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 Capital Markets

<p>Airbnb aims to raise around US$2.5bn in its US listing. Airbnb is a global short-stay offering platform. To put it simply, iIt connects hosts, who post available accommodation on Airbnb, with guests, who make bookings for the accommodation. It charges a fee for this service.</p><p>As of 9M20, it had 4 million hosts in more than 220 countries and regions around the world. Since inception, its hosts have welcomed over 825m guest arrivals and have cumulatively earned over $110bn. In 2019, it had 54m active bookers worldwide, who booked 327m nights and experiences on Airbnb.</p><p>Over 2017-19, the company reported steady growth in earnings led by an increase in the number of bookings. Its overall number of guests and hosts have been growing as well, with most metrics heading in the right direction. </p><p>While COVID-19 did take a harsh toll on the company, its quarterly results paint a better picture as compared to its 9M20 numbers. Even during COVID, there have been certain pockets, like domestic and long stay travel which have continued to grow, thus, highlighting the company’s resilience. </p><p>Having said that, Airbnb has failed to explain the reason for the downwards pressure on its 2019 margins. At the same time, the cohorts data highlights the ample other options available to its guests and the severe competition in the industry. </p>

Airbnb aims to raise around US$2.5bn in its US listing. Airbnb is a global short-stay offering platform. To put it simply, iIt connects hosts, who post available accommodation on Airbnb, with guests, who make bookings for the accommodation. It charges a fee for this service.As of 9M20, it had 4 million hosts in more than 220 countries and regions around the world. Since inception, its hosts have welcomed over 825m guest arrivals and have cumulatively earned over $110bn. In 2019, it had 54m active bookers worldwide, who booked 327m nights and experiences on Airbnb.Over 2017-19, the company reported steady growth in earnings led by an increase in the number of bookings. Its overall number of guests and hosts have been growing as well, with most metrics heading in the right direction. While COVID-19 did take a harsh toll on the company, its quarterly results paint a better picture as compared to its 9M20 numbers. Even during COVID, there have been certain pockets, like domestic and long stay travel which have continued to grow, thus, highlighting the company’s resilience. Having said that, Airbnb has failed to explain the reason for the downwards pressure on its 2019 margins. At the same time, the cohorts data highlights the ample other options available to its guests and the severe competition in the industry. 

Airbnb IPO - Time for a Good Break - Even from the Share Lock-Up

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

Equity Bottom-Up

<p>Snowflake had a good quarter…it was a bit above expectations that were well telegraphed from the IPO, and their guidance was only inline (though likely conservative)….so what does one do with a stock that is the single richest multiple in the stock market (100x+ sales)? Buy a lot more? We can’t pretend to understand why this stock was up 16% today. And we can’t pretend to understand why the market values its revenues at 3x!!! the rest of high valuation software. We don’t short on valuation alone. But we certainly couldn’t justify owning Snowflake.</p><p><strong> </strong></p><div class="content-highlight"><p>Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.</p></div>

Snowflake had a good quarter…it was a bit above expectations that were well telegraphed from the IPO, and their guidance was only inline (though likely conservative)….so what does one do with a stock that is the single richest multiple in the stock market (100x+ sales)? Buy a lot more? We can’t pretend to understand why this stock was up 16% today. And we can’t pretend to understand why the market values its revenues at 3x!!! the rest of high valuation software. We don’t short on valuation alone. But we certainly couldn’t justify owning Snowflake. Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

Snowflake 3Q21: Our Revenues Are Worth More Than Your Revenues

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<p><strong><em>*Strong Momentum As We Head Into Holiday Season: </em></strong>Just as we head into the holiday season, Tencent Holdings’ (700.HK) [Tencent] Afterpay Touch (APT.AU) [Afterpay] provided some strong key metrics in its latest media release;  </p><p><strong><em>*More Transformation To Come:</em></strong> What a magnificent amazing six months this has been for Tencent’s Afterpay, and the next six months look to be even more transformational with operations beginning in the European Union, launches of banking products, and potentially the launch of the business in Asia (likely under the tutelage of Tencent); and</p><p><strong><em>*More Magic Fairy Dust:</em></strong> Tencent continues to hit it out of the park with its Afterpay stake. In addition to a superb return on investment of 400% over the past six months since the stake announcement, this alliance with Australia’s premier financial technology Buy Now Pay Later (BNPL) company is paying dividends to Tencent in numerous other ways.</p>

*Strong Momentum As We Head Into Holiday Season: Just as we head into the holiday season, Tencent Holdings’ (700.HK) [Tencent] Afterpay Touch (APT.AU) [Afterpay] provided some strong key metrics in its latest media release;  *More Transformation To Come: What a magnificent amazing six months this has been for Tencent’s Afterpay, and the next six months look to be even more transformational with operations beginning in the European Union, launches of banking products, and potentially the launch of the business in Asia (likely under the tutelage of Tencent); and*More Magic Fairy Dust: Tencent continues to hit it out of the park with its Afterpay stake. In addition to a superb return on investment of 400% over the past six months since the stake announcement, this alliance with Australia’s premier financial technology Buy Now Pay Later (BNPL) company is paying dividends to Tencent in numerous other ways.

