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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RemeGen IPO: Key Drugs Show Promising Potential

Hoya 2Q Results: Earnings Decline Ameliorates and There Is a Small Buyback

JW Therapeutics: Limited Upside from the Top End; Further Potential if Other Drugs Become Successful

Lufax IPO: Shift in Product Mix and Higher Customer Acquisition Cost Eat into Profits

Lufax IPO: Peer Comparison Reveals Change in Strategy Weighs Heavy on Company Performance

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

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

Lufax Holdings, a leading financial services firm in China has filed for an IPO in the US. The company has set an indicative IPO price range of US$11.5-13.5 per ADS, and at the midpoint of the IPO price of US$12.50, the company will raise net proceeds of US$2.1bn. The company expects to use the proceeds for general corporate purposes.<table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 237.0pt;">Lufax Holdings IPO Details</td></tr>
<tr>
<td style="width: 147.0pt;">No. of ADSs Issued</td>
<td style="width: 90.0pt;">175,000,000</td>
</tr>
<tr>
<td style="width: 147.0pt;">Ordinary Shares per ADS</td>
<td style="width: 90.0pt;">0.5</td>
</tr>
<tr>
<td style="width: 147.0pt;">Shares Outstanding Post IPO</td>
<td style="width: 90.0pt;">1,219,678,331</td>
</tr>
<tr>
<td style="width: 147.0pt;">Offer as a % of Outstanding Shares</td>
<td style="width: 90.0pt;">7.17%</td>
</tr>
<tr>
<td style="width: 147.0pt;">Price per ADS (US$)</td>
<td style="width: 90.0pt;">11.50-13.50</td>
</tr>
<tr>
<td style="width: 147.0pt;">Net Proceeds from IPO (US$m)</td>
<td style="width: 90.0pt;">                                     2,109</td>
</tr>
<tr>
<td style="width: 147.0pt;">Market Capitalisation (US$m)</td>
<td style="width: 90.0pt;">                                  30,492</td>
</tr>
<tr>
<td style="width: 147.0pt;">Enterprise Value (US$m)</td>
<td style="width: 90.0pt;">                                  26,911</td>
</tr>
</tbody></table><div class="content-caption">Source: Company Disclosures, LSR (net proceeds, market cap and EV are based on the midpoint of the IPO price range)</div>In our previous insights, we discussed about the company’s business model, its business segments and also a comparison with its key peers. We highlighted that the company shifting its business model from P2P products and services have impacted its top line growth and margins.Read our previous insights:<a href="https://www.smartkarma.com/insights/lufax-ipo-unsecured-loans-drive-top-line-growth-but-risks-remain-despite-capital-light-model" target="_blank" data-smartkarma-citation="insights:44132" rel="noopener">Lufax IPO: Unsecured Loans Drive Top Line Growth but Risks Remain Despite Capital-Light Model</a> <a href="https://www.smartkarma.com/insights/lufax-ipo-shift-in-product-mix-and-higher-customer-acquisition-cost-eat-into-profits" target="_blank" data-smartkarma-citation="insights:44179" rel="noopener">Lufax IPO: Shift in Product Mix and Higher Customer Acquisition Cost Eat into Profits</a> <a href="https://www.smartkarma.com/insights/lufax-ipo-peer-comparison-reveals-change-in-strategy-weighs-heavy-on-company-performance" target="_blank" data-smartkarma-citation="insights:44303" rel="noopener">Lufax IPO: Peer Comparison Reveals Change in Strategy Weighs Heavy on Company Performance</a>

Lufax Holdings, a leading financial services firm in China has filed for an IPO in the US. The company has set an indicative IPO price range of US$11.5-13.5 per ADS, and at the midpoint of the IPO price of US$12.50, the company will raise net proceeds of US$2.1bn. The company expects to use the proceeds for general corporate purposes.
Lufax Holdings IPO Details

No. of ADSs Issued
175,000,000


Ordinary Shares per ADS
0.5


Shares Outstanding Post IPO
1,219,678,331


Offer as a % of Outstanding Shares
7.17%


Price per ADS (US$)
11.50-13.50


Net Proceeds from IPO (US$m)
                                     2,109


Market Capitalisation (US$m)
                                  30,492


Enterprise Value (US$m)
                                  26,911

Source: Company Disclosures, LSR (net proceeds, market cap and EV are based on the midpoint of the IPO price range)In our previous insights, we discussed about the company’s business model, its business segments and also a comparison with its key peers. We highlighted that the company shifting its business model from P2P products and services have impacted its top line growth and margins.Read our previous insights:Lufax IPO: Unsecured Loans Drive Top Line Growth but Risks Remain Despite Capital-Light Model Lufax IPO: Shift in Product Mix and Higher Customer Acquisition Cost Eat into Profits Lufax IPO: Peer Comparison Reveals Change in Strategy Weighs Heavy on Company Performance 

Shimao Services Holdings Limited (873 HK)

Lufax IPO Valuation: The Risk-Reward Profile Does Not Justify the Premium