ECM Daily Briefs | Page 15 of 117

In today’s briefing:

TCS US$1.1bn Placement – Relatively Small but Isn’t Well Flagged, Could Have Implications for Others
99 Speed Mart Retail Holdings Pre-IPO Tearsheet
Pre-IPO Sichuan Baicha Baidao Industrial – High Profitability and Growth May Not Be Sustainable

TCS US$1.1bn Placement – Relatively Small but Isn’t Well Flagged, Could Have Implications for Others

Tata Sons, holding company of Tata Group, is looking to raise around US$1.1bn via selling a 0.65% stake in Tata Consultancy Svcs (TCS IN).
The deal doesn’t appear to be well-flagged although it could be part of Tata Sons’ recent moves to avoid an RBI mandated listing next year.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

99 Speed Mart Retail Holdings Pre-IPO Tearsheet

99 Speed Mart Retail Holdings (99SPD MK) is looking to raise around US$300m in its upcoming Malaysia IPO. The bookrunner on the deal is CIMB Investment Bank Berhad.
99 Speed Mart Holdings (99 Speedmart) operates the “99 Speedmart” chain of mini-market outlets, retailing daily necessities across Malaysia.
Based on IMR, the firm was the largest mini-market player and a leading groceries retailer in Malaysia, with a market share of 37.9% and 11.1% based on 2022 sales, respectively.

Pre-IPO Sichuan Baicha Baidao Industrial – High Profitability and Growth May Not Be Sustainable

By Xinyao (Criss) Wang

Baicha Baidao’s business model is similar to MIXUE, but MIXUE has more heavy-asset model with own supply chain, while Baicha Baidao is more of a “transfer station” for raw materials.
Single store data of Baicha Baidao showed varying degrees of decline. It’s uncertain whether Baicha Baidao would maintain current market share/revenue growth/high gross margin in front of fierce homogeneous competition.
When Baicha Baidao submitted prospectus last year, its valuation was already about RMB18 billion.We think its valuation would be lower than MIXUE, close to Guming and higher than Auntea Jenny.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 18

Daily Brief ECM: ECM Weekly (18th Mar 2024) – ITC and more

In today’s briefing:

ECM Weekly (18th Mar 2024) – ITC, Interglobe (Indigo), MS&AD, GlobalWafer, Belle, Auntea, Trial
Ceigall India Pre-IPO Tearsheet

ECM Weekly (18th Mar 2024) – ITC, Interglobe (Indigo), MS&AD, GlobalWafer, Belle, Auntea, Trial

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, Hong Kong appears to be heading towards its first US$100m+ IPO for the year.
For placements, after a flurry of placements in the prior week, past week was relatively quiet with only the US$2bn ITC Ltd (ITC IN) block.

Ceigall India Pre-IPO Tearsheet

By Ethan Aw

Ceigall India (1605242D IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by IIFL Securities, JM Financial and ICICI Securities.
Ceigall India is an infrastructure construction company with experience in undertaking specialized structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways and runways.
Its principal business operations are broadly divided into EPC and hybrid annuity model (HAM) projects, which are spread across ten states in India.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 16

Daily Brief ECM: Astera Labs IPO Valuation Analysis and more

In today’s briefing:

Astera Labs IPO Valuation Analysis
Migao Group IPO – Last Listing Didn’t Do Well, This One Might Struggle Too

Astera Labs IPO Valuation Analysis

Our base case valuation is market cap of US$5.4 billion or target price of US$35.9 per share, which is 20% higher than high end of the IPO price range (US$30).
We estimate Astera Labs (ALAB US) to generate revenue of $221.3 million (up 91.1% YoY) in 2024 and $304.5 million (up 37.5% YoY) in 2025.
Many investors are willing to take extra risk to invest in companies such as Astera Labs that could generate strong sales growth amid rush to aggressively expand AI capabilities.

