Primor Investment Group

2021-03-23 18:58:38 Yesterday, I’ve told that today will be another interesting IPO –– Vizio. However, after deep analysis, we decided not to take part in this IPO. Anyways here it is, in case you would like to invest in it.

You can take part in this IPO till 23/03/2021 5 pm UTC
*not an investment advice

Vizio –– a privately held, American company that designs and sells televisions and soundbars, based on Foxconn Technology Group. All Vizio TV's run on Platform+, which uses SmartCast, a proprietary operating system, and Inscape, a provider supporting data analysis and services. This makes Vizio smart TV's rich in features, such as Internet access, video streaming, and smart speaker connection.

Ticker –– VZIO
IPO listing date 25/03/2021
IPO size $4 billion
Listing price range $21 – $23
Underwriters: J.P.Morgan, BofA Securities, Wells Fargo Securities, Guggenheim Securities, Needham & Co

Highlights

- In late 2020, the company had 12.20M accounts .
- In 2020, the sales reached 7.10M smart TV's, an increase of 20% comparing to the previous year.
- Vizio is the second company in North America by TV shipments from January 2018 to December 2020, Omdia reports.

Downsides

- Vizio is not the leader in the Smart TV market. The company has stable growth, but only around 10% per year. According to forecasts, it won’t increase much more.
- The industry is filled with products from tech giants such as Sony, Samsung, LG and even Apple. These companies have much more opportunities to promote their products, which will most likely slow down the growth of Vizio.
- The company's revenue is highly dependent on e-commerce platforms (Walmart, Amazon) and if there is any disagreement with them, it will lose most of its revenue.
- The founder and CEO of the company will hold 91% of the shares. This means that his decisions are ultimatums for the company, which isn’t usually well appreciated by investors.

Interesting fact about this company is that it is already profitable. However, the purpose of IPOs, in general, is to raise money. Since Vizio’s financial reports are already positive, this raises doubts regarding the ability of their developers to correctly manage money.

Taking into account all the pros and cons we decided to skip this IPO. A fortiori that today were announced a couple of new IPO of world wide companies, such as SEMrush Holdings and Deliveroo . We’ll soon send our reviews about these companies! Open / Comment

2021-03-22 19:57:48 The second IPO in which we are taking part –– ACV Auctions Inc.
You can take part in this IPO till 22/03/2021 5 pm UTC
*not an investment advice

ACV Auctions Inc. –– a full-service, coast-to-coast, wholesale automotive marketplace. ACV helps car dealers manage inventory and value vehicles by providing accurate and transparent information, as well as process payments and transfer ownership.

Ticker –– ACVA
IPO listing date 24/03/2021
IPO size $2.9 billion
Listing price range $18 – $20
Underwriters: Goldman Sachs, J.P. Morgan, Citigroup, BofA Securities, Jefferies, Canaccord Genuity, Guggenheim Securities, JMP Securities

Highlights

- In 2020, 391K cars were sold through ACV, with an overall turnover of $3.30B, which amounted to $208 million in earnings in 2020 (an impressive 95% increase comparing to 2019)
- The US auto market is a large and complex industry, with approximately 78 million units sold in 2019, generating approximately $1.7 trillion in sales between retail and wholesale markets.
- ACV values the potential market in the US at $10.70B, while it also has plans to expand to Canada by 2022.
- Talking losses, in 2020 their net loss $41 million and adjusted EBITDA of US $30.8 million, compared to a net loss of $77.2 million and adjusted EBITDA of $76.4 million in 2019
- Its investors include large and experienced members such as Bessemer Venture Partners and SoftBank.
- The company has stable resources in cash flow. This means that the company doesn’t need money in the short term and the money raised through the IPO will be invested in the US bonds.

Downsides

- Recent rapid growth doesn’t guarantee future results
- The ACV business is very sensitive to changes in the retail car prices, which varies a lot.
- ACV operates in a highly competitive industry and pressure from existing and new companies can negatively impact business and performance.

https://www.acvauctions.com/ Open / Comment

2021-03-22 19:27:43 This week starts with 3 strong IPOs, with an application deadline for 2 of them today and for the 3rd one tomorrow:

We decided to take part in today’s IPO –– Digital Ocean Holdings
You can take part in this IPO till 22/03/2021 5 pm UTC
*not an investment advice

DigitalOcean Holdings –– a company providing cloud computing infrastructure for businesses, SMEs, startups and developers. DigitalOcean services reduce the development time and enable deployment and scaling of applications simultaneously across multiple devices.

Ticker –– DOCN
IPO listing date 24/03/2021
IPO size $4,7 billion
Listing price range $44 – $47
Underwriters: Morgan Stanley, Goldman Sachs, JP Morgan, BofA Securities, Barclays, Keybanc Capital Markets

Highlights

- Over 570,000 companies from 185 countries use DigitalOcean's services.
- In 2020, IaaS and PaaS solution markets were worth $31.90B and $12.50B, respectively. International Data Corporation reports by 2024, the total value for these markets should reach $115.50 billion, with an annual growth of 27%
- According to SlashData, the number of developers worldwide is expected to more than double over the next 10 years to roughly 45 million by 2030.
- DigitalOcean's average revenue per customer (ARPU) has grown from $35.97 in 2018 to $47.78 in 2020.
- In recent periods, DigitalOcean has seen significant revenue growth and improved margins. In 2018 DigitalOcean generated $203.1 million of revenues, comparing to $318.4 million in 2020, representing an increase of roughly 25%.

Downsides

- DigitalOcean has a history of operating losses and DigitalOcean may not maintain profitability in the future. Moreover, DigitalOcean expects fluctuations in financial performance, making it difficult to predict future results.
- Markets, that DigitalOcean partakes in, are very competitive , with such competitors as Amazon, Microsoft, Google, IBM, Oracle

https://www.digitalocean.com/ Open / Comment

2021-03-20 01:27:50 Today was just an awesome day with the end of the lock-up period for 2 major IPOs in which we took part 3 months ago:

BioAlta Inc., ticker BCAB, sold with a +293% profit

… and the famous Upstart Holdings, ticker UPST, sold with a +475% profit!
Even though such huge IPO profits are very pleasant, they are quite rare. Its definitely a record profit for 2021… for now Open / Comment

2021-03-18 20:13:46 To nicely finish this week, we decided to take part in another interesting IPO which will be listed today –– IPO Tuya *not an investment advice Tuya Inc. –– a company providing IoT (Internet of Things) cloud solutions. Tuya works based on the services in… Open / Comment

2021-03-18 20:03:36 We’ve found a short-term opportunity with UPST. US It’s an IPO we’ve taken part in on the 16th of December. Due to the actual market correction, this stock price dropped -47%. But of course, this doesn’t have anything to do with the company’s fundamentals… Open / Comment