Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

Bilibili: Secondary Listing in HK Offers a Good Alternative to Kuaishou

TME 4Q Results: Strong Finish to 2020, Further Strengthens Partnerships and Focus on New Initiatives

Zhihu IPO Valuation: Attractive at the Lower End of the IPO Pricing

Bilibili: Diversified Revenue Streams and Impressive Top Line Growth Justify Current Multiples

Zhihu IPO: Searching for One-Hit Wonder Amidst Diversified Monetisation Channels

Bairong IPO: Big Data for Credit and Risk Management

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

The Chinese financial technology company <a href="https://www.smartkarma.com/entities/bairong" target="_blank" data-smartkarma-citation="entities:31486:1" rel="noopener">Bairong (1569395D CH)</a>  has set the terms for its IPO. Bairong plans to issue 123.8m shares at an indicative IPO price range of HK$26.5-31.8 per share and will raise approx. HK$3.4bn (US$447.2m) at the midpoint of the IPO price range of HK$29.15 per share.<table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 100.0pt;">Bairong IPO Details</td></tr>
<tr>
<td style="width: 50.0pt;">No. of Shares Issued</td>
<td style="width: 50.0pt;">                      123,822,500</td>
</tr>
<tr>
<td style="width: 50.0pt;">IPO Price per Share (HK$)</td>
<td style="width: 50.0pt;">26.5-31.8</td>
</tr>
<tr>
<td style="width: 50.0pt;">Offer as a % of Outstanding Shares</td>
<td style="width: 50.0pt;">25.00%</td>
</tr>
<tr>
<td style="width: 50.0pt;">Total Shares Outstanding</td>
<td style="width: 50.0pt;">495,289,330</td>
</tr>
<tr>
<td style="width: 50.0pt;">Net Proceeds (HK$m)</td>
<td style="width: 50.0pt;">3,440.70</td>
</tr>
<tr>
<td style="width: 50.0pt;">Market Capitalisation (HK$m)</td>
<td style="width: 50.0pt;">14,437.68</td>
</tr>
<tr>
<td style="width: 50.0pt;">Enterprise Value (HK$m)</td>
<td style="width: 50.0pt;">10,807.23</td>
</tr>
</tbody></table>Source: Company disclosures, LSR (net proceeds, market capitalisation and EV are at the midpoint of the IPO price range, EV is adjusted for net IPO proceeds and net cash)Bairong plans to spend approx. 45% of the net IPO proceeds over the next three years on funding business expansion, particularly the company’s FSP (Financial Service Provider) client base while also penetrating the existing FSP client base. The company also plans to use 30% of the net proceeds on R&amp;D over the next three years to develop and improve its technology infrastructure such as AI algorithm and automatic real-time analysis.The company also has entered into cornerstone investment agreements with Cederberg, China Structural Reform Fund and Franchise Fund who have agreed to purchase approx. US$220m (HK$1.7m) worth of shares offered at the IPO.

The Chinese financial technology company Bairong (1569395D CH)  has set the terms for its IPO. Bairong plans to issue 123.8m shares at an indicative IPO price range of HK$26.5-31.8 per share and will raise approx. HK$3.4bn (US$447.2m) at the midpoint of the IPO price range of HK$29.15 per share.
Bairong IPO Details

No. of Shares Issued
                      123,822,500


IPO Price per Share (HK$)
26.5-31.8


Offer as a % of Outstanding Shares
25.00%


Total Shares Outstanding
495,289,330


Net Proceeds (HK$m)
3,440.70


Market Capitalisation (HK$m)
14,437.68


Enterprise Value (HK$m)
10,807.23

Source: Company disclosures, LSR (net proceeds, market capitalisation and EV are at the midpoint of the IPO price range, EV is adjusted for net IPO proceeds and net cash)Bairong plans to spend approx. 45% of the net IPO proceeds over the next three years on funding business expansion, particularly the company’s FSP (Financial Service Provider) client base while also penetrating the existing FSP client base. The company also plans to use 30% of the net proceeds on R&amp;D over the next three years to develop and improve its technology infrastructure such as AI algorithm and automatic real-time analysis.The company also has entered into cornerstone investment agreements with Cederberg, China Structural Reform Fund and Franchise Fund who have agreed to purchase approx. US$220m (HK$1.7m) worth of shares offered at the IPO.

OneConnect Financial Technology (OCFT US)

Bairong IPO Valuation: Appealing Valuation