Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

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LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (2618 HK)</a>  has set the terms for its Hong Kong IPO where the company plans to issue 609.2m shares at an indicative IPO price range of HK$39.36-43.36 per share. At the midpoint of the IPO price range of HK$41.36 per share, JD Logistics will raise net proceeds of HK$24.7bn (US$3.18bn) at a market capitalisation of HK$251.9bn and post-money enterprise value of HK$234.0bn.<table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 256.0pt;">JD Logistics IPO Details</td></tr>
<tr>
<td style="width: 171.55pt;">No. of Shares Issued</td>
<td style="width: 84.45pt;">        609,160,800</td>
</tr>
<tr>
<td style="width: 171.55pt;">IPO Price per Share (HK$)</td>
<td style="width: 84.45pt;">39.36-43.36</td>
</tr>
<tr>
<td style="width: 171.55pt;">Offer as a % of Outstanding Shares</td>
<td style="width: 84.45pt;">10.0%</td>
</tr>
<tr>
<td style="width: 171.55pt;">Total Shares Outstanding (m)</td>
<td style="width: 84.45pt;">                 6,091.6</td>
</tr>
<tr>
<td style="width: 171.55pt;">Net Proceeds (HK$m)</td>
<td style="width: 84.45pt;">24713</td>
</tr>
<tr>
<td style="width: 171.55pt;">Market Capitalisation (HK$m)</td>
<td style="text-align: right; width: 84.45pt;">                251,949</td>
</tr>
<tr>
<td style="width: 171.55pt;">Enterprise Value (HK$m)</td>
<td style="text-align: right; width: 84.45pt;">                221,843</td>
</tr>
</tbody></table><div style="text-align: left;" class="content-caption">Source: Company Disclosures, LSR (Enterprise Value is calculated after adjusting for net cash and net proceeds from the IPO)</div>The company also has entered into cornerstone investment agreements with 7 investors who have agreed to subscribe for approx. HK$11,882m (approx. 49% of the net proceeds at the midpoint of the IPO price) worth of shares offered at the IPO. These cornerstone investors include Softbank, Temasek, Tiger Global, China Structural Reform Fund and China Chengtong Investment, Blackstone, Mathew Funds and Oaktree.JD Logistics (JDL) plans to use approx. 55% of the net IPO proceeds on upgrading and expanding its logistics network in the next 12-36 months while another 20% of the net proceeds will be spent on developing advanced technologies for supply chain solutions and logistics services.

JD Logistics (2618 HK)  has set the terms for its Hong Kong IPO where the company plans to issue 609.2m shares at an indicative IPO price range of HK$39.36-43.36 per share. At the midpoint of the IPO price range of HK$41.36 per share, JD Logistics will raise net proceeds of HK$24.7bn (US$3.18bn) at a market capitalisation of HK$251.9bn and post-money enterprise value of HK$234.0bn.
JD Logistics IPO Details

No. of Shares Issued
        609,160,800


IPO Price per Share (HK$)
39.36-43.36


Offer as a % of Outstanding Shares
10.0%


Total Shares Outstanding (m)
                 6,091.6


Net Proceeds (HK$m)
24713


Market Capitalisation (HK$m)
                251,949


Enterprise Value (HK$m)
                221,843

Source: Company Disclosures, LSR (Enterprise Value is calculated after adjusting for net cash and net proceeds from the IPO)The company also has entered into cornerstone investment agreements with 7 investors who have agreed to subscribe for approx. HK$11,882m (approx. 49% of the net proceeds at the midpoint of the IPO price) worth of shares offered at the IPO. These cornerstone investors include Softbank, Temasek, Tiger Global, China Structural Reform Fund and China Chengtong Investment, Blackstone, Mathew Funds and Oaktree.JD Logistics (JDL) plans to use approx. 55% of the net IPO proceeds on upgrading and expanding its logistics network in the next 12-36 months while another 20% of the net proceeds will be spent on developing advanced technologies for supply chain solutions and logistics services.

Cts International Logistics Corp (603128 CH)

JD Logistics IPO Valuation: Implied Offer Multiples Are Not Cheap but Justifiable