ECM Daily Briefs | Page 2 of 126

In today’s briefing:

LG CNS IPO Details Out: My Read on This IPO
LG CNS IPO Preview
MNC Solution IPO Book Building Results Analysis
Vishal Mega Mart Pre-IPO – The Positives – One-Stop Shop
Aditya Infotech Pre-IPO – Expanding Channel Network and Increased Production Capacity to Drive Sales
Vishal Mega Mart Pre-IPO – The Negatives – No Online Presence, PE Overhang

LG CNS IPO Details Out: My Read on This IPO

By Sanghyun Park

The KRW 5T-6T valuation and 13x-16x PER look solid compared to local peers like SDS and Hyundai AutoEver, with CNS possibly getting a premium due to its smaller captive stake.
Instos probably won’t push hard for lock-ups but will aggressively target pricing to secure larger allotments, knowing the company is likely to stick with a market-friendly price.
On a separate note, I wouldn’t expect much of a NAV discount reduction for LG Corp, as LG CNS’s stake isn’t significant enough to move the needle.

LG CNS IPO Preview

By Douglas Kim

The long awaited IPO of LG CNS is finally getting ready to be completed in February 2025. The IPO price range is 53,700 won to 61,900 won.
Expected market cap is between 5.2 trillion won to 6.0 trillion won. At the high end of the IPO price range, the total IPO offering would involve 1.2 trillion won.
The bankers used three companies including Samsung Sds, Hyundai Autoever, and NTT Data Corp as comps. This is expected to be one of the largest IPOs in Korea in 2025

MNC Solution IPO Book Building Results Analysis

By Douglas Kim

MNC Solution reported its IPO book building results. The IPO price has been determined at 65,000 won, which is 18.8% lower than the low end of the IPO price range.
A total of 198 institutional investors participated in the IPO demand forecast. The competition rate was low at 8.2 to 1.
Our base case valuation of MNC Solution is target price of 92,842 won per share, which is 43% higher than the IPO price of 65,000 won.

Vishal Mega Mart Pre-IPO – The Positives – One-Stop Shop

Vishal Mega Mart is planning to raise around US$950m through its upcoming IPO in India.
Vishal Mega Mart Limited (VMM), is a one-stop retail destination. As per the company it targets middle and lower-middle income consumers across India
In this note, we talk about the positive aspects of the deal.

Aditya Infotech Pre-IPO – Expanding Channel Network and Increased Production Capacity to Drive Sales

By Akshat Shah

Aditya Infotech Ltd (6596564Z IN) is looking to raise about US$155m in its upcoming India IPO.
Aditya Infotech is a CCTV/video surveillance provider offering a range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under its CP PLUS brand.
In this note, we talk about the company’s historical performance.

Vishal Mega Mart Pre-IPO – The Negatives – No Online Presence, PE Overhang

Vishal Mega Mart is planning to raise around US$950m through its upcoming IPO in India.
Vishal Mega Mart Limited (VMM), is a one-stop retail destination. As per the company it targets middle and lower-middle income consumers across India
In this note, we talk about the not-so-good aspects of the deal.

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Dec 05

Daily Brief ECM: Auckland Airport Placement – NZ$1.3bn (US$770m) Cleanup Sale Will Remove the Overhang and more

In today’s briefing:

Auckland Airport Placement – NZ$1.3bn (US$770m) Cleanup Sale Will Remove the Overhang
Kioxia IPO: Peer Comparison and Valuation
Freetech Intelligent Technology Ltd Pre-IPO Tearsheet
Shenzhen Yuejiang Technology IPO: PHIP and Valuation Updates, High Valuations and A Higher TAM
Pre-IPO Mao Geping Cosmetics (PHIP Updates) – Some Points Worth the Attention

Auckland Airport Placement – NZ$1.3bn (US$770m) Cleanup Sale Will Remove the Overhang

By Shifara Samsudeen, ACMA, CGMA

Auckland Council is looking to raise NZ$1.3bn (US$772m) from selling its entire stake in Auckland Intl Airport (AIA NZ).
Overall, the selldown will be a large one for the stock to digest at 10% of shares outstanding and 62 days of three month ADV.
In this note, we run the deal through our ECM framework and comment on deal dynamics.