Alpha-Centric ESG Research

Kyle Rudden

<p>U.S. President-Elect Joe Biden recently announced four "Day One" priorities for his administration. The first of those priorities is an aggressive seven-point COVID-19 response plan, the first point of which is COVID-19 testing. Testing is Biden's near-term focus, and testing stocks stand to gain.</p><p>As noted in <a href="https://www.smartkarma.com/insights/biden-covid-19-response-plan-overview-of-its-inherent-investment-themes" target="_blank" data-smartkarma-citation="insights:45631" rel="noopener">Biden COVID-19 Response Plan: Overview of Its Inherent Investment Themes</a>, testing stocks represent the largest, most tangible, and nearest-term investment opportunity amongst the various themes inherent in Biden's COVID-19 plan (summarised in the Insight linked to above).</p><p>Don't just back up the truck, however. The plan could be boon for testing stocks,  but it is harldy a "<em>rising tide lifts all boats</em>" scenario. It creates a window of upside for some of testing stocks, though not all, and it's a brief window replete with nuances and caveats. Selectivity and timing are key.</p><p>This Insight presents an investment thesis for the COVID-19 testing stock theme, specifically vis-à-vis the details of the plan. It consists of two phases (time horizons), and two types of stocks:</p><ol>
<li>
<strong>Nearer-Term:</strong> Focus on <em>diagnostic</em> (versus antibody) testing stocks, especially those whose tests have fit best with Biden's "rapid deployment, rapid results" testing strategy. For example, rapid antigent tests, others with fast time-to-results, point-of-care and at-home collection, etc.</li>
<li>
<strong>Medium-Term:</strong> COVID-19 vaccine progress is a major catalyst for this theme. Vaccines will not end testing altogether (at least not soon), but as mass-vaccination becomes more reality than a dream, it would be wise to shift out of from diagnostic stocks into antibody testing stocks.</li>
</ol>

U.S. President-Elect Joe Biden recently announced four "Day One" priorities for his administration. The first of those priorities is an aggressive seven-point COVID-19 response plan, the first point of which is COVID-19 testing. Testing is Biden's near-term focus, and testing stocks stand to gain.As noted in Biden COVID-19 Response Plan: Overview of Its Inherent Investment Themes, testing stocks represent the largest, most tangible, and nearest-term investment opportunity amongst the various themes inherent in Biden's COVID-19 plan (summarised in the Insight linked to above).Don't just back up the truck, however. The plan could be boon for testing stocks,  but it is harldy a "rising tide lifts all boats" scenario. It creates a window of upside for some of testing stocks, though not all, and it's a brief window replete with nuances and caveats. Selectivity and timing are key.This Insight presents an investment thesis for the COVID-19 testing stock theme, specifically vis-à-vis the details of the plan. It consists of two phases (time horizons), and two types of stocks:

Nearer-Term: Focus on diagnostic (versus antibody) testing stocks, especially those whose tests have fit best with Biden's "rapid deployment, rapid results" testing strategy. For example, rapid antigent tests, others with fast time-to-results, point-of-care and at-home collection, etc.

Medium-Term: COVID-19 vaccine progress is a major catalyst for this theme. Vaccines will not end testing altogether (at least not soon), but as mass-vaccination becomes more reality than a dream, it would be wise to shift out of from diagnostic stocks into antibody testing stocks.


Biden COVID-19 Response Plan: Its Largest Near-Term Opportunity Is In Testing Stocks

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Thematic (Sector/Industry)

