In today’s briefing:
- OASIS IPO Pricing Is Not Even Worth Reviewing: Strongly Recommend Avoiding It
- IQIYI Follow-On Offering – Might Be Expected but Its Track Record Is…
- Wuxi Biologics Placement (2269 HK) – Things Are No Longer Easy When the Magic of CXO Wears Off
- Oasis Corporation IPO – Sole Profitable Player but Maybe Not for Long
OASIS IPO Pricing Is Not Even Worth Reviewing: Strongly Recommend Avoiding It
- Of the four peers, only Coupang adopts the gross method. Since the others adopt the net method, it is impossible to compare PSR with OASIS, which uses the gross method.
- If they really want to use PSR, it should only be compared with Coupang. Even if we apply CPNG’s current EV/Sales multiple (1.36x), it would only slightly exceed ₩0.5T.
- A more logical way would be to use EV/GMV. Even in this case, it wouldn’t be easy to expect a valuation higher than ₩0.5T.
IQIYI Follow-On Offering – Might Be Expected but Its Track Record Is…
- IQIYI aims to raise around US$500m via a follow-on ADS offering.
- While the company hasn’t stated its use of proceeds, it will probably use most of it to redeem convertible notes
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Wuxi Biologics Placement (2269 HK) – Things Are No Longer Easy When the Magic of CXO Wears Off
- WuXi Bio announced the placing of existing shares by substantial shareholder. Obviously, the share price was in “comfortable position” for the management, so they think it’s time to take action.
- WuXi Bio faces the uncertainty of future high growth.GSK deal/AD drug orders cannot offset the loss of COVID-19 orders.We advised to invest when it’s in “sector resonance” with “difference in expectations”.
- What we’re most worried about this year isn’t recession/depression but Taiwan, which is the last card the US hasn’t yet played. If situation’s really bad,something may happen in Taiwan Strait.
Oasis Corporation IPO – Sole Profitable Player but Maybe Not for Long
- OASIS Corp (1799513D KS) is looking to raise up to US$166m in its upcoming Korea IPO.
- Oasis Corporation is an early morning delivery service business that delivers fresh food to consumers. It runs an e-commerce platform named ‘Oasis Market’ as well as offline stores.
- Oasis Corporation aims to boost its sales and presence by further improving on its omnichannel strategy. However, its explosive growth appears likely to have been driven by COVID-induced lockdown measures.
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