In today’s briefing:
- WeWork India Management Ltd – IPO | Red Flags Galore
- WeWork India IPO – Thoughts on Peer Comp and Valuation
- WeWork India – IPO Review: A Premium Flex Space Player with Strong Promoter Backing
- Cosin Solar Technology Co Pre-IPO Tearsheet
- Pre-IPO FS.COM – The Concerns Behind the Business Model and the Outlook
WeWork India Management Ltd – IPO | Red Flags Galore
- WeWork India Management Ltd (1690124D IN) IPO is an OFS under SEBI Regulation 6(2), reflecting weak financial eligibility, ongoing losses, and dependence on deferred tax credits for reported profitability.
- Promoter and governance risks loom large, with pending ED, CBI, and EOW proceedings against Jitendra and Karan Virwani, plus complaints of incomplete or misleading disclosures in filings.
- The IPO mainly serves as a deleveraging tool for the promoter, with pledged shares, heavy audit qualifications, weak controls, and depleting cash exposing material investor risks.
WeWork India IPO – Thoughts on Peer Comp and Valuation
- WeWork India Management Ltd (1690124D IN) is looking to raise about US$338m in its India IPO.
- WeWork India (WWI) offers a wide range of workspace solutions, including custom-designed buildings, floors, and offices, enterprise office suites, private offices, co-working spaces, customized managed offices, and hybrid digital solutions.
- In our earlier notes, we have looked at the company’s past performance. In this note, we talk about the peer comp and IPO valuations.
WeWork India – IPO Review: A Premium Flex Space Player with Strong Promoter Backing
- WeWork India is the Indian arm of global flex space major (WEWKQ US); however, it is promoted by Indian real estate major Embassy group (~48% stake post IPO)
- WeWork has differentiated itself from the crowded flex space market with a focus on premium Grade-A property and cornering market share in major markets like Bengaluru and Mumbai (MMA)
- IPO valuation at 22x FY25 EBITDA prices in this premium relative to peers (12-14x). Can the company sustain these valuations?
Cosin Solar Technology Co Pre-IPO Tearsheet
- Cosin Solar Technology Co (SUPCOZ CH) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by China Securities International.
- Cosin Solar Technology Co. (CST) is a Chinese company specializing in concentrated solar power (CSP) solutions, particularly molten salt tower systems.
- The company’s main business lies in providing the collector system and other core sub-systems essential for constructing large-scale CSP plants.
Pre-IPO FS.COM – The Concerns Behind the Business Model and the Outlook
- FS adopts a unique light-asset business model of “R&D design + outsourcing production + direct sales platform”, which leads to higher profit margin than traditional channel sales vendors.
- FS once failed in A-Share IPO and received penalty in 2025. Internal control defects are the “Achilles heel”, which makes us worry whether FS has the problem of “inflating revenue”.
- Although FS has positive performance growth, the uncertainty of Sino-US relations and exchange rate risks may put pressure on profitability. Valuation of FS could be lower than peers.
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