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

Kuaishou IPO Initiation: Dancing to Its Own Tune

Kuaishou IPO: Valuation and Forecast Update

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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

Kuaishou Technology / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a> is the second-largest short video platform by average DAUs (daily active users) in 9M20, according to iResearch. Helped by a strong reception by both institutional and retail investors, Kuaishou is likely to price at the top-end of the IPO price range of HK$105-115 per share, according to press reports. The shares will start trading on 5 February.</p><div class="content-highlight"><p>The stage seems set for Kuaishou to follow the strong post-listing performance of recent tech listings in Hong Kong and the US. Early indications suggest that Kuaishou's grey market price has hit HK$250 per share, slightly more than twice the rumoured IPO price, <a href="http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1073287/ipo-news" target="_blank" rel="noopener">according to Chinese media</a>. Our analysis suggests that a valuation of 2x the rumoured IPO price of HK$115 per share can be justified on stretched but plausible assumptions.</p></div>

Kuaishou Technology (1024 HK) is the second-largest short video platform by average DAUs (daily active users) in 9M20, according to iResearch. Helped by a strong reception by both institutional and retail investors, Kuaishou is likely to price at the top-end of the IPO price range of HK$105-115 per share, according to press reports. The shares will start trading on 5 February.The stage seems set for Kuaishou to follow the strong post-listing performance of recent tech listings in Hong Kong and the US. Early indications suggest that Kuaishou's grey market price has hit HK$250 per share, slightly more than twice the rumoured IPO price, according to Chinese media. Our analysis suggests that a valuation of 2x the rumoured IPO price of HK$115 per share can be justified on stretched but plausible assumptions.

Kuaishou IPO: Is It Worth Twice the IPO Price?