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The new deal terms (fixed price at HK$5.20 per share) implied a price cut of about 6% from the bottom end of the previous IPO price range. The company has also managed to secure two cornerstone investors.
Our updated SOTP valuation, assuming holding company discount of 20%, implies that there is only upside of 2.1% from the IPO price.
Furthermore, there are still fundamental issues that do not sit well with us which the company’s odd corporate structure, no visible synergy from acquisition of SharkNinja, and its pre-IPO dividend of US$470m which is partially funded by the IPO proceeds.
JS Global (JS 环çƒç”Ÿæ´») Re-IPO - Little Upside After Applying Holding Company Discount
JS Global Lifestyle (1691 HK) (JSG) is looking to raise US$331m in its Hong Kong IPO. JSG's previous attempt in October was pulled just three days before the listing date, citing unfavorable conditions.The new deal terms (fixed price at HK$5.20 per share) implied a price cut of about 6% from the bottom end of the previous IPO price range. The company has also managed to secure two cornerstone investors.
Our updated SOTP valuation, assuming holding company discount of 20%, implies that there is only upside of 2.1% from the IPO price.
Furthermore, there are still fundamental issues that do not sit well with us which the company’s odd corporate structure, no visible synergy from acquisition of SharkNinja, and its pre-IPO dividend of US$470m which is partially funded by the IPO proceeds.
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Zhen Zhou Toh
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