Q: Can you please look into the new IPO GRGD? What are your initial thoughts on the company? How do the valuation, margins and growth numbers look compared to ATZ and other fashion retailers? Thanks.
5i Research Answer:
Please see this comment as well as this one from yesterday. We do not have any estimates yet, but the company is a bit smaller than ATZ (by about half) and should get a discounted valuation. It has shown good growth and is majority owned by the CEO through special voting shares. Margins are higher at ATZ currently. We tend to discount details in the prospectus as it really is just a sales document. We far prefer to see actual numbers once public. For now, we would prefer ATZ and it is not usually a good sign to see an IPO trade lower than its initial price.