<div>The vaccine announcement by <a href="https://www.smartkarma.com/entities/pfizer-inc" target="_blank" data-smartkarma-citation="entities:1131:1" rel="noopener">Pfizer Inc (PFE US)</a> and <a href="https://www.smartkarma.com/entities/moderna-inc" target="_blank" data-smartkarma-citation="entities:28744:1" rel="noopener">Moderna Inc (MRNA US), </a>
</div>
<div>the laggard Singapore equities market all of a sudden leaped to joy and pushed travel-related names up, playing catch up with the rest of the world.</div>
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<a href="https://www.smartkarma.com/entities/singapore-airlines-ltd" target="_blank" data-smartkarma-citation="entities:74:1" rel="noopener">Singapore Airlines (SIA SP)</a> and <a href="https://www.smartkarma.com/entities/sats-ltd" target="_blank" data-smartkarma-citation="entities:19962:1" rel="noopener">SATS Ltd (SATS SP)</a> are the go-to stock for Singapore’s reopening air travel that started with the travel bubble with Hong Kong and other low-risk countries to follow. <a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a>  is the key beneficiary to the reopening of the Singapore economy, through the switching of work-from-home to work-in-office (higher ridership in the MRTs and buses that contributes to 60% of the company’s revenues), and also from the reopening of the restaurants and malls that increases mobility in the country. The low or non-existent community COVID-19 cases also help to boost the confidence in Comfort Delgro.</div>
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<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/174/615/original/image_5285658631606463283499.png?1606463282" class="editor-image img-responsive" data-smartkarma-image-id="174615"></figure>
<div class="content-remarks">
<p>source: Capital IQ</p>
</div>
<p>The trade is to buy ComfortDelgro as it has less risk to the increase in pandemic and less exposure to the cross border travel unlike Singapore Airlines and SATS (whose valuations have run ahead despite the ongoing concern of the industry) that has most of their revenues exposed to the risk of the cross border travel.</p>
</div>

The vaccine announcement by Pfizer Inc (PFE US) and Moderna Inc (MRNA US), 

the laggard Singapore equities market all of a sudden leaped to joy and pushed travel-related names up, playing catch up with the rest of the world.


Singapore Airlines (SIA SP) and SATS Ltd (SATS SP) are the go-to stock for Singapore’s reopening air travel that started with the travel bubble with Hong Kong and other low-risk countries to follow. Comfortdelgro Corp (CD SP)  is the key beneficiary to the reopening of the Singapore economy, through the switching of work-from-home to work-in-office (higher ridership in the MRTs and buses that contributes to 60% of the company’s revenues), and also from the reopening of the restaurants and malls that increases mobility in the country. The low or non-existent community COVID-19 cases also help to boost the confidence in Comfort Delgro.




source: Capital IQ

The trade is to buy ComfortDelgro as it has less risk to the increase in pandemic and less exposure to the cross border travel unlike Singapore Airlines and SATS (whose valuations have run ahead despite the ongoing concern of the industry) that has most of their revenues exposed to the risk of the cross border travel.


2021 High Conviction: Singapore Travel Names in Bumpy Recovery

United States

Alphabet, Inc. operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.

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Alphabet (GOOG US)

Snowflake 3Q21: Our Revenues Are Worth More Than Your Revenues

Snowflake's first public quarter was a raging success according to the stock market, who boosted a 100x P/S company by 16% just for meeting...

Aaron Gabin

Tencent Holdings – Father Christmas

TENCENT HOLDINGS: It's May 2020 Stake In Afterpay Keeps Paying Dividends. In It's Latest Release, Afterpay Announced Very Positive Momentum As We...

Thomas J. Monaco

Biden COVID-19 Response Plan: Its Largest Near-Term Opportunity Is In Testing Stocks

COVID-19 testing stocks represent the largest, most tangible, and nearest-term investment opportunity inherent in Biden's recently-announced COVID...

Kyle Rudden

2021 High Conviction: Singapore Travel Names in Bumpy Recovery

Long ComfortDelgro as it has less risk to the increase in pandemic unlike Singapore Airlines and SATS (whose valuations have run ahead despite the...

Henry Soediarko

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Airbnb IPO - Time for a Good Break - Even from the Share Lock-Up

Airbnb aims to raise around US$2.5bn in its US listing. There is lots to like about the company, apart from it lack of lock-up on some shareholders.

Sumeet Singh

Snowflake 3Q21: Our Revenues Are Worth More Than Your Revenues

Snowflake's first public quarter was a raging success according to the stock market, who boosted a 100x P/S company by 16% just for meeting...

Aaron Gabin

Tencent Holdings – Father Christmas

TENCENT HOLDINGS: It's May 2020 Stake In Afterpay Keeps Paying Dividends. In It's Latest Release, Afterpay Announced Very Positive Momentum As We...

Thomas J. Monaco

Biden COVID-19 Response Plan: Its Largest Near-Term Opportunity Is In Testing Stocks

COVID-19 testing stocks represent the largest, most tangible, and nearest-term investment opportunity inherent in Biden's recently-announced COVID...

Kyle Rudden

2021 High Conviction: Singapore Travel Names in Bumpy Recovery

Long ComfortDelgro as it has less risk to the increase in pandemic unlike Singapore Airlines and SATS (whose valuations have run ahead despite the...

Henry Soediarko