Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of IPO & Placements for Aequitas Research. At Aequitas we cover all IPOs and placements across Asia-Pac with a deal size of at least US$100m. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%. 
Prior to Aequitas. I was heading Content Strategy for Smartkarma, along with covering IPOs & Placement. In an earlier life I have covered ASEAN property and the banking space in India.

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

Greenstone plans to raise US$600-750m through an issuance of both primary and secondary shares.&nbsp;On the surface, Greenstone's business model appears simple, given that it doesn't need to hold any regulatory capital which should essentially make it a balance sheet light services business. However, the company's revenue and NPAT growth aren't aligned to its cash flow growth owing its revenue recognition practices. Thus, the company doesn't recover all its costs in the first year of selling the policy, and hence, ends up funding some of the costs for its insurance partners, leading to Greenstone&nbsp;having working capital requirements for what is essentially just a services business. In our view, these working capital requirements could end up limiting future growth prospects. Furthermore, the shares are being offered at a valuation which is in-line with listed peers and hence, offers no real IPO discount. We would avoid the deal.&nbsp;

Greenstone plans to raise US$600-750m through an issuance of both primary and secondary shares.&nbsp;On the surface, Greenstone's business model appears simple, given that it doesn't need to hold any regulatory capital which should essentially make it a balance sheet light services business. However, the company's revenue and NPAT growth aren't aligned to its cash flow growth owing its revenue recognition practices. Thus, the company doesn't recover all its costs in the first year of selling the policy, and hence, ends up funding some of the costs for its insurance partners, leading to Greenstone&nbsp;having working capital requirements for what is essentially just a services business. In our view, these working capital requirements could end up limiting future growth prospects. Furthermore, the shares are being offered at a valuation which is in-line with listed peers and hence, offers no real IPO discount. We would avoid the deal.&nbsp;

Simple business model but cash flow disconnect and lack of IPO discount makes it unattractive

Greenstone Ltd

Simple business model but cash flow disconnect and lack of IPO discount makes it unattractive