In today’s briefing:
- GoTo: Thoughts on the New Tokopedia/TikTok Partnership
- DS Dansuk IPO Bookbuilding Results Analysis
- India Shelter Finance IPO – Strong Track Record Could Justify a Premium Valuation
- Indian Shelter Finance IPO- Forensic Analysis
- Pre-IPO HighTide Therapeutics (PHIP Updates) – Some Shareholders Have Chosen to Quit in Advance
GoTo: Thoughts on the New Tokopedia/TikTok Partnership
- GoTo Gojek Tokopedia Tbk PT (GOTO IJ) announced on Monday a partnership with TikTok which would combine former’s e-commerce biz Tokopedia with TikTok Shop Indonesia.
- TikTok was forced to close its e-commerce services in Indonesia following regulations banning online shopping on social media platforms in September citing protection of smaller merchants and data privacy.
- It seems TikTok will certainly be a winner if the deal is approved but surprised at GoTo’s move to retain a minority stake given e-commerce business is nearing profits.
DS Dansuk IPO Bookbuilding Results Analysis
- DS Dansuk reported solid bookbuilding results. DS Dansuk IPO price has been determined at 100,000 won per share, which is 12.4% higher than high end of the IPO price range.
- A total of 1,843 institutional investors participated in this IPO book building. The demand ratio was 342 to 1. DS Dansuk IPO will start trading on 22 December.
- Given the strong IPO bookbuilding results, we believe shares of DS Dansuk are likely to trade above the high end of the IPO sensitivity analysis (137,877 won).
India Shelter Finance IPO – Strong Track Record Could Justify a Premium Valuation
- India Shelter Finance (0570670D IN) is looking to raise US$144m from its India IPO.
- India Shelter Finance (ISF) is a retail-focused HFC targeting the self-employed customer with a focus on first time home loan takers in the low and middle income group.
- In this note, we will look at past performance, and share our thoughts on valuation.
Indian Shelter Finance IPO- Forensic Analysis
- India Shelter Finance (0570670D IN) (ISFC) IPO worth INR 12 bn opens for subscription this week. The issue comprises INR 8 bn fresh issue and INR 4 bn OFS.
- ISFC has been generating high growth in AUM and disbursements in the last few years. The company has also improved its NPAs and stability.
- However, there are few cautions regarding employee productivity and on the opex side. Also, slippages have increased in H1F24.
Pre-IPO HighTide Therapeutics (PHIP Updates) – Some Shareholders Have Chosen to Quit in Advance
- Diseases with complex mechanisms like NASH are unlikely to be solved by drugs with a single target, but compared with THR-β and GLP-1s, our view on HTD1801’s prospects is negative.
- HTD1801 faces high R&D failure risk and challenges in obtaining the final approval for NASH indication. For T2DM indication, the current intense competitive landscape has dimmed its future commercialization prospects.
- Several original shareholders have already cashed out in advance, indicating that they are not optimistic about the prospects of HighTide. The valuation premium space after IPO could be lower-than-expected.
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