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

Kingsoft Cloud IPO: Upsized Raise, Trading Debut

Kingsoft Cloud IPO Initiation: Silver Linings

Uncompromised, Independent, Conflict-Free Research

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 Bottom-Up

<p><a href="https://www.smartkarma.com/entities/kingsoft-cloud" target="_blank" data-smartkarma-citation="entities:28835:1" rel="noopener">Kingsoft Cloud (KC US)</a> had a storming IPO debut, with the shares soaring 40% to $23.84 per ADS. The shares are up another 9.5% in after-hours trading. The listing of Kingsoft Cloud is anticipated to be a catalyst to positively re-rate <a href="https://www.smartkarma.com/entities/kingsoft-corp-ltd" target="_blank" data-smartkarma-citation="entities:492:1" rel="noopener">Kingsoft Corp (3888 HK)</a>’s share price due to a reduction in the holdco discount (more transparency on Kingsoft Cloud’s value), deconsolidation of Kingsoft Cloud’s cash burn and a potential dividend policy review. </p><div class="content-highlight"><p>As Kingsoft is listed in Hong Kong, its last close price does not reflect Kingsoft Cloud’s strong IPO debut on Nasdaq. At Kingsoft Cloud’s last close price of $23.84 per ADS, we value Kingsoft at HK$33.91 per share on a SoTP basis. All things equal, Kingsoft’s shares should be up at least 10% based on Kingsoft Cloud’s roaring IPO debut.</p></div><p><strong><em>For reference we provide links to our notes on Kingsoft Cloud:</em></strong></p><div><div><a href="https://www.smartkarma.com/insights/kingsoft-cloud-ipo-initiation-silver-linings" target="_blank" data-smartkarma-citation="insights:38540" rel="noopener">Kingsoft Cloud IPO Initiation: Silver Linings</a></div></div><div>
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<a href="https://www.smartkarma.com/insights/kingsoft-cloud-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:39033" rel="noopener">Kingsoft Cloud IPO: Valuation Insights</a> </div>
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<a href="https://www.smartkarma.com/insights/kingsoft-cloud-ipo-upsized-raise-trading-debut" target="_blank" data-smartkarma-citation="insights:39153" rel="noopener">Kingsoft Cloud IPO: Upsized Raise, Trading Debut</a> </div>
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Kingsoft Cloud (KC US) had a storming IPO debut, with the shares soaring 40% to $23.84 per ADS. The shares are up another 9.5% in after-hours trading. The listing of Kingsoft Cloud is anticipated to be a catalyst to positively re-rate Kingsoft Corp (3888 HK)’s share price due to a reduction in the holdco discount (more transparency on Kingsoft Cloud’s value), deconsolidation of Kingsoft Cloud’s cash burn and a potential dividend policy review. As Kingsoft is listed in Hong Kong, its last close price does not reflect Kingsoft Cloud’s strong IPO debut on Nasdaq. At Kingsoft Cloud’s last close price of $23.84 per ADS, we value Kingsoft at HK$33.91 per share on a SoTP basis. All things equal, Kingsoft’s shares should be up at least 10% based on Kingsoft Cloud’s roaring IPO debut.For reference we provide links to our notes on Kingsoft Cloud:Kingsoft Cloud IPO Initiation: Silver Linings

Kingsoft Cloud IPO: Valuation Insights 

Kingsoft Cloud IPO: Upsized Raise, Trading Debut 


Beijing Kingsoft Office Softwa (688111 CH)

Kingsoft: Valuation Upside from the Strong Kingsoft Cloud IPO