In today’s briefing:
- LG CNS: First Day Trading Strategy Post IPO
- Guming Holdings IPO – Digestible Valuation from the Bottom End
- Trump Admin’s Tariff Headlines Obscure Suspension Of “De Minimis” Rule | Big Impact on SHEIN, Temu
- Guming IPO: The Good, The Bad and The Valuation. Is It Time to Sip or Skip?
- SailPoint, Inc. (SAIL) — First Software IPO of the Year: Thoma Bravo Seeking $11.5b IPO Valuation
- SailPoint IPO Valuation Update: Modest Upside, Only ~$690M Will Be Used To Repay a Portion Of Debt
- Dr Agarwal’s Healthcare IPO Trading – Decent Anchor Demand but Subdued Overall Coverage
- Foshan Haitian Flavouring A/H Listing – Strong Brand but Sales Have Been Slowing Down
LG CNS: First Day Trading Strategy Post IPO
- In this insight, we discuss the first day trading strategy of LG CNS which starts trading on 5 February.
- On the first day of trading, we believe LG CNS’s shares could trade at higher levels, overshooting its intrinsic valuations.
- We recommend investors to take some profits off the table if the share price shoots higher by 30% to 50%+ from the IPO price on the first day.
Guming Holdings IPO – Digestible Valuation from the Bottom End
- Guming Holdings (GUM HK) is looking to raise US$202m in its Hong Kong IPO. Guming Holdings (Guming) sells freshly-made beverages in China.
- Guming Holdings (Guming) sells freshly-made beverages in China. Guming focuses on the mid-priced freshly-made tea beverage market with product prices typically ranging between RMB10-18.
- In this note, we discuss our thoughts on valuation at the IPO price range.
Trump Admin’s Tariff Headlines Obscure Suspension Of “De Minimis” Rule | Big Impact on SHEIN, Temu
- By executive order, President Trump suspended section 321 (“de minimis“) imports on Feb 4th
- Direct-To-Consumer imports valued at < US$800 may no longer enter the US duty-free
- Added cost and new paperwork burden (both borne by US consumers) to hit SHEIN, Temu
Guming IPO: The Good, The Bad and The Valuation. Is It Time to Sip or Skip?
- Guming Holdings (GUM HK) is offering 158.6 million shares in a price range of HK$8.68 to HK$9.94 in its Hong Kong IPO aiming to raise up to HK$1.58 Bn.
- Despite outperforming peers in revenue and profit growth, Guming is grappling with a bleak macro environment, operational slowdowns, and intensified competition.
- Guming Holdings (GUM HK) ‘s faltering operating metrics for last reporting period cast doubt on its near-term growth and profitability outlook—leaving investors to ask: Sip or skip?
SailPoint, Inc. (SAIL) — First Software IPO of the Year: Thoma Bravo Seeking $11.5b IPO Valuation
- SailPoint is sponsor-backed by Thoma Bravo and is seeking a valuation north of $11b after taking the company private in August 2022 for $6.9bn
- The sponsor will be only selling 2.5mm shares in this offering.
- As of October 31, 2024, their annual recurring revenue was $813.2 million, reflecting an increase of 30% compared to October 31, 2023.
SailPoint IPO Valuation Update: Modest Upside, Only ~$690M Will Be Used To Repay a Portion Of Debt
- Austin-Based SailPoint, a Thoma Bravo-backed identity management software company, has announced the initial price range for its US IPO.
- The offering is expected to be between $19.00 and $21.00, implying a market cap of ~$11B at the midpoint, up ~61% vs. take-private transaction valuation of ~$6.9B in 2022.
- I see modest post-listing upside for SailPoint stock, and the company plans to use only ~$690M to repay a portion of its $1.5B+ debt.
Dr Agarwal’s Healthcare IPO Trading – Decent Anchor Demand but Subdued Overall Coverage
- Dr Agarwal’s Health Care Ltd (8140044Z IN) raised around US$350m in its India IPO.
- Dr Agarwal’s Health Care is a healthcare/hospital chain in India providing eyecare services, including surgeries; consultations, diagnoses, non-surgical treatments; and sells opticals, contact lens, accessories and eyecare related pharmaceutical products.
- We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.
Foshan Haitian Flavouring A/H Listing – Strong Brand but Sales Have Been Slowing Down
- Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, aims to raise around US$1.5bn in its H-share listing.
- FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
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