Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>On 18 November, it was announced that 65 Equity Partners (backed by Temasek) will invest US$100 million (S$134 million) for a 13% stake in Tuya Inc (TUYA US). </li>
<li>Net cash as a percentage of market cap is currently at 92%. Tuya's sales growth and improvement in operating margin in 1Q-3Q 2024 have also been impressive this year.</li>
<li>Comps are trading at average EV/EBITDA of 13.7x in 2025 versus 2.3x for for Tuya. If Tuya continues its turnaround, its valuation gap versus its peers could decrease further. </li>
</ul>


On 18 November, it was announced that 65 Equity Partners (backed by Temasek) will invest US$100 million (S$134 million) for a 13% stake in Tuya Inc (TUYA US). 
Net cash as a percentage of market cap is currently at 92%. Tuya's sales growth and improvement in operating margin in 1Q-3Q 2024 have also been impressive this year.
Comps are trading at average EV/EBITDA of 13.7x in 2025 versus 2.3x for for Tuya. If Tuya continues its turnaround, its valuation gap versus its peers could decrease further. 


Tuya: Improving Sales Growth and Profit Margins Help to Clench Investment by 65 Equity Partners

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tuya-inc" target="_blank" data-smartkarma-citation="entities:32158:1" rel="noopener">Tuya Inc (TUYA US/2391 HK)</a>, a leading IoT cloud platform in China, was listed on the 18th March 2021 at <a href="https://ir.tuya.com/news/news-details/2021/Tuya-Inc.-Announces-Pricing-of-Initial-Public-Offering-3804b1542/default.aspx#:~:text=(%22Tuya%22%20or%20the%20%22,allotment%20option%20for%20underwriters%20to" target="_blank" rel="noopener">US$21.00/ADS</a>. The share price is currently down 92.5%. </li>
<li>Tuya subsequently established a primary dual-listing in Hong Kong on the 5th July 2022, priced at <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0627/2022062701451.pdf" target="_blank" rel="noopener">HK$19.30/share</a>. Those shares are down ~23% </li>
<li>Temasek-Backed 65 Equity Partners has now acquired a 13% stake (equivalent to ~6.2% of the voting rights) in Tuya, with a view to establishing a secondary listing on the SGX.</li>
</ul>



Tuya Inc (TUYA US/2391 HK), a leading IoT cloud platform in China, was listed on the 18th March 2021 at US$21.00/ADS. The share price is currently down 92.5%. 
Tuya subsequently established a primary dual-listing in Hong Kong on the 5th July 2022, priced at HK$19.30/share. Those shares are down ~23% 
Temasek-Backed 65 Equity Partners has now acquired a 13% stake (equivalent to ~6.2% of the voting rights) in Tuya, with a view to establishing a secondary listing on the SGX.


Tuya Inc (TUYA US/2391 HK): Third Listing A Charm? Not So Fast ...

US IPOs and Secondary Offerings, IPO Boutique

IPO Boutique

US IPOs and Secondary Offerings

For more than 20 years, we have been providing research, analysis, commentary and ratings on US Equity Capital Markets to institutional investors (US IPOs and Secondary Offerings). Our vast network of contacts across the Equity Capital Markets and attention-to-detail sets us apart from our competitors.

Since 2012, we have achieved a successful hit rating on 89% of Buy-rated IPOs. The collective “Buy” ratings averaged a first trade of 16.3% above issue.Our Neutral Rated Deals averaged just 2% above the issue price at first trade.

Our written research includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

In addition, we provide a high-touch premium desk access which includes analyst access, as well as real time insights on US IPOs as well as secondary offerings.

IPOs and Secondary Offerings

Equity Capital Markets

Sailpoint Technologies Holdings / Equity Capital Markets

<ul>
<li>The underwriters amended the terms of this offering with a S-1/A. The price range has been upwardly revised from $19.00-$21.00 to $21.00-$23.00.</li>
<li>Cornerstone investor Dragoneer has a strong track record with IPOs that have participated in. </li>
<li>The upwardly-revised price adjustment is a very bullish sign for the IPO and we have adjusted our early expectations on this deal.</li>
</ul>


The underwriters amended the terms of this offering with a S-1/A. The price range has been upwardly revised from $19.00-$21.00 to $21.00-$23.00.
Cornerstone investor Dragoneer has a strong track record with IPOs that have participated in. 
The upwardly-revised price adjustment is a very bullish sign for the IPO and we have adjusted our early expectations on this deal.


