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

Domain Holdings Australia  / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/domain-holdings-australia-ltd" target="_blank" data-smartkarma-citation="entities:26033:1" rel="noopener">Domain Holdings Australia (DHG AU)</a> announced a non-binding proposal from <a href="https://www.smartkarma.com/entities/costar-group-inc" target="_blank" data-smartkarma-citation="entities:16907:1" rel="noopener">Costar Group (CSGP US)</a> at A$4.20, a 34.6% premium to the undisturbed price of A$3.12 (20 February).</li>
<li>The bid follows CoStar's acquisition of a 16.9% stake in Domain on 20 February. <a href="https://www.smartkarma.com/entities/nine-entertainment-co-holdings-ltd" target="_blank" rel="noopener">Nine Entertainment Co Holdings (NEC AU)</a>'s support is crucial for its success.  </li>
<li>While attractive to precedent transaction multiples, the offer is light compared to peer multiples. Nine is evaluating the offer and will likely push for improved terms.</li>
</ul>



Domain Holdings Australia (DHG AU) announced a non-binding proposal from Costar Group (CSGP US) at A$4.20, a 34.6% premium to the undisturbed price of A$3.12 (20 February).
The bid follows CoStar's acquisition of a 16.9% stake in Domain on 20 February. Nine Entertainment Co Holdings (NEC AU)'s support is crucial for its success.  
While attractive to precedent transaction multiples, the offer is light compared to peer multiples. Nine is evaluating the offer and will likely push for improved terms.


Domain Holdings (DHG AU): CoStar Raids the Register and Launches a NBIO at A$4.20

<ul>
<li>
<a href="https://www.smartkarma.com/entities/propertyguru-group-limited" target="_blank" data-smartkarma-citation="entities:28149:1" rel="noopener">PropertyGuru (PGRU US)</a> entered into a definitive merger agreement with <a href="https://www.smartkarma.com/entities/eqt-ab" target="_blank" data-smartkarma-citation="entities:28922:1" rel="noopener">EQT (EQT SS)</a> at US$6.70 per share, a 51.9% premium to the undisturbed price of US$4.41 (21 May).</li>
<li>The shareholder vote is done (two-thirds voting threshold) due to <a href="https://www.smartkarma.com/entities/tpg-inc" target="_blank" data-smartkarma-citation="entities:35361:1" rel="noopener">TPG Inc (TPG US)</a>/<a href="https://www.smartkarma.com/entities/kkr-co-inc" target="_blank" data-smartkarma-citation="entities:27333:1" rel="noopener">KKR &amp; Co (KKR US)</a>’s support and drag-along rights relating to <a href="https://www.smartkarma.com/entities/rea-group-ltd" target="_blank" data-smartkarma-citation="entities:699:1" rel="noopener">REA Group Ltd (REA AU)</a>’s shares.  </li>
<li>This is a clean deal as there is no dissenting condition or requirement for country antitrust approvals. At the last close and for end-of-year payment, the gross/annualised spread is 2.3%/6.4%.</li>
</ul>



PropertyGuru (PGRU US) entered into a definitive merger agreement with EQT (EQT SS) at US$6.70 per share, a 51.9% premium to the undisturbed price of US$4.41 (21 May).
The shareholder vote is done (two-thirds voting threshold) due to TPG Inc (TPG US)/KKR &amp; Co (KKR US)’s support and drag-along rights relating to REA Group Ltd (REA AU)’s shares.  
This is a clean deal as there is no dissenting condition or requirement for country antitrust approvals. At the last close and for end-of-year payment, the gross/annualised spread is 2.3%/6.4%.


