IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>In <a href="https://www.smartkarma.com/insights/cloud-village-netease-music-ipo-not-yet-a-sound-investment" target="_blank" data-smartkarma-citation="insights:61441" rel="noopener">Cloud Village (NetEase Music) IPO: Not yet a Sound Investment</a>, we stated that the 9M21 update is underwhelming with slowing growth and a marginal decline in losses. </li>
<li>In <a href="https://www.smartkarma.com/insights/cloud-village-netease-music-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:61537" rel="noopener">Cloud Village (NetEase Music) IPO: Valuation Insights</a>, we noted that the IPO price is unattractive.  </li>
<li>It priced its IPO at HK$205 and closed <a href="https://inews.hket.com/article/3121049/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E7%B6%B2%E6%98%93%E9%9B%B2%E9%9F%B3%E6%A8%829899%E6%9A%97%E7%9B%A4%E6%94%B6%E8%B7%8C2-%E3%80%80%E4%B8%80%E6%89%8B%E5%B8%B3%E9%9D%A2%E7%B4%84%E8%9D%95200%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">-2% lower</a> in the grey market. Our base-case DCF value of HK$186.88 per share is a 9% downside to the IPO price.  </li>
</ul>


In Cloud Village (NetEase Music) IPO: Not yet a Sound Investment, we stated that the 9M21 update is underwhelming with slowing growth and a marginal decline in losses. 
In Cloud Village (NetEase Music) IPO: Valuation Insights, we noted that the IPO price is unattractive.  
It priced its IPO at HK$205 and closed -2% lower in the grey market. Our base-case DCF value of HK$186.88 per share is a 9% downside to the IPO price.  


Cloud Village (NetEase Music) IPO: Trading Debut

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

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.

<ul>
<li>Cloud Village raised net proceeds of HK$3,124m (US$406.1m) at HK$205 per share, which is the midpoint of the IPO price range of HK$190-220 per share.</li>
<li>At the IPO price of HK$205 per share, CV will have a market capitalisation of HK$42.6bn and a post-money EV of HK$34.5bn.</li>
<li>The HK offer and the international offer were oversubscribed by 8.92x and 1.7x respectively. Cornerstone investment accounted for 83.15% of the total shares offered at the IPO.</li>
</ul>


Cloud Village raised net proceeds of HK$3,124m (US$406.1m) at HK$205 per share, which is the midpoint of the IPO price range of HK$190-220 per share.
At the IPO price of HK$205 per share, CV will have a market capitalisation of HK$42.6bn and a post-money EV of HK$34.5bn.
The HK offer and the international offer were oversubscribed by 8.92x and 1.7x respectively. Cornerstone investment accounted for 83.15% of the total shares offered at the IPO.


Cloud Village IPO: Thoughts on First Day Trading

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>Weibo plans to raise around US$470m in its secondary listing in Hong Kong. </li>
<li>We have covered most aspects of the deal in our previous note, <a href="https://www.smartkarma.com/insights/weibo-secondary-listing-needs-to-come-at-a-discount" target="_blank" rel="noopener">Weibo Secondary Offering - Needs to come at a discount</a>.</li>
<li>In this note, we'll talk about the deal pricing and structure.</li>
</ul>


Weibo plans to raise around US$470m in its secondary listing in Hong Kong. 
We have covered most aspects of the deal in our previous note, Weibo Secondary Offering - Needs to come at a discount.
In this note, we'll talk about the deal pricing and structure.


Weibo Secondary Listing - Going Down the Autohome Route

Event-Driven

<ul>
<li>Several news media outlets report that Tencent should get prior approval for all of its new apps and updates from government before they are uploaded to app stores and platforms.</li>
<li>The move comes after several apps were found to have violated user rights and as per the new mandate, Tencent is required to submit new apps and updates for inspection.</li>
<li>Nikkei also reported that a high-ranking official has suggested that platforms which possess personal data should return around 20-30% of revenue as ‘Data Tax’ for common prosperity.</li>
</ul>


Several news media outlets report that Tencent should get prior approval for all of its new apps and updates from government before they are uploaded to app stores and platforms.
The move comes after several apps were found to have violated user rights and as per the new mandate, Tencent is required to submit new apps and updates for inspection.
Nikkei also reported that a high-ranking official has suggested that platforms which possess personal data should return around 20-30% of revenue as ‘Data Tax’ for common prosperity.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/cloud-village-inc" target="_blank" data-smartkarma-citation="entities:33412:1" rel="noopener">Cloud Village (CLV HK)</a> has announced the terms for its IPO where it plans to issue 16m shares at an indicative IPO price range of HK$190-220 per share.</li>
<li>At the midpoint of HK$205 per share, the company will raise net proceeds of HK$3.1bn (approx. US$406m) at a market capitalisation of HK$42.6bn and post-money EV of HK$34.5bn</li>
<li>Cornerstone investors have agreed to subscribe for approx. US$350m worth of IPO shares which accounts for about 83.15% of the total no. of shares offered at the IPO (excl. over-allotment).</li>
</ul>



Cloud Village (CLV HK) has announced the terms for its IPO where it plans to issue 16m shares at an indicative IPO price range of HK$190-220 per share.
At the midpoint of HK$205 per share, the company will raise net proceeds of HK$3.1bn (approx. US$406m) at a market capitalisation of HK$42.6bn and post-money EV of HK$34.5bn
Cornerstone investors have agreed to subscribe for approx. US$350m worth of IPO shares which accounts for about 83.15% of the total no. of shares offered at the IPO (excl. over-allotment).


Cloud Village IPO: Peer Comparison and Valuation

China

Tencent Music Entertainment operates an online music entertainment platform in China. The Company offers platform that comprises of online music, recording, music-centric live streaming enabling users to discover, listen, sing, watch, perform, and socialize music.

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Tencent Music (TME US)

Cloud Village (NetEase Music) IPO: Trading Debut

Cloud Village will commence trading on Thursday, 2 December. Our base-case DCF value of HK$186.88 per share is a 9% downside to the IPO price of...

Arun George

Cloud Village IPO: Thoughts on First Day Trading

CV raised net proceeds of HK$3,124m (US$406.1m) at HK$205 per share, which is the midpoint of the IPO price range. CV's IPO is overvalued and we...

Shifara Samsudeen, ACMA, CGMA

Weibo Secondary Listing - Going Down the Autohome Route

Weibo plans to raise around US$470m in its secondary listing in Hong Kong. In this note, we will talk about the deal pricing and structure.

Sumeet Singh

Tencent: The Chasing Continues..

Several news media outlets report that Tencent should get prior approval for all of its new apps and updates from the government before they are...

Shifara Samsudeen, ACMA, CGMA

Cloud Village IPO: Peer Comparison and Valuation

Cloud Village plans to raise net proceeds of around US$400m and our analysis shows that the company's IPO is priced on the expensive side and is...

Shifara Samsudeen, ACMA, CGMA

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