Brief IPOs & Placements: Embassy Office Parks REIT – Comparison with AIT and a Look at the Required Yield and more

In this briefing:

1. Embassy Office Parks REIT – Comparison with AIT and a Look at the Required Yield
2. Sea Ltd: Follow-On Public Offering an Opportunistic Fundraising?
3. Lyft IPO Preview: Maybe We’ll Just Walk?

1. Embassy Office Parks REIT – Comparison with AIT and a Look at the Required Yield

Embassy Office Parks REIT (EOP IN) plans to raise around US$1bn in its India IPO. EOP will primarily hold office assets in Bengaluru, Pune and Noida with a total portfolio size of US$4.2bn. 

In my previous insight, Embassy Office Parks REIT – Good Assets but Projections Might Be a Tad Too Bullish I covered the company background and its projected growth. In this insight, I’ll compare it to its closest listed peer, Ascendas India Trust (AIT SP) and add in the performance of other yield driven listings in India.

2. Sea Ltd: Follow-On Public Offering an Opportunistic Fundraising?

• We evaluate the attractiveness of Sea Ltd’s (SE US) US$1 bn follow-on public offering announced last Fri.
• This offering is a typical opportunistic fundraising as its ADR price has recently surged.
• At assumed deal price of US$21, SE post deal would trade at 4.6x 2019E P/adjusted sales (excl. 1P e-commerce sales), vs. peers average of 5.2x.
• We would recommend investors to go for the deal if it is priced at US$20 or lower.

3. Lyft IPO Preview: Maybe We’ll Just Walk?

Lyft Inc (0812823D US) , a leading ride-sharing company, released its IPO prospectus in order to raise 3bn USD. Our key points are below 

Intro to Lyft

Lyft – a comparison vs. peers

Strengths and Weaknesses

Financials