Migao Group IPO – Last Listing Didn’t Do Well, This One Might Struggle Too

Migao Group Holdings (9879 HK) is looking to raise up to US$124m in its Hong Kong IPO.
Migao Group (Migao) is a vertically-integrated national potash fertilizer company in China.
In this note, we look at the firm’s past performance and share our thoughts on valuation.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 15

Daily Brief ECM: Astera Labs IPO Preview and more

In today’s briefing:

Astera Labs IPO Preview
Qunabox Group Pre-IPO Tearsheet

Astera Labs IPO Preview

Astera Labs (ALAB US) is scheduled to debut its IPO on 20 March. The company is offering 17.8 million shares at a price of $27 to $30 per share.
Founded in 2017, Astera Labs is a fabless semiconductor company headquartered in Silicon Valley. The company designs and sells semiconductor technology, but the production is outsourced.
Astera Labs’ major competitors include Montage Technology (688008 CH), Parade Technologies (4966 TT), Broadcom (AVGO US), Credo Technology Group Holding (CRDO US), and Marvell Technology (MRVL US).

Qunabox Group Pre-IPO Tearsheet

Qunabox Group Limited (QUNA HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The bookrunner on the deal is Haitong.
Qunabox Group Limited (Qunabox) is a marketing service provider in China, focusing on outdoor marketing for fast-moving consumer goods (FMCG).
As per CIC, the firm was the fifth largest FMCG outdoor marketing service provider in China in terms of 2022 sales, with a market share of 0.9%.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 14

Daily Brief ECM: Auntea Jenny (Shanghai) Industrial Pre-IPO – The Positives – Has Benefited from a Growing Network and more

In today’s briefing:

Auntea Jenny (Shanghai) Industrial Pre-IPO – The Positives – Has Benefited from a Growing Network
Angel Robotics: IPO Bookbuilding Results Analysis
Pre-IPO Qyuns Therapeutics (PHIP Updates) – Some Points Worth the Attention
Auntea Jenny (Shanghai) Industrial Pre-IPO – The Negatives – Improving Margins Playing Catch Up
Belle Fashion Pre-IPO – Refiling Updates

Auntea Jenny (Shanghai) Industrial Pre-IPO – The Positives – Has Benefited from a Growing Network

Auntea Jenny (Shanghai) Industrial (AJI HK) is looking to raise around US$300m in its upcoming Hong Kong IPO.
Auntea Jenny (Shanghai) Industrial (Auntea) is a freshly-made beverage producer.
In this note, we will talk about the positive aspects of the deal.

Angel Robotics: IPO Bookbuilding Results Analysis

Angel Robotics reported exceptional IPO bookbuilding results. Angel Robotics’ IPO price has been determined at 20,000 won, which is 33% higher than the high end of the IPO price range.
A total of 2,067 institutional investors participated in this IPO book building. The demand ratio was 1,157 to 1. Angel Robotics will start trading on 26 March 2024.
We remain positive on Angel Robotics. There is likely to be a sharp overshooting of its share price relative to its intrinsic value on the first day of trading.

Pre-IPO Qyuns Therapeutics (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

The biggest concern here is the uncertain commercialization outlook of Qyuns’s pipeline, mainly due to both industry factors in the field of autoimmune and allergic diseases and Qyuns’s own problems.
Qyuns is overvalued. There’re rumors that Qyuns was “not popular” in primary market when fundraising, perhaps due to Dr. Yu Guoliang’s past unsuccessful experience which made investors suffered losses before.
By reducing the size of IPO to maintain high share price, this IPO may “look successful”.Investors can seize this opportunity to take profits in time, but long-term hold isn’t recommended.

Auntea Jenny (Shanghai) Industrial Pre-IPO – The Negatives – Improving Margins Playing Catch Up

Auntea Jenny (Shanghai) Industrial (AJI HK) is looking to raise around US$300m in its upcoming Hong Kong IPO.
Auntea Jenny (Shanghai) Industrial (Auntea) is a freshly-made beverage producer.
In this note, we will talk about the not so positive aspects of the deal.

