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

Smart Share Global IPO Initiation: Charging Ahead

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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

Smart Share Global / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/energy-monster" target="_blank" data-smartkarma-citation="entities:32217:1" rel="noopener">Smart Share Global (EM US)</a> is the largest mobile device charging service provider in China as measured by gross revenues in 2020, according to iResearch. Smart Share is backed by <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> (16.5% stake), Hillhouse Capital (11.7% stake) and <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> (7.5% stake). </p></div><div><p>At the mid-point of the proposed IPO price range of $10.50-12.50 per ADS, Smart Share will have a market cap of $2.9 billion. At the mid-point of the IPO price range, the net proceeds are $183.6 million. Smart Share has received indications of interest of $110 million worth of ADSs from insiders - Hillhouse Capital ($50 million), Aspex Master Fund ($50 million) and Xiaomi ($10 million).</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/smart-share-global-ipo-initiation-charging-ahead" target="_blank" data-smartkarma-citation="insights:49389" rel="noopener">Smart Share Global IPO Initiation: Charging Ahead</a>, we opined Smart Share is well-positioned to tap into the fast-growing mobile device charging service market. We concluded that Smart Share’s fundamentals are attractive. Our valuation analysis suggests that the IPO price range is attractive. Overall, we would participate in the IPO. </p></div></div></div>

Smart Share Global (EM US) is the largest mobile device charging service provider in China as measured by gross revenues in 2020, according to iResearch. Smart Share is backed by Alibaba Group (BABA US) (16.5% stake), Hillhouse Capital (11.7% stake) and Xiaomi Corp (1810 HK) (7.5% stake). At the mid-point of the proposed IPO price range of $10.50-12.50 per ADS, Smart Share will have a market cap of $2.9 billion. At the mid-point of the IPO price range, the net proceeds are $183.6 million. Smart Share has received indications of interest of $110 million worth of ADSs from insiders - Hillhouse Capital ($50 million), Aspex Master Fund ($50 million) and Xiaomi ($10 million).In Smart Share Global IPO Initiation: Charging Ahead, we opined Smart Share is well-positioned to tap into the fast-growing mobile device charging service market. We concluded that Smart Share’s fundamentals are attractive. Our valuation analysis suggests that the IPO price range is attractive. Overall, we would participate in the IPO. 

Smart Share Global IPO: Valuation Insights