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

FSN E-Commerce Ventures (Nykaa) / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/fsn-e-commerce-ventures-nykaa" target="_blank" data-smartkarma-citation="entities:33796:1" rel="noopener">FSN E-Commerce Ventures (Nykaa) (1003622D IN)</a> provides e-retailing of beauty and fashion products through two verticals Nykaa (beauty and personal care) and Nykaa Fashion (apparel and accessories). Nykaa is the largest speciality beauty and personal care platform in India as measured by the value of products sold in the FY21, according to RedSeer. </p><p>Nykaa is looking to raise $500 million through an IPO in India, according to press reports. The IPO comprises a primary raise of Rs5,250 million ($70 million) and 43.1 million secondary shares. </p><p>Nykaa has a large addressable market opportunity with the beauty and personal care opportunity currently worth $16 billion and the fashion opportunity currently worth $54 billion, according to RedSeer. At 8% penetration in FY21, beauty and personal care are one of the more underpenetrated e-commerce categories in India. Online penetration in fashion in India is slightly higher at 12% in FY21 but is still relatively low compared to mature e-tailing categories such as mobiles and electronics. </p><div class="content-highlight"><p>Nykaa has a strong positioning in India’s e-commerce beauty products industry, underpinned by the strong brand recognition of the ‘Nykaa’ brand. It has been able to retain a large customer base, leading to repeat orders such that existing consumers accounted for 70% of GMV in FY21. Nykaa also has relationships with 2,476 brands but with no dependence on any brand or product. The financial performance is solid with strong growth, rising margins and cash generation. These characteristics should enable Nykaa to hold its own against intensifying competition. Overall, we think that Nykaa has attractive fundamentals.</p></div>

FSN E-Commerce Ventures (Nykaa) (1003622D IN) provides e-retailing of beauty and fashion products through two verticals Nykaa (beauty and personal care) and Nykaa Fashion (apparel and accessories). Nykaa is the largest speciality beauty and personal care platform in India as measured by the value of products sold in the FY21, according to RedSeer. Nykaa is looking to raise $500 million through an IPO in India, according to press reports. The IPO comprises a primary raise of Rs5,250 million ($70 million) and 43.1 million secondary shares. Nykaa has a large addressable market opportunity with the beauty and personal care opportunity currently worth $16 billion and the fashion opportunity currently worth $54 billion, according to RedSeer. At 8% penetration in FY21, beauty and personal care are one of the more underpenetrated e-commerce categories in India. Online penetration in fashion in India is slightly higher at 12% in FY21 but is still relatively low compared to mature e-tailing categories such as mobiles and electronics. Nykaa has a strong positioning in India’s e-commerce beauty products industry, underpinned by the strong brand recognition of the ‘Nykaa’ brand. It has been able to retain a large customer base, leading to repeat orders such that existing consumers accounted for 70% of GMV in FY21. Nykaa also has relationships with 2,476 brands but with no dependence on any brand or product. The financial performance is solid with strong growth, rising margins and cash generation. These characteristics should enable Nykaa to hold its own against intensifying competition. Overall, we think that Nykaa has attractive fundamentals.

EBeauty Holdings / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/ebeauty-holdings" target="_blank" data-smartkarma-citation="entities:33505:1" rel="noopener">EBeauty Holdings (1894926D HK)</a> is the largest beauty brand e-commerce enablement service provider by GMV (gross merchandise value) facilitated or generated in China, with a market share of 13.3% in 2020, according to iResearch. eBeauty primarily executes the branding and marketing strategies that the brand partners have designed, operating their official online stores, while in some cases it provides marketing strategy advisory to brand partners to help them formulate their marketing strategies.</p><p>eBeauty is pre-marketing an HKEx IPO to raise around $600 million, according to press reports. The shareholders include Genesis Capital, <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/bilibili-inc" target="_blank" data-smartkarma-citation="entities:26793:1" rel="noopener">Bilibili Inc (BILI US)</a> and Mass Ave Global.</p><p>eBeauty is a play on the rising complexity of China’s beauty e-commerce industry which has resulted in more brands out-sourcing their e-commerce operations to specialized brand e-commerce enablement service providers (such as eBeauty). The beauty e-commerce industry is fast-evolving, with mounting demands for personalised marketing strategy, multi-channel operation capabilities and technology solutions. These demanding requirements force a significant proportion of beauty brands to engage service providers who offer a suite of services in the e-commerce value chain.</p><div class="content-highlight"><p>eBeauty is capitalising on these industry dynamics by delivering solid organic growth, rising margins and good cash generation. Overall, we believe that eBeauty is worth a closer look.</p></div>

