Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Equity Capital Markets

Sprout Social Inc / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sprout-social-inc" target="_blank" data-smartkarma-citation="entities:28394:1" rel="noopener">Sprout Social, Inc. (SPT US)</a> is ready to complete its IPO in the U.S. in the next few days. The IPO price range is between $16 to $18 per share and the company is offering 8.82 million Class A shares. At the high end of the IPO price range, the company could raise up to $159 million.</li>
<li><strong>Our base case valuation of Sprout Social is $21.60, which is 27% higher than the mid-point of the IPO valuation range of $16 to $18 per share. As such, we are bullish on this IPO. </strong></li>
<li>Our base case valuation of $1.0 billion in market cap assumes a P/S multiple of 7.9x using our estimated sales of $130.7 million in 2020. This represents a <strong>40% discount to the comps</strong> based on 2020 P/S, which we believe to be conservative. </li>
</ul>



Sprout Social, Inc. (SPT US) is ready to complete its IPO in the U.S. in the next few days. The IPO price range is between $16 to $18 per share and the company is offering 8.82 million Class A shares. At the high end of the IPO price range, the company could raise up to $159 million.
Our base case valuation of Sprout Social is $21.60, which is 27% higher than the mid-point of the IPO valuation range of $16 to $18 per share. As such, we are bullish on this IPO. 
Our base case valuation of $1.0 billion in market cap assumes a P/S multiple of 7.9x using our estimated sales of $130.7 million in 2020. This represents a 40% discount to the comps based on 2020 P/S, which we believe to be conservative. 


Sprout Social Inc

Sprout Social Valuation Analysis