IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Kanzhun IPO: Growth/Margin Trade-Off Vs Peers

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<p>On 17 September, <a href="https://www.smartkarma.com/entities/51-job-inc-adr" target="_blank" data-smartkarma-citation="entities:532:1" rel="noopener">51 Job Inc Adr (JOBS US)</a> announced a non-binding privatisation proposal from DCP Capital Partners, a PE firm in Asia. The bid of $79.05 in cash per common share represents a premium of 16.05% to the undisturbed price on 16 September and a premium of 18.82% to the VWAP during the last 30 days. </p><div class="content-highlight"><p>As 51job is incorporated in the Cayman Islands, for the privatisation to succeed, shareholders representing two-thirds of shares present and voting need to approve the deal. DCP has not disclosed a shareholding. 51job’s two largest shareholders are <a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit Holdings (6098 JP)</a> (35.0% stake) and Rick Yan, co-founder and CEO (19.3% stake). The share price closed at $79.42 per ADS, marginally above the privatisation price indicating a chance of a bump to the price. We think that privatisation succeeds as the most likely scenario is that Recruit and Rick Yan participate as rollover shareholders.  </p></div>

On 17 September, 51 Job Inc Adr (JOBS US) announced a non-binding privatisation proposal from DCP Capital Partners, a PE firm in Asia. The bid of $79.05 in cash per common share represents a premium of 16.05% to the undisturbed price on 16 September and a premium of 18.82% to the VWAP during the last 30 days. As 51job is incorporated in the Cayman Islands, for the privatisation to succeed, shareholders representing two-thirds of shares present and voting need to approve the deal. DCP has not disclosed a shareholding. 51job’s two largest shareholders are Recruit Holdings (6098 JP) (35.0% stake) and Rick Yan, co-founder and CEO (19.3% stake). The share price closed at $79.42 per ADS, marginally above the privatisation price indicating a chance of a bump to the price. We think that privatisation succeeds as the most likely scenario is that Recruit and Rick Yan participate as rollover shareholders.  

51 Job Inc Adr

51job’s Privatisation Bid from DCP