SailPoint, Inc. (SAIL) -- IPO Price Range Increased; Software Order Book Demand Is Fever Pitch

<ul>
<li>At equal price to ACT, Ito-san wins because of certainty/immediacy, but provided his price is above the bottom of the range and adequately compensates 7&amp;i for "additional actionable avenues."</li>
<li>The <a href="https://www.smartkarma.com/entities/amcor-limited" target="_blank" data-smartkarma-citation="entities:674:1" rel="noopener">Amcor Limited (AMC AU)</a>/<a href="https://www.smartkarma.com/entities/berry-global-group-inc" target="_blank" data-smartkarma-citation="entities:9428:1" rel="noopener">Berry Global Group (BERY US)</a> merger looks clean. However, Berry's % of earnings (revs, EBITDA, and profit), are higher than the % under the share split</li>
<li>This Temasek-led development will have a marginal impact on <a href="https://www.smartkarma.com/entities/tuya-inc" target="_blank" data-smartkarma-citation="entities:32158:1" rel="noopener">Tuya Inc (TUYA US)</a>. Creating supply and demand is hard. And Temasek-held/backed vehicles on the SGX are already abundant.</li>
</ul>


At equal price to ACT, Ito-san wins because of certainty/immediacy, but provided his price is above the bottom of the range and adequately compensates 7&amp;i for "additional actionable avenues."
The Amcor Limited (AMC AU)/Berry Global Group (BERY US) merger looks clean. However, Berry's % of earnings (revs, EBITDA, and profit), are higher than the % under the share split
This Temasek-led development will have a marginal impact on Tuya Inc (TUYA US). Creating supply and demand is hard. And Temasek-held/backed vehicles on the SGX are already abundant.


Last Week in Event SPACE: Seven & I, Amcor/Berry, WH Group/Smithfield, Tuya

Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Leading Provider of Equity and Investment Research

GSBR Research

We are an independent equity research provider focused on covering global markets. The aim of the research is to provide an unbiased view of the fundamentals of the company.

<ul>
<li>Temasek-Backed 65 Equity Partners bought 13% stake in Tuya, implying a total investment of US$100 million (or S$134M). </li>
<li>The fund’s mandate is to support high-growth, mid-cap companies seeking a listing on the Singapore Exchange (SGX).</li>
<li>The listing will benefit Tuya by providing easy access to capital. Tuya will be able to use stock as a currency to fund its expansion plans in Southeast Asia.</li>
</ul>


Temasek-Backed 65 Equity Partners bought 13% stake in Tuya, implying a total investment of US$100 million (or S$134M). 
The fund’s mandate is to support high-growth, mid-cap companies seeking a listing on the Singapore Exchange (SGX).
The listing will benefit Tuya by providing easy access to capital. Tuya will be able to use stock as a currency to fund its expansion plans in Southeast Asia.


Tuya Inc - Growth Trajectory to Accelerate Following 13% Stake Purchase by 65 Equity Partners

United States

Tuya Inc., doing business as Tuya Smart, provides IoT cloud platform. The Company offers solutions which enables brands, retailers, OEMs, and manufacturers to develop, launch, manage, and monetize software-enabled devices and services. Tuya Smart serves customers worldwide.

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Tuya Inc (TUYA US)

Tuya: Improving Sales Growth and Profit Margins Help to Clench Investment by 65 Equity Partners

Tuya's net cash as a percentage of market cap is currently at 92%. Tuya's sales growth and improvement in operating margin in 1Q-3Q 2024 have also...

Douglas Kim

Tuya Inc (TUYA US/2391 HK): Third Listing A Charm? Not So Fast ...

This Temasek-led development will have a marginal impact on Tuya. And Temasek-held vehicles on the SGX are already aplenty. Unless you have strong...

David Blennerhassett

SailPoint, Inc. (SAIL) -- IPO Price Range Increased; Software Order Book Demand Is Fever Pitch

Underwriters amend IPO terms, raising price range to $21.00-$23.00; cornerstone investor Dragoneer's track record adds confidence, signaling...

IPO Boutique

Last Week in Event SPACE: Seven & I, Amcor/Berry, WH Group/Smithfield, Tuya

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Tuya Inc - Growth Trajectory to Accelerate Following 13% Stake Purchase by 65 Equity Partners

Temasek-backed 65 Equity Partners invests US$100 million in Tuya to support its listing on SGX, providing access to capital for expansion in...

GSBR Research

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Tuya: Improving Sales Growth and Profit Margins Help to Clench Investment by 65 Equity Partners

Tuya's net cash as a percentage of market cap is currently at 92%. Tuya's sales growth and improvement in operating margin in 1Q-3Q 2024 have also...

Douglas Kim

Tuya Inc (TUYA US/2391 HK): Third Listing A Charm? Not So Fast ...

This Temasek-led development will have a marginal impact on Tuya. And Temasek-held vehicles on the SGX are already aplenty. Unless you have strong...

David Blennerhassett

SailPoint, Inc. (SAIL) -- IPO Price Range Increased; Software Order Book Demand Is Fever Pitch

​Underwriters amend IPO terms, raising price range to $21.00-$23.00; cornerstone investor Dragoneer's track record adds confidence, signaling...

IPO Boutique

Last Week in Event SPACE: Seven & I, Amcor/Berry, WH Group/Smithfield, Tuya

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Tuya Inc - Growth Trajectory to Accelerate Following 13% Stake Purchase by 65 Equity Partners

​Temasek-backed 65 Equity Partners invests US$100 million in Tuya to support its listing on SGX, providing access to capital for expansion in...

GSBR Research

Underwriters amend IPO terms, raising price range to $21.00-$23.00; cornerstone investor Dragoneer's track record adds confidence, signaling...

Temasek-backed 65 Equity Partners invests US$100 million in Tuya to support its listing on SGX, providing access to capital for expansion in...