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

Pexip IPO Initiation: Zoom, Zoom, Splutter?

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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

<div><p><a href="https://www.smartkarma.com/entities/pexip-as" target="_blank" data-smartkarma-citation="entities:28952:1" rel="noopener">Pexip (PEP NO)</a> is a Norwegian videoconferencing company and is a <a href="https://www.smartkarma.com/entities/zoom-video-communications-inc" target="_blank" data-smartkarma-citation="entities:28029:1" rel="noopener">Zoom Video Communications Inc (ZM US)</a> rival. Pexip has set its IPO price at NOK63 which implies a market cap of NOK6.3 billion ($613 million). Pexip will raise gross proceeds of up to NOK1,071 million ($104 million) through a primary raise. A secondary sale from selling shareholders will raise a similar amount.  The book-building period for the institutional offering will run from 5 May to 12 May.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/pexip-ipo-initiation-zoom-zoom-splutter" target="_blank" rel="noopener">our initiation note</a>, we stated that while Pexip is a solid company in its own right, we believe Pexip’s fundamentals are second-best compared to Zoom and will largely appeal to investors seeking a cheaper Zoom play. Overall, our valuation analysis suggests that the IPO price is fair and reasonable.</p></div></div></div>

Pexip (PEP NO) is a Norwegian videoconferencing company and is a Zoom Video Communications Inc (ZM US) rival. Pexip has set its IPO price at NOK63 which implies a market cap of NOK6.3 billion ($613 million). Pexip will raise gross proceeds of up to NOK1,071 million ($104 million) through a primary raise. A secondary sale from selling shareholders will raise a similar amount.  The book-building period for the institutional offering will run from 5 May to 12 May.In our initiation note, we stated that while Pexip is a solid company in its own right, we believe Pexip’s fundamentals are second-best compared to Zoom and will largely appeal to investors seeking a cheaper Zoom play. Overall, our valuation analysis suggests that the IPO price is fair and reasonable.

Pexip

Pexip IPO: Valuation Insights