IPO - Aerison Group Ltd - 29 June 2021 #, page-7

Boys, I am not sure if this is priced attractively. On face value looking at the numbers, its looking good but like all mining service companies, it is priced at fair value ie EV/EBITDA 4.7x or 5.9x at maximum subscription (Compared that with DDH1, MLG OZ - you will get the same multiples).Although Aerison is kind of different breed compared to DDH, MLG as it has lower PPE and capex, One thing that worries me the most is their contracts & liquidated damages attached to these fixed price contracts. It only takes 1 or 2 contracts to go bad and significant cost overrun. Management constantly needs to price these contracts accurately that can be bit tricky. DOYR