Alpha-Centric ESG Research

Kyle Rudden

<ul>
<li>
<a href="https://www.smartkarma.com/entities/carsome-group" target="_blank" data-smartkarma-citation="entities:35913:1" rel="noopener">Carsome (CARSOME1 SP)</a>, Malaysia's used-car eCommerce/technology unicorn, has reportedly submitted a confidential IPO filing for a dual listing on Nasdaq and <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">Singapore Exchange</a>.</li>
<li>Carsome has a great ESG story to tell, but needs to be less humble about telling it because pre-IPO ESG messaging can impact IPO valuations, especially for transportation-related deals.</li>
<li>The centerpiece of Carsome's ESG story should be the important (but underappreciated) role of used car markets in decarbonising road transportation, a leading source of carbon emissions.</li>
</ul>



Carsome (CARSOME1 SP), Malaysia's used-car eCommerce/technology unicorn, has reportedly submitted a confidential IPO filing for a dual listing on Nasdaq and Singapore Exchange.
Carsome has a great ESG story to tell, but needs to be less humble about telling it because pre-IPO ESG messaging can impact IPO valuations, especially for transportation-related deals.
The centerpiece of Carsome's ESG story should be the important (but underappreciated) role of used car markets in decarbonising road transportation, a leading source of carbon emissions.


Carsome: A Paradigm of Circular Economy and Unsung Hero in the Decarbonisation of Transportation

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Capital Markets

San Francisco-based <a href="https://www.smartkarma.com/entities/amplitude-inc" target="_blank" data-smartkarma-citation="entities:34148:1" rel="noopener">Amplitude (AMPL US)</a> , best-in-class product analytics and digital optimization technology unicorn, filed for a direct listing and expects their Class A common stock to begin trading on September 28, 2021. The company has registered up to ~35.4M shares to sell in the direct listing with the reference price to be announced. Amplitude plans to list their Class A shares on the Nasdaq Capital Market under the symbol “AMPL”. Direct listing means that there will be no book building process and none of the existing shareholders will be subject to 180-day contractual lock-up agreement. Morgan Stanley, Bank of America, Citigroup, KeyBanc Capital Markets, Baird, UBS and William Blair will serve as financial advisors.

San Francisco-based Amplitude (AMPL US) , best-in-class product analytics and digital optimization technology unicorn, filed for a direct listing and expects their Class A common stock to begin trading on September 28, 2021. The company has registered up to ~35.4M shares to sell in the direct listing with the reference price to be announced. Amplitude plans to list their Class A shares on the Nasdaq Capital Market under the symbol “AMPL”. Direct listing means that there will be no book building process and none of the existing shareholders will be subject to 180-day contractual lock-up agreement. Morgan Stanley, Bank of America, Citigroup, KeyBanc Capital Markets, Baird, UBS and William Blair will serve as financial advisors.

Founder-Led Unicorn And Leader In Product Analytics

Latest News from the World’s Leading Innovators

Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Thematic (Sector/Industry)

Headline Developments: We can now modify DNA inside of a human body (in vivo), thanks to some groundbreaking work announced this week by Intellia Therapeutics (NTLA) which saw the company’s share price surge 55%.  What this means is that we can now send precision therapeutics (based on CRISPR technology) to “seek and destroy” problematic genes.

Headline Developments: We can now modify DNA inside of a human body (in vivo), thanks to some groundbreaking work announced this week by Intellia Therapeutics (NTLA) which saw the company’s share price surge 55%.  What this means is that we can now send precision therapeutics (based on CRISPR technology) to “seek and destroy” problematic genes.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>
Our base case valuation of UiPath is $60.7 per share, which represents a 21% upside from the high end of the IPO price range of $50 per share. Given the moderate upside in the share price using our base case valuation, we have a Positive view of the UiPath IPO. </li>
<li>We forecast the company to generate sales of $982.5 million (up 61.7% YoY), gross profit of $877.8 million (up 62.0% YoY), and an operating loss of $71.2 million in FY ending Jan 2022. From FY ending Jan 2021 to FY ending Jan 2026, we estimate the company's sales to increase by 37.9% CAGR.</li>
<li>UiPath is one of the global leaders in the RPA (robotic process automation) market. Robotic process automation is a form of business process automation technology based on software robots or on artificial intelligence. The company provides a comprehensive range of automation solutions via numerous interrelated software offerings. </li>
</ul>



Our base case valuation of UiPath is $60.7 per share, which represents a 21% upside from the high end of the IPO price range of $50 per share. Given the moderate upside in the share price using our base case valuation, we have a Positive view of the UiPath IPO. 
We forecast the company to generate sales of $982.5 million (up 61.7% YoY), gross profit of $877.8 million (up 62.0% YoY), and an operating loss of $71.2 million in FY ending Jan 2022. From FY ending Jan 2021 to FY ending Jan 2026, we estimate the company's sales to increase by 37.9% CAGR.
UiPath is one of the global leaders in the RPA (robotic process automation) market. Robotic process automation is a form of business process automation technology based on software robots or on artificial intelligence. The company provides a comprehensive range of automation solutions via numerous interrelated software offerings. 


