APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC 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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/reddit-inc" target="_blank" data-smartkarma-citation="entities:40917:1" rel="noopener">Reddit (RDDT US)</a> is looking to raise up to US$750m in its US IPO. </li>
<li>Reddit is an online social media platform where users are able to join communities, engage in conversations, research, exchange goods and services as well as create new communities.  </li>
<li>In this note, we talk about the company’s historical performance.</li>
</ul>



Reddit (RDDT US) is looking to raise up to US$750m in its US IPO. 
Reddit is an online social media platform where users are able to join communities, engage in conversations, research, exchange goods and services as well as create new communities.  
In this note, we talk about the company’s historical performance.


Reddit IPO - Well-Known Brand but Sustainability of Growth Is Questionable

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>According to Pitchbook and their S-1, Reddit has raised ~$1.5B in equity financing. Their last private round, a Series F led by Fidelity in August 2021, was around ~$10B valuation.</li>
<li>I derive a target valuation for Reddit using a ~8x EV/Revenue multiple on my 2024 estimates. The multiple represents a top-range multiple of the peer group.</li>
<li>I arrived at my ~$9.6B target valuation, which implies 50% upside to indicative IPO valuation at the midpoint. I expect Reddit will trade above their last round valuation of $10B.</li>
</ul>


According to Pitchbook and their S-1, Reddit has raised ~$1.5B in equity financing. Their last private round, a Series F led by Fidelity in August 2021, was around ~$10B valuation.
I derive a target valuation for Reddit using a ~8x EV/Revenue multiple on my 2024 estimates. The multiple represents a top-range multiple of the peer group.
I arrived at my ~$9.6B target valuation, which implies 50% upside to indicative IPO valuation at the midpoint. I expect Reddit will trade above their last round valuation of $10B.


Reddit IPO Valuation Analysis: $1B+ Revenue and Profitable Company in 2024

<ul>
<li>Reddit, an American social news aggregation, content rating, and forum social network, filed to go public. The company plans to trade on the NYSE under the ticker “RDDT”.</li>
<li>Reddit was founded in 2005 by Steven Huffman, Aaron Swartz and Alexis Ohanian. The company is forecasted to surpass $1B in total revenue in 2024.</li>
<li>They chose the right time to go public. I have a positive view of the upcoming Reddit IPO and looking forward to seeing them trade as a public company.</li>
</ul>


Reddit, an American social news aggregation, content rating, and forum social network, filed to go public. The company plans to trade on the NYSE under the ticker “RDDT”.
Reddit was founded in 2005 by Steven Huffman, Aaron Swartz and Alexis Ohanian. The company is forecasted to surpass $1B in total revenue in 2024.
They chose the right time to go public. I have a positive view of the upcoming Reddit IPO and looking forward to seeing them trade as a public company.


Reddit IPO: The Right Time To Go Public At A Reasonable Valuation

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>International advertising market (global ad market ex-China, same below unless otherwise specified) still has ample room for further digital transformation, benchmarking to rather advanced state in China’s market.</li><li>The pandemic accelerated the digital transformation towards online and mobile advertising globally.</li><li>According to eMarketer, spending in international ad market reached US$809bn in 2023, with that for digital ad reaching 66% of total at US$533bn (vs. pre-pandemic level of 47% in 2019). </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

International advertising market (global ad market ex-China, same below unless otherwise specified) still has ample room for further digital transformation, benchmarking to rather advanced state in China’s market.The pandemic accelerated the digital transformation towards online and mobile advertising globally.According to eMarketer, spending in international ad market reached US$809bn in 2023, with that for digital ad reaching 66% of total at US$533bn (vs. pre-pandemic level of 47% in 2019). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

US Digital Advertising – AI-Empowered Digital Transformation

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Pinterest delivered an all-around beat in the most recent quarterly result.</li><li>The company's strategic focus on core differentiators and visual discovery led to increased user engagement and expansion of the user base.</li><li>Despite challenges in the advertising environment, Pinterest achieved consistent year-on-year revenue growth and margin expansion.</li></ul>

Pinterest delivered an all-around beat in the most recent quarterly result.The company's strategic focus on core differentiators and visual discovery led to increased user engagement and expansion of the user base.Despite challenges in the advertising environment, Pinterest achieved consistent year-on-year revenue growth and margin expansion.

Pinterest Inc.: Embracing Challenges and Emerging as a Dominant Force in Digital Landscape! - Major Drivers

United States

Pinterest, Inc. operates and maintains social networking site. The Company provides online venue for personal photos, ideas, oddities, decorations, places to visit, recipes, and other items. Pinterest serves customers worldwide.

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Pinterest (PINS US)

Reddit IPO - Well-Known Brand but Sustainability of Growth Is Questionable

Reddit (RDDT US) is looking to raise up to US$750m in its US IPO. In this note, we talk about the company’s historical performance.

Ethan Aw

Reddit IPO Valuation Analysis: $1B+ Revenue and Profitable Company in 2024

I see upside for Reddit shares and my implied equity value of ~$9.6B represents ~50% upside vs. expected IPO price range of $31 to $34 per share at...

Andrei Zakharov

Reddit IPO: The Right Time To Go Public At A Reasonable Valuation

Reddit, an American iconic internet company, filed to go public. Given their massive TAM, loyal communities and scalable business, Reddit is bound...

Andrei Zakharov

US Digital Advertising – AI-Empowered Digital Transformation

International advertising market (global ad market ex-China, same below unless otherwise specified) still has ample room for further digital...

CMB International

Pinterest Inc.: Embracing Challenges and Emerging as a Dominant Force in Digital Landscape! - Major Drivers

Pinterest delivered an all-around beat in the most recent quarterly result. The company's strategic focus on core differentiators and visual...

Baptista Research

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