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

Uncompromised, Independent, Conflict-Free Research

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/tdcx-inc" target="_blank" data-smartkarma-citation="entities:34187:1" rel="noopener">TDCX (TDCX US)</a>, which is headquartered in Singapore, is a digital customer experience (CX) solutions provider for innovative technology and other blue-chip companies. </p></div><div><p>At the mid-point of the proposed IPO price range of $16.00-18.00 per ADS, TDCX will have a market cap of $2.4 billion. At the mid-point of the IPO price range, the net proceeds are $294.5 million, below the rumoured $400 million raise target. TDCX has received indications of interest worth 2% of the ADSs being offered from the founder, directors and officers. The IPO proceeds will be used to repay $188.0 million of the Credit Suisse facility (related to the acquisition of the founder’s interests in TDCX KY) and to expand into new markets.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/tdcx-ipo-initiation-good-service" target="_blank" data-smartkarma-citation="insights:57442" rel="noopener">TDCX IPO Initiation: Good Service</a>, we stated that in a competitive market, TDCX’s differentiated value-added services are reflected in market share gains, high growth and sector-leading margin. The key risk is the high dependence on two customers, <a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> and <a href="https://www.smartkarma.com/entities/airbnb-inc" target="_blank" data-smartkarma-citation="entities:431:1" rel="noopener">Airbnb Inc (ABNB US)</a>. This customer risk is partly mitigated by long-standing relationships. We concluded that TDCX’s fundamentals are attractive.</p></div><div><div><div class="content-highlight"><p>Our valuation analysis suggests that TDCX is attractively valued to its customer experience (CX) centric peers, particularly at the low-end of the IPO price range.  </p></div></div></div>

TDCX (TDCX US), which is headquartered in Singapore, is a digital customer experience (CX) solutions provider for innovative technology and other blue-chip companies. At the mid-point of the proposed IPO price range of $16.00-18.00 per ADS, TDCX will have a market cap of $2.4 billion. At the mid-point of the IPO price range, the net proceeds are $294.5 million, below the rumoured $400 million raise target. TDCX has received indications of interest worth 2% of the ADSs being offered from the founder, directors and officers. The IPO proceeds will be used to repay $188.0 million of the Credit Suisse facility (related to the acquisition of the founder’s interests in TDCX KY) and to expand into new markets.In TDCX IPO Initiation: Good Service, we stated that in a competitive market, TDCX’s differentiated value-added services are reflected in market share gains, high growth and sector-leading margin. The key risk is the high dependence on two customers, Facebook Inc A (FB US) and Airbnb Inc (ABNB US). This customer risk is partly mitigated by long-standing relationships. We concluded that TDCX’s fundamentals are attractive.Our valuation analysis suggests that TDCX is attractively valued to its customer experience (CX) centric peers, particularly at the low-end of the IPO price range.  

TDCX

TDCX IPO: Valuation Insights