs. Overall, we would participate in the placement.

Arun George

DoorDash – Outperformance Vs. Grubhub

We follow up on our business model analysis for DoorDash by looking deeper into the company's financials, including a comparison against peer Grubhub.

Mio Kato

DoorDash IPO – Unprofitable Despite Pandemic Boost

Unlike some "contribution margin" companies DoorDash appears to have a path to profitability. The question is whether valuations will be reasonable...

Mio Kato

DoorDash IPO Context: What It Is & How It Compares to Online Food Delivery Universe

US-based on-demand food delivery company DoorDash plans to list soon. In this note we show investors how DoorDash differs from some of its peers in...

Tracking Traffic

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Dada Nexus Placement: Ascend and Deliver

Dada Nexus is seeking to raise as much as $521 million through an issue of 9 million ADSs. Overall, we would participate in the placement.

Arun George

DoorDash IPO: First Take on Proposed IPO Price Range of US$75-85 Per Share

On some metrics, US-based online food delivery company looks reasonably priced at the mid-point of its IPO range. We highlight some factors that...

Tracking Traffic

DoorDash – Outperformance Vs. Grubhub

We follow up on our business model analysis for DoorDash by looking deeper into the company's financials, including a comparison against peer Grubhub.

Mio Kato

DoorDash IPO – Unprofitable Despite Pandemic Boost

Unlike some "contribution margin" companies DoorDash appears to have a path to profitability. The question is whether valuations will be reasonable...

Mio Kato

DoorDash IPO Context: What It Is & How It Compares to Online Food Delivery Universe

US-based on-demand food delivery company DoorDash plans to list soon. In this note we show investors how DoorDash differs from some of its peers in...

Tracking Traffic