ECM Daily Briefs | Page 11 of 117

In today’s briefing:

ZEEKR (ZK US) IPO: Valuation Insights
ECM Weekly (6th May 2024) – Aadhar, Indegene, TBO Tek, Super Hi, China Resources Bev, Honasa, Worley
TBO Tek IPO – RHP Updates & Quick Thoughts on Valuation

ZEEKR (ZK US) IPO: Valuation Insights

By Arun George

ZEEKR (ZK US), a premium Chinese BEV manufacturer and a subsidiary of Geely Auto (175 HK), has launched an IPO to raise up to US$368 million.
We previously discussed the IPO in ZEEKR IPO: The Bull Case, ZEEKR IPO: The Bear Case and ZEEKR IPO: Latest Updates as the IPO Process Restarts.
The IPO price range values ZEEKR at a material discount to peers’ multiples. We would be inclined to participate in the IPO.

ECM Weekly (6th May 2024) – Aadhar, Indegene, TBO Tek, Super Hi, China Resources Bev, Honasa, Worley

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, a number of deals were launched in India, while HD Hyundai Marine Solution (443060 KS) will list in the coming week.
On the placement front, the two deals in Australia, WorleyParsons Ltd (WOR AU) and Endeavour Group /Australia (EDV AU) delivered opposing results.

TBO Tek IPO – RHP Updates & Quick Thoughts on Valuation

TBO Tek (0395045D IN) is looking to raise approximately US$200m in its upcoming India IPO.
TBO Tek is a global travel distribution platform. Its two-sided technology platform serves companies involved in the travel industry such as hotels, airlines, travel agencies and travel management companies.
In this note, we provide a summary of its RHP updates and share our quick thoughts on valuation.

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May 05

Daily Brief ECM: ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside and more

In today’s briefing:

ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

By Andrei Zakharov

Geely-Backed ZEEKR set terms for U.S. IPO: EV maker offers 17.5M American depositary shares (ADSs) at the price range of $18-$21, implying a market cap of ~$4.8B at the midpoint.
Geely Auto, Mobileye and CATL have indicated a non-binding interest in subscribing for an aggregate of up to ~$349M worth of the ADSs being offered in this offering.
I have a positive view of ZEEKR IPO as the offering will be priced significantly below last round valuation of ~$13B.

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May 04

Daily Brief ECM: Indegene IPO – Marquee Clients and more

In today’s briefing:

Indegene IPO – Marquee Clients, Strong Track Record, Decent Valuation
Gridwiz IPO Preview

Indegene IPO – Marquee Clients, Strong Track Record, Decent Valuation

Indegene Limited (1864095D IN) is looking to raise US$220m in its India IPO, via selling a mix of primary and secondary shares.
Indegene is a “digital-first” commercialisation firm with an exclusive focus on the global life sciences industry.
In this note, we will look at peers and discuss our thoughts on valuation.

Gridwiz IPO Preview

Gridwiz is getting ready to complete its IPO on KOSDAQ in June. Gridwiz focuses on the power demand resource management (DR) business, involving utilities, energy storage system, and solar power.
The IPO price range is from 34,000 won to 40,000 won. The IPO offering amount ranges from 47.6 billion won to 56 billion won.
According to the bankers’ valuation, the market capitalization post listing is expected to reach 285 billion won to 335 billion won.

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May 03

Daily Brief ECM: Indegene Pre-IPO – RHP Updates – Client Base Continued to Grow and more

In today’s briefing:

Indegene Pre-IPO – RHP Updates – Client Base Continued to Grow, and Margins Have Begun Stabilizing
Lalatech Refiles for IPO: Further Improvement in Profitability

Indegene Pre-IPO – RHP Updates – Client Base Continued to Grow, and Margins Have Begun Stabilizing

By Shifara Samsudeen, ACMA, CGMA

Indegene Limited (1864095D IN) is looking to raise about US$220m in its upcoming India IPO.
Indegene is a “digital-first” commercialisation firm with an exclusive focus on the global life sciences industry.
We looked at the firm’s past performance in an earlier note. In this note, we look at the RHP updates.

