ECM Daily Briefs | Smartkarma

In today’s briefing:

Kansai Electric (9503 JP) – HUGE Equity Offering To Stuff Retail
Kansai Electric Placement – A US$3.5bn Raising Which Doesn’t Appear Well Flagged
Kansai Electric Power (9503 JP): A US$3.5 Billion Primary/Secondary Offering
Initial Thoughts on the Klarna IPO
Zinka Logistics Pre-IPO – Continued Financial Underperformance in a Highly Fragmented Market
GMM Group Pre-IPO: Tuning into Thailand’s Digital Music Boom
Niva Bupa Health Insurance IPO Trading – Demand Lagged Recent Listings

Kansai Electric (9503 JP) – HUGE Equity Offering To Stuff Retail

By Travis Lundy

The past few years, large equity offerings have either been IPOs or secondary offerings (without dilution). Today we get a big dilutive secondary offering from Kansai Electric Power (9503 JP).
This is ~223mm shares or roughly ¥530bn against a current market cap of ¥2.1+trln. A 25% increase in share count. It is quite dilutive, but the stock is not rich.
Because dilutive, not overly-well-flagged, and mostly retail, this could get hammered. The div is not high enough to make it attractive, so one has to appreciate high earnings yield.

Kansai Electric Placement – A US$3.5bn Raising Which Doesn’t Appear Well Flagged

Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans.
This will be a large deal for the stock to digest and doesn’t appear to have been particularly well flagged.
In this note, we will talk about the placement and run the deal through our ECM framework.

Kansai Electric Power (9503 JP): A US$3.5 Billion Primary/Secondary Offering

Kansai Electric Power (9503 JP) has announced primary and secondary offerings of up to 223.1 million shares (including overallotment) and a third-party allotment of 29.1 million shares.
JPY239.9 billion of proceeds will be used to improve energy efficiency and decarbonisation, while other funds will be used for data centres, renewable energy and overseas investments.
Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 26 and 29 November (likely 26 November).

Initial Thoughts on the Klarna IPO

On 12 November, Klarna announced that it confidentially filed public offering paperwork. The company is getting ready for an IPO in 1H 2025.
Klarna’s valuation reached as high as $45 billion in 2021 which declined to as low as $6.5 billion. Its valuation has recently risen to about $14.6 billion.
Klarna generated 13.27 billion SEK in revenue (US$1.2 billion) in 1H 2024 (up 27% YoY). Operating margin improved significantly from -18% in 1H 2023 to -2% in 1H 2024.

Zinka Logistics Pre-IPO – Continued Financial Underperformance in a Highly Fragmented Market

By Akshat Shah

Blackbuck (1355652D IN) is looking to raise around US$130m in its India IPO.
Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of number of users), with 963,345 truck operators transacting on its platform in FY24, as per Redseer.
In this note, we talk about the company’s historical performance.

GMM Group Pre-IPO: Tuning into Thailand’s Digital Music Boom

By Nicholas Tan

GMM Music (2465778D TB) is looking to raise at least US $100m in its upcoming Thai IPO.
It is part of the largest, sprawling, public listed media conglomerate, GMM Grammy, and operates a pure play music business covering the entire value chain.
In this note, we look at the firm’s past performance.

Niva Bupa Health Insurance IPO Trading – Demand Lagged Recent Listings

Niva Bupa Health Insurance (1226871D IN) raised around US$260m in its India IPO.
Niva Bupa Health Insurance (Niva Bupa) is a health insurance firm. Its portfolio consists of health (including retail and group), personal accident, and travel insurance.
We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about the trading dynamics.

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Oct 24

Daily Brief ECM: Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision? and more

In today’s briefing:

Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?
Afcons Infrastructure IPO – Decent Upside from the Price Range
Pony AI Pre-IPO – The Positives – Scaling up Robotaxi & Robotrucks
Horizon Robotics IPO Trading – More than 55% of the Deal Taken up by Existing Shareholders
Rigaku Holdings (268A JP) IPO: Trading Debut
Swiggy IPO: Zomato’s USD 1bn Fundraise Signals Looming Quick Commerce Challenges
Orum Therapeutics IPO Valuation Analysis
Pony AI IPO Preview: Small Scale and Early Stage Development. Is Exponential Growth Ahead?
Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) – Some Points Worth the Attention

Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?

According to Korea Zinc, it plans to disclose the treasury shares tender offer results on 28 October.
We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post announcement of the tender offer results.
All in all, this M&A fight for Korea Zinc remains tight with a slight advantage to MBK/Young Poong alliance.

