Aequitas Research - Sea ADS (SE) ... SEA lock-up

Report

Aequitas Research

Sumeet Singh

EUR 93.37 For Business Accounts Only

SEA lock-up

Tencent sold US$3bn worth of SEA shares in Jan 22. The rest of its stake was locked up for six months.

The initial stake sale by Tencent didn’t go down too well and the stock is now trading over 63% below the deal price.

In this note, we will talk about the lock-up dynamics and recent updates.

Links to our prior SEA coverage:
SEA Ltd Placement - Momentum is very strong but last deal didn’t do well and it doesn’t need the cash
SEA Ltd Placement - New Business Needs New Money.
Sea Ltd Trade Idea - Time to Shine - Market Discounting E-Commerce to Almost Zero
Sea Ltd Placement - Capitalizing on Momentum
Sea Ltd IPO Review - E-Commerce Constitutes 64% of SOTP Valuation
Sea Ltd IPO Review - A Pure Exposure to SE Asia's E-Commerce & Gaming Despite Stiff Competition

28/06/2022 1 EN

Underlyings

Sea ADS

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US81141R1005 New York Stock Exchange Cayman Islands

TENCENT 700 HK

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Tencent Holdings Ltd.

Tencent Holdings Limited is an investment holding company principally involved in the provision of value-added services (VAS) and online advertising services. The Company operates through three main segments. The VAS segment is mainly involved in provision of online/mobile games, community value-added services and applications across various Internet and mobile platforms. The Online Advertising segment is mainly engaged in display based and performance based advertisements. The Others segment is mainly involved in provision of payment related services, cloud services and other services.

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KYG875721634 Hong Kong Stock Exchange Cayman Islands

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.

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Analysts

Sumeet Singh

Other Reports on these Companies

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Legend Biotech Follow-on Offering

Legend Biotech, a non-wholly owned subsidiary of Hong Kong-listed GenScript, is planning to raise up to US$250m in its follow-on offering. The company last raised cash in Dec 2021 in a similar sized deal, which ended up doing very well after a sharp share price correction. In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

EUR 93.37

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Xtep International Placement

Group Success Investments is looking to raise up to US$133m by trimming its holdings in Xtep International. We can’t say that the deal is expected and short interest on the stock hasn’t been creeping up as well. While the deal won’t be a large one, representing just 5.7 days of three month ADV, the firm’s last deal hasn’t done well.

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SEA lock-up

SEA : Higher Marketplace Commission And Reduction In Subsidies Indicate Better Competition Landscape

Regional Morning Meeting Notes: Thursday, April 25

Singapore Daily - Thursday, April 25, 2024

Onewo Space-Tech Pre-IPO

Legend Biotech Follow-on Offering

Xtep International Placement

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