Lalatech Refiles for IPO: Further Improvement in Profitability

Lalatech Holdings Co Ltd (LALA HK) , a technology driven logistics transportation platform has refiled for IPO in April and this insight focuses on data points from the latest filing.
The company has disclosed full-year 2023 results which shows significant improvement to the company’s financials, particularly Lalatech’s profitability.
Lalatech has continued to cutdown its operating costs, which has helped reach profits, and the company has managed to maintain growth despite spending cuts on incentives and promotions.

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May 02

Daily Brief ECM: Pre-IPO Ximalaya – The Potential Risks and the Outlook and more

In today’s briefing:

Pre-IPO Ximalaya – The Potential Risks and the Outlook
China Resources Beverage Pre-IPO – The Negatives – Remains a Minnow in Other Markets

Pre-IPO Ximalaya – The Potential Risks and the Outlook

By Xinyao (Criss) Wang

The key to Ximalaya turning losses into profits is not the outstanding performance in revenue side, but rather the effective cost control. The Company seems to have encountered growth bottleneck.
To achieve long-term stable profits, it’s necessary to continuously optimize content quality, improve user experience, and expand paying user scale, but Ximalaya has shown “signs of fatigue” in this regard.
AI technology brings big room for imagination, but the question here is how much would truly translate into a leap in financial performance? Ximalaya’s valuation could be lower than peers.

China Resources Beverage Pre-IPO – The Negatives – Remains a Minnow in Other Markets

China Resources Beverage is looking to raise US$1bn in its upcoming Hong Kong IPO.
China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
In this note, we talk about the not-so-positive aspects of the deal.

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May 01

Daily Brief ECM: Endeavour Group Placement – While There Is an Overhang and more

In today’s briefing:

Endeavour Group Placement – While There Is an Overhang, Selldown Now Appears Well Flagged
Super Hi International US ADS – Has Been Doing Well but Doesn’t Really Need the Cash
TBO Tek Pre-IPO – Refiling Updates & Peer Comparison
Premier Energies Ltd IPO- Forensic Analysis

Endeavour Group Placement – While There Is an Overhang, Selldown Now Appears Well Flagged

Woolworths Ltd (WOW AU) is looking to raise A$468m (US$305m) from selling its stake in Endeavour Group /Australia (EDV AU).
Endeavour Group was demerged from Woolworths in Jun 2021 and it runs the drinks and hospitality business of Woolworths.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Super Hi International US ADS – Has Been Doing Well but Doesn’t Really Need the Cash

Super Hi International Holding (9658 HK) aims to raise around US$100m in its US ADR IPO. MS and Huatai are on the deal.
Super Hi International (SHI) is a Chinese cuisine restaurant brand, operating Haidilao hot pot restaurants in the international market.
In this note, we talk about the deal dynamics and the listing impact.

TBO Tek Pre-IPO – Refiling Updates & Peer Comparison

TBO Tek (0395045D IN) is looking to raise approximately US$200m in its upcoming India IPO.
TBO Tek is a global travel distribution platform. Its two-sided technology platform serves companies involved in the travel industry such as hotels, airlines, travel agencies and travel management companies.
In our previous note, we talked about the company’s historical performance. In this note, we talk about its refiling updates and undertake a peer comparison.

Premier Energies Ltd IPO- Forensic Analysis

By Nitin Mangal

Premier Energies Limited (0377949D IN) is into manufacturing of solar cells and modules. The company is the second largest integrated player (cell+module) in India with a market share of 28%
The business has picked up in the last two years. Revenues, order book and capacities have increased and margins have also seen improvement.
However, the company is struggling on cash conversion on the back of highly levered balance sheet. Focus should also be on few questionable related party transactions.

