In this briefing:
- Sea Ltd Placement – Capitalizing on Momentum
- Shenwan Hongyuan (申万宏源) A+H: A Commoditized Broker Business
1. Sea Ltd Placement – Capitalizing on Momentum
Sea Ltd (SE US) is looking to raise about US$1.2bn in its upcoming placement. It will be larger than its IPO in 2017, which raised about US$880m.
The deal scores well on our framework owing to decent valuation, strong price and earnings momentum but had little track record for comparison. The company announced a strong set of FY2018/Q4 2018 results which had beaten estimates.
Even though, the deal size is large, representing 23.2 days of three-month ADV, there is enough time between the announcement to the end of the bookbuild to price in the impact of the placement.
2. Shenwan Hongyuan (申万宏源) A+H: A Commoditized Broker Business
Shenwan Hongyuan filed in November to list in Hong Kong. It is a leading brokerage house in China. With an A-share market capitalization of USD 18 billion, the company plans to issue up to 20% of its shares for an A+H listing. In this insight, we will discuss:
- Company’s history.
- Comparison with leading Chinese brokers.
- Our thoughts on valuation.
Get Straight to the Source on Smartkarma
Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.
