In today’s briefing:
- SoftBank Group (9984 JP); Arm IPO, Priced for Disappointment
- VNG (VinaGame) IPO Preview
- Tuhu Car Pre-IPO – Thoughts on Valuation – Will Likely Need a Markdown from Its Latest Funding Round
SoftBank Group (9984 JP); Arm IPO, Priced for Disappointment
- SoftBank’s internal transaction acquiring the 25% Arm stake held by SVF1 valued Arm at USD64bn; the IPO valuation range is from USD48bn to USD52bn
- This valuation range implies an Nvidia-like price to prospective 2024E sales multiple range of 22x-25x; the prospectus reveals risks with Arm China, and confirms its lacklustre revenue and earnings growth
- Given SoftBank’s largely negative track record on the after-market performance of its investee companies IPOs and SPOs; we expect further downside to SoftBank’s share price
VNG (VinaGame) IPO Preview
- VNG (VinaGame) (VNG US) is getting ready to complete its IPO on the NASDAQ exchange in the next several months. VNG operates the dominant chat app Zalo in Vietnam.
- VNG is reminiscent of Kakao Corp (035720 KS) in its early years of operations when it captured a dominant portion of Korea’s chat app market through its KakaoTalk app.
- Although the company has yet to provide a firm timeline of the IPO, there is likely to be eye-popping demand for the IPO shares of VNG.
Tuhu Car Pre-IPO – Thoughts on Valuation – Will Likely Need a Markdown from Its Latest Funding Round
- Tuhu Car (2007986D HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
- Tuhu is an integrated online and offline platform for automotive services in China.
- We have looked at the firm’s past performance and undertaken a peer comparison in earlier notes. In this note, we will discuss our earnings assumptions and thoughts on valuation.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