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Apr 30

Daily Brief ECM: Worley Placement – Largest Shareholder Selling at an Attractive Discount and more

In today’s briefing:

Worley Placement – Largest Shareholder Selling at an Attractive Discount
SHEIN IPO: The Biggest IPO in 2024 in London?
Indegene Limited Pre-IPO: Subscribe on Profitable Niche Business Model and Attractive Valuation
China Resources Beverage Pre-IPO – The Positives – Strong Position in Its Main Market
Pre-IPO Mao Geping Cosmetics – Potential Risks Behind High Gross Margins
Premier Energies Pre-IPO Tearsheet

Worley Placement – Largest Shareholder Selling at an Attractive Discount

DAR Group is looking to raise A$1.5bn (US$983m) from selling the majority of its stake in WorleyParsons Ltd (WOR AU).
DAR had attempted to privatize Worley in late 2016. Failing that attempt, it has been adding to its stake over the years.
As the deal isn’t a cleanup, there will be an overhang post-deal, although its a relatively small one at just 4.5% of DAR’s remaining stake; locked up for 30 days

SHEIN IPO: The Biggest IPO in 2024 in London?

Although Shein has yet to formally announce the listing destination, there is a growing anticipation that the listing venue could be London, rather than New York.
It has been reported that the company has more than doubled its net profit to more than US$2 billion in 2023.
The company is currently seeking a corporate value of nearly US$70 billion to US$90 billion in the Shein IPO which would be one of the biggest IPOs globally in 2024.

Indegene Limited Pre-IPO: Subscribe on Profitable Niche Business Model and Attractive Valuation

By Tina Banerjee

Indegene Limited (1864095D IN) has set IPO price band at INR430–452 per share. The IPO consists of fresh issue as well as OFS by existing shareholders.
Considering FY24 annualized post-IPO EPS of INR13.48, Indegene seeks a P/E valuation of 31.9–33.5x.
Considering niche business focus, proven execution capability, marquee clientele, long-standing client relationship, life science focus, and comprehensive offering, Indegene’s valuation seems quite attractive.

China Resources Beverage Pre-IPO – The Positives – Strong Position in Its Main Market

China Resources Beverage is looking to raise US$1bn in its upcoming Hong Kong IPO.
China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
In this note, we talk about the positive aspects of the deal.

Pre-IPO Mao Geping Cosmetics – Potential Risks Behind High Gross Margins

By Xinyao (Criss) Wang

MAO GEPING relies heavily on flagship brand MAOGEPING, with over-reliance risks on single brand.The strategy of focusing more on offline sales channels makes it appear less up-to-date with the times.
Different from most brands, the influence of MAO GEPING largely comes from its founder, Mr. Maogeping, who if reduces his holdings, could have a negative impact on the Company’s business/prospects.
Solely relying on marketing and promotion to drive performance growth is not a long-term solution.Lack of core technology and product innovation would limit MAO GEPING’s future development in fierce competition.

Premier Energies Pre-IPO Tearsheet

Premier Energies Limited (0377949D IN) is looking to raise US$300m in its upcoming India IPO. The bookrunners on the deal are JP Morgan, Kotak, and ICICI Securities.
Premier Energies (Premier) is a manufacturer of solar photovoltaic (PV) cells, and solar modules. It also executes EPC projects and provides follow-up O&M services.
As per Frost & Sullivan (F&S), the firm was the second largest domestic manufacturer in terms of annual installed capacity as of Mar 2024.

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Apr 29

Daily Brief ECM: ECM Weekly (29th Apr 2024) – IDEA and more

In today’s briefing:

ECM Weekly (29th Apr 2024) – IDEA, Kokusai, J&T, Krafton, Horizon, Oceana, ChaPanda, 99 Speed, Afcon

ECM Weekly (29th Apr 2024) – IDEA, Kokusai, J&T, Krafton, Horizon, Oceana, ChaPanda, 99 Speed, Afcon

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, Sichuan Baicha Baidao Industrial (2555 HK) and Mobvoi (2438 HK)‘s listing doesn’t really help the HK sentiment.
On the placement front, Vodafone Idea (IDEA IN) managed to do well, while Krafton (259960 KS) followed Samsung Electronics (005930 KS) footsteps.