Coinbase Global  / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/coinbase-global-inc" target="_blank" data-smartkarma-citation="entities:32227:1" rel="noopener">Coinbase (COIN US) </a>plans to complete its direct public listing in April. Coinbase is an operator of one of the largest digital currency exchanges in the world. Established in 2012, Coinbase currently has more than 43 million retail users and 7,000 institutional investors. According to the prospectus, the Coinbase shares have traded hands at prices from $200 to $375. The volume weighted average price per share was $343.58 from January to 15 March. Coinbase has recently been valued as high as <a href="https://www.etftrends.com/crypto-channel/coinbase-valued-at-100-billion-ipo-approaches/" target="_blank" rel="noopener">$100 billion</a>, which is a significant increase from its private market value of $8 billion in October 2018. Early investors in Coinbase include Tiger Global Management, Y Combinator Continuity, New York Stock Exchange, and Andreessen Horowitz.<div class="content-highlight">
<h2>A $100 Billion Valuation?</h2>
Numerous media sources have cited that Coinbase is seeking about <a href="https://www.bloomberg.com/opinion/articles/2021-03-02/coinbase-ipo-coin-the-crypto-exchange-is-a-100-billion-cult" target="_blank" rel="noopener">$100 billion</a> in valuation at its direct public listing. Despite the numerous positive factors (such as surging sales growth and turn to profitability), it is difficult to argue for this high of a valuation. At $100 billion valuation, it would represent a whopping 78x P/S multiple (using 2020 sales). It certainly helps that Bitcoin and Ethereum have been surging in prices in the past year.
Nonetheless, even Coinbase itself has pointed out in its prospectus that Bitcoin has experienced four major cycles since its launch (the fourth cycle is still ongoing). We would argue that for the prudent investors, there is no rush to buy Coinbase while Bitcoin price is near at its all time highs. The prudent investor should wait until there is a major correction in the Bitcoin price to see how the Coinbase's financials are able to withstand such correction. 
In addition, we would argue that as the Bitcoin and crypto trading become more mainstream, the trading fees for the cryptos WILL GO DOWN much more significantly, which is likely to negatively impact Coinbase.  
</div>

Coinbase (COIN US) plans to complete its direct public listing in April. Coinbase is an operator of one of the largest digital currency exchanges in the world. Established in 2012, Coinbase currently has more than 43 million retail users and 7,000 institutional investors. According to the prospectus, the Coinbase shares have traded hands at prices from $200 to $375. The volume weighted average price per share was $343.58 from January to 15 March. Coinbase has recently been valued as high as $100 billion, which is a significant increase from its private market value of $8 billion in October 2018. Early investors in Coinbase include Tiger Global Management, Y Combinator Continuity, New York Stock Exchange, and Andreessen Horowitz.
A $100 Billion Valuation?
Numerous media sources have cited that Coinbase is seeking about $100 billion in valuation at its direct public listing. Despite the numerous positive factors (such as surging sales growth and turn to profitability), it is difficult to argue for this high of a valuation. At $100 billion valuation, it would represent a whopping 78x P/S multiple (using 2020 sales). It certainly helps that Bitcoin and Ethereum have been surging in prices in the past year.
Nonetheless, even Coinbase itself has pointed out in its prospectus that Bitcoin has experienced four major cycles since its launch (the fourth cycle is still ongoing). We would argue that for the prudent investors, there is no rush to buy Coinbase while Bitcoin price is near at its all time highs. The prudent investor should wait until there is a major correction in the Bitcoin price to see how the Coinbase's financials are able to withstand such correction. 
In addition, we would argue that as the Bitcoin and crypto trading become more mainstream, the trading fees for the cryptos WILL GO DOWN much more significantly, which is likely to negatively impact Coinbase.  


United States

Slack Technologies, Inc. operates as a software company. The Company designs and develops communication platform that provide real-time messaging, archiving, and searching services for teams. Slack Technologies serves clients worldwide.

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Slack Technologies Inc (WORK US)

Carsome: A Paradigm of Circular Economy and Unsung Hero in the Decarbonisation of Transportation

Carsome has reportedly filed for an IPO (dual Nasdaq/SGX listing), and has a great ESG story to tell investors including the role that used car...

Kyle Rudden

Founder-Led Unicorn And Leader In Product Analytics

Amplitude, the growth engine for digital products, will go public via direct listing and we think its fully SaaS, cloud-native product with...

Andrei Zakharov

Weekly Innovation Review (WIRE) #38

Headline Developments: We can now modify DNA inside of a human body (in vivo), thanks to some groundbreaking work announced this week

Granite Bay Capital

UiPath IPO Valuation Analysis

Our base case valuation of UiPath is $60.7 per share, which represents a 21% upside from the high end of the IPO price range of $50 per share.

Douglas Kim

Coinbase Direct Public Listing Preview

We would argue that as the Bitcoin and crypto trading become more mainstream, the trading fees for the cryptos WILL GO DOWN much more...

Douglas Kim

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