EBeauty Holdings (1894926D HK) is the largest beauty brand e-commerce enablement service provider by GMV (gross merchandise value) facilitated or generated in China, with a market share of 13.3% in 2020, according to iResearch. eBeauty primarily executes the branding and marketing strategies that the brand partners have designed, operating their official online stores, while in some cases it provides marketing strategy advisory to brand partners to help them formulate their marketing strategies.eBeauty is pre-marketing an HKEx IPO to raise around $600 million, according to press reports. The shareholders include Genesis Capital, Ping An Insurance (H) (2318 HK), Bilibili Inc (BILI US) and Mass Ave Global.eBeauty is a play on the rising complexity of China’s beauty e-commerce industry which has resulted in more brands out-sourcing their e-commerce operations to specialized brand e-commerce enablement service providers (such as eBeauty). The beauty e-commerce industry is fast-evolving, with mounting demands for personalised marketing strategy, multi-channel operation capabilities and technology solutions. These demanding requirements force a significant proportion of beauty brands to engage service providers who offer a suite of services in the e-commerce value chain.eBeauty is capitalising on these industry dynamics by delivering solid organic growth, rising margins and good cash generation. Overall, we believe that eBeauty is worth a closer look.

EBeauty Holdings IPO Initiation: Attention Pays

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.

<div><p>Coupang, one of the largest product e-commerce players in Korea, raised around US$4.2bn in its US listing via a mix of selling primary and secondary shares. </p></div><div><p>In our previous note, links to which are below, we have spoke about various aspects of the deal. In this note, talk about the trading dynamics and provide a valuation table at different  share price levels.</p></div><div><p>We've covered various aspects of the deal in our earlier insights: </p></div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/coupang-pre-ipo-the-positives-fast-growth-sticky-customers" target="_blank" rel="noopener">Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers</a>, </li>
<li><a href="https://www.smartkarma.com/insights/coupang-pre-ipo-the-negatives-horrendous-data-disclosures-including-no-mention-of-ott-launch" target="_blank" rel="noopener">Coupang Pre-IPO - The Negatives - Horrendous Data Disclosures, Including No Mention of OTT Launch</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-pre-ipo-fair-bit-of-competition-but-it-s-doing-better-than-most-local-peers" target="_blank" rel="noopener">Coupang Pre-IPO - Fair Bit of Competition but It’s Doing Better than Most Local Peers</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-pre-ipo-earnings-forecast-and-valuation" target="_blank" rel="noopener">Coupang Pre-IPO - Earnings Forecast and Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-ipo-momentum-play-unequal-lock-up-index-inclusion" target="_blank" rel="noopener">Coupang IPO - Momentum Play, Unequal Lock-Up, Index Inclusion</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-ipo-quick-note-peers-move-down-range-moves-up-ripe-for-trading" target="_blank" rel="noopener">Coupang IPO - Quick Note - Peers Move Down, Range Moves Up. Ripe for Trading.</a></li>
</ul></div>

Coupang, one of the largest product e-commerce players in Korea, raised around US$4.2bn in its US listing via a mix of selling primary and secondary shares. In our previous note, links to which are below, we have spoke about various aspects of the deal. In this note, talk about the trading dynamics and provide a valuation table at different  share price levels.We've covered various aspects of the deal in our earlier insights: 

Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers, 
Coupang Pre-IPO - The Negatives - Horrendous Data Disclosures, Including No Mention of OTT Launch
Coupang Pre-IPO - Fair Bit of Competition but It’s Doing Better than Most Local Peers
Coupang Pre-IPO - Earnings Forecast and Valuation
Coupang IPO - Momentum Play, Unequal Lock-Up, Index Inclusion
Coupang IPO - Quick Note - Peers Move Down, Range Moves Up. Ripe for Trading.


Coupang IPO Trading - Most Hit near Term Peak on the First Day - Key Trading/Lock-Up Dates

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.

<p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a>  is a leading one-stop multi category household care and personal care platform in China. The company has set the terms for its IPO where it plans to raise HK$2.0-2.4bn (approx. US$265-313m) at an indicative IPO price range of HK$7.8-9.2 per share.</p><p>In our previous insight, we discussed Cheerwin’s business model, segments and financials. Refer the extract below from our previous insight:</p><div class="content-highlight"><p><em>The household care market in China is forecasted to grow steadily over the next few years driven by increased urbanisation, growing per capita disposable income, segmentation of product categories and growing innovation. In addition, the Covid-19 outbreak also has accelerated the demand for household care products, especially disinfectants, hand sanitizers and other personal hygiene products. Though the company’s revenues have been growing at lower single digits, we believe strong growth prospects attached to the Chinese household care market alongside diversifying into other verticals such as pet care and personal care markets should help Cheerwin generate stable revenues</em></p></div>

