In today’s briefing:
- Onewo Space-Tech IPO – Appears Digestible Even on Conservative Assumptions
- WCP IPO: Final IPO Price Set, Still an Avoid
- Porsche IPO Preview
- Broadcom Inc: Collaboration With Dell & Other Drivers
- Etsy Inc: New Purchase Protection Feature & Other Developments
- HP Inc.: Weakened Macro & Other Developments
- Best Buy Inc: New Small Format Digital-First Store & Other Drivers
- Uber Technologies: AV-Based Food Delivery Pilot & Other Developments
- Autodesk Inc: Introduction of AutoCAD Web & Other Drivers
- Freeport-McMoran Inc: New Mining Technologies & Other Drivers
Onewo Space-Tech IPO – Appears Digestible Even on Conservative Assumptions
- Onewo Space-Tech (ONEWO HK) (OST) aims to raise upto US$784m in its Hong Kong IPO. OST is a property management service provider primarily owned by China Vanke (2202 HK).
- As per Frost & Sullivan, amongst the residential community service providers in China, OST ranked first. It also ranked first in the commercial space integrated services market in China.
- In this note, we will run the deal through our ECM framework and talk about valuations.
WCP IPO: Final IPO Price Set, Still an Avoid
- WCP (WCP KS), a lithium-ion batteries separator company, has set its IPO price at KRW60,000 per share, a hefty 25-40% discount on the “desired” IPO price range of KRW80,000-100,000.
- The target raise has declined from KRW720-900 billion (US$517-646 million) to KRW432 billion (US$310 million) due to the lower IPO price and offer shares.
- While the final IPO price is now reasonable, the process smacks desperation and calls into question the credibility of the syndicate’s forecasts. This is still an avoid.
Porsche IPO Preview
- The Porsche IPO is expected to be the second largest IPO ever in Germany. Total proceeds from the IPO will be 18.1 billion to 19.5 billion euros.
- The IPO price range is from 76.50 euros to 82.50 euros per share, which suggests a valuation of 70 billion to 75 billion euros.
- After the IPO, Volkswagen will have an extraordinary shareholders meeting in December to propose to pay 49% of total proceeds to shareholders in early 2023 as a special dividend.
Broadcom Inc: Collaboration With Dell & Other Drivers
- Broadcom reported an all-around beat in the quarter with an increase in revenues in semiconductor solutions and infrastructure software.
- Service and cloud provider growth remained strong in the quarter, driven by infrastructural upgrades and data center build-outs.
- As both enterprise and cloud data centers refresh, they continue to increase the adoption of the company’s Jericho, Trident, and Tomahawk switching silicon platforms.
Etsy Inc: New Purchase Protection Feature & Other Developments
- Etsy recently launched the Etsy Purchase Protection program where buyers will get a total refund for purchases they make on Etsy.com in cases that do not match the item description, never arrive, or arrive damaged.
- This new program aims at making shopping on the website more worry-free.
- The purchase Protection Program of Etsy will complement the company’s brand efforts in improving customer support, maintaining integrity in its marketplace as a destination for special and unique items, and increasing trust signals over the user experience.
HP Inc.: Weakened Macro & Other Developments
- HP Inc also had a significantly below par result along with its rival, Dell Technologies as the industry cycle has commenced its downward trend after the huge upswing during the pandemic.
- The results of this quarter were impacted by macroeconomic challenges, which included a significant slowdown in consumer demand to geopolitical, currency, and inflation challenges.
- Recently, the company introduced its HP Instant Ink for its small business and its innovative LaserJet Pro with HP+.
Best Buy Inc: New Small Format Digital-First Store & Other Drivers
- Best Buy delivered a decent result this quarter surpassing Wall Street expectations on all counts.
- Best Buy is also viewing more interest in the sales events such as tax-free events, prime day, and other events that are geared at an exceptional value.
- Best Buy also opened new outlet stores, finished store remodels, and started to implement newly signed deals with healthcare companies.
Uber Technologies: AV-Based Food Delivery Pilot & Other Developments
- Uber Technologies delivered a mixed quarterly result with revenues above expectations resulting from an increase in the annualized run rate and gross bookings.
- The company failed to meet market expectations on the earnings front as a result of considerable forex challenges through it did generate a positive free cash flow.
- The top-line growth of the company continues to be durable and the onboarding process has shown a significant improvement.
Autodesk Inc: Introduction of AutoCAD Web & Other Drivers
- Autodesk reported a solid quarter in terms of revenue, free cash flow, and non-GAAP operating margin.
- The end market’s demand remained strong for the company and it delivered another all-around beat.
- Among key developments, Autodesk introduced AutoCAD Web, a new combined subscription to AutoCAD Web and AutoCAD Mobile from Autodesk with improved access to drawings.
Freeport-McMoran Inc: New Mining Technologies & Other Drivers
- Freeport delivered a disappointing result and failed to meet Wall Street expectations on all counts but the future outlook remains optimistic.
- The company is increasing production year over year, and controlling expenses in a difficult environment and benefits from a highly favorable macro for copper.
- With an expected rise in demand for copper with respect to energy conservation especially in EVs, the company benefits from a positive future macro.
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