Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  shares underperformed in 2022, with shares down ~47% YTD versus a 33% loss on the Nasdaq Composite. US software stocks lost ~51% on average over the year. </li>
<li>Insiders keep buying shares. VC firm Accel, a 5%+ shareholder, acquired ~$50 million worth of <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  shares in 2H22. Strong insider buying indicates the stock could hit bottom. </li>
<li>We estimate <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  crossed the $500M ARR mark in 3QCY22. The company may report strong 4QCY22 results and surprise investors and analysts.</li>
</ul>



Freshworks (FRSH US)  shares underperformed in 2022, with shares down ~47% YTD versus a 33% loss on the Nasdaq Composite. US software stocks lost ~51% on average over the year. 
Insiders keep buying shares. VC firm Accel, a 5%+ shareholder, acquired ~$50 million worth of Freshworks (FRSH US)  shares in 2H22. Strong insider buying indicates the stock could hit bottom. 
We estimate Freshworks (FRSH US)  crossed the $500M ARR mark in 3QCY22. The company may report strong 4QCY22 results and surprise investors and analysts.


Freshworks: Insiders Keep Buying Shares. Path To Sustainable FCF Positive Business Looks Clear

Equity Capital Markets

Tianju Dihe Technology / Equity Capital Markets

<ul>
<li>Tianju Dihe Technology, a provider of integrated API-enabled data exchange services in China, set terms for an IPO and plans to raise ~HK$400M in June.</li>
<li>The initial public offering is expected to be priced at HK$83.33 per H share, valuing the technology company at ~HK$4.2B or $535M based on 50.1M outstanding shares.  </li>
<li>Cornerstone investors have agreed to acquire ~3.8M H shares, representing 80% of the offer shares or ~8% of the total outstanding shares.</li>
</ul>


Tianju Dihe Technology, a provider of integrated API-enabled data exchange services in China, set terms for an IPO and plans to raise ~HK$400M in June.
The initial public offering is expected to be priced at HK$83.33 per H share, valuing the technology company at ~HK$4.2B or $535M based on 50.1M outstanding shares.  
Cornerstone investors have agreed to acquire ~3.8M H shares, representing 80% of the offer shares or ~8% of the total outstanding shares.


Tianju Dihe Technology IPO: Limited Room For Multiple Expansion Despite Healthy Growth

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nearmap-ltd" target="_blank" data-smartkarma-citation="entities:5142:1" rel="noopener">Nearmap Ltd (NEA AU)</a> disclosed a non-binding indicative offer of A$2.10 per share from Thoma Bravo. The offer price represents a 39.1% premium to the last trading day price.</li>
<li>Thoma Bravo has secured a 7-day exclusivity to firm up an offer. Thoma Bravo is a credible bidder and agreed to acquire <a href="https://www.smartkarma.com/entities/ping-identity-holding-corp" target="_blank" data-smartkarma-citation="entities:28271:1" rel="noopener">Ping Identity Holding Corp (PING US)</a> last week. </li>
<li>Nearmap also revealed other non-binding expressions of interest. The exclusivity could flush out other bids. We think that offer is reasonable. At the last close, the gross spread is 11.4%.</li>
</ul>



Nearmap Ltd (NEA AU) disclosed a non-binding indicative offer of A$2.10 per share from Thoma Bravo. The offer price represents a 39.1% premium to the last trading day price.
Thoma Bravo has secured a 7-day exclusivity to firm up an offer. Thoma Bravo is a credible bidder and agreed to acquire Ping Identity Holding Corp (PING US) last week. 
Nearmap also revealed other non-binding expressions of interest. The exclusivity could flush out other bids. We think that offer is reasonable. At the last close, the gross spread is 11.4%.


Nearmap’s A$2.10 Per Share Indicative Offer from Thoma Bravo

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

We issue in-process short research ideas periodically.  Our formal recommendations will likely come from this list, although not all will make the final cut.  Here we introduce a series of names that look interesting.Atkore Inc (ATKR), Producer Manufacturing, Grocery Outlet Holding Corp. (GO) Food Retail, PBF Energy, Inc. Class A (PBF), Oil Refining/Marketing, Ping Identity Holding Corp. (PING) Packaged Software, Renewable Energy Group, (REGI) Chemicals: Specialty, Blink Charging Co (BLNK) Other Consumer Services.