Cheerwin (6601 HK)  is a leading one-stop multi category household care and personal care platform in China. The company has set the terms for its IPO where it plans to raise HK$2.0-2.4bn (approx. US$265-313m) at an indicative IPO price range of HK$7.8-9.2 per share.In our previous insight, we discussed Cheerwin’s business model, segments and financials. Refer the extract below from our previous insight:The household care market in China is forecasted to grow steadily over the next few years driven by increased urbanisation, growing per capita disposable income, segmentation of product categories and growing innovation. In addition, the Covid-19 outbreak also has accelerated the demand for household care products, especially disinfectants, hand sanitizers and other personal hygiene products. Though the company’s revenues have been growing at lower single digits, we believe strong growth prospects attached to the Chinese household care market alongside diversifying into other verticals such as pet care and personal care markets should help Cheerwin generate stable revenues

Cheerwin IPO: Fairly Valued Compared to Recent IPOs in the Household, Personal and Pet Care Markets

APAC IPOs & Placements

Zhen Zhou, Toh

Cloopen Group Holding Ltd / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/cloopen-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:31315:1" rel="noopener">Cloopen Group Holding Ltd (RAAS US)</a> raised about US$320m at US$16 per ADS, which is above the initial price range.</p>
<div>
<p>Cloopen is a multi-capability cloud-based communications solution provider in China. The company offers communications platform as a services (CPaaS), cloud-based contact center (CC), cloud-based UC&amp;C  solutions to customers.</p>
<p>In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.</p>
</div>
<div>
<p>Our previous coverage:</p>
</div>
<div>
<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-thematically-favorable-but-not-showing-results-for-now" target="_blank" data-smartkarma-citation="insights:47520" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Thematically Favorable but Not Showing Results for Now</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-peer-comparison-and-thoughts" target="_blank" data-smartkarma-citation="insights:47608" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Peer Comparison and Thoughts</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-forecast-assumptions-and-valuation" target="_blank" data-smartkarma-citation="insights:47651" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Forecast, Assumptions, and Valuation</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-investments-in-cloopen-pax-global-hi-sun-tech-market-cap" target="_blank" data-smartkarma-citation="insights:47655" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Investments in Cloopen + Pax Global &gt; Hi Sun Tech Market Cap</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-ipo-hi-sun-tech-angle-gets-more-attractive" target="_blank" data-smartkarma-citation="insights:47785" rel="noopener">Cloopen (容联.云通讯) IPO - Hi Sun Tech Angle Gets More Attractive</a> </li>
</ul>
</div>

Cloopen Group Holding Ltd (RAAS US) raised about US$320m at US$16 per ADS, which is above the initial price range.

Cloopen is a multi-capability cloud-based communications solution provider in China. The company offers communications platform as a services (CPaaS), cloud-based contact center (CC), cloud-based UC&amp;C  solutions to customers.
In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.


Our previous coverage:




Cloopen (容联.云通讯) Pre-IPO - Thematically Favorable but Not Showing Results for Now 

Cloopen (容联.云通讯) Pre-IPO - Peer Comparison and Thoughts 

Cloopen (容联.云通讯) Pre-IPO - Forecast, Assumptions, and Valuation 

Cloopen (容联.云通讯) Pre-IPO - Investments in Cloopen + Pax Global &gt; Hi Sun Tech Market Cap 

Cloopen (容联.云通讯) IPO - Hi Sun Tech Angle Gets More Attractive 



Cloopen (容联.云通讯) IPO Trading - Set for a Strong Debut

China

Yatsen Holding Limited operates as a holding company. The Company, through its subsidiaries, retails cosmetics, skincare, and other beauty products. Yatsen Holding serves customers worldwide.

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Yatsen Holding Ltd (YSG US)

Nykaa IPO Initiation: Beauty Parade

Nykaa is looking to raise $500 m through an IPO in India. The financial performance is solid with strong growth, rising margins and cash...

Arun George

EBeauty Holdings IPO Initiation: Attention Pays

eBeauty is pre-marketing an HKEx IPO to raise around $600 m. eBeauty is capitalising on favourable industry dynamics by delivering solid organic...

Arun George

Coupang IPO Trading - Most Hit near Term Peak on the First Day - Key Trading/Lock-Up Dates

Coupang, one of the largest product e-commerce players in Korea, raised around US$4.2bn in its US listing via a mix of selling primary and...

Sumeet Singh

Cheerwin IPO: Fairly Valued Compared to Recent IPOs in the Household, Personal and Pet Care Markets

Cheerwin is a leading one-stop multi category household care and personal care platform in China. The company has set the terms for its IPO where...

Shifara Samsudeen, FCMA, CGMA

Cloopen (容联.云通讯) IPO Trading - Set for a Strong Debut

Cloopen is a multi-capability cloud-based communications solution provider in China. In this note, we will look at the deal dynamics and provide a...

Zhen Zhou, Toh

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