In this briefing:
- XD Inc. (心动有限公司) Trade Idea – Lock-Up Expiry – Existing Shareholders May Look to Sell
- Bitauto’s Privatisation Enters into a Definitive Agreement
XD Inc. (2400 HK)‘s IPO lock-up expired on Friday. We have earlier covered the IPO in:
- XD Inc. (心动有限公司) Pre-IPO – Sustainability in Question
- XD Inc. (心动有限公司) Pre-IPO – TapTap, Overseas Markets, and Thoughts on Valuation
- XD Inc. (心动有限公司) IPO – Has Better Disclosure of Data but It Probably Won’t Help
- XD Inc. (心动有限公司) Trading – Subscription Rate Pales in Comparison to CMGE
In this insight, we will look at the potential sellers upon lock-up expiry and updates of how the company has performed since listing.
On 12 June, Bitauto Holdings Ltd Adr (BITA US) announced that it has entered into a definitive agreement for a privatisation proposal from Tencent Holdings (700 HK) and Hammer Capital. As a reminder, on 13 September 2019, Bitauto announced a non-binding privatisation proposal from Tencent and Hammer Capital for $16 per ADS. The bid is currently backed by shareholders who together account for 55.3% of the voting rights.
We had previously highlighted the attractive Bitauto privatisation spread risk/reward. Overall, we think that with the definitive agreement signed, the privatisation has a high chance of success.
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