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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/paypay-corporation" target="_blank" data-smartkarma-citation="entities:35269:1" rel="noopener">PayPay (PAYP US),</a> Japan’s leading financial technology company, is seeking to raise about US$1.1 billion through a Nasdaq IPO.</li>
<li>I previously discussed the IPO in <em><strong><a href="https://www.smartkarma.com/insights/paypay-ipo-payp-us-the-investment-case" target="_blank" data-smartkarma-citation="insights:222670" rel="noopener">PayPay IPO (PAYP US): The Investment Case</a></strong></em>. </li>
<li>In this note, I present my forecasts and valuation. My analysis suggests that the IPO price range is attractive. The pricing date is 11 March.</li>
</ul>



PayPay (PAYP US), Japan’s leading financial technology company, is seeking to raise about US$1.1 billion through a Nasdaq IPO.
I previously discussed the IPO in PayPay IPO (PAYP US): The Investment Case. 
In this note, I present my forecasts and valuation. My analysis suggests that the IPO price range is attractive. The pricing date is 11 March.


PayPay IPO (PAYP US): Valuation Insights

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/paypay-corporation" target="_blank" data-smartkarma-citation="entities:35269:1" rel="noopener">PayPay (PAYP US)</a>, a payments and financial services platform, raised around US$880m in its US IPO after pricing below the range.</li>
<li>PP operates a digital finance platform that serves as a payment solution for users and merchants, along with offering additional services.</li>
<li>We have looked at its past performance and valuations in our earlier notes. In this note, we talk about the trading dynamics.</li>
</ul>



PayPay (PAYP US), a payments and financial services platform, raised around US$880m in its US IPO after pricing below the range.
PP operates a digital finance platform that serves as a payment solution for users and merchants, along with offering additional services.
We have looked at its past performance and valuations in our earlier notes. In this note, we talk about the trading dynamics.


Aequitas: PayPay IPO Trading - Valuations Digestible, Sentiment Suffering

<ul>
<li>
<a href="https://www.smartkarma.com/entities/paypay-corporation" target="_blank" data-smartkarma-citation="entities:35269:1" rel="noopener">PayPay (PAYP US)</a> (PP), a payments and financial services platform, is now looking to raise up to US$1.1bn in its upcoming US IPO.</li>
<li>PP operates a digital finance platform that serves as a payment solution for users and merchants, along with offering additional services.</li>
<li>We have looked at its past performance and undertaken a peer comparison in our earlier notes. In this note, we provide our thoughts on valuations.</li>
</ul>



PayPay (PAYP US) (PP), a payments and financial services platform, is now looking to raise up to US$1.1bn in its upcoming US IPO.
PP operates a digital finance platform that serves as a payment solution for users and merchants, along with offering additional services.
We have looked at its past performance and undertaken a peer comparison in our earlier notes. In this note, we provide our thoughts on valuations.


Aequitas: PayPay IPO - Thoughts on Valuations

<ul>
<li>
<a href="https://www.smartkarma.com/entities/paypay-corporation" target="_blank" data-smartkarma-citation="entities:35269:1" rel="noopener">PayPay (PAYP US)</a> (PP), a Japanese payments and financial services platform, is looking to raise up to US$2bn in its upcoming US IPO.</li>
<li>PP operates a digital finance platform that serves as a payment solution for users and merchants, along with offering additional services.</li>
<li>We have looked at its past performance in our earlier note. In this note, we undertake a peer comparison.</li>
</ul>



PayPay (PAYP US) (PP), a Japanese payments and financial services platform, is looking to raise up to US$2bn in its upcoming US IPO.
PP operates a digital finance platform that serves as a payment solution for users and merchants, along with offering additional services.
We have looked at its past performance in our earlier note. In this note, we undertake a peer comparison.


Aequitas: PayPay Pre-IPO - Peer Comparison

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

<ul>
<li>Affirm shares jumped on the 16th December, on the back of the company’s renewal of its partnership pact with Amazon for a further five years</li>
<li>Despite this constructive news, we continue to see fundamental headwinds for premium valued Affirm, given the increasingly competitive BNPL market as well as the worsening consumer credit delinquency trends</li>
<li>Also, Affirm short interest is close to a three year low and as recently as early December the Affirm CFO has sold some shares; competitor Klarna remains one to watch</li>
</ul>


Affirm shares jumped on the 16th December, on the back of the company’s renewal of its partnership pact with Amazon for a further five years
Despite this constructive news, we continue to see fundamental headwinds for premium valued Affirm, given the increasingly competitive BNPL market as well as the worsening consumer credit delinquency trends
Also, Affirm short interest is close to a three year low and as recently as early December the Affirm CFO has sold some shares; competitor Klarna remains one to watch


BNPL Companies – Re-Iterating Our Bearish View on Affirm (AFRM US)

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)

PayPay IPO (PAYP US): Valuation Insights

PayPay has priced its IPO at US$16 per ADS, below the US$17.00 to US$20.00 range, to raise US$880m, presumably due to the market turmoil. However,...

Arun George

Aequitas: PayPay IPO Trading - Valuations Digestible, Sentiment Suffering

PayPay (PAYP US), a payments and financial services platform, raised around US$880m in its US IPO after pricing below the range. In this note, we...

Sumeet Singh

Aequitas: PayPay IPO - Thoughts on Valuations

PayPay (PAYP US) (PP), a payments and financial services platform, is now looking to raise up to US$1.1bn in its upcoming US IPO. In this note, we...

Sumeet Singh

Aequitas: PayPay Pre-IPO - Peer Comparison

PayPay (PAYP US) (PP), a Japanese payments and financial services platform, is looking to raise up to US$2bn in its upcoming US IPO. In this note,...

Sumeet Singh

BNPL Companies – Re-Iterating Our Bearish View on Affirm (AFRM US)

Affirm's shares face challenges in competitive BNPL market and credit trends, despite the recent Amazon partnership renewal. Technical factors...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

PayPay IPO (PAYP US): Valuation Insights

PayPay has priced its IPO at US$16 per ADS, below the US$17.00 to US$20.00 range, to raise US$880m, presumably due to the market turmoil. However,...

Arun George

Aequitas: PayPay IPO Trading - Valuations Digestible, Sentiment Suffering

PayPay (PAYP US), a payments and financial services platform, raised around US$880m in its US IPO after pricing below the range. In this note, we...

Sumeet Singh

Aequitas: PayPay IPO - Thoughts on Valuations

PayPay (PAYP US) (PP), a payments and financial services platform, is now looking to raise up to US$1.1bn in its upcoming US IPO. In this note, we...

Sumeet Singh

Aequitas: PayPay Pre-IPO - Peer Comparison

PayPay (PAYP US) (PP), a Japanese payments and financial services platform, is looking to raise up to US$2bn in its upcoming US IPO. In this note,...

Sumeet Singh

BNPL Companies – Re-Iterating Our Bearish View on Affirm (AFRM US)

​Affirm's shares face challenges in competitive BNPL market and credit trends, despite the recent Amazon partnership renewal. Technical factors...

Victor Galliano

Affirm's shares face challenges in competitive BNPL market and credit trends, despite the recent Amazon partnership renewal. Technical factors...