ECM Daily Briefs | Page 20 of 127

In today’s briefing:

Swiggy Pre-IPO Early Look – Innovation Leader, Profitability Laggard
Innospace IPO Preview
ICTK IPO Book Building Results Analysis
SK Finance Pre-IPO Tearsheet
Games Global IPO: Strong Profitability and Impressive Portfolios of IGaming Content

Swiggy Pre-IPO Early Look – Innovation Leader, Profitability Laggard

Swiggy aims to raise US$1.25bn in its upcoming India IPO. The company has filed confidentially for its IPO, which is likely to be launched towards the end of the year.
Swiggy, along with Zomato, operates a duopoly that has come to dominate the food delivery market in India. In 1H24, Swiggy serviced over 274,000 restaurants via its 370,000 delivery partners.
In this note, we will take an early look at the company based on the publicly available financials.

Innospace IPO Preview

Innospace is getting ready to complete its IPO in June 2024. According to bankers’ valuation, the implied market cap of Innospace is from 347 billion won to 434 billion won.
Innospace engages in the satellite launch vehicle production and launch service business.
The company estimates its sales to increase from 0.2 billion won in 2023 to 2.0 billion won in 2024, 47.8 billion won in 2025, and 97.2 billion won in 2026.

ICTK IPO Book Building Results Analysis

ICTK reported excellent book building results. ICTK’s IPO price has been determined at 20,000 won, which is 25% higher than the high end of the IPO price range.
ICTK is a security company specializing in Internet of Things (IoT) based on physical copy prevention technology called PUF which is a cutting-edge technology during the chip manufacturing process.
Our base case valuation is implied market cap of 376.8 billion won or target price of 28,694 won, which is 43% higher than the IPO price (20,000 won).

SK Finance Pre-IPO Tearsheet

SK Finance Limited (0893736D IN) is looking to raise US$260m in its upcoming India IPO. The bookrunners on the deal are Kotak, Jefferies, Motilal Oswal, and Nomura.
SK Finance is a non-deposit non-banking finance company middle layer (NBFC ML) operating in two main verticals, vehicle financing and financing for micro, small and medium enterprises (MSMEs).
As per the CRISIL report in the DRHP, the firm was the fastest growing player in the vehicle financing and MSME financing segments based on AUM growth over FY21-23.

Games Global IPO: Strong Profitability and Impressive Portfolios of IGaming Content

By Andrei Zakharov

Games Global, a promising iGaming content provider and B2B online gaming supplier, set terms for its U.S. IPO. The IPO price is expected to be between $16 and $19/share.
With the most recent F-1/A, the company may raise ~$114M at the high end of the range at $19/share. Zinnia Limited sells additional 8.5M shares in this offering.
Games Global has created an impressive portfolios of iGaming content through a series of successful acquisitions, and I see upside potential vs. IPO price of $17.50 at the midpoint.

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May 08

Daily Brief ECM: CaoCao Inc Pre-IPO Tearsheet and more

In today’s briefing:

CaoCao Inc Pre-IPO Tearsheet

CaoCao Inc Pre-IPO Tearsheet

CaoCao Inc (1646553D CH) is looking to raise around US$300m in its upcoming Hong Kong IPO. The bookrunners on the deal are Huatai, ABC International, and GF Securities.
CaoCao Inc (CaoCao) is a ride-hailing firm incubated by the Zhejiang Geely Holding Group (Geely).
According to Frost & Sullivan (F&S), the firm has consistently ranked as the top three ride hailing platforms in China based on gross transaction value (GTV) between 2021-2023.

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May 07

Daily Brief ECM: Lalatech IPO: New Filing Shows March From Losses To Profits Between 2021 and 2023 and more

In today’s briefing:

Lalatech IPO: New Filing Shows March From Losses To Profits Between 2021 and 2023
Aadhar Housing Finance IPO – Larger and Slower, at a Reasonable Discount
Zeekr IPO – Missed Targets and Related Party Deals – We Would Stick to the Bottom-End
HD Hyundai Marine Solution IPO Trading – Strong Demand and Peers Continue to Rise

Lalatech IPO: New Filing Shows March From Losses To Profits Between 2021 and 2023

By Daniel Hellberg

In this insight we show drivers of LalaTech’s +US$1bn turnaround in OpInc
We also evaluate which drivers are likely to generate future improvements
Lalatech won’t repeat incredible 2021-23 CoR, OpEx performances, in our view

Aadhar Housing Finance IPO – Larger and Slower, at a Reasonable Discount

Aadhar Housing Finance (AHF) is now looking to raise around US$360m in its India IPO, via selling a mix of primary and secondary shares.
AHF is focused on the low income housing segments (ticket size less than INR1.5m) in India. It offers a range of mortgage-related loan products.
We have looked at the company’s performance in our past note. In this note, we talk about valuations.

Zeekr IPO – Missed Targets and Related Party Deals – We Would Stick to the Bottom-End

ZEEKR (ZK US), a premium EV brand by Geely Auto (175 HK), aims to raise around US$370m in its US listing.
Zeekr was formed in Mar 2021 as a JV between Geely and its founder. Its first model was launched in Apr 21 with deliveries starting in Oct 21.
We have looked at the company’s past performance in our earlier notes. In this note, we talk about the updates from its recent filings and have a relook at valuations.

HD Hyundai Marine Solution IPO Trading – Strong Demand and Peers Continue to Rise

By Ethan Aw

HD Hyundai Marine Solution (443060 KS) had raised around US$539m in its Korean IPO, after pricing the deal at the top end of KRW83,400/share.
HD Hyundai Marine Solution (HMS from hereon) is a ship aftermarket service provider that provides necessary services throughout a ship’s life cycle after the delivery of a new ship.
In this note, we will talk about the demand for the deal and other trading dynamics.

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May 06

Daily Brief ECM: ZEEKR (ZK US) IPO: Valuation Insights and more

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

By Ethan Aw

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

By Ethan Aw

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