Kioxia IPO: Peer Comparison and Valuation

Kioxia has announced the terms for its IPO, and plans to raise $730m through issuing new shares as well as offer by existing shareholders, at a market capitalisation of $819bn.
Kioxia Holdings (285A JP) ‘s earnings have been volatile and margins have trailed compared to peers Micron and SK Hynix. Earnings are approaching a new peak.
Kioxia’s implied valuation multiples are at a deep discount to peer multiples, suggesting there is significant upside to the indicative IPO price range.

Freetech Intelligent Technology Ltd Pre-IPO Tearsheet

Freetech Intelligent Systems (1901036D CH) is planning to raise about US$200m through its upcoming Hong Kong IPO. The lead bookrunners for the deal are CITIC Securities, CICC, Huatai International, HSBC.
Freetech Intelligent Technology Ltd (FITL) is a provider of intelligent driving solutions, focusing on advanced driver assistance systems (ADAS) and autonomous driving systems (ADS) technologies.
It ranks third among domestic suppliers of Level 2 and Level 2+/2++ intelligent driving solutions in China, with a 2023 market share of 14.6%, according to CIC.

Shenzhen Yuejiang Technology IPO: PHIP and Valuation Updates, High Valuations and A Higher TAM

By Andrei Zakharov

Shenzhen Yuejiang Technology, more commonly known as just Dobot, updated its PHIP and plans to raise fresh capital for technology development for intelligent cobots.
The company did not disclose the proposed size and price range for the offering. Guotai Junan international and ABC International are leading the IPO.
I believe cobot industry can grow faster than third-party forecasts while the integration of AI into cobots will drive the development of smart cobots.

Pre-IPO Mao Geping Cosmetics (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

Behind MAO GEPING’s high profitability, there are hidden risks. One is the potential quality issues from ODM/OEM model, and the other is excessive reliance on Mr. Mao Geping’s personal IP.
Without strong R&D capabilities, high-end positioning isn’t firm.With increasing downward pressure in the industry, MAO GEPING would become passive in fierce competition and the industry trend of customers pursuing cost-effectiveness.
MAO GEPING’s valuation could be lower than Giant Biogene due to concerns on future sustainable growth prospects and profitability, but higher than industry average due to the strong short-term financial performance.

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Dec 04

Daily Brief ECM: Goodman Group Placement – Large Shareholder Looking to Raise US$1.2bn but Discount Is Tight and more

In today’s briefing:

Goodman Group Placement – Large Shareholder Looking to Raise US$1.2bn but Discount Is Tight
DigiCo Infrastructure REIT IPO – Looks Decent – After All the Adjustments
Mao Geping Cosmetics IPO – Low to Mid-End Looks Reasonable

Goodman Group Placement – Large Shareholder Looking to Raise US$1.2bn but Discount Is Tight

CIC is looking to raise around US$1.2bn, via selling around 2.6% of its stake in Goodman Group (GMG AU) , via a block trade.
Goodman’s shares have performed exceptionally well over the past year, driven by its pivot towards data centers.
In this note, we will talk about the placement and run the deal through our ECM framework.

DigiCo Infrastructure REIT IPO – Looks Decent – After All the Adjustments

DigiCo REIT (DIGICO AU) is looking to raise around US$1.3bn in its Australian IPO.
DigiCo REIT (DREIT) aims to be a diversified owner, operator and developer of data centres, with a global portfolio and broad investment mandate across stabilised, value-add and development opportunities
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

Mao Geping Cosmetics IPO – Low to Mid-End Looks Reasonable

Mao Geping Cosmetics is looking to raise up to US$270m in its upcoming Hong Kong IPO.
Mao Geping Cosmetics (MGC) operates in the premium beauty segment. Operating via its two brands, MAOGEPING and Love Keeps, MGC offers a wide range of color cosmetics and skincare products.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

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Dec 03

Daily Brief ECM: Kioxia (285A JP) IPO: Valuation Insights and more

In today’s briefing:

