IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Weekly Deals Digest (15 Mar) - Dongfeng, IJM, Emmerson Resources, National Storage REIT, Avarga

Avarga (AVARGA SP): Unconditional MGO at S$0.25

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Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/avarga-ltd" target="_blank" data-smartkarma-citation="entities:13105:1" rel="noopener">Avarga Ltd (AVARGA SP)</a> disclosed a scheme offer from Dr Tong (Chairman) at S$2.70 per share. There is also an alternative combined consideration of S$2.00 per share and 1 RPS. </li>
<li>I estimate that the combined consideration is worth S$2.75. The offer is reasonable as it is above book value (P/NTA of 1.04x) and represents an all-time high.</li>
<li>However, the offer values Avarga at a discount to the Taiga stake and at a lower EV/EBITDA multiple than the 2024 MGO. Nevertheless, the scheme vote is low risk.</li>
</ul>



Avarga Ltd (AVARGA SP) disclosed a scheme offer from Dr Tong (Chairman) at S$2.70 per share. There is also an alternative combined consideration of S$2.00 per share and 1 RPS. 
I estimate that the combined consideration is worth S$2.75. The offer is reasonable as it is above book value (P/NTA of 1.04x) and represents an all-time high.
However, the offer values Avarga at a discount to the Taiga stake and at a lower EV/EBITDA multiple than the 2024 MGO. Nevertheless, the scheme vote is low risk.


Avarga (AVARGA SP): Scheme Value Below the Value of Taiga Stake, but Likely Done