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

Cloopen Group IPO Initiation: Busy Signals

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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.

Equity Capital Markets

Cloopen Group Holding Ltd / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/cloopen-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:31315:1" rel="noopener">Cloopen Group Holding Ltd (RAAS US)</a> is the largest multi-capability cloud-based communications solution provider in China, as measured by revenues in 2019, according to CIC. Cloopen raised gross proceeds of $320 million at $16 per ADS, above the marketed range of $13-15 per ADS, <a href="https://www.ifre.com/story/2730083/cloopen-raises-us320m-from-nyse-ipo-jnkv2cr0my" target="_blank" rel="noopener">according to IFR</a>.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/cloopen-group-ipo-initiation-busy-signals" target="_blank" data-smartkarma-citation="insights:47285" rel="noopener">Cloopen Group IPO Initiation: Busy Signals</a> we noted that the IPO pitch is muddied by the temporary impact of the COVID-19 outbreak which negatively influenced growth rates and the cash burn. While the fundamentals are not perfect, Cloopen offers enough to warrant a closer look. In <a href="https://www.smartkarma.com/insights/cloopen-group-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:47805" rel="noopener">Cloopen Group IPO: Valuation Insights</a>, we noted that the IPO price range is attractive.</p></div><div><div><div class="content-highlight"><p>Updating for the final IPO net raise, our base-case DCF derived price target of $18.54 per ADS. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price is attractive.</p></div></div></div>

Cloopen Group Holding Ltd (RAAS US) is the largest multi-capability cloud-based communications solution provider in China, as measured by revenues in 2019, according to CIC. Cloopen raised gross proceeds of $320 million at $16 per ADS, above the marketed range of $13-15 per ADS, according to IFR.In Cloopen Group IPO Initiation: Busy Signals we noted that the IPO pitch is muddied by the temporary impact of the COVID-19 outbreak which negatively influenced growth rates and the cash burn. While the fundamentals are not perfect, Cloopen offers enough to warrant a closer look. In Cloopen Group IPO: Valuation Insights, we noted that the IPO price range is attractive.Updating for the final IPO net raise, our base-case DCF derived price target of $18.54 per ADS. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price is attractive.

Cloopen Group Holding Ltd

Cloopen Group IPO: Trading Debut