Kioxia (285A JP) IPO: Valuation Insights
Kioxia IPO – Should Price at the Top, Though Peers Are Still Correcting
Mr DIY Indonesia IPO – Aiming to Repeat the Performance of Its Parent’s Listing
Mouri Tech Pre-IPO – Growth Slowing, Customers and Employee Numbers Declining

Kioxia (285A JP) IPO: Valuation Insights

Kioxia Holdings (285A JP) is a leading player in the NAND flash memory market. It will list on 18 December and seek to raise up to US$727 million.
We previously discussed the IPO in Kioxia (285A JP) IPO: The Bull Case and Kioxia (285A JP) IPO: The Bear Case.
Our valuation analysis suggests that the IPO price range of JPY1,390-1,520 per share is attractive. Therefore, we would participate in the IPO.

Kioxia IPO – Should Price at the Top, Though Peers Are Still Correcting

Kioxia Holdings (285A JP) is aiming to raise around US$840m (including over-allocation) in its Japan IPO.
It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

Mr DIY Indonesia IPO – Aiming to Repeat the Performance of Its Parent’s Listing

PT Daya Intiguna Yasa Tbk (Mr DIY Indonesia) (2517930D IJ) is looking to raise US$296m from its Indonesia IPO.
Mr DIY Indonesia (MRDIYI) is a home improvement retailer. The entity is the Indonesian entity under the Mr DIY group’s list of subsidiaries.
In this note, we will undertake a peer comparison and discuss our thoughts on valuation.

Mouri Tech Pre-IPO – Growth Slowing, Customers and Employee Numbers Declining

Mouri Tech Limited (MT IN) is planning to raise about US$179m through its upcoming IPO in India. It is a provider of IT solutions, focusing on (iERP) and digital transformation services.
Mouri Tech operates in four main segments: iERP solutions, enterprise digital transformation, infrastructure services, and program management. Its iERP offerings include both on-premise and cloud-based systems.
The digital transformation services help organizations automate and modernize their processes. The infrastructure services include cloud engineering and cybersecurity solutions.

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Dec 02

Daily Brief ECM: Kioxia (285A JP) IPO: The Bear Case and more

In today’s briefing:

Kioxia (285A JP) IPO: The Bear Case
Mr DIY Indonesia IPO – Has Aggressively Expanded Its Network
SHEIN and Temu: Higher Tariffs Under 2nd Trump Admin an Additional Threat Beyond “De Minimis” Reform
ECM Weekly (2nd Dec 2024) – Kioxia, FineToday, MNC Solutions, JST, Pateo, Carraro, Hulic, Sanrio

Kioxia (285A JP) IPO: The Bear Case

Kioxia Holdings (285A JP) is a leading player in the NAND flash memory market. It will list on 18 December and seek to raise up to US$740 million.
In Kioxia (285A JP) 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 unrealistic long-term financial model assumptions, market share losses, high customer concentration risk, volatile gross margin due to JV and weak FCF profile.

Mr DIY Indonesia IPO – Has Aggressively Expanded Its Network

PT Daya Intiguna Yasa Tbk (Mr DIY Indonesia) (2517930D IJ) is looking to raise US$296m from its Indonesia IPO.
Mr DIY Indonesia (MRDIYI) is a home improvement retailer. The firm is the largest home improvement retailer in Indonesia with a 25.2% market share as per 2023 sales
In this note, we look at the firm’s past performance.

SHEIN and Temu: Higher Tariffs Under 2nd Trump Admin an Additional Threat Beyond “De Minimis” Reform

By Daniel Hellberg

US President-elect Trump has proposed new tariffs on China (and others) by January
Higher tariffs on Chinese goods could make Chinese imports more expensive in the US
For SHEIN & Temu, larger threat still comes from potential reform of de minimis rules

ECM Weekly (2nd Dec 2024) – Kioxia, FineToday, MNC Solutions, JST, Pateo, Carraro, Hulic, Sanrio

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 IPOs front, listing in the past week didn’t do much, while a number of comapnies are still looking to beat the year end deadline.
On the placements front, there were a number of secondary selldowns in Japan.

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Nov 30

Daily Brief ECM: Dai-Nippon Printing (7912) – The First Equity Offering by Cross-Holders – Small And Lots More To Go and more

In today’s briefing:

Dai-Nippon Printing (7912) – The First Equity Offering by Cross-Holders – Small And Lots More To Go
Dai Nippon Placement – Share Buyback Should Aid Deal Performance
Satvik Green Energy Ltd Pre-IPO Tearsheet

Dai-Nippon Printing (7912) – The First Equity Offering by Cross-Holders – Small And Lots More To Go

By Travis Lundy

Today after the close Dai Nippon Printing (7912 JP) announced 16 corporate and financial entities would be selling cross-held shares in a ~US$240mm equity offering.
The stock has gotten shellacked (relatively speaking given structurally low volatility) since three weeks ago. There’s a reason for that. But it makes it cheaper.
This offering is only 10% of the cross-held total. There’s more to come. But there is more outbound cross-holding to sell too. There’s value here.

Dai Nippon Placement – Share Buyback Should Aid Deal Performance

A group of shareholders are looking to raise US$214m from selling their respective stakes in Dai Nippon Printing (7912 JP).
While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
In this note, we will talk about the placement and run the deal through our ECM framework.

Satvik Green Energy Ltd Pre-IPO Tearsheet

Saatvik Energy Green Ltd (1637892D IN) is planning to raise about US$136m through its upcoming IPO in India. The lead bookrunners for the deal are Dam Capital, Ambit, Motilal Oswal.
Saatvik Green Energy Ltd (SEG) specializes in the manufacturing of solar photovoltaic (PV) modules and provides comprehensive engineering, procurement, and construction (EPC) services.
As per Crisil report, since its inception, the company has supplied over 1.5 GW of high-efficiency solar PV modules to both domestic and international markets.

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Nov 29

Daily Brief ECM: Kioxoa Pre-IPO – Peer Comparison and more

In today’s briefing:

Kioxoa Pre-IPO – Peer Comparison
Kioxoa Pre-IPO – Thoughts on Valuations
Kioxia (285A JP) IPO: The Bull Case
Kioxia IPO: Initial Thoughts on Financials and Valuation
Belrise Industries Ltd Pre-IPO Tearsheet
Pateo Connect Pre-IPO: Undifferentiated and Unprofitable

Kioxoa Pre-IPO – Peer Comparison

Kioxia Holdings (6600 JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
We have looked at the company’s past performance in our earlier notes. In this note we undertake a peer comparison.

Kioxoa Pre-IPO – Thoughts on Valuations

Kioxia Holdings (285A JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
We have looked at the company’s past performance in our earlier notes. In this note we talk about valuations.

Kioxia (285A JP) IPO: The Bull Case

By Shifara Samsudeen, ACMA, CGMA

Kioxia Holdings (6600 JP) is a leading player in the NAND flash memory market. It will list on 18 December and seek to raise up to US$740 million.
Bain Capital, Toshiba Corp (6502 JP) and Hoya Corp (7741 JP) currently own 56.23%, 40.64% and 3.13% of the voting rights, respectively.
The bull case rests on an attractive market opportunity, a return to revenue growth, margins close to all-time highs, a favourable cash conversion cycle, and modest leverage.

Kioxia IPO: Initial Thoughts on Financials and Valuation

Kioxia Holdings (285A JP) ’s long waited IPO is now live and plans to raise US$700m at a much lower valuation of US$4.8bn vs price paid by Bain 6-years ago.
The company’s IPO is very timely as earnings have almost approached the cycle peak, but margins have continued to trail peers who have a more balanced product portfolio.
Kioxia’s valuation has declined while market sentiment for memory names has also been that great. We will discuss our valuation in a follow-up insight.

Belrise Industries Ltd Pre-IPO Tearsheet

Belrise Industries (9156339Z IN) is planning to raise about US$255m through its upcoming IPO in India. The lead bookrunners for the deal are Axis Capital, HSBC, Jefferies, SBI Capital
Established in 1988, it specializes in safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
As per Crisil report, Belrise held a market share of 24% in the two-wheeler metal components segment in India as of FY24.

