Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

Lalatech Holdings Co Ltd / Equity Capital Markets

<ul>
<li>Lalatech Holdings, a technology based global logistics company, has updated its application for Hong Kong IPO and disclosed financial results for 2023.</li>
<li>Lalatech Holdings is aiming to raise up to $1B and the company’s IPO looks imminent in the coming months as cash flow growth accelerated, while margins and profitability improved. </li>
<li>My fair valuation of Lalatech Holdings is close to $10B and investors should buy into upcoming IPO given the company’s substantial scale, massive network effects and operating efficiency.</li>
</ul>


Lalatech Holdings, a technology based global logistics company, has updated its application for Hong Kong IPO and disclosed financial results for 2023.
Lalatech Holdings is aiming to raise up to $1B and the company’s IPO looks imminent in the coming months as cash flow growth accelerated, while margins and profitability improved. 
My fair valuation of Lalatech Holdings is close to $10B and investors should buy into upcoming IPO given the company’s substantial scale, massive network effects and operating efficiency.


Lalatech Holdings: FCF Growth Accelerated, Margins Improved, Fair Value May Be North of $10B

ZEEKR Intelligent Technology Holding Limited operates as a holding company. The Company, through its subsidiaries, principally engages in commercialization and sales of electric vehicles and battery, and provision of automotive related research and development services. ZEEKR Intelligent Technology Holding serves customers worldwide.

<ul>
<li>ZEEKR, a rapidly growing premium EV maker, has successfully completed its IPO and raised ~$441M. The offering was priced at the top of the range at $21 per share.</li>
<li>The company sold a total of 21M ADSs, up from the initial target of 17.5M shares. ZEEKR’s stock soared more than 30% following its strong debut on NYSE on Friday.</li>
<li>Geely Auto, Mobileye and CATL have acquired ~14.3M ADSs and overall investor sentiment was positive. I believe ZEEKR may succeed as a high-volume EV maker worldwide.</li>
</ul>


ZEEKR, a rapidly growing premium EV maker, has successfully completed its IPO and raised ~$441M. The offering was priced at the top of the range at $21 per share.
The company sold a total of 21M ADSs, up from the initial target of 17.5M shares. ZEEKR’s stock soared more than 30% following its strong debut on NYSE on Friday.
Geely Auto, Mobileye and CATL have acquired ~14.3M ADSs and overall investor sentiment was positive. I believe ZEEKR may succeed as a high-volume EV maker worldwide.


ZEEKR IPO: Strong First-Day Return and Upsized Offering

Games Global Limited operates as a game development company. The Company develops, distributes, and markets online casino-style gaming content and integrated business-to-business solutions to i-gaming operators in regulated markets globally based on the size of studio network. Games Global serves customers worldwide.

<ul>
<li>Games Global, a promising iGaming content provider and B2B online gaming supplier, set terms for its U.S. IPO. The IPO price is expected to be between $16 and $19/share.</li>
<li>With the most recent F-1/A, the company may raise ~$114M at the high end of the range at $19/share. Zinnia Limited sells additional 8.5M shares in this offering.   </li>
<li>Games Global has created an impressive portfolios of iGaming content through a series of successful acquisitions, and I see upside potential vs. IPO price of $17.50 at the midpoint.</li>
</ul>


Games Global, a promising iGaming content provider and B2B online gaming supplier, set terms for its U.S. IPO. The IPO price is expected to be between $16 and $19/share.
With the most recent F-1/A, the company may raise ~$114M at the high end of the range at $19/share. Zinnia Limited sells additional 8.5M shares in this offering.   
Games Global has created an impressive portfolios of iGaming content through a series of successful acquisitions, and I see upside potential vs. IPO price of $17.50 at the midpoint.


