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

<div><p><a href="https://www.smartkarma.com/entities/chindata-group-holdings-adr" target="_blank" data-smartkarma-citation="entities:29274:1" rel="noopener">Chindata (CD US)</a> is a data centre operator which is backed by Bain Capital (57.17% shareholder), APG Strategic Real Estate Pool/Dutch pension funds (10.43%) and <a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Holdings (034730 KS)</a> (8.94%). Chindata has launched its IPO at a price range of $11.50-13.50 per ADS. There is also a $135 million concurrent private placement with <a href="https://www.smartkarma.com/entities/country-garden-holdings-co" target="_blank" data-smartkarma-citation="entities:5225:1" rel="noopener">Country Garden Holdings Co (2007 HK)</a> ($65 million), Sequoia Capital ($40 million) and Mr Hui Wing Mau, Chairman of Shimao Group ($30 million). At the mid-point of the IPO price range and along with the concurrent private placement, Chindata will raise net proceeds of $597 million. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/chindata-group-ipo-initiation-where-the-cloud-meets-the-ground" target="_blank" rel="noopener">our initiation note</a>, we stated that Chindata is an attractive play on the favourable Asia-Pacific hyperscale data centre market dynamics. Overall, we would be inclined to participate in the IPO at the proposed price range. </p></div></div></div>

Chindata (CD US) is a data centre operator which is backed by Bain Capital (57.17% shareholder), APG Strategic Real Estate Pool/Dutch pension funds (10.43%) and SK Holdings (034730 KS) (8.94%). Chindata has launched its IPO at a price range of $11.50-13.50 per ADS. There is also a $135 million concurrent private placement with Country Garden Holdings Co (2007 HK) ($65 million), Sequoia Capital ($40 million) and Mr Hui Wing Mau, Chairman of Shimao Group ($30 million). At the mid-point of the IPO price range and along with the concurrent private placement, Chindata will raise net proceeds of $597 million. In our initiation note, we stated that Chindata is an attractive play on the favourable Asia-Pacific hyperscale data centre market dynamics. Overall, we would be inclined to participate in the IPO at the proposed price range. 

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.

<p><a href="https://www.smartkarma.com/entities/chindata-group-holdings-adr" target="_blank" data-smartkarma-citation="entities:29274:1" rel="noopener">Chindata (CD US)</a> aims to raise around US$540m in its US listing. Chindata is a data centre solution provider in Asia-Pacific with a focus on China. It currently operates six data centers in China and one in Malaysia and has numerous more data centers under construction.</p><p>The company is backed by Bain Capital and is almost like a startup, in the sense that it was recently formed via the merger of a China and Asia-Pac entity. Given the relative freshness of the firm, the company has taken the liberty of providing financials just for the past 18 months, which of course show rapid growth. Also, it doesn’t provide a whole lot of details about its individual assets. Furthermore, its two large clients account for a huge chunk of its revenue, one of which is <a href="https://www.smartkarma.com/entities/bytedance-technology" target="_blank" data-smartkarma-citation="entities:27936:1" rel="noopener">ByteDance (1460967D CH)</a>, the other being <a href="https://www.smartkarma.com/entities/shanghai-wangsu-science-technology-co" target="_blank" data-smartkarma-citation="entities:9722:1" rel="noopener">Shanghai Wangsu Science &amp; Technology Co (300017 CH)</a>.</p><p>On the positive side, Chindata has plans to more than double its capacity by the end of 2021, which will ensure that growth remains strong. Moreover, its Chairman and founder appear to have ample experience in the sector. </p><p>I spoke about the above points and more in my earlier note. In this note, I’ll talk about deal dynamics and valuations.</p><p><strong>Our previous coverage of the IPO:</strong></p><ul><li dir="ltr"><p><a href="https://www.smartkarma.com/insights/chindata-group-holdings-pre-ipo-patchy-data-but-is-growing-fast-in-a-hot-sector" target="_blank" rel="noopener">Chindata Group Holdings Pre-IPO - Patchy data but is growing fast in a hot sector</a></p></li></ul>

Chindata (CD US) aims to raise around US$540m in its US listing. Chindata is a data centre solution provider in Asia-Pacific with a focus on China. It currently operates six data centers in China and one in Malaysia and has numerous more data centers under construction.The company is backed by Bain Capital and is almost like a startup, in the sense that it was recently formed via the merger of a China and Asia-Pac entity. Given the relative freshness of the firm, the company has taken the liberty of providing financials just for the past 18 months, which of course show rapid growth. Also, it doesn’t provide a whole lot of details about its individual assets. Furthermore, its two large clients account for a huge chunk of its revenue, one of which is ByteDance (1460967D CH), the other being Shanghai Wangsu Science &amp; Technology Co (300017 CH).On the positive side, Chindata has plans to more than double its capacity by the end of 2021, which will ensure that growth remains strong. Moreover, its Chairman and founder appear to have ample experience in the sector. I spoke about the above points and more in my earlier note. In this note, I’ll talk about deal dynamics and valuations.Our previous coverage of the IPO:Chindata Group Holdings Pre-IPO - Patchy data but is growing fast in a hot sector

