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

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Yidu Tech IPO: Strong Top Line Growth; New Markets and Offerings Should Support Further Growth

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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 streaming platform <a href="https://www.smartkarma.com/entities/iqiyi-inc" target="_blank" data-smartkarma-citation="entities:26755:1" rel="noopener">iQIYI Inc (IQ US)</a> announced a secondary offering of convertible notes and American Depository Shares on Tuesday. The company will be issuing US$800m worth of convertible senior notes due in 2026 with an option for underwriters to buy an additional US$100m in notes. Concurrently with the offering of the notes, iQiyi will also offer 40m ADSs, with an option to purchase an additional 6m ADSs. Each ADS represents seven Class A ordinary shares of the company and the prospectus does not indicate the price of the New ADSs, nor at the rate at which the notes can be converted into ADSs.iQiyi’s shares closed at US$22.60 per ADS prior to the announcement of the Secondary offering, and at the above sale price, the company will raise approximately US$904m. If the overallotment option of additional 6m ADSs is exercised, it could increase the offer by US$135.6m to US$1.04bn. iQiyi’s shares closed at US$22.31 per ADS at the end of Tuesday’s trading from US$22.60 per ADS prior to the announcement.The company intends to use the net proceeds from the offering (offering of notes and ADSs) on expanding and enhancing its content offerings, strengthen its technologies and for working capital and other general corporate purposes.This is the First of a series of reports on iQiyi and in this insight, we examine the company’s fundamentals.

The Chinese streaming platform iQIYI Inc (IQ US) announced a secondary offering of convertible notes and American Depository Shares on Tuesday. The company will be issuing US$800m worth of convertible senior notes due in 2026 with an option for underwriters to buy an additional US$100m in notes. Concurrently with the offering of the notes, iQiyi will also offer 40m ADSs, with an option to purchase an additional 6m ADSs. Each ADS represents seven Class A ordinary shares of the company and the prospectus does not indicate the price of the New ADSs, nor at the rate at which the notes can be converted into ADSs.iQiyi’s shares closed at US$22.60 per ADS prior to the announcement of the Secondary offering, and at the above sale price, the company will raise approximately US$904m. If the overallotment option of additional 6m ADSs is exercised, it could increase the offer by US$135.6m to US$1.04bn. iQiyi’s shares closed at US$22.31 per ADS at the end of Tuesday’s trading from US$22.60 per ADS prior to the announcement.The company intends to use the net proceeds from the offering (offering of notes and ADSs) on expanding and enhancing its content offerings, strengthen its technologies and for working capital and other general corporate purposes.This is the First of a series of reports on iQiyi and in this insight, we examine the company’s fundamentals.

IQIYI Placement: Searching for Additional Revenues Amidst Deepening Losses