Company: Wanda Sports Group Company Limited
Symbol: WSG
Description: They are a global sports events, media and marketing platform with significant intellectual property rights, long-term relationships and broad execution capabilities through which we create value for stakeholders in all parts of the sports ecosystem, from rights owners, to brands and advertisers, and to fans and athletes.
Shares: 33.3 million ADSs 28.0mm ADSs
Price Range: $12.00-$15.00 $9.00-$11.00
Market Cap: $1.6bn-$2.0bn $1.25b-$1.55b
Trade Date: Friday, 7/26
Underwriter(s): Morgan Stanley, Deutsche Bank, Citigroup
Co-Manager(s): Haitong International, CICC, CLSA, SOCIETE GENERALE, CIBC Capital, Loop Capital, Tiger Brokers
Terms Added: 7-12-19
7/22/19, 10:50am ET — Wanda Sports Group Company Limited — Channel checks are not currently available for this offering….however we will endeavor to find information if and as when it presents itself. However, given this a Chinese offering, whether the IPO “needs orders” or is “multiple-times oversubscribed” we would likely “not believe either”. The poor performance of last week’s Chinese offering, DouYu Int’l Holdings, which had strong numbers and was profitable in the last quarter is a clear sign of the “appetite” for the region — not to mention the struggling aftermarket performance of the entire 2019 Chinese IPO class. They reported revenue of €877.2 million in 2016, €954.6 million in 2017 and €1.1 billion in 2018, and a loss of €29.2 million in 2016, a profit of €78.8 million in 2017 and a profit of €54.0 million in 2018. For the three months ended March 31, 2019, they reported revenue of €245.6 million (4.9% Revenue Growth QoQ) and a loss of €8.6 million. As of March 31, 2019, they had total indebtedness (total interest-bearing liabilities) of €1,002.9 million. We believe this offering presents a negative risk-reward profile and are highly skeptical of this deal. Please monitor for potential additional information. Rating = 2.
7/23/19, 10:10am ET — Wanda Sports Group Company Limited — Channel checks just completed, are currently revealing, according to underwriter guidance that the deal is “approaching covered”. Once again it is our belief that the omnipresent “Chinese fluff” (overinflated orders) is influencing the order book. It is our opinion that there is a lack of appetite for Chinese IPOs domestically and given this company’s challenging financials, we do not like the risk-reward prospects of this offering. Rating = 2.
7/24/19, 10:10am ET — Wanda Sports Group Company Limited — Channel checks just completed, are currently revealing, according to underwriter guidance that the deal is conisdered “covered”. Additionally, the underwriters do not have an “early closing time” for this IPO. We are highly-skeptical of this offering given the current negative sentiment for Chinese IPOs. Rating = 2.
7/24/19, 1:30pm ET — Wanda Sports Group Company Limited (WSG) — The underwriters amended the terms of the offering with a F-1/A. The range was decreased from $12-$15 to $9-$11 and the size of the offering was reduced from 33.3mm ADSs to 28.0mm ADSs. Rating = 2.
https://www.sec.gov/Archives/edgar/data/1771279/000104746919004350/a2239329zf-1a.htm
7/25/19, 9:35am ET — Wanda Sports Group Company Limited (WSG) — Channel checks just completed, are currently revealing, according to underwriter guidance that the deal is “oversubscribed”. The underwriters are not going out with “official price guidance”, but our sources indicate that the book is currently building in the lower-half of the downwardly-revised $9-$11 range. IPO Boutique does not rate offerings based on “dead-cat bounces”. We still do not like the risk-reward of this offering given the negative sentiment surrounding Chinese IPOs in combination with this company’s “weak” financials and signifcant debt. Rating = 2.
Wanda Sports Group Company Limited (WSG) has priced a down sized 23.8mm ADSs– below the revised range with a price of $8.00 and opened at $6.00 for a loss of 25%.
English
Arabic
Chinese (Simplified)
Dutch
French
German
Italian
Portuguese
Russian
Spanish