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Apr 26

Daily Brief ECM: China Resources Beverage (Holdings) Pre-IPO Tearsheet and more

In today’s briefing:

China Resources Beverage (Holdings) Pre-IPO Tearsheet
Afcons Infrastructure Limited Pre-IPO – The Negatives – But Overdue Trade Receivables Increasing

China Resources Beverage (Holdings) Pre-IPO Tearsheet

China Resources Beverage (Holdings) Company Limited is looking to raise US$1bn in its upcoming Hong Kong IPO. The bookrunners on the deal are BofA, BOCI, Citic, and UBS.
China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
According CIC, it was the second largest company in the packaged drinking water market in China and the largest company in the purified drinking water market in 2023.

Afcons Infrastructure Limited Pre-IPO – The Negatives – But Overdue Trade Receivables Increasing

Afcons Infrastructure Limited (6595396Z IN) is looking to raise US$840m in its upcoming India IPO.
Afcons Infrastructure Limited (Afcons) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group.
In this note, we talk about the not-so-positive aspects of the deal.

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Apr 25

Daily Brief ECM: HD Hyundai Marine Solution: IPO Book Building Results Analysis and more

In today’s briefing:

HD Hyundai Marine Solution: IPO Book Building Results Analysis
A Review of Post IPO Price Performance of Top 13 IPOs in Korea Past 8 Months
99 Speedmart Holding Pre-IPO – Consistent Network Expansion, Although Margins Remain Well Below Peak
OceanaGold Philippines IPO – Updated Thoughts on Valuation – Too Expensive Even at This Price
Pre-IPO Sunho Biologics (PHIP Updates) – Some Points Worth the Attention
Afcons Infrastructure Limited Pre-IPO – The Positives – Profitability More than Doubled

HD Hyundai Marine Solution: IPO Book Building Results Analysis

HD Hyundai Marine Solution’s IPO price has been determined at 83,400 won per share, which is at the high end of the IPO price range.
A total of 2,021 institutional investors participated in this IPO book building. The demand ratio was 201 to 1. HD Hyundai Marine Solution will start trading on 8 May 2024.
Our base case valuation of HD Hyundai Marine Solution is target price of 98,254 won per share, which represents an upside of 18% from the IPO price.

A Review of Post IPO Price Performance of Top 13 IPOs in Korea Past 8 Months

In this insight, we review the share price performances of the top 13 IPOs (in terms of market cap) in Korea in the past 8 months.
We review the the share price performances over different time periods (1 day, 1 week, and 1 month). We also analyze the demand ratios and lock-up periods of the IPOs.
On average, 12.7% of the IPO shares are under lockup periods for the 13 companies listed below. HD Hyundai Marine Solution IPO has 45.8% of shares under lock-up.

99 Speedmart Holding Pre-IPO – Consistent Network Expansion, Although Margins Remain Well Below Peak

99 Speed Mart Retail Holdings (99SPD MK) is looking to raise US$300m in its upcoming Malaysia IPO.
99 Speed Mart Retail Holdings (99 Speedmart) operates the “99 Speedmart” chain of mini-market outlets, retailing daily necessities across Malaysia.
In this note, we look at the firm’s past performance.

OceanaGold Philippines IPO – Updated Thoughts on Valuation – Too Expensive Even at This Price

OceanaGold Philippines (OGP PM) is looking to raise up to US$106m in its Philippines IPO.
OceanaGold Philippines (OGPI) is a producer of gold and copper in the Philippines, and a subsidiary of OceanaGold Corporation, a Toronto Stock Exchange (TSX) listed gold mining and exploration company.
In our previous note, we talked about the company’s historical performance and shared our quick thoughts on valuation. In this note, we share our updated thoughts on valuation.

Pre-IPO Sunho Biologics (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

Sunho’s pipeline has high risk and there is a long way to go to demonstrate their final clinical value. It’s highly uncertain if Sunho would bring expected return to investors.
The entities involved in the process of reorganization were all related parties. Investment from Efung Anhe/Efung Ansheng sparked concern from CSRC. Sunho is required to explain whether there’s any benefit transfer.
Due to the lack of strong fundamentals, there is no reason for high valuation. It’s not surprising if Sunho’s valuation finally falls below HKD1.53 billion (or even below HK$1 billion).

Afcons Infrastructure Limited Pre-IPO – The Positives – Profitability More than Doubled