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

Phoenix Tree Holdings Ltd / Equity Capital Markets

Phoenix Tree (Danke) is looking to raise up to US$175m in its US IPO.  Danke is a co-living accommodation provider. According to iResearch, Danke is now one of the largest co-living platforms in China. As of Sep 2019, the company had operations in 13 cities in China with 406,746 apartment units. Danke only began operations in 2015 but it has scaled very fast. Over FY17-9M19, the number of apartments being run by the company have increased by 7.8x while its revenue too increased by 7.6x. In my previous note, <a href="https://www.smartkarma.com/insights/phoenix-tree-danke-pre-ipo-another-wework-nothing-is-improving-apart-from-revenue" target="_blank" rel="noopener">Phoenix Tree (Danke) Pre-IPO - Another WeWork - Nothing Is Improving Apart from Revenue</a>, I covered the company’s background and past performance.In this note, I’ll run the deal through our ECM framework and comment on valuations.

Phoenix Tree (Danke) is looking to raise up to US$175m in its US IPO.  Danke is a co-living accommodation provider. According to iResearch, Danke is now one of the largest co-living platforms in China. As of Sep 2019, the company had operations in 13 cities in China with 406,746 apartment units. Danke only began operations in 2015 but it has scaled very fast. Over FY17-9M19, the number of apartments being run by the company have increased by 7.8x while its revenue too increased by 7.6x. In my previous note, Phoenix Tree (Danke) Pre-IPO - Another WeWork - Nothing Is Improving Apart from Revenue, I covered the company’s background and past performance.In this note, I’ll run the deal through our ECM framework and comment on valuations.

Phoenix Tree (Danke) IPO - Far from Being Ready for Listing

Phoenix Tree (Danke) is looking to raise about US$200-300m in its US IPO.  Danke is a co-living accommodation provider. According to iResearch, Danke is now one of the largest co-living platforms in China. As of Sep 2019, the company had operations in 13 cities in China with 406,746 apartment units.Danke only began operations in 2015 but it has scaled very fast. Over FY17-9M19, the number of apartments being run by the company have increased by 7.8x while its revenue too increased by 7.6x. Unfortunately, that is about the only thing to like about the company’s operations.The company’s rental spread has been under pressure even by its own measure. If we adjust the spread to try and arrive at gross profit margin, the results aren’t very encouraging. Furthermore, given its rapid expansion, the company is devouring capital, but it hasn’t been generating any cash flows.

Phoenix Tree (Danke) is looking to raise about US$200-300m in its US IPO.  Danke is a co-living accommodation provider. According to iResearch, Danke is now one of the largest co-living platforms in China. As of Sep 2019, the company had operations in 13 cities in China with 406,746 apartment units.Danke only began operations in 2015 but it has scaled very fast. Over FY17-9M19, the number of apartments being run by the company have increased by 7.8x while its revenue too increased by 7.6x. Unfortunately, that is about the only thing to like about the company’s operations.The company’s rental spread has been under pressure even by its own measure. If we adjust the spread to try and arrive at gross profit margin, the results aren’t very encouraging. Furthermore, given its rapid expansion, the company is devouring capital, but it hasn’t been generating any cash flows.  

Phoenix Tree (Danke) Pre-IPO - Another WeWork - Nothing Is Improving Apart from Revenue

China

Phoenix tree (Danke) is a co-living apartment provider in China

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Phoenix Tree Holdings Ltd (DNK US)

Phoenix Tree (Danke) IPO - Far from Being Ready for Listing

Phoenix Tree (Danke) is looking to raise up to US$175m in its US IPO. Danke is a co-living accommodation provider. According to iResearch, Danke...

Sumeet Singh

Phoenix Tree (Danke) Pre-IPO - Another WeWork - Nothing Is Improving Apart from Revenue

Phoenix Tree (Danke) is looking to raise about US$200-300m in its US IPO. Danke is a co-living accommodation provider. According to iResearch,...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

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