Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Upwork IPO Preview (Part 1) - The Largest Global Online Platform for Freelancing Services

Upwork IPO Preview (Part 2) - Valuation Analysis

Equity Capital Markets

Fiverr International Ltd / Equity Capital Markets

Fiverr plans to raise between $94 million and $104 million in this IPO that values the company at $560 million-$620 million. The company plans to sell 5.3 million shares at $18 to $20 per share which would represent a 17% stake. Our base case valuation of Fiverr implies $19 per share or implied market cap of $582 million. Our base case valuation is same as the mid-point bankers' valuation of $19 per share. As such, we would AVOID this deal since the implied price does not provide much upside.Our valuation sensitivity analysis suggests a valuation range of $16 to $22 per share for Fiverr. We used a EV/sales comparison versus Upwork as the main method to value Fiverr. Upwork is currently trading at 4.1x EV/Sales, using the consensus estimates in 2020. We used a 20% discount to Upwork's valuation multiple to value Fiverr.

Fiverr plans to raise between $94 million and $104 million in this IPO that values the company at $560 million-$620 million. The company plans to sell 5.3 million shares at $18 to $20 per share which would represent a 17% stake. Our base case valuation of Fiverr implies $19 per share or implied market cap of $582 million. Our base case valuation is same as the mid-point bankers' valuation of $19 per share. As such, we would AVOID this deal since the implied price does not provide much upside.Our valuation sensitivity analysis suggests a valuation range of $16 to $22 per share for Fiverr. We used a EV/sales comparison versus Upwork as the main method to value Fiverr. Upwork is currently trading at 4.1x EV/Sales, using the consensus estimates in 2020. We used a 20% discount to Upwork's valuation multiple to value Fiverr. 

Fiverr International Ltd

Fiverr IPO Valuation Analysis