Belle Fashion Pre-IPO – Refiling Updates

Belle Fashion (BF) aims to raise up to US$1bn in its Hong Kong listing. The company recently refiled its application proof after a gap of two years.
As per F&S, it was the largest player in China’s fashion footwear market with a 12.3% market share, based on 2022 retail sales.
We have looked at the company’s past performance based on its earlier filings in 2022. In this note, we talk about the updates from its recent filings.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 13

Daily Brief ECM: ITC $2bn Placement – Very Well Flagged but Still Won’t Be an Easy One to Digest and more

In today’s briefing:

ITC $2bn Placement – Very Well Flagged but Still Won’t Be an Easy One to Digest, Won’t Do an Indigo
Pre-IPO PegBio Co., Ltd. – This GLP-1 Biotech Has Gloomy Outlook

ITC $2bn Placement – Very Well Flagged but Still Won’t Be an Easy One to Digest, Won’t Do an Indigo

In Feb 2024, BAT’s management stated that they were reviewing their stake in ITC Ltd (ITC IN). The news of a possible selldown by BAT was leaked again earlier today.
BAT has owned its stake in ITC for over a century and remains its largest shareholder.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

Pre-IPO PegBio Co., Ltd. – This GLP-1 Biotech Has Gloomy Outlook

By Xinyao (Criss) Wang

PB-119 (T2DM) has the fastest R&D progress, but this is a highly competitive market.China’s diabetes drug market is dominated by traditional drugs. It’s not easy for PegBio to break through.
Since the future competitive landscape of GLP-1s (obesity) would present a very different situation.If PB-119 fails to have better weight loss effect, it would be eliminated due to fierce competition.
PegBio’s IPO on SSE STAR Market was rejected. We’re not optimistic about its future commercialization performance. Together with cash-flow issues, we doubt whether PegBio would bring expected returns to investors.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 12

Daily Brief ECM: Gopal Snacks Ltd IPO- Forensic Analysis and more

In today’s briefing:

Gopal Snacks Ltd IPO- Forensic Analysis
Samhyun IPO Bookbuilding Results Analysis
Lianlian Digitech IPO: Worsening Profitability and More Capital for LianTong
Ola Electric Pre-IPO – Initial Thoughts on Valuation

Gopal Snacks Ltd IPO- Forensic Analysis

By Nitin Mangal

Gopal Snacks (1592789D IN) IPO worth INR 6.5 bn is live on the bourses.
The company is a prominent snacks manufacturer in India, especially in the state of Gujarat. It boasts one of the highest fixed asset turnover ratio and high ROCEs.
On the flipside, caution must remain on its dull revenue growth post F22 and on its related party transactions, especially with promoter companies.

Samhyun IPO Bookbuilding Results Analysis

By Shifara Samsudeen, ACMA, CGMA

Samhyun reported excellent IPO bookbuilding results. Samhyun’s IPO price has been determined at 30,000 won per share, which is 20% higher than the high end of the IPO price range.
A total of 2,168 institutional investors participated in this IPO book building. The demand ratio was 649 to 1. Samhyun will start trading on 21 March 2024.
Our base case valuation of Samhyun is implied market cap of 396 billion won or target price of 37,402 won, which is 25% higher than the IPO price.

Lianlian Digitech IPO: Worsening Profitability and More Capital for LianTong

Lianlian DigiTech (2104619D CH) is a digital payment solution provider in China has filed for an IPO on the Hong Kong Stock Exchange.
As per news media outlets, the company plans to raise US$500m to help enhance its technological capabilities and expand global operations.
In this insight, we have discussed the company’s business model, key financials and the outlook on the company.

Ola Electric Pre-IPO – Initial Thoughts on Valuation

Ola Electric is looking to raise about US$1bn in its upcoming India IPO.
Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
In our previous note we looked at the company’s past performance and undertook a peer comparison. In this note, we will talk about valuations.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 11

Daily Brief ECM: ECM Weekly (11th Mar 2024) – Oriental Land and more

In today’s briefing:

ECM Weekly (11th Mar 2024) – Oriental Land, ARM, Tuhu, Wiwynn, Macrotech, Zomato, Trial Holding
Weekly Deals Digest (10 Mar) – Trial, ARM, JSR, Nippon Express, Alumina, Azure, Genex, Vinda
PegBio IPO Preview: A Founder-Led Biopharma Player Fighting T2DM and Obesity in China

ECM Weekly (11th Mar 2024) – Oriental Land, ARM, Tuhu, Wiwynn, Macrotech, Zomato, Trial Holding

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, Trial Holdings (5882 JP) was hoping for better luck with its listing this time around.
For placements, it was a very busy week for a change with most regions, apart from Hong Kong, chipping in.

