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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> will offer a fixed exchange ratio of 0.98 Zip shares per <a href="https://www.smartkarma.com/entities/sezzle-inc" target="_blank" data-smartkarma-citation="entities:30969:1" rel="noopener">Sezzle Inc (SZL AU)</a> share, implying a 22% premium to Sezzle’s last close price. </li>
<li>The completion conditions include Zip and Sezzle shareholder approval along with regulatory approval. The exchange ratio is fair compared to historical ranges, in our view.</li>
<li>Considering the weak investor sentiment of the BNPL sector and ongoing sector consolidation, the proposed merger is a good solution for both sets of shareholders.  </li>
</ul>



Zip Co Ltd (Z1P AU) will offer a fixed exchange ratio of 0.98 Zip shares per Sezzle Inc (SZL AU) share, implying a 22% premium to Sezzle’s last close price. 
The completion conditions include Zip and Sezzle shareholder approval along with regulatory approval. The exchange ratio is fair compared to historical ranges, in our view.
Considering the weak investor sentiment of the BNPL sector and ongoing sector consolidation, the proposed merger is a good solution for both sets of shareholders.  


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

<ul>
<li>ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a placement.</li>
<li>We have also covered the Oct 2020 placements in our earlier note, <a href="https://www.smartkarma.com/insights/zip-placement-sorry-it-s-not-you-it-s-me" target="_blank" data-smartkarma-citation="insights:44380" rel="noopener">Zip Placement - Sorry, It's Not You. It's Me</a>. </li>
<li>In this note we will talk about the recent developments and run the deal through our ECM framework.</li>
</ul>


ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a placement.
We have also covered the Oct 2020 placements in our earlier note, Zip Placement - Sorry, It's Not You. It's Me. 
In this note we will talk about the recent developments and run the deal through our ECM framework.


ZIP Acquisition and Unlinked Placement - Too Many Things at Once

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> has agreed to acquire <a href="https://www.smartkarma.com/entities/sezzle-inc" target="_blank" data-smartkarma-citation="entities:30969:1" rel="noopener">Sezzle Inc (SZL AU)</a> in an all-scrip deal where Sezzle shareholders will receive 0.98 shares of Z1P per shares of SZL.</li>
<li>At last closing prices, the deal values <a href="https://www.smartkarma.com/entities/sezzle-inc" target="_blank" data-smartkarma-citation="entities:30969:1" rel="noopener">Sezzle Inc (SZL AU)</a> at A$2.1658/share, a 21.7% premium to the last close and a 31.7% premium to 30 day VWAP.</li>
<li>
<a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> has also announced a A$148.7m fully underwritten institutional placement and a A$50m non-underwritten share placement plan to strengthen its balance sheet.</li>
</ul>



Zip Co Ltd (Z1P AU) has agreed to acquire Sezzle Inc (SZL AU) in an all-scrip deal where Sezzle shareholders will receive 0.98 shares of Z1P per shares of SZL.
At last closing prices, the deal values Sezzle Inc (SZL AU) at A$2.1658/share, a 21.7% premium to the last close and a 31.7% premium to 30 day VWAP.

Zip Co Ltd (Z1P AU) has also announced a A$148.7m fully underwritten institutional placement and a A$50m non-underwritten share placement plan to strengthen its balance sheet.


Zip to Acquire Sezzle: Buy Now, Pray Later?

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

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.

Equity Bottom-Up

Green World FinTech Service / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/green-world-fintech-service-co-ltd" target="_blank" data-smartkarma-citation="entities:35281:1" rel="noopener">Green World FinTech Service (6763 TT)</a> is one of the leading third-party payment solution providers in Taiwanese market.</li>
<li>The Covid-19 pandemic has accelerated digitisation of the payments industry in Taiwan. This has helped strong growth in top line and margin improvements for the company.</li>
<li>Though the company seems fairly valued compared to regional and global players, we think further upside is possible given its strong market dominance and demand for fintech in Taiwan.</li>
</ul>



Green World FinTech Service (6763 TT) is one of the leading third-party payment solution providers in Taiwanese market.
The Covid-19 pandemic has accelerated digitisation of the payments industry in Taiwan. This has helped strong growth in top line and margin improvements for the company.
Though the company seems fairly valued compared to regional and global players, we think further upside is possible given its strong market dominance and demand for fintech in Taiwan.


Green World FinTech Service: Green Light On

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Green World Fintech Service is a fintech company in Taiwan with one of the most rock-solid fundamentals among all Asian fintech companies. </li>
<li>It had 39% and 122% CAGR growth in sales and operating profit, respectively from 2017 to 2020. Its operating margin improved from 4.9% in 2017 to 28.9% in 1Q-3Q 2021. </li>
<li>Nonetheless, our valuation analysis suggests a base case valuation of 15.9 billion TWD and implied price per share of 1,076 TWD, which is 8% below current price. </li>
</ul>


Green World Fintech Service is a fintech company in Taiwan with one of the most rock-solid fundamentals among all Asian fintech companies. 
It had 39% and 122% CAGR growth in sales and operating profit, respectively from 2017 to 2020. Its operating margin improved from 4.9% in 2017 to 28.9% in 1Q-3Q 2021. 
Nonetheless, our valuation analysis suggests a base case valuation of 15.9 billion TWD and implied price per share of 1,076 TWD, which is 8% below current price. 


Green World FinTech Service: A Fintech Company in Taiwan with Rock-Solid Fundamentals

United States

Block, Inc. operates as a financial services and digital payments company. The Company develops a payments platform aimed at small and medium businesses that allows them to accept credit card payments and use tablet computers as payment registers for a point-of-sale system. Block also provides financial and marketing services.

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Block (XYZ US)

Zip Finally Lobs an Offer for Sezzle

Zip will offer a fixed exchange ratio of 0.98 Zip shares per Sezzle share, implying A$2.17 per Sezzle share. The exchange ratio is fair compared to...

Arun George

ZIP Acquisition and Unlinked Placement - Too Many Things at Once

ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a...

Sumeet Singh

Zip to Acquire Sezzle: Buy Now, Pray Later?

Zip is looking to acquire Sezzle in an all-stock deal that values Sezzle at A$491m, a 21.7% premium to the last close. Zip could migrate higher to...

Brian Freitas

Green World FinTech Service: Green Light On

Though Green World seems fairly valued compared to regional and global players, we think there is further upside given its strong market dominance...

Shifara Samsudeen, FCMA, CGMA

Green World FinTech Service: A Fintech Company in Taiwan with Rock-Solid Fundamentals

Green World Fintech Service is a fintech company in Taiwan with one of the most rock-solid fundamentals among all Asian fintech companies. However,...

Douglas Kim

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