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

Dada Nexus IPO Initiation: Delivering the Goods

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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

<div><p><a href="https://www.smartkarma.com/entities/dada-nexus" target="_blank" data-smartkarma-citation="entities:28961:1" rel="noopener">Dada Nexus (DADA US)</a> is a leading platform of local on-demand retail and delivery in China. It operates JD-Daojia (JDDJ), a local on-demand retail platform, and Dada Now, a local on-demand delivery platform. Dada Nexus has launched its IPO at a price range of $15-17 per ADS. At the mid-point of the IPO price range, Dada Nexus will raise net proceeds of $240.8 million. Existing shareholders, <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a> and <a href="https://www.smartkarma.com/entities/walmart-inc" target="_blank" data-smartkarma-citation="entities:11134:1" rel="noopener">Walmart (WMT US)</a> intend to purchase $60 million and $30 million worth of ADSs in the offering, respectively. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/dada-nexus-ipo-initiation-delivering-the-goods" target="_blank" rel="noopener">our initiation note</a>, we stated that Dada Nexus' fundamentals tick all the right boxes and worth a look, in our view. Overall, our valuation analysis suggests that the proposed IPO price is attractive and we will be inclined to participate.</p></div></div></div>

Dada Nexus (DADA US) is a leading platform of local on-demand retail and delivery in China. It operates JD-Daojia (JDDJ), a local on-demand retail platform, and Dada Now, a local on-demand delivery platform. Dada Nexus has launched its IPO at a price range of $15-17 per ADS. At the mid-point of the IPO price range, Dada Nexus will raise net proceeds of $240.8 million. Existing shareholders, JD.com Inc (ADR) (JD US) and Walmart (WMT US) intend to purchase $60 million and $30 million worth of ADSs in the offering, respectively. In our initiation note, we stated that Dada Nexus' fundamentals tick all the right boxes and worth a look, in our view. Overall, our valuation analysis suggests that the proposed IPO price is attractive and we will be inclined to participate.

Dada Nexus

Dada Nexus IPO: Valuation Insights