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Kalkine IPO Report

Is this the right time to exit from Ventia Services Group Limited?

Dec 02, 2021

Company Overview

Ventia Services Group Limited  (ASX: VNT) is one of the largest providers of infrastructure services in Australia & New Zealand. The Company was founded in 2015. The Company provides minor capital works, operations and maintenance, asset management and facilities management.

Initial Public Offering

The company had launched its IPO on November 03, 2021, under the ticker VNT at AU$1.70 each. We had covered this IPO in our ‘Kalkine IPO Report’ on November 03, 2021 and concluded that this IPO was “Attractive” given its superior earnings quality, strong balance sheet, and operating in a rapidly growing market backed by several growth catalysts for demand drivers.

Hourly Price Chart (as on December 1, 2021). Source: REFINITIV, Analysis by Kalkine Group 

Conclusion

Investors who have invested into this IPO can consider ‘Exiting’ from their position at the closing price of AU$2.05 as on December 1, 2021, given:

  • Decent gains: The stock has moved up ~21% from its IPO price of AU$1.70/share and has given a decent return in a shorter time duration.
  • Resurgence of COVID-19 cases: Increasing COVID-19 cases in Europe and other parts of the world is throwing a lot of uncertainties in the global financial markets. Also, real estate business could witness labour shortage, slowdown in project rollout and supply chain related problem in the near-term.
  • Inflationary pressure: The sharp rise in the basic material prices (steel, copper, aluminum, lumber) could suppress margin profile of the company in the upcoming quarters.

*The reference data in this report has been partly sourced from Refinitiv.


Disclaimer-

Kalkine Equities LLC provides general information about companies and their securities. The information contained in the reports, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.

Kalkine Media LLC, an affiliate of Kalkine Equities LLC, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.