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

Zinus IPO Preview - The #1 Player in the Online Mattress Sales in the U.S.

Equity Bottom-Up

Zinus is the #1 player in the online mattress sales in the U.S.  On 11 March, it was reported that GIC acquired 0.72 million of Zinus shares, raising its stake to 5.1% of total shares outstanding. The biggest reason why GIC is likely to have purchased Zinus is that despite the horrible business conditions caused by the COVID-19 pandemic, they probably believe that this is a solid investment.As for Zinus, this is where its investment merits could come into play as more consumers in the U.S. purchase their mattresses and beds online rather than physically going to retail stores to purchase them. This trend was originally in place prior to the outbreak of COVID-19 and this trend has certainly accelerated in the past several weeks. As we go through the various media accounts of COVID-19 there have been numerous accounts of the potential BED SHORTAGE in the hospitals that could occur in the U.S. in the next few months due to the coronavirus. We provide a list of the top 10 companies in the U.S. hospital beds market. Many of these top 10 players are private companies or are diversified health care companies.

Zinus is the #1 player in the online mattress sales in the U.S.  On 11 March, it was reported that GIC acquired 0.72 million of Zinus shares, raising its stake to 5.1% of total shares outstanding. The biggest reason why GIC is likely to have purchased Zinus is that despite the horrible business conditions caused by the COVID-19 pandemic, they probably believe that this is a solid investment.As for Zinus, this is where its investment merits could come into play as more consumers in the U.S. purchase their mattresses and beds online rather than physically going to retail stores to purchase them. This trend was originally in place prior to the outbreak of COVID-19 and this trend has certainly accelerated in the past several weeks. As we go through the various media accounts of COVID-19 there have been numerous accounts of the potential BED SHORTAGE in the hospitals that could occur in the U.S. in the next few months due to the coronavirus. We provide a list of the top 10 companies in the U.S. hospital beds market. Many of these top 10 players are private companies or are diversified health care companies. 

The Potential Bed Shortage in the U.S. Hospitals & Why Did GIC Buy a Big Stake in Zinus?