We issue in-process short research ideas periodically.  Our formal recommendations will likely come from this list, although not all will make the final cut.  Here we introduce a series of names that look interesting.Atkore Inc (ATKR), Producer Manufacturing, Grocery Outlet Holding Corp. (GO) Food Retail, PBF Energy, Inc. Class A (PBF), Oil Refining/Marketing, Ping Identity Holding Corp. (PING) Packaged Software, Renewable Energy Group, (REGI) Chemicals: Specialty, Blink Charging Co (BLNK) Other Consumer Services.  

Short Ideas "On the Workbench" - Promising Shorts Under Our Research Microscope.

<a href="https://www.smartkarma.com/entities/forgerock-inc" target="_blank" data-smartkarma-citation="entities:34093:1" rel="noopener">ForgeRock (FORG US)</a> , global identity leader and next-gen cloud identity unicorn, filed for a $100 million IPO. It didn’t specify expected price range and how many shares of Class A common stock it would offer. ForgeRock has applied to list its shares on the NYSE under the trading symbol “FORG”. Morgan Stanley and J.P. Morgan are leading the IPO.

ForgeRock (FORG US) , global identity leader and next-gen cloud identity unicorn, filed for a $100 million IPO. It didn’t specify expected price range and how many shares of Class A common stock it would offer. ForgeRock has applied to list its shares on the NYSE under the trading symbol “FORG”. Morgan Stanley and J.P. Morgan are leading the IPO.

ForgeRock IPO Preview and Valuation Analysis

United States

Ping Identity Holding Corp operates as a holding company. The Company, through its subsidiaries, provides a platform that allows users and devices to securely access any service, application, and application programming interface (API) from any device. Ping Identity Holding serves customers worldwide.

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Ping Identity Holding Corp (PING US)

Freshworks: Insiders Keep Buying Shares. Path To Sustainable FCF Positive Business Looks Clear

Strong insider buying and a recent buyout of Zendesk may indicate a bottom for Freshworks shares as valuations have improved. Freshworks...

Andrei Zakharov

Tianju Dihe Technology IPO: Limited Room For Multiple Expansion Despite Healthy Growth

Tianju Dihe Technology, a founder-led API services provider, is expected to price its IPO next week and I see a limited room for multiple expansion

Andrei Zakharov

Short Ideas "On the Workbench" - Promising Shorts Under Our Research Microscope.

Promising Shorts Under Our Research Microscope: Atkore (ATKR), Grocery Outlet Holding (GO), PBF Energy. (PBF), Ping Identity Holding (PING),...

Eric Fernandez, CFA

ForgeRock IPO Preview and Valuation Analysis

ForgeRock is expected to IPO in September what makes it first digital identity leader scheduled to go public this year after successful IPOs of...

Andrei Zakharov

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Freshworks: Insiders Keep Buying Shares. Path To Sustainable FCF Positive Business Looks Clear

Strong insider buying and a recent buyout of Zendesk may indicate a bottom for Freshworks shares as valuations have improved. Freshworks...

Andrei Zakharov

Tianju Dihe Technology IPO: Limited Room For Multiple Expansion Despite Healthy Growth

Tianju Dihe Technology, a founder-led API services provider, is expected to price its IPO next week and I see a limited room for multiple expansion

Andrei Zakharov

Nearmap’s A$2.10 Per Share Indicative Offer from Thoma Bravo

Thoma Bravo is a credible bidder, and the Board will likely recommend a binding offer. We think that the offer is reasonable. At the last close,...

Arun George

Short Ideas "On the Workbench" - Promising Shorts Under Our Research Microscope.

Promising Shorts Under Our Research Microscope: Atkore (ATKR), Grocery Outlet Holding (GO), PBF Energy. (PBF), Ping Identity Holding (PING),...

Eric Fernandez, CFA

ForgeRock IPO Preview and Valuation Analysis

ForgeRock is expected to IPO in September what makes it first digital identity leader scheduled to go public this year after successful IPOs of...

Andrei Zakharov