KEY THEMES
Yesterday, we published our Pre-IPO Note regarding Macro Group Pharmaceuticals [MCRO]. In general, we believe that assigning MCRO a value is a bit tricky due in part to its relatively higher future growth potential, let alone where it is in its growth trajectory. Thus, the multiples of MCRO’s global peers have to be adjusted for growth. At its IPO price of EGP4.85/share:
(1) MCRO’s LTM P/E is 19.6x, a discount of 6% to global peers’ median of 20.9x.
(2) MCRO’s LTM EV/EBITDA is 14.2x, a discount of 4% to global peers’ median of 14.9x.
Without adjusting for growth, MCRO would be worth EGP5.1/share at its global peers’ LTM P/E and EV/EBITDA multiples, only 6% higher than the IPO price. We note that the subscription process for the public placement tranche of MCRO was covered 102x. For more details, please read the full Pre-IPO Note here.