Games Global IPO: Strong Profitability and Impressive Portfolios of IGaming Content

<ul>
<li>Geely-Backed ZEEKR set terms for U.S. IPO: EV maker offers 17.5M American depositary shares (ADSs) at the price range of $18-$21, implying a market cap of ~$4.8B at the midpoint.</li>
<li>Geely Auto, Mobileye and CATL have indicated a non-binding interest in subscribing for an aggregate of up to ~$349M worth of the ADSs being offered in this offering.</li>
<li>I have a positive view of ZEEKR IPO as the offering will be priced significantly below last round valuation of ~$13B.  </li>
</ul>


Geely-Backed ZEEKR set terms for U.S. IPO: EV maker offers 17.5M American depositary shares (ADSs) at the price range of $18-$21, implying a market cap of ~$4.8B at the midpoint.
Geely Auto, Mobileye and CATL have indicated a non-binding interest in subscribing for an aggregate of up to ~$349M worth of the ADSs being offered in this offering.
I have a positive view of ZEEKR IPO as the offering will be priced significantly below last round valuation of ~$13B.  


ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

Equity Bottom-Up

Darktrace PLC operates as an AI company. The Company develops immune system platform which leverages unsupervised machine learning to detect cyber-threats. Darktrace serves customers worldwide.

<ul>
<li>Darktrace shares rallied ~64% in 2024 after the company raised FY24 revenue, adj. EBITDA guidance and Thoma Bravo offered 620 pence/share in cash to take Darktrace private.</li>
<li>The acquisition is expected to complete during 3Q or 4Q of 2024. The cybersecurity unicorn has delivered revenue growth at scale coupled with solid profitability and cash flow generation.</li>
<li>I maintained a bullish view on the undervalued stock and initiated coverage of Darktrace on January 11, 2023, with a 497p price target as steep discount was unjustified.</li>
</ul>


Darktrace shares rallied ~64% in 2024 after the company raised FY24 revenue, adj. EBITDA guidance and Thoma Bravo offered 620 pence/share in cash to take Darktrace private.
The acquisition is expected to complete during 3Q or 4Q of 2024. The cybersecurity unicorn has delivered revenue growth at scale coupled with solid profitability and cash flow generation.
I maintained a bullish view on the undervalued stock and initiated coverage of Darktrace on January 11, 2023, with a 497p price target as steep discount was unjustified.


Bright Day For Darktrace: Thoma Bravo Adds Cybersecurity Unicorn To Its Portfolio

A highly collaborative investment professional and research analyst with 10+ years of international experience in equity research, treasury operations, and trading positions across multiple asset classes at leading multinational banks Citibank and Morgan Stanley, UHNWI-backed family office and European independent equity research firm. A respectable background in equity capital markets, corporate treasury, investment banking operations, equity research analysis and portfolio management.

Andrei Zakharov
Covering IPOs, Healthcare and Technology Stocks

Lalatech Holdings: FCF Growth Accelerated, Margins Improved, Fair Value May Be North of $10B

Lalatech Holdings, a technology based global logistics company, has demonstrated an improving profitability with revenue growth acceleration, which...

Andrei Zakharov

ZEEKR IPO: Strong First-Day Return and Upsized Offering

ZEEKR, a promising Geely-backed EV maker, priced its upsized IPO at $21 per share on Friday. Shares surged ~35% due to strong investor interest as...

Andrei Zakharov

Games Global IPO: Strong Profitability and Impressive Portfolios of IGaming Content

The Isle of Man-based Games Global targets ~$2B IPO valuation. I like the company’s strong profitability/cash flow profile and see upside potential...

Andrei Zakharov

ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

ZEEKR plans to price its IPO in May and my analysis suggests that attractive ~$4.8B midpoint valuation offers at least 30% upside vs. IPO price of...

Andrei Zakharov

Bright Day For Darktrace: Thoma Bravo Adds Cybersecurity Unicorn To Its Portfolio

British cybersecurity unicorn Darktrace agreed sale to PE firm Thoma Bravo for ~£4.3B or 620p/share. In my insight I discuss valuation analysis of...

Andrei Zakharov