PropertyGuru (PGRU US): EQT’s US$6.70 Offer Is A Done Deal

<ul>
<li>Bloomberg reports that KKR and TPG are exploring options, including a buyout of <a href="https://www.smartkarma.com/entities/propertyguru-group-limited" target="_blank" data-smartkarma-citation="entities:28149:1" rel="noopener">PropertyGuru (PGRU US)</a>, and are gauging initial interest from other global investors.</li>
<li>The favoured privatisation option for US ADRs with the Cayman Islands incorporation is a statutory merger requiring a two-thirds voting approval threshold. </li>
<li>The concentrated shareholder register would suggest that TPG/KKR would aim for irrevocable from the other three substantial shareholders, facilitating a modest takeover premium. </li>
</ul>


Bloomberg reports that KKR and TPG are exploring options, including a buyout of PropertyGuru (PGRU US), and are gauging initial interest from other global investors.
The favoured privatisation option for US ADRs with the Cayman Islands incorporation is a statutory merger requiring a two-thirds voting approval threshold. 
The concentrated shareholder register would suggest that TPG/KKR would aim for irrevocable from the other three substantial shareholders, facilitating a modest takeover premium. 


PropertyGuru (PGRU US): KKR/TPG Mulling a Buyout

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Equity Bottom-Up

<ul>
<li>This model finds companies facing recent sharp cuts in estimates. These shorts can have very disparate characteristics.</li>
<li>The key judgement involves whether the negative revisions are temporary or if they are indications of ongoing weakness in the business. </li>
<li>Breaking Estimates stocks often continue to decline after the cuts.  This week we flag:  Upstart, Cerence, Zillow, Trex</li>
</ul>


This model finds companies facing recent sharp cuts in estimates. These shorts can have very disparate characteristics.
The key judgement involves whether the negative revisions are temporary or if they are indications of ongoing weakness in the business. 
Breaking Estimates stocks often continue to decline after the cuts.  This week we flag:  Upstart, Cerence, Zillow, Trex


Breaking Estimate Short Candidates: Upstart, Cerence, Zillow, Trex

SPAC Deep Dive, subSPAC

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SPAC Deep Dive

Each week we’ll identify and break down for you SPACs that are capturing market share and making an impact.

Equity Capital Markets

<ul><li>PropertyGuru is now the leading property technology platform in Southeast Asia</li><li>The company now serves 37 million buyers across 16 countries and works with 50,000 partner agents across its network</li><li>PropertyGuru is set to go public over the next few months through a SPAC merger with Bridgetown 2 Holdings, in a deal that values the firm at $1.78 billion</li></ul>

PropertyGuru is now the leading property technology platform in Southeast AsiaThe company now serves 37 million buyers across 16 countries and works with 50,000 partner agents across its networkPropertyGuru is set to go public over the next few months through a SPAC merger with Bridgetown 2 Holdings, in a deal that values the firm at $1.78 billion

Will PropertyGuru Face the Same Fate as Zillow

United States

Zillow Group, Inc. provides e-commerce services. The Company provides information about homes, real estate listings, and mortgages through their website and mobile applications. Zillow serves homeowners, buyers, sellers, renters, and real estate professionals throughout the United States.

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Zillow Group Inc A (ZG US)

Domain Holdings (DHG AU): CoStar Raids the Register and Launches a NBIO at A$4.20

While attractive to precedent transaction multiples, the offer is light compared to peer multiples. Nine, the controlling shareholder, is...

Arun George

PropertyGuru (PGRU US): EQT’s US$6.70 Offer Is A Done Deal

This is a clean deal; the vote is done, and there are no dissenting conditions or country antitrust approvals. At the last close and for end-of...

Arun George

PropertyGuru (PGRU US): KKR/TPG Mulling a Buyout

The concentrated shareholder register would suggest that TPG/KKR would aim for irrevocable from the other three substantial shareholders,...

Arun George

Breaking Estimate Short Candidates: Upstart, Cerence, Zillow, Trex

This model uncovers companies facing recent declines in estimates. This week we flag: : Upstart, Cerence, Zillow, and Trex

Eric Fernandez, CFA

Will PropertyGuru Face the Same Fate as Zillow

PropertyGuru is now the leading property technology platform in Southeast Asia. The company now serves 37 million buyers across 16 countries and...

subSPAC

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