Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Nayuki IPO Valuation: Nayuki to Close Books Early & Pricing Is Likely to Be At The Top End

Nayuki Holdings IPO: ‘New Style’ Teahouses Are Failing to Encourage Customers to Make Regular Visits

Long-Short Analysis on Japan, Asia and the World

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

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<li>
<a href="https://www.smartkarma.com/entities/nayuki-holdings" target="_blank" data-smartkarma-citation="entities:32149:1" rel="noopener">Nayuki Holdings (2150 HK)</a> is expected to price its IPO at the top of the announced price range of HK$17.20-19.80 per share. The offer price will be announced on 29<sup>th</sup> June 2021, and shares will commence trading on the Hong Kong stock exchange on the following day.</li>
<li>The IPO has gained the backing of five cornerstone investors, including UBS Asset Management (US$50.0m), GF Fund Management (US$30.0m), and China Southern Asset Management (US$20.0m), to subscribe to 65.0m (US$155m) shares.</li>
<li>Moreover, the bubble tea chain has attracted a lot of retail investors, as the retail offer was oversubscribed around 187.0x according to The Standard.</li>
<li>We would avoid this IPO on fundamentals. However, most of the recent big ticket IPOs with similar demand from institutional and retail investors performed reasonably well at market debuts.</li>
<li>For that reason, we said in our previous insight that there could be a trading angle to this IPO. Having analysed past IPO performance, we are revising our views, as we think that Nayuki’s IPO is priced rather high, leaving little room for a solid first day performance.</li>
</ul>



Nayuki Holdings (2150 HK) is expected to price its IPO at the top of the announced price range of HK$17.20-19.80 per share. The offer price will be announced on 29th June 2021, and shares will commence trading on the Hong Kong stock exchange on the following day.
The IPO has gained the backing of five cornerstone investors, including UBS Asset Management (US$50.0m), GF Fund Management (US$30.0m), and China Southern Asset Management (US$20.0m), to subscribe to 65.0m (US$155m) shares.
Moreover, the bubble tea chain has attracted a lot of retail investors, as the retail offer was oversubscribed around 187.0x according to The Standard.
We would avoid this IPO on fundamentals. However, most of the recent big ticket IPOs with similar demand from institutional and retail investors performed reasonably well at market debuts.
For that reason, we said in our previous insight that there could be a trading angle to this IPO. Having analysed past IPO performance, we are revising our views, as we think that Nayuki’s IPO is priced rather high, leaving little room for a solid first day performance.


Nayuki Holdings

Nayuki IPO: First Day Trading