Pateo Connect Pre-IPO: Undifferentiated and Unprofitable

By Nicholas Tan

Pateo Connect Technology (PTC HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
It is one of the largest domestic providers of smart cockpit and intelligent connectivity solutions in China, providing full-stack smart cockpit solution and cloud-based vehicle connectivity, for Chinese OEMs.
In this note, we look at the firm’s past performance.

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Nov 28

Daily Brief ECM: HULIC (3003 JP) – Crossholders Show Up with a BIG (Relative) Secondary Offering and more

In today’s briefing:

HULIC (3003 JP) – Crossholders Show Up with a BIG (Relative) Secondary Offering
FineToday Pre-IPO – Peer Comparison and Thoughts on Valuation
Hulic (3033 JP): A US$800 Million Secondary Offering
Hulic Co Placement – US$780m Cross-Shareholding Unwind Is a Large One for the Stock to Digest
Main Fact Checks on the Mix-Up Around Kum Yang’s Rights Offering Rollout
Carraro India Pre-IPO – Strategic Partnerships and Related Party Risks
Talabat Holding IPO Preview
Suraksha Diagnostic IPO: Premium Valuation Limits Near-Term Upside Potential
ServiceTitan IPO Preview: Great Success Story, Leader at Scale In The Trade Industry
Pre-IPO BrainAurora Medical Technology – Weak Growth Prospects Cannot Support High Valuation

HULIC (3003 JP) – Crossholders Show Up with a BIG (Relative) Secondary Offering

By Travis Lundy

Today, Hulic Co Ltd (3003 JP) announced a large secondary offering where about a quarter of the crossholdings will sell down holdings. Some exit entirely. Some partially.
After this selldown, there is a fair bit more to go later, but more of that will be corporate. It’s a BIG offering: 55d of ADV and 55% of MRWF.
It is “only” about $800mm and retail gets 80% of it. The high div yield will be a selling point but there is a lot of debt.

FineToday Pre-IPO – Peer Comparison and Thoughts on Valuation

CVC Capital is aiming to raise over US$500m, via selling some of its stake in FineToday Holdings Co Ltd (289A JP)in Japan.
FineToday (FT) is a beauty and personal care company in Asia offering a range of products, including hair care, skin care and body care products.
In our previous note, we looked at the company’s past performance. In this note, we will undertake a peer comparison.

Hulic (3033 JP): A US$800 Million Secondary Offering

Hulic Co Ltd (3003 JP) has announced a secondary offering of up to 85.4 million shares (98.2 million including overallotment), worth around US$800 million (US$920 million including overallotment).
Unlike the 2021 offer, this is a pure secondary offering. It is smaller in terms of outstanding shares and 1-year ADV. The shares are hovering around all-time highs.
Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 10 and 12 December (likely 10 December).

Hulic Co Placement – US$780m Cross-Shareholding Unwind Is a Large One for the Stock to Digest

A group of domestic financial institutions are looking to raise US$775m from trimming their stakes in Hulic Co Ltd (3003 JP).
The deal will be a large one to digest at 48 days of the stock’s three month ADV, representing 11% of its shares outstanding.
In this note, we will talk about the placement and run the deal through our ECM framework.

Main Fact Checks on the Mix-Up Around Kum Yang’s Rights Offering Rollout

By Sanghyun Park

The FSS’s correction deadline still starts from October 17, giving Kum Yang until January 16 next year to get everything in order.
We should still be all over this, as the major shareholder likely won’t participate, flooding the market with stock rights and unsubscribed shares, creating a prime 25% discount opportunity.
Kum Yang needs even this 200-300 billion KRW, so cancellation seems unlikely. With the FSS deadline on January 16, they’ll likely submit the revised report mid to late next month.

Carraro India Pre-IPO – Strategic Partnerships and Related Party Risks

By Akshat Shah

Carraro India Limited (810618Z IN) is looking to raise about US$216m in its India IPO.
Carraro India Limited (CIL), is an independent tier 1 solution provider of axles, transmission systems and gears for the agricultural tractor and construction vehicle industries in India.
In this note, we talk about the company’s historical performance.

