Asia Long-Short PM/Analyst

Curtis Lehnert

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/27266" target="_blank" data-smartkarma-citation="entities:27266:1">Opera Ltd (OPRA US)</a> is going for a US IPO amidst the ongoing market volatility and investors love/hate relationship with tech stocks.  As the result of a small deal size and being a browser that is only competitive in certain markets where internet infrastructure is undeveloped, this deal could get overlooked by investors.  I would encourage investors to look at the deal as a whole, weighing fundamentals with market sentiment and updates on how demand builds in the US.

Opera Ltd (OPRA US) is going for a US IPO amidst the ongoing market volatility and investors love/hate relationship with tech stocks.  As the result of a small deal size and being a browser that is only competitive in certain markets where internet infrastructure is undeveloped, this deal could get overlooked by investors.  I would encourage investors to look at the deal as a whole, weighing fundamentals with market sentiment and updates on how demand builds in the US.  

Opera IPO (OPRA US): Let the Book Be Your Guide

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

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<a href="https://www.smartkarma.com/entities/27266" target="_blank" data-smartkarma-citation="entities:27266:1">Opera Ltd (OPRA US)</a> plans to raise up to US$175m in its ADR offering via a concurrent private placement (US$60m) along with its IPO. The company was bought by a Chinese consortium in Nov 2016 at a substantially lower price. Not a lot of things seem to have changed since then apart from the new management undertaking a restructuring exercise that has saved some cost. Opera continues to be a niche player in the browser market and has a dominant position only in some African countries. Although, as per some industry reports despite having grown its user numbers it still seems to be losing market share.On the positive side, the company has been reporting steady growth in mobile browser users, along with an increase in revenue and an improvement in margins. Whether that is good enough to offer upside from these levels remains another issue.Given the smallish size of the deal (excluding the concurrent private placement) and lack of an Asia-Pac angle apart from ownership and bookrunner, this is a quick note of mostly bullet points along with charts, tables and snippets, with minimal additional writing.

Opera Ltd (OPRA US) plans to raise up to US$175m in its ADR offering via a concurrent private placement (US$60m) along with its IPO. The company was bought by a Chinese consortium in Nov 2016 at a substantially lower price. Not a lot of things seem to have changed since then apart from the new management undertaking a restructuring exercise that has saved some cost. Opera continues to be a niche player in the browser market and has a dominant position only in some African countries. Although, as per some industry reports despite having grown its user numbers it still seems to be losing market share.On the positive side, the company has been reporting steady growth in mobile browser users, along with an increase in revenue and an improvement in margins. Whether that is good enough to offer upside from these levels remains another issue.Given the smallish size of the deal (excluding the concurrent private placement) and lack of an Asia-Pac angle apart from ownership and bookrunner, this is a quick note of mostly bullet points along with charts, tables and snippets, with minimal additional writing. 

Opera IPO - Quick Thoughts - More Africa than China, Gaining Low ARPU Users

United States

Opera Limited operates as a web application development company. The Company designs and develops web browsers for mobile phones and PCs that enable Internet users to discover and access digital contents. Opera serves customers worldwide.

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Opera Ltd (OPRA US)

Opera IPO (OPRA US): Let the Book Be Your Guide

Opera Ltd (OPRA US) is going for a US IPO amidst the ongoing market volatility and investors love/hate relationship with tech stocks. As the...

Curtis Lehnert

Opera IPO - Quick Thoughts - More Africa than China, Gaining Low ARPU Users

Opera Ltd (OPRA US) plans to raise up to US$175m in its ADR offering via a concurrent private placement (US$60m) along with its IPO. The company...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)