In today’s briefing:
- GoTo IPO: Shares Are Still Overvalued and There Is Further Downside
- Rainbow Children’s Hospital Pre-IPO – Still Growing but Not All Regions Have Been Performing
- Tailim Paper IPO Valuation Analysis
GoTo IPO: Shares Are Still Overvalued and There Is Further Downside
- Superapp GoTo (GOTO IJ) made its public debut on the Indonesian Stock Exchange on 11th April. The company set the final IPO price at IDR338 per share.
- GoTo’s shares surged nearly 23% to IDR416 a piece on the open, boosting the company’s market cap to more than IDR497trn.
- GoTo’s share price has continued to slide and our SOTP valuation suggests that there is further downside.
Rainbow Children’s Hospital Pre-IPO – Still Growing but Not All Regions Have Been Performing
- Rainbow Children’s Hospital (RCH) aims to raise around US$250m via issuing a mix of primary and secondary shares in its India IPO.
- RCH is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.
- In this note, we will talk about the company’s past performance.
Tailim Paper IPO Valuation Analysis
- Our base case valuation of Tailim Paper is target price of 19,692 won, which is at the low end of the IPO price range. We would pass on this IPO.
- Our target price of 19,692 won is based on 5.8x EV/EBITDA using 2021 EBITDA. The EV/EBITDA multiple of 5.8x is at a 40% premium to the comps’ average.
- Tailim Paper has higher sales growth rate, operating margins, and ROE than its peers. However, it has a weaker balance sheet than its peers.
Before it’s here, it’s on Smartkarma
