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.

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/xero-ltd" target="_blank" data-smartkarma-citation="entities:390:1" rel="noopener">Xero Ltd (XRO AU)</a> (Mcap: US$6bn, ADV: US$35m) is as its tagline says a "beautiful business". The company is a classic SaaS business offering cloud based accounting. It was set up in New Zealand in 2006 and was listed in 2007, raising a total of NZ$15m. The business is today worth US$6bn. However, XRO mostly caters to small business owners in Australia, NZ, and UK, along with other geographies. With the COVID-19 ravaging small and medium enterprises (SMEs) across its main markets, its questionable if the company can deliver on near term growth.  If the crisis lasts a few months, its growth over the next 2-3 years might be put in question as well.While the recurring revenue will keep the business running, the valuation isn't really factoring in a slowdown.

Xero Ltd (XRO AU) (Mcap: US$6bn, ADV: US$35m) is as its tagline says a "beautiful business". The company is a classic SaaS business offering cloud based accounting. It was set up in New Zealand in 2006 and was listed in 2007, raising a total of NZ$15m. The business is today worth US$6bn. However, XRO mostly caters to small business owners in Australia, NZ, and UK, along with other geographies. With the COVID-19 ravaging small and medium enterprises (SMEs) across its main markets, its questionable if the company can deliver on near term growth.  If the crisis lasts a few months, its growth over the next 2-3 years might be put in question as well.While the recurring revenue will keep the business running, the valuation isn't really factoring in a slowdown.

XERO: A Beautiful Business but Not Pricing in Much in the Way of an SME Rout

Equity Capital Markets

Latitude Group Holdings / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/26740" target="_blank" data-smartkarma-citation="entities:26740:1">Latitude Financial Services (1272471D AU)</a> plans to raise over US$1bn in its upcoming IPO in Australia. The business was purchased by a group of financial investors from GE capital in 2015. Consumer sales finance remains its largest segment and it has been performing well over the past few years. However, the recent turnaround seems to be after a period of gradual contraction in its loan book. Even in its second largest segment, personal loans, growth has seen tepid. In addition, there are a few new competitors on the block who are growing rapidly, although the remain relatively small for now.

Latitude Financial Services (1272471D AU) plans to raise over US$1bn in its upcoming IPO in Australia. The business was purchased by a group of financial investors from GE capital in 2015. Consumer sales finance remains its largest segment and it has been performing well over the past few years. However, the recent turnaround seems to be after a period of gradual contraction in its loan book. Even in its second largest segment, personal loans, growth has seen tepid. In addition, there are a few new competitors on the block who are growing rapidly, although the remain relatively small for now.

Latitude Financial Group Pre-IPO Review - Credit Prospectus Throw up Some Interesting Data Points

Australia

Afterpay Holdings Limited operates as a holding company. The Company, through its subsidiaries, provides online post-payment services including processing, transaction management, invoicing and collection, and covering default risk. Afterpay Holdings serves customers in Australia.

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Afterpay Holdings (AFY AU)

XERO: A Beautiful Business but Not Pricing in Much in the Way of an SME Rout

Xero Ltd (XRO AU) (Mcap: US$6bn, ADV: US$35m) is as its tagline says a "beautiful business". The company is a classic SaaS business offering cloud...

Sumeet Singh

Latitude Financial Group Pre-IPO Review - Credit Prospectus Throw up Some Interesting Data Points

Latitude Financial Services (1272471D AU) plans to raise over US$1bn in its upcoming IPO in Australia. The business was purchased by a group of...

Sumeet Singh

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