Afcons Infrastructure IPO – Decent Upside from the Price Range

Afcons Infrastructure Limited (6595396Z IN) is looking to raise around US$650m in its India IPO.
Afcons Infrastructure Limited (Afcons) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group.
In a previous note, we looked at the firm’s past performance. In this note, we look at the updates since, and discuss valuation.

Pony AI Pre-IPO – The Positives – Scaling up Robotaxi & Robotrucks

Pony AI (PONY US) an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO.
As per Frost & Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.
In this note, we talk about the positive aspects of the deal.

Horizon Robotics IPO Trading – More than 55% of the Deal Taken up by Existing Shareholders

Horizon Robotics (9660 HK) raised around US$800m, including over-allocation, in its Hong Kong IPO.
Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading updates.

Rigaku Holdings (268A JP) IPO: Trading Debut

Rigaku Holdings (268A JP) priced its IPO at JPY1,260 per share to raise gross proceeds of US$856 million. The shares will start trading on 25 October.
We previously discussed the IPO in Rigaku Holdings (268A JP) IPO: The Bull Case, Rigaku Holdings (268A JP) IPO: The Bear Case, Rigaku Holdings (268A JP) IPO: Valuation Insights.
The peers have modestly derated since the prospectus was released on 20 September. The IPO price remains attractive.

Swiggy IPO: Zomato’s USD 1bn Fundraise Signals Looming Quick Commerce Challenges

By Devi Subhakesan

Zomato (ZOMATO IN) ‘s proposed USD 1 billion fundraise highlights several potential risks for Quick Commerce players, including Swiggy (1255298D IN) .
Beyond heightened competition, majority foreign-owned Quick Commerce businesses including Swiggy could face regulatory hurdles if classified as multi-brand retail, limiting their foreign ownership.
Investors may fear about Swiggy’s regulatory risks and profitability struggles in this competitive landscape, which could dampen investor enthusiasm and IPO valuation.

Orum Therapeutics IPO Valuation Analysis

Our base case target price for Orum Therapeutics is 35,170 won per share, which is within the IPO price range of 30,000 won to 36,000 won per share.
Given the lack of upside relative to the target price, we have a Negative View of this IPO.
FSS has requested correction to the company’s IPO prospectus. As a result, it now appears the IPO could be delayed.

Pony AI IPO Preview: Small Scale and Early Stage Development. Is Exponential Growth Ahead?

By Andrei Zakharov

Pony AI, a founder-led global autonomous driving company, filed for an IPO in the United States and may raise up to $300M on the Nasdaq exchange.
The technology company operates fully driverless robotaxis (L4) in Beijing, Shanghai, Guangzhou and Shenzhen, Mainland China.
Pony AI has raised ~$1.4B in equity financing from top-tier investors, including Toyota Motor, HongShan, IDG Capital, 5Y Capital, ClearVue Partners, and Eight Roads Ventures, among others.

Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

Biostar’s revenue growth decreased obviously in the first five months in 2024. Under the fierce competition and anti-corruption campaign, the expectation for the commercialization performance of Biostar is not high.
Although Biostar has invested a lot of resources in market exposure, high customer concentration indicates that the Company faces challenges in marketing/customer relationship expansion. Biostar has also encountered overcapacity issues.
After Series E Financing, Biostar’s post-investment valuation was RMB4.49 billion. But we’re not optimistic about the outlook of Biostar. This valuation could be difficult to achieve in HK stock market.

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Oct 23

Daily Brief ECM: China Resources Beverage IPO Trading – Still a Bit of Fizz Left and more

In today’s briefing:

China Resources Beverage IPO Trading – Still a Bit of Fizz Left
CR Beverage (2460 HK) IPO: Trading Debut
Ajax Engineering Limited Pre-IPO Tearsheet

China Resources Beverage IPO Trading – Still a Bit of Fizz Left

China Resources Beverage (2460 HK) raised around US$750m in its Hong Kong IPO, after pricing at the top-end.
China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

CR Beverage (2460 HK) IPO: Trading Debut

China Resources Beverage (2460 HK) priced its IPO at HK$14.50 per share to raise the gross proceeds of US$649 million. The shares will start trading on 23 October.
The IPO was discussed in CR Beverage IPO: The Bull Case, CR Beverage IPO: The Bear Case, CR Beverage IPO: The Investment Case, CR Beverage (2460 HK) IPO: Valuation Insights.
The market sentiment of the peers has remained unchanged since the IPO launch. CR Beverage is fairly valued at the IPO price.

Ajax Engineering Limited Pre-IPO Tearsheet

By Rosita Fernandes

Ajax Engineering Limited (0896529D IN) is looking to raise about US$100m through its upcoming IPO in India. The lead bookrunners for the deal are ICICI , CITI, JM, Nuvama, SBI
Ajax Engineering Limited (AEL) is one of the leading concrete equipment manufacturers with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain.
It is one of the top three global SLCM manufacturers, holding about 75% market share in India. In FY24, SLCMs contributed to 12% of India’s concrete production.

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Oct 22

Daily Brief ECM: Tokyo Metro (9023 JP) IPO: Trading Debut and more

In today’s briefing:

Tokyo Metro (9023 JP) IPO: Trading Debut
Hyundai Motor India IPO Trading – Set for a Tricky Start
Hyundai Motor India IPO: Little Downside. Low Retail Interest-Myopia, Misguidance, Misinterpretation
Hyundai Motor India: Trading Strategy on the First Day of Trading
Waaree Energies IPO Update- Forensic Analysis
Horizon Robotics (9660 HK) IPO: Valuation Insights
SF Holding Pre-IPO: Proposed Interim & Special Dividends of 1.40 CNY Per Share Ahead of HK Listing
T.S. Lines Pre-IPO – PHIP Updates – Shipping Volumes Improved, However Paid Another Large Dividend
Tokyo Metro IPO Trading – Robust Demand for Quality Asset

Tokyo Metro (9023 JP) IPO: Trading Debut

Tokyo Metro (9023 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$2.3 billion. The shares will start trading on 23 October.
We previously discussed the IPO in Tokyo Metro (9023 JP) IPO: The Bull Case, Tokyo Metro (9023 JP) IPO: The Bear Case and Tokyo Metro (9023 JP) IPO: Valuation Insights.
The peers have modestly derated since the prospectus was released on 20 September. The IPO price remains attractive, particularly relating to the implied dividend yield.

Hyundai Motor India IPO Trading – Set for a Tricky Start

Hyundai Motor (005387 KS) raised around US$3.3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
In our previous notes, we looked at the company’s past performance and valuations. In this note, we will talk about the trading dynamics.

Hyundai Motor India IPO: Little Downside. Low Retail Interest-Myopia, Misguidance, Misinterpretation

By Devi Subhakesan

Hyundai Motor India is expected to close flat or slightly positive today, as low retail participation and modest expectations for gains on listing day could limit selling pressure.
Many retail investors skipped the IPO, influenced by ‘finfluencers’ who had largely advised against it based on misinterpreted valuation comparison with Maruti Suzuki India (MSIL IN) .
Hyundai Motor India’s meaningful discount to Maruti Suzuki on operating profit based valuation multiples suggest room for outperformance in the medium term.

Hyundai Motor India: Trading Strategy on the First Day of Trading

Hyundai Motor India (1342Z IN) shares start trading on 22 October. The IPO price is 1,960 INR.
Although there has been some solid interest on this IPO among many institutional investors, there have been a lower interest among retail investors.
There has also been relatively low grey market premium. If the share price reaches in the positive upper single digits, we expect many traders to sell into this short-term rally.

Waaree Energies IPO Update- Forensic Analysis

By Nitin Mangal

Waaree Energies (0656504D IN) awaited IPO is about to open on October 21. The IPO comprises of fresh issue worth INR 36 bn and OFS worth INR 7.2 bn.
This insight is an update to the previous note on the company Waaree Energies IPO- Forensic Analysis , on the forensics front.
The company still faces some of the forensic setbacks we found in the DRHP. These include capital purchases from related parties, heated receivables, bizarre lease accounting, unpaid dues, etc.

Horizon Robotics (9660 HK) IPO: Valuation Insights

Horizon Robotics (9660 HK), a provider of autonomous driving products and services, is seeking to raise up to US$696 million through a HKEx IPO.
We previously discussed the IPO in Horizon Robotics (9660 HK) IPO: The Bull Case and Horizon Robotics (9660 HK) IPO: The Bear Case.
Our valuation analysis suggests that Horizon is unattractively valued at the IPO price range. Therefore, we would pass on the IPO.

