Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

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LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/tuya-inc" target="_blank" data-smartkarma-citation="entities:32158:1" rel="noopener">Tuya Inc (TUYA US)</a>  has set the terms for its IPO where it plans to issue 43.6m ADS’ at an indicative IPO price range of US$17-20 per ADS. At the midpoint of the above price range, Tuya will raise net proceeds of US$770.72m (approx. US$887m if underwriter’s exercise their overallotment option) at a market capitalisation of US$10.36bn and a post-money valuation of US$9.4bn.<table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 112.0pt;">TUYA IPO Details</td></tr>
<tr>
<td style="width: 62.0pt;">No. of ADSs Issued</td>
<td style="width: 50.0pt;">43,590,000</td>
</tr>
<tr>
<td style="width: 62.0pt;">Ordinary Shares per ADS</td>
<td style="width: 50.0pt;">1</td>
</tr>
<tr>
<td style="width: 62.0pt;">Shares Outstanding Post IPO</td>
<td style="width: 50.0pt;">559,760,081</td>
</tr>
<tr>
<td style="width: 62.0pt;">Offer as a % of Outstanding Shares</td>
<td style="width: 50.0pt;">7.79%</td>
</tr>
<tr>
<td style="width: 62.0pt;">Price per ADS (US$)</td>
<td style="width: 50.0pt;">17-20</td>
</tr>
<tr>
<td style="width: 62.0pt;">Net Proceeds from IPO (US$m)</td>
<td style="width: 50.0pt;">770.72</td>
</tr>
<tr>
<td style="width: 62.0pt;">Market Capitalisation (US$m)</td>
<td style="width: 50.0pt;">9,516-11,195</td>
</tr>
<tr>
<td style="width: 62.0pt;">Enterprise Value (US$m)</td>
<td style="width: 50.0pt;">8,565-10,245</td>
</tr>
</tbody></table>Source: Company Disclosures, LSR (Net proceeds is at the midpoint of the IPO price of US$18.5 per share, EV is after adjusting for net cash and net IPO proceeds)Tuya plans to use the net proceeds from the IPO on R&amp;D, investing on technology infrastructure, marketing and branding and other general corporate purposes.The company’s IPO also has got a strong line-up of cornerstone investors including Tencent, Hillhouse Capital, Gaoling Fund, Tiger Global Management, etc. who have agreed to subscribe for an aggregate of at least US$500m of the ADS’ offered at the IPO.

Tuya Inc (TUYA US)  has set the terms for its IPO where it plans to issue 43.6m ADS’ at an indicative IPO price range of US$17-20 per ADS. At the midpoint of the above price range, Tuya will raise net proceeds of US$770.72m (approx. US$887m if underwriter’s exercise their overallotment option) at a market capitalisation of US$10.36bn and a post-money valuation of US$9.4bn.
TUYA IPO Details

No. of ADSs Issued
43,590,000


Ordinary Shares per ADS
1


Shares Outstanding Post IPO
559,760,081


Offer as a % of Outstanding Shares
7.79%


Price per ADS (US$)
17-20


Net Proceeds from IPO (US$m)
770.72


Market Capitalisation (US$m)
9,516-11,195


Enterprise Value (US$m)
8,565-10,245

Source: Company Disclosures, LSR (Net proceeds is at the midpoint of the IPO price of US$18.5 per share, EV is after adjusting for net cash and net IPO proceeds)Tuya plans to use the net proceeds from the IPO on R&amp;D, investing on technology infrastructure, marketing and branding and other general corporate purposes.The company’s IPO also has got a strong line-up of cornerstone investors including Tencent, Hillhouse Capital, Gaoling Fund, Tiger Global Management, etc. who have agreed to subscribe for an aggregate of at least US$500m of the ADS’ offered at the IPO.

Tuya IPO Valuation: Market Leadership and China IoT Exposure Justify Expensive Multiples