Chindata Group IPO - Riding High on Sector Momentum

<p><a href="https://www.smartkarma.com/entities/chindata-group-holdings-adr" target="_blank" data-smartkarma-citation="entities:29274:1" rel="noopener">Chindata (CD US)</a> is a data centre operator. It is the largest carrier-neutral hyperscale data centre operator in Asia-Pacific emerging markets as measured by capacity in service, with 21.5% market share out of a total market size of 829 MW, according to Frost &amp; Sullivan. Chindata is backed by Bain Capital (57.17% shareholder), APG Strategic Real Estate Pool/Dutch pension funds (10.43%) and <a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Holdings (034730 KS)</a> (8.94%). It is seeking to raise up to $800 million (primary and secondary sale) through a Nasdaq IPO, according to press reports. </p><div class="content-highlight"><p>The Asia-Pacific hyperscale data centre market is a structural growth market in part due to the increasing prevalence of outsourcing data centre services, rising client demand for higher power density and scalability, and increasing compliance and regulatory requirements on data security. Overall, we think that Chindata is an attractive play on these favourable market dynamics. </p></div>

Chindata (CD US) is a data centre operator. It is the largest carrier-neutral hyperscale data centre operator in Asia-Pacific emerging markets as measured by capacity in service, with 21.5% market share out of a total market size of 829 MW, according to Frost &amp; Sullivan. Chindata is backed by Bain Capital (57.17% shareholder), APG Strategic Real Estate Pool/Dutch pension funds (10.43%) and SK Holdings (034730 KS) (8.94%). It is seeking to raise up to $800 million (primary and secondary sale) through a Nasdaq IPO, according to press reports. The Asia-Pacific hyperscale data centre market is a structural growth market in part due to the increasing prevalence of outsourcing data centre services, rising client demand for higher power density and scalability, and increasing compliance and regulatory requirements on data security. Overall, we think that Chindata is an attractive play on these favourable market dynamics. 

Chindata Group IPO Initiation: Where the Cloud Meets the Ground

<p>Chindata Group Holdings aims to raise around US$400m in its US listing. Chindata is a data centre solution provider in Asia-Pacific with a focus on China. It currently operates six data centers in China and one in Malaysia and has numerous more data centers under construction.</p><p>The company is backed by Bain Capital and is almost like a startup, in the sense that it was recently formed via the merger of a China and Asia-Pac entity. Given the relative freshness of the firm, the company has taken the liberty of providing financials just for the past 18 months, which of course show rapid growth. Also, it doesn’t provide a whole lot of details about its individual assets. Furthermore, its two large clients account for a huge chunk of its revenue, one of which is Bytedance, the other being Wangsu.</p><p>On the positive side, Chindata has plans to more than double its capacity by the end of 2021, which will ensure that growth remains strong. Moreover, its Chairman and founder appear to have ample experience in the sector. It operates in a sector which has only seen investor demand increase during COVID-19 and hence, despite its lack of financials will probably still be hot. </p><p>In this note, I’ll talk about the company’s background, its past performance and the above issues.</p>

Chindata Group Holdings aims to raise around US$400m in its US listing. Chindata is a data centre solution provider in Asia-Pacific with a focus on China. It currently operates six data centers in China and one in Malaysia and has numerous more data centers under construction.The company is backed by Bain Capital and is almost like a startup, in the sense that it was recently formed via the merger of a China and Asia-Pac entity. Given the relative freshness of the firm, the company has taken the liberty of providing financials just for the past 18 months, which of course show rapid growth. Also, it doesn’t provide a whole lot of details about its individual assets. Furthermore, its two large clients account for a huge chunk of its revenue, one of which is Bytedance, the other being Wangsu.On the positive side, Chindata has plans to more than double its capacity by the end of 2021, which will ensure that growth remains strong. Moreover, its Chairman and founder appear to have ample experience in the sector. It operates in a sector which has only seen investor demand increase during COVID-19 and hence, despite its lack of financials will probably still be hot. In this note, I’ll talk about the company’s background, its past performance and the above issues.

Chindata Group Holdings Pre-IPO - Patchy Data but Is Growing Fast in a Hot Sector

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

<p>21Vianet, a leading China carrier-neutral and cloud-neutral data center player, is raising up to USD 367 million via a placement. In this insight, we will look at the company's fundamentals and provide our thoughts on the deal. We like the data center business and the visibility of VNET's earnings. </p>

21Vianet, a leading China carrier-neutral and cloud-neutral data center player, is raising up to USD 367 million via a placement. In this insight, we will look at the company's fundamentals and provide our thoughts on the deal. We like the data center business and the visibility of VNET's earnings. 

21Vianet Placement: Data Center as Scarce Resource

China

GDS Holdings Limited operates as a holding company. The Company, through its subsidiaries, develops and operates data centers. GDS Holdings offers risk and security management, information technology planing, remote monitoring, cloud hosting, virtualization, disaster recovery, and remote data protection services.

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GDS Holdings (ADR) (GDS US)

Chindata Group IPO: Valuation Insights

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Chindata Group IPO - Riding High on Sector Momentum

Chindata Group Holdings aims to raise around US$540m in its US listing. Chindata is a data centre solution provider in Asia-Pacific with a focus on...

Sumeet Singh

Chindata Group IPO Initiation: Where the Cloud Meets the Ground

Chindata is a data centre operator. It is the largest carrier-neutral hyperscale data centre operator in Asia-Pacific emerging markets as measured...

Arun George

Chindata Group Holdings Pre-IPO - Patchy Data but Is Growing Fast in a Hot Sector

Chindata Group Holdings aims to raise around US$400m in its US listing. Chindata is a data centre solution provider in Asia-Pacific with a focus on...

Sumeet Singh

21Vianet Placement: Data Center as Scarce Resource

21Vianet, a leading China carrier-neutral and cloud-neutral data center player, is raising up to USD 367 million via a placement. In this insight,...

Ke Yan, CFA, FRM

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