SF Holding Pre-IPO: Proposed Interim & Special Dividends of 1.40 CNY Per Share Ahead of HK Listing

By Daniel Hellberg

SF Holding proposes interim & special dividends for owners of A-shares
Combined cash dividend totals 1.40 CNY per share, yielding about 3.3%
Meeting October 29 to approve dividends, Q3 results, planned HK listing

T.S. Lines Pre-IPO – PHIP Updates – Shipping Volumes Improved, However Paid Another Large Dividend

T.S. Lines (TSL HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.
In a previous note, we looked at the firm’s past performance. In this note, we talk about the recent updates from its filings.

Tokyo Metro IPO Trading – Robust Demand for Quality Asset

Tokyo Metro (9023 JP)‘s shareholders raised around US$2.4bn in its Japan IPO.
Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

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Oct 21

Daily Brief ECM: ECM Weekly (21st Oct 2024) – Tokyo Metro and more

In today’s briefing:

ECM Weekly (21st Oct 2024) – Tokyo Metro, China Resources, Horizon Robotics, Hyundai India, Waaree
Pre-IPO China Resources Beverage – Due to the Pain Points, High Valuation Is Not Justified

ECM Weekly (21st Oct 2024) – Tokyo Metro, China Resources, Horizon Robotics, Hyundai India, Waaree

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the live IPOs front, the coming week will see a whole lot of listings across the region.
On the placements front, there were mainly deals in Australia this week.

Pre-IPO China Resources Beverage – Due to the Pain Points, High Valuation Is Not Justified

By Xinyao (Criss) Wang

The whole industry has entered a medium to low-speed growth stage, and the industry’s future growth rate will remain single-digit growth. So, CR Beverage’s future performance decline is inevitable.
Due to serious homogenization/competition of packaged drinking water market, there’s not much room for innovation/iteration. CR Beverage’s sales-driven model is hard to bring “new story” to break through the dilemma.
CR Beverage is clearly inferior to Nongfu Spring. Its valuation should be lower than Nongfu Spring. We think reasonable valuation of CR Beverage is about US$4 billion (or lower).

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Oct 20

Daily Brief ECM: Horizon Robotics (9660 HK) IPO: The Bear Case and more

In today’s briefing:

Horizon Robotics (9660 HK) IPO: The Bear Case

Horizon Robotics (9660 HK) IPO: The Bear Case

Horizon Robotics (9660 HK), a provider of autonomous driving products and services, is seeking to raise up to US$696 million through a HKEx IPO.
In Horizon Robotics (9660 HK) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on high related parties’ revenue, customer concentration risk, pricing pressure, uncertain path to profitability, high cash conversion cycle and FCF burn.

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Oct 19

Daily Brief ECM: K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback and more

In today’s briefing:

K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback

K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback

By Sanghyun Park

The institutional demand forecasts were much worse than expected, leading to the company’s blunt admission in the latest filing that the book-building flopped, prompting them to cancel the IPO.
Bankers NH and KB suggested an offering price below 8,500 KRW, but pre-IPO backers like Bain Capital and MBK strongly opposed, unhappy with shrinking proceeds, pushing for cancellation.
K-Bank plans to regroup and adjust the heavy 50% secondary share portion to retry the IPO in six months before their prelim review window expires.

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Oct 18

Daily Brief ECM: K Bank IPO Bookbuilding: To Price Lower than Low IPO Price Range or Even Potential Cancellation and more

In today’s briefing:

K Bank IPO Bookbuilding: To Price Lower than Low IPO Price Range or Even Potential Cancellation
Horizon Robotics (9660 HK) IPO: The Bull Case
CR Beverage IPO: Forecasts and Valuation
APA Group Placement – While the Overhang Remains, Selldown Appears Well Flagged
Intermestic IPO Trading – Drew a Strong Institutional Demand
Horizon Robotics IPO (9660.HK): Global Offering and Valuation Update
CK Solution IPO Preview
Waaree Energies IPO Trading – Will Ride on Premier Energies IPO Wave

K Bank IPO Bookbuilding: To Price Lower than Low IPO Price Range or Even Potential Cancellation

Chosun Business Daily mentioned that K Bank IPO book building results among institutional investors have been very poor so far.
As a result, the bankers and K Bank are currently considering on potentially reducing the IPO price to about 8,500 won or even cancelling the IPO altogether.
Our base case valuation of K Bank is target price of 9,151 won per share. Even if the IPO is priced at 8,500 won, we would pass on this IPO.

