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

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<li>
<a href="https://www.smartkarma.com/entities/arm-holdings-inc" target="_blank" data-smartkarma-citation="entities:21816:1" rel="noopener">ARM Holdings (ARM US)</a> has priced its IPO at US$51.00 per ADS, at the top end of the price range. <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> will raise gross proceeds of US$4.9bn.</li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/arm-holdings-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:111238" rel="noopener">ARM Holdings IPO: The Bull Case</a>, <a href="https://www.smartkarma.com/insights/arm-holdings-ipo-the-bear-case" target="_blank" data-smartkarma-citation="insights:111471" rel="noopener">ARM Holdings IPO: The Bear Case</a> and <a href="https://www.smartkarma.com/insights/arm-holdings-ipo-unattractive-price-range" target="_blank" data-smartkarma-citation="insights:112285" rel="noopener">ARM Holdings IPO: Unattractive Price Range</a>. </li>
<li>The ARM IPO is structurally set up for a first-day pop. Beyond the first-day euphoria, ARM will face the daunting task of delivering bullish estimates to justify the IPO price.</li>
</ul>



ARM Holdings (ARM US) has priced its IPO at US$51.00 per ADS, at the top end of the price range. Softbank Group (9984 JP) will raise gross proceeds of US$4.9bn.
We previously discussed the IPO in ARM Holdings IPO: The Bull Case, ARM Holdings IPO: The Bear Case and ARM Holdings IPO: Unattractive Price Range. 
The ARM IPO is structurally set up for a first-day pop. Beyond the first-day euphoria, ARM will face the daunting task of delivering bullish estimates to justify the IPO price.


ARM Holdings IPO Trading: Structurally Set up for a First-Day Pop, but Then What?

Equity Analyst, Investi Analyst

Investi Analyst

Equity Analyst

Investment Entrepreneur / Equity Analyst.

Equity Bottom-Up

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<li>Toast (NYSE:<a href="https://www.smartkarma.com/search?q=TOST" target="_blank" rel="noopener">TOST</a>) offers a cloud-based end-to-end POS tech platform primarily focused on restaurant and food services.</li>
<li>They offer a broad portfolio of software and payment solutions that help to solve the needs of restaurants.</li>
<li>The company's payment processing offerings are built on charging transaction fees for its restaurant clients for debit and credit card payments on restaurant sales.
</li>
</ul>


Toast (NYSE:TOST) offers a cloud-based end-to-end POS tech platform primarily focused on restaurant and food services.
They offer a broad portfolio of software and payment solutions that help to solve the needs of restaurants.
The company's payment processing offerings are built on charging transaction fees for its restaurant clients for debit and credit card payments on restaurant sales.



Toast: A Deep-Dive Into A Category Leader In Vertical Software

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<a href="https://www.smartkarma.com/entities/toast-inc" target="_blank" data-smartkarma-citation="entities:34261:1" rel="noopener">Toast (TOST US)</a> increased its IPO price range to<a href="https://finance.yahoo.com/news/restaurant-software-provider-toast-raises-144113955.html" target="_blank" rel="noopener"> $34 to $36</a> per share on 20 September, up from $30 to $33 per share previously. The company plans to offer 21.74 million class A shares through its IPO. At the high end of the revised up IPO price ($36 per share), Toast Inc would raise $783 million.<div class="content-highlight">
Our base case valuation of Toast Inc is implied market cap of US$24.9 billion or US$45.5 per share, which is 26% higher than the high end of the IPO price range (US$36). Given the decent upside, we have a POSITIVE view of this IPO. 
Our valuation of Toast Inc is based on an EV/S multiple of 10.1x using our estimated sales of $2.4 billion in 2022. The EV/S multiple of 10.1x is based on a 10% discount to the average multiple of the comps in 2022.
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Toast (TOST US) increased its IPO price range to $34 to $36 per share on 20 September, up from $30 to $33 per share previously. The company plans to offer 21.74 million class A shares through its IPO. At the high end of the revised up IPO price ($36 per share), Toast Inc would raise $783 million.
Our base case valuation of Toast Inc is implied market cap of US$24.9 billion or US$45.5 per share, which is 26% higher than the high end of the IPO price range (US$36). Given the decent upside, we have a POSITIVE view of this IPO. 
Our valuation of Toast Inc is based on an EV/S multiple of 10.1x using our estimated sales of $2.4 billion in 2022. The EV/S multiple of 10.1x is based on a 10% discount to the average multiple of the comps in 2022.


<a href="https://www.marketwatch.com/story/toast-sets-ipo-terms-to-be-valued-at-up-to-165-billion-2021-09-13" target="_blank" rel="noopener">Toast Inc</a> is expected to complete its IPO in the US next week. The IPO price range is between $30 and $33 a share. The company is offering 21.74 million Class A shares in this IPO. At the high end of the IPO price range, the company would be raising $717.4 million. The lead underwriters of the IPO include Goldman Sachs, Morgan Stanley and J.P. Morgan.  At the high end of the IPO price range, the company's market cap would be $16.6 billion.
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Toast is the market leader of providing a one-stop shop of SaaS platform for the restaurant industry in the US. The company has experienced excellent growth in sales and a sharp improvement in its operating margins in the past year. 
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Toast Inc generated sales of $823.1 million (up 23.8% YoY), gross profit of $140.4 million (up 125.2% YoY), and operating loss of $220.2 million in 2020. Its sales growth accelerated sharply in 1H 2021. It had sales of $703.8 million (up 104.7% YoY), gross profit of $154.8 million (244.1% YoY), and operating loss of $56.8 million in 1H 2021.

Toast Inc is expected to complete its IPO in the US next week. The IPO price range is between $30 and $33 a share. The company is offering 21.74 million Class A shares in this IPO. At the high end of the IPO price range, the company would be raising $717.4 million. The lead underwriters of the IPO include Goldman Sachs, Morgan Stanley and J.P. Morgan.  At the high end of the IPO price range, the company's market cap would be $16.6 billion.

Toast is the market leader of providing a one-stop shop of SaaS platform for the restaurant industry in the US. The company has experienced excellent growth in sales and a sharp improvement in its operating margins in the past year. 

Toast Inc generated sales of $823.1 million (up 23.8% YoY), gross profit of $140.4 million (up 125.2% YoY), and operating loss of $220.2 million in 2020. Its sales growth accelerated sharply in 1H 2021. It had sales of $703.8 million (up 104.7% YoY), gross profit of $154.8 million (244.1% YoY), and operating loss of $56.8 million in 1H 2021.

United States

Toast, Inc. operates as a cloud-based restaurant software company. The Company designs and develops sale and management software system that helps restaurants to improve operations, increase sales, and create a better guest experience. Toast serves customers worldwide.

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Toast (TOST US)

ARM Holdings IPO Trading: Structurally Set up for a First-Day Pop, but Then What?

The ARM IPO is structurally set up for a first-day pop. Beyond the first-day euphoria, ARM will face the daunting task of delivering bullish...

Arun George

Toast: A Deep-Dive Into A Category Leader In Vertical Software

The company's payment processing offerings are built on charging transaction fees for its restaurant clients for debit and credit card payments on...

Investi Analyst

Toast Inc Valuation Analysis

Our base case valuation of Toast Inc is implied market cap of US$24.9 billion or US$45.5 per share, which is 26% higher than the high end of the...

Douglas Kim

Toast Inc IPO Preview

Toast Inc is the market leader of providing a one-stop shop of SaaS platform for the restaurant industry in the US. Toast Inc plans to complete its...

Douglas Kim

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