Talabat Holding IPO Preview

By Douglas Kim

Talabat Holding, one of the leading food delivery platforms in the MENA region, is getting ready to complete an IPO in Dubai.
IPO price is between AED 1.50 ($0.41) and AED 1.60 per share. At the high end of IPO price range, Talabat could raise up to AED 7.5 billion (US$2 billion).
The final IPO offer price will be announced on Friday (29 November). This IPO is expected to start trading on 10 December.

Suraksha Diagnostic IPO: Premium Valuation Limits Near-Term Upside Potential

By Tina Banerjee

Suraksha Diagnostic (1481262D IN) offers a one-stop integrated solution for pathology and radiology testing, and medical consultation services in Eastern and North Eastern states of India.
The IPO comprises only an offer for sale of up to 19M equity shares, with no fresh issue. Suraksha Diagnostic has set price band of INR420–441 per share.
The floor price of the IPO reflects fair value of the company and discounts all near-term growth catalyst. We would advise not to subscribe the issue for listing gain.

ServiceTitan IPO Preview: Great Success Story, Leader at Scale In The Trade Industry

By Andrei Zakharov

ServiceTitan, a VC-backed cloud-based software company for the home and commercial service industries, files to go public and may raise up to $500M.
The company serves many trades, including plumbing, HVAC, garage doors, landscaping, pest control, water treatment, heating, construction and others.
ServiceTitan is well positioned as a leader at scale in the trade industry. They currently operate in the United States, Canada and see significant opportunity in international markets.

Pre-IPO BrainAurora Medical Technology – Weak Growth Prospects Cannot Support High Valuation

By Xinyao (Criss) Wang

Although DTx is considered a promising field, the industry is still in the early stages of trial and error development, and there is still a long distance from mature commercialization.
BrainAurora’s revenue YoY growth rate declined significantly. Considering the small revenue scale and slowdown in revenue growth, is it possible for BrainAurora to experience stagnant growth in the near future?
BrainAurora’s products haven’t been widely recognized in China’s hospitals/medical system, nor has it established a solid profit model.High valuation isn’t justified. We doubt if this field could bring good return.

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Nov 27

Daily Brief ECM: Sanrio (8136 JP) Large Secondary Offering – Don’t Say Hello Kitty! Too Soon and more

In today’s briefing:

Sanrio (8136 JP) Large Secondary Offering – Don’t Say Hello Kitty! Too Soon
Sanrio (8136 JP): A US$840 Million Secondary Offering
Sanrio Placement – Opportunistic >US$800m Selling at All-Time Highs
Kioxoa Pre-IPO – The Negatives – Still a Follower of the Cycle
SF Holdings A/H Trading – Strong Demand but Is Probably Close to Fair Value
FineToday Holdings (289A JP) IPO: Valuation Insights
NTPC Green IPO Trading – Lacklustre Demand, Similar to Recent Listings
MNC Solutions Pre-IPO – Thoughts on Valuation – Defensively, Would Ideally like a Further Discount
Aegis Vopak Terminals Pre-IPO Tearsheet

Sanrio (8136 JP) Large Secondary Offering – Don’t Say Hello Kitty! Too Soon

By Travis Lundy

Today, Sanrio (8136 JP) announced a large secondary offering where banks would sell down shares and the Tsuji family would sell a few shares at the margin.
The stock has been on a rocket for two years. It’s expensive. Growth slows next year. Will this cause momentum to turn? Maybe. The offering is 38% of Max RWF.
I think one could give this a pass, and even sell it if it opens down small.

Sanrio (8136 JP): A US$840 Million Secondary Offering

Sanrio (8136 JP) has announced a secondary offering of up to 25.9 million shares (29.8 million including overallotment), worth around US$840 million (US$970 million including overallotment).
Sanrio’s goal with the secondary offering is (i) to reduce cross-shareholdings and (ii) to expand and diversify the shareholder base, which should further enhance liquidity.
Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 10 and 13 December (likely 10 December).

Sanrio Placement – Opportunistic >US$800m Selling at All-Time Highs

A group of domestic financial institutions and the firm’s executives are looking to raise US$840m from trimming their stakes in Sanrio (8136 JP).
While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
In this note, we will talk about the placement and run the deal through our ECM framework.

Kioxoa Pre-IPO – The Negatives – Still a Follower of the Cycle

Kioxia Holdings (6600 JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
In this note, we talk about the not-so-positive aspects of the deal.

SF Holdings A/H Trading – Strong Demand but Is Probably Close to Fair Value

S.F. Holding (002352 CH), China’s largest express delivery company, raised around US$860m in its H-share listing in Hong Kong.
SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
We have covered the company and deal background in our previous notes. In this note, we talk about the trading dynamics.

FineToday Holdings (289A JP) IPO: Valuation Insights

FineToday Holdings Co Ltd (289A JP) is a Japanese personal care business seeking to raise up to US$500 million. It will be listed on 17 December.
We previously discussed the IPO in FineToday Holdings (289A JP) IPO: The Bull Case and FineToday Holdings (289A JP) IPO: The Bear Case.
Our valuation analysis suggests that the IPO reference price of JPY2,150 per share is unattractive. Therefore, we would pass on the IPO.

NTPC Green IPO Trading – Lacklustre Demand, Similar to Recent Listings

NTPC Green Energy Ltd (2214556D IN) raised 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).
We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about the trading dynamics.

MNC Solutions Pre-IPO – Thoughts on Valuation – Defensively, Would Ideally like a Further Discount

MNC Solution (MNC KS) is looking to raise US$200m in its Korea IPO.
MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
In our previous note, we looked at the firm’s past performance and undertook a peer comparison. In this note, we discuss our thoughts on valuation.

Aegis Vopak Terminals Pre-IPO Tearsheet

By Akshat Shah

Aegis Vopak Terminals Ltd (1902844D IN) is looking to raise upto US$415m in its upcoming India IPO. The deal will be run by ICICI, IIFL, Jefferies, HDFC and BNP Paribas.
It is a joint-venture between Aegis Logistics, India’s largest third-party LPG handler and Vopak India BV, part of Royal Vopak, one of world’s leading tank storage companies, according to CRISIL.
AVTL was the largest Indian third-party owner and operator of tank storage terminals for LPG, liquid products in terms of storage capacity, as of June 30, 2024, as per CRISIL.

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Nov 26

Daily Brief ECM: Kansai Electric Power (9503 JP): The Current Playbook and more

In today’s briefing:

Kansai Electric Power (9503 JP): The Current Playbook
Kioxoa Pre-IPO – The Positives – Among the Leaders in Its Space
JST Group Pre-IPO: Growing Rapidly but with Some Accounting Red Flags
MNC Solutions Pre-IPO Peer Comparison – Tiny Player Outgrowing Peers

Kansai Electric Power (9503 JP): The Current Playbook

Since the US$3.5 billion primary/secondary offering announcement, Kansai Electric Power (9503 JP)’s shares have been down 20.6% from the undisturbed price of JPY2,397 per share (13 November).
Looking at recent large Japanese placements is instructive to understand the potential trading pattern. So far, KEPCO’s shares have followed the pattern of previous large placements.
The offering will likely be priced on 26 November. The average large Japanese placement tends to generate positive returns.

Kioxoa Pre-IPO – The Positives – Among the Leaders in Its Space

Kioxia Holdings (6600 JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO
It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
In this note, we talk about the positive aspects of the deal.

JST Group Pre-IPO: Growing Rapidly but with Some Accounting Red Flags

By Nicholas Tan

JST Group (1703609D CH) is looking to raise up to US$100m in its upcoming Hong Kong IPO.
It is China’s largest and most popular e-commerce SaaS ERP provider to facilitate the connection of merchants with over 400 e-commerce platforms in China and across the world.
In this note, we look at the firm’s past performance.

MNC Solutions Pre-IPO Peer Comparison – Tiny Player Outgrowing Peers