Horizon Robotics (9660 HK) IPO: The Bull Case

By Shifara Samsudeen, ACMA, CGMA

Horizon Robotics (9660 HK), a provider of autonomous driving products and services, is seeking to raise up to US$696 million through a HKEx IPO.
Horizon ranked fourth among all global ADAS and AD solution providers in China by solution installation volume in 2023 and 1H24, with a market share of 9.3% and 15.4%, respectively.
The bull case rests on a large TAM, a blue-chip customer base, a robust backlog, a core business in good health, a high gross margin, and a strong balance sheet.

CR Beverage IPO: Forecasts and Valuation

China Resources Beverage (2460 HK) plans to raise US$650m at the upper end of the indicative IPO price range at a market capitalisation and EV of HK$34bn and HK$27bn respectively.
Though the company has a strong business model and fundamentals, the packaged drinking water market is intensely competitive creating a price war and dragging down growth rates.
CR Beverage is less diversified and has inferior margins compared to Nongfu Spring (9633 HK) , hence priced at a deep discount to its peer, making the IPO pricing attractive.

APA Group Placement – While the Overhang Remains, Selldown Appears Well Flagged

Unisuper is looking to raise A$500m (US$333m) via trimming a portion of its stake in APA Group (APA AU).
The deal will be a large one to digest at 24 days of the stock’s three month ADV.
In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

Intermestic IPO Trading – Drew a Strong Institutional Demand

Intermestic (262A JP) raised around US$120m in its Japan IPO.
Intermestic is an eyewear manufacturer of eyeglasses and eyeglass accessories in Japan.
We have looked at the company’s past performance in our previous notes. In this note, we talk about the trading dynamics.

Horizon Robotics IPO (9660.HK): Global Offering and Valuation Update

By Andrei Zakharov

Horizon Robotics, a Beijing-based fast-growing provider of integrated ADAS and AD solutions for passenger vehicles, plans to raise ~$700M at the high end of the range at HK$3.99/share.
The IPO is expected to be between HK$3.73 and HK$3.99. However, the offer price may be, but is not expected to be, lower than the lower end of the range.
I believe that at the high end of the range, the company’s valuation is full, and I would await a share pull-back before becoming more positive on the stock.

CK Solution IPO Preview

CK Solution is getting ready to complete its IPO in KOSPI in November. Its IPO price range is from 15,700 won to 18,000 won.
The IPO offering amount ranges from 49.4 billion won to 56.6 billion won. The book building for the institutional investors lasts from 4 to 8 November.
CK Solution specializes in dry room system for the rechargeable batteries manufacturing process. Rechargeable battery sector accounted for 92.9% of total sales in 1H 2024 followed by semiconductor (3.1%).

Waaree Energies IPO Trading – Will Ride on Premier Energies IPO Wave

Waaree Energies is looking to raise up to US$514m in its India IPO.
Waaree Energies is a solar PV module manufacturer in India with an aggregate installed capacity of 12 GW, as of Jun 2024.
We have looked at the company’s past performance in our earlier note. In this note, we talk about the RHP updates and valuations.

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Oct 17

Daily Brief ECM: Wa Inc (7683 JP) – Equity Offering and more

In today’s briefing:

Wa Inc (7683 JP) – Equity Offering, and TOPIX Inclusion But Very Lopsided Register
BenQ BM Pre-IPO – Core Operations Are Steady but Has Been Losing Market Share
JD Industrials Pre-IPO – Refiling Updates – Few Hits, Few Misses
AUB Group Placement – Well Flagged Selldown Will Clear the Overhang
Horizon Robotics IPO – Peers Are Down a Lot, Its Valuation Isn’t
NTPC Green Pre-IPO – The Negatives – Competitive Marketspace and Some Risks to Watch

Wa Inc (7683 JP) – Equity Offering, and TOPIX Inclusion But Very Lopsided Register

By Travis Lundy

Yesterday WA Inc (7683 JP) announced that on the five year anniversary of its listing in 2019, the stock would move to TSE Prime on 1 November 2024
They also announced a secondary offering of 2.86mm shares including greenshoe. That’s 15% of shares out but the offering will double total float. This is almost a re-IPO.
This will lead to a TOPIX inclusion on 27 December which will be smaller than the offering. This will be all retail.

BenQ BM Pre-IPO – Core Operations Are Steady but Has Been Losing Market Share

By Nicholas Tan

BenQ BM Holding Cayman Corp. (BBHC HK) is looking to raise at least $US100m in its upcoming Hong Kong IPO.
It is a leading private for-profit general hospital group in mainland China, operating two general hospitals – Nanjing BenQ Hospital and Suzhou BenQ Hospital.
In this note, we look at the firm’s past performance.

JD Industrials Pre-IPO – Refiling Updates – Few Hits, Few Misses

JD Industrial Technology is looking to raise about US$1bn in its upcoming HK IPO.
JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
We have looked at the company background and provided our initial thoughts on valuations in our previous notes. In this note, we will talk about the refiling updates.

AUB Group Placement – Well Flagged Selldown Will Clear the Overhang

Odyssey is looking to raise A$277m (US$186m) from selling its entire stake in AUB Group Limited (AUB AU).
The PE has been invested since May 2022 with its stake subjected to a two-year escrow period. There have been media reports surrounding the selldown over the past few months.
In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

Horizon Robotics IPO – Peers Are Down a Lot, Its Valuation Isn’t

Horizon Robotics is looking to raise up to US$696m in its Hong Kong IPO.
Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

NTPC Green Pre-IPO – The Negatives – Competitive Marketspace and Some Risks to Watch

NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU).
In this note, we will talk about the not so positive aspects of the deal.

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Oct 16

Daily Brief ECM: China Resources Beverage IPO – Volatility Makes Pricing a Bit Tricky and more

In today’s briefing:

China Resources Beverage IPO – Volatility Makes Pricing a Bit Tricky
CR Beverage (2460 HK) IPO: Valuation Insights
CR Beverage IPO Preview and Valuation Analysis: Strong Profitability Growth, IPO Valuation Is Cheap
Rigaku IPO: Forecasts and Valuation
Rubicon Research Pre-IPO – Robust Product Development Pipeline Driving Revenue Growth
Vikran Engineering Limited Pre-IPO Tearsheet
NTPC Green Pre-IPO – The Positives – Backed by India’s Largest Power Company

China Resources Beverage IPO – Volatility Makes Pricing a Bit Tricky

China Resources Beverage (CRB HK) is looking to raise up to US$650m in its Hong Kong IPO.
China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

CR Beverage (2460 HK) IPO: Valuation Insights

By Shifara Samsudeen, ACMA, CGMA

China Resources Beverage (CRB HK), China’s largest purified drinking water company, has launched its HKEx IPO to raise up to US$650 million.
We previously discussed the IPO in CR Beverage IPO: The Bull Case, CR Beverage IPO: The Bear Case and CR Beverage IPO: The Investment Case.
Our valuation analysis suggests that CR Beverage is attractively valued at the IPO price range. Therefore, we would participate in the IPO.

CR Beverage IPO Preview and Valuation Analysis: Strong Profitability Growth, IPO Valuation Is Cheap

By Andrei Zakharov

CR Beverage, a pioneer in China’s packaged drinking water industry with a forty years history, sets terms for upcoming IPO in Hong Kong.
The IPO is expected to be between HK$13.50 and HK$14.50. At the midpoint of the range, CR Beverage would command a market value of ~HK$33B or ~$4.2B.
I view IPO valuation as attractive vs. domestic peers as profitability and gross profit margins improved. UBS, BOCI, CITIC Securities and Bank of America are leading the offering.

Rigaku IPO: Forecasts and Valuation

Rigaku Holdings (268A JP) has opened its books for the IPO, and the IPO will raise $753m purely through the sale of shares by the existing shareholders.
Unlike its competitors, Rigaku has a very specialized product portfolio that is entirely focused on X-ray technology which makes the company unique among its competitors.
Our analysis reveals that Rigaku’s IPO is attractively priced compared to its competitors and there is more than 15-20% upside to the indicative IPO price range.

Rubicon Research Pre-IPO – Robust Product Development Pipeline Driving Revenue Growth

By Akshat Shah

Rubicon Research Limited (1453591D IN) is looking to raise about US$130m in its India IPO.
It is a pharmaceutical formulations company with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly, the United States.
In this note, we talk about the company’s historical performance.

Vikran Engineering Limited Pre-IPO Tearsheet

By Rosita Fernandes

Vikran Engineering Limited (1635154D IN) is planning to raise about US$119m through its upcoming IPO in India. The lead bookrunners for the deal are Pantomath Limited, Systematix Group.
Vikran Engineering Limited (VEL) based in Mumbai, operates as an Engineering, Procurement & Construction (EPC) firm, focusing on power, water, and railway infrastructure projects.
VEL plans to allocate its funds towards financing the company’s working capital needs and general corporate purposes.

NTPC Green Pre-IPO – The Positives – Backed by India’s Largest Power Company