Weekly Deals Digest (10 Mar) – Trial, ARM, JSR, Nippon Express, Alumina, Azure, Genex, Vinda

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Trial Holdings (5882 JP) IPO, Nippon Express Holdings (9147 JP) placement and ARM Holdings (ARM US) lock-up expiry.
Event-Driven developments: JSR Corp (4185 JP), Alumina Ltd (AWC AU), Azure Minerals (AZS AU), Genex Power Ltd (GNX AU), Vinda International (3331 HK).

PegBio IPO Preview: A Founder-Led Biopharma Player Fighting T2DM and Obesity in China

By Andrei Zakharov

PegBio, a VC-backed biotech company, plans to tap capital markets in Hong Kong. CICC is leading the offering, and an IPO date has yet to be announced.
The company’s pipeline features promising drug candidates designed for the treatment of type 2 diabetes mellitus (T2DM), obesity, NASH, OIC and congenital hyperinsulinemia.
PegBio employs a proprietary technology platform, called HECTOR, and has six drug candidates in the pipeline portfolio. PB-119 is their core product with the purpose to treat T2DM and obesity.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 10

Daily Brief ECM: Shifting Its Planned IPO from New York to London Won’t Address Key Risks Facing SHEIN and more

In today’s briefing:

Shifting Its Planned IPO from New York to London Won’t Address Key Risks Facing SHEIN

Shifting Its Planned IPO from New York to London Won’t Address Key Risks Facing SHEIN

By Daniel Hellberg

A listing in London would not remove de minimis reform risk in US market
A new report quantifies the potential cost of changes to US de minimis rules
Europe’s rigorous new ‘digital services’ laws are an emerging threat to SHEIN

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 09

Daily Brief ECM: Nippon Express (9147 JP): The Current Playbook and more

In today’s briefing:

Nippon Express (9147 JP): The Current Playbook
Classys: One of Korea’s Top Beauty Medical Device Makers + Higher Shares Cancellation and Dividends
Astera Labs IPO Valuation Update: Multiples Appear Rich, Limited Post-IPO Upside
Shanghai Zhida Technology Development Pre-IPO Tearsheet

Nippon Express (9147 JP): The Current Playbook

By Arun George

Since the US$260 million secondary placement announcement, Nippon Express Holdings (9147 JP) shares are down 5.3% from the undisturbed price of JPY8,039 per share (1 March).
Looking at recent large Japanese placements is instructive to understand the potential trading pattern. So far, Nippon Express shares have followed the pattern of previous large placements.
The offering will likely be priced on 11 March. Investors who have participated in previous large Japanese placements tend to secure positive returns.

Classys: One of Korea’s Top Beauty Medical Device Makers + Higher Shares Cancellation and Dividends

Classys is one of the top beauty medical device companies in Korea. Classys’ main products include Shurink Universe and Volnewmer.
We have a positive view of Classys (214150 KS). Classys is trading at relatively reasonable valuations, considering the company’s strong growth in sales and profits.
On 28 February, Classys announced a shareholder return amount of 38 billion won (including share cancellation of about 25 billion won and dividend payout of 13 billion won).

Astera Labs IPO Valuation Update: Multiples Appear Rich, Limited Post-IPO Upside

By Andrei Zakharov

Astera Labs, which offers connectivity solutions tailored for AI accelerators, GPUs, FPGAs and other high-performance computing platforms, announced terms for its IPO today.
California-Based semiconductor company plans to raise ~$392M by offering ~14.8M shares at a price range of $27 to $30. Selling stockholders offer ~3M shares of common stock in this IPO.
At the midpoint of the proposed price range, Astera Labs would command a fully diluted market value of $5B, above their last private round of $3.15B.

Shanghai Zhida Technology Development Pre-IPO Tearsheet