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

KWG Living Group IPO Initiation: Urban Living

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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

KWG Living Group / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/kwg-living-group" target="_blank" data-smartkarma-citation="entities:29231:1" rel="noopener">KWG Living Group (3913 HK)</a> is a property management service provider in China. KWG accounted for 0.09% of the total GFA under management in the China property management market in 2019, according to JLL. At the proposed IPO price range of HK$7.00-8.13 per share, KWG will have a market cap of HK$14,124.7-16,404.8 million ($1.8-2.1 billion). At the mid-point of the IPO price range, KWG will raise net proceeds of HK$2,755.5 million ($356 million). </p></div><div><p>Eight cornerstone investors will subscribe for 32.09% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Hillhouse Capital, Orchid China, Harvest Fund Management, Snow Lake Capital, Valliance Asset Management, <a href="https://www.smartkarma.com/entities/china-lesso-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11598:1" rel="noopener">China Lesso Group Holdings (2128 HK)</a>, OP Capital and Aspex Management. </p></div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/kwg-living-group-ipo-initiation-urban-living" target="_blank" rel="noopener">our initiation note</a>, we highlighted that KWG’s fundamentals over the track record period are attractive. Overall, we think that the valuation implied by the IPO price range is reasonable for KWG's growth potential. </p></div>

KWG Living Group (3913 HK) is a property management service provider in China. KWG accounted for 0.09% of the total GFA under management in the China property management market in 2019, according to JLL. At the proposed IPO price range of HK$7.00-8.13 per share, KWG will have a market cap of HK$14,124.7-16,404.8 million ($1.8-2.1 billion). At the mid-point of the IPO price range, KWG will raise net proceeds of HK$2,755.5 million ($356 million). Eight cornerstone investors will subscribe for 32.09% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Hillhouse Capital, Orchid China, Harvest Fund Management, Snow Lake Capital, Valliance Asset Management, China Lesso Group Holdings (2128 HK), OP Capital and Aspex Management. In our initiation note, we highlighted that KWG’s fundamentals over the track record period are attractive. Overall, we think that the valuation implied by the IPO price range is reasonable for KWG's growth potential. 

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KWG Living Group

KWG Living Group IPO: Valuation Insights