In today’s briefing:
- Bharti Hexacom IPO Trading – Strong Insti and Anchor, Retail Gave It a Miss
- ICTK IPO Valuation Analysis
Bharti Hexacom IPO Trading – Strong Insti and Anchor, Retail Gave It a Miss
- Government of India raised around US$513m via selling some of its stake in Bharti Hexacom’s IPO.
- Bharti Hexacom (BH) is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
ICTK IPO Valuation Analysis
- Our base case valuation of ICTK is target price of 28,694 won, which is 79% higher than the high end of the IPO price range.
- Our base case valuation is based on P/S multiple of 20.8x using our estimated sales of 18.1 billion won in 2025.
- ICTK’s operating margin improved from -129.9% in 2022 to -38.2% in 2023. We estimate its operating margin to improve further to -12.4% in 2024 and 17.7% in 2025.
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