ECM Daily Briefs | Page 20 of 118

In today’s briefing:

Yamae Group Placement – Would Result in a Large Dilution, Although Its Momentum Has Been Strong
MIXUE Group Pre-IPO – The Positives – Leading by a Mile
MIXUE Group Pre-IPO – The Negatives – Declining GMV Share
Pre-IPO Guming Holdings – The Current Market Position Is Not Secure

Yamae Group Placement – Would Result in a Large Dilution, Although Its Momentum Has Been Strong

Yamae Group Holdings (7130 JP) is looking to raise US$115m from a primary follow-on. As per the firm, proceeds will be used to pay down its acquisition-linked debt.
We would argue that the deal is somewhat well flagged given the firm’s track record of acquisitions, with the most recent being Confex Holdings.
That being said, the deal would result in a large dilution for the firm, and would be a large one to digest at 48 days of Yamae’s three month ADV.

MIXUE Group Pre-IPO – The Positives – Leading by a Mile

Mixue Group is looking to raise about US$1bn in its upcoming Hong Kong IPO.
MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
In this note, we talk about the positive aspects of the deal.

MIXUE Group Pre-IPO – The Negatives – Declining GMV Share

Mixue Group is looking to raise about US$1bn in its upcoming Hong Kong IPO.
MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
In this note, we talk about the not-so-positive aspects of the deal.

Pre-IPO Guming Holdings – The Current Market Position Is Not Secure

By Xinyao (Criss) Wang

Guming generates revenue mainly from the sales of goods/equipment to its franchisees (or ToB business). So, Guming’s future growth depends significantly on its ability to operate and expand store network.
China’s freshly-made beverage market is highly competitive. Guming is unlikely to catch up with MIXUE, but Guming will be overtaken by the rest players if it fails to compete effectively.
Due to Guming’s business model, investors’re hard to see the real picture of Guming solely based on its revenue/profits. Guming’s valuation should be higher than Nayuki but lower than MIXUE.

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Jan 17

Daily Brief ECM: Alchip Technologies GDR Offering – Has Been Riding on an Unwavering Momentum over the past Year and more

In today’s briefing:

Alchip Technologies GDR Offering – Has Been Riding on an Unwavering Momentum over the past Year
Hyundai Hyms IPO Bookbuilding Results Analysis
Amer Sports IPO: Valuation First-Look
Citicore Renewable Energy Pre-IPO Tearsheet
Aequitas 2024 Asia IPO Pipeline – US ADRs

Alchip Technologies GDR Offering – Has Been Riding on an Unwavering Momentum over the past Year

Alchip Technologies (3661 TT) is looking to raise US$415m in its GDR offering. As per the firm, the proceeds from the GDR offering will be used to purchase raw materials.
Offering 3.7m GDRs, the deal wouldn’t be a very large one for the firm to digest at just 1.6 days of its three month ADV.
The deal is very well flagged one and momentum on the stock has been very strong.

Hyundai Hyms IPO Bookbuilding Results Analysis

By Douglas Kim

Hyundai Hyms reported excellent IPO bookbuilding results. IPO price has been determined at 7,300 won per share, which is 16% higher than the high end of the IPO price range.
A total of 2,099 institutional investors participated in this IPO book building. The demand ratio was 681 to 1. Hyundai Hyms IPO will start trading on 26 January.
Given the solid upside, we expect investors to push up the share price above the high end of our IPO sensitivity analysis (9,092 won) in the first day of trading.

Amer Sports IPO: Valuation First-Look

Amer Sports (AS US) is a global iconic sports and outdoor brand group. According to press reports, it has filed for a NYSE IPO to raise at least US$1 billion.
We previously discussed the IPO in Amer Sports IPO: The Bull Case and Amer Sports IPO: The Bear Case.
In this note, we present our forecasts and take the first look at Amer’s potential valuation range.

Citicore Renewable Energy Pre-IPO Tearsheet

Citicore Renewable Energy (CREC PM) is looking to raise around US$200m in its upcoming Philippines IPO. The bookrunners on the deal are UBS, and BDO Capital.
Citicore Renewable Energy (CREC) is a pure-play renewable energy platform focused on developing and operating renewable energy projects in the Philippines.
As per Lantau, the firm was the second largest solar energy generator in the Philippines, in terms of installed solar capacity.

Aequitas 2024 Asia IPO Pipeline – US ADRs

In this note, we will look at the Asia Pacific IPO pipeline for 2024, following up with US ADRs, after having looked at HK, India, Japan and Korea earlier.
This list has been compiled on a best effort basis from tracking the company filings and through various other sources
The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

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Jan 16

Daily Brief ECM: Amer Sports Pre-IPO – The Negatives – COVID Rebound and more

In today’s briefing:

Amer Sports Pre-IPO – The Negatives – COVID Rebound, Weak Margins
Medi Assist Healthcare Services IPO – Benefited from the Pandemic, but Marred with Risks
Aequitas 2024 Asia IPO Pipeline – Japan & Korea

Amer Sports Pre-IPO – The Negatives – COVID Rebound, Weak Margins

Amer Sports (AS US) plans to raise more than US$1bn in its US IPO. Proceeds will be used to pay down loans to Anta Sports Products (2020 HK) led consortium.
Amer Sports is a sports and outdoor brands company making clothing and other sporting equipment for use in snow sports, running, climbing, baseball, american football, tennis and other sports.
In this note, we talk about the not-so-positive aspects of the deal.

Medi Assist Healthcare Services IPO – Benefited from the Pandemic, but Marred with Risks

Medi Assist Healthcare Services (0886371D IN) is looking to raise around US$140m in its India IPO.
Medi Assist Healthcare Services (Medi Assist) provides third party administration services to insurance companies via its subsidiaries.
In this note, we will look at the firm’s past performance, and share our thoughts on valuation.

Aequitas 2024 Asia IPO Pipeline – Japan & Korea

In this note, we will look at the Asia Pacific IPO pipeline for 2024, following up with Japan & Korea, after having looked at Hong Kong and India earlier.
This list has been compiled on a best effort basis from tracking the company filings and through various other sources
The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

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Jan 15

Daily Brief ECM: Amer Sports IPO: The Fundamentals and more

In today’s briefing:

Amer Sports IPO: The Fundamentals, and How We See It?
Aequitas ASEAN IPOs + Placements Broker Performance 2023

Amer Sports IPO: The Fundamentals, and How We See It?

By Osbert Tang, CFA

We consider the fundamentals of Amer Sports (AS US) attractive and are positive towards its business outlook. Profitability has surged with solid growth rates in revenue and margin.
Amer’s investment case lies in its multi-brand portfolio, niche, functional, and professional products, margin expansion/profitability improvement, and China growth prospects.
Since the proceeds will be used to repay shareholder loans, this will lower its interest burden and strengthen its financial position. Hence, the IPO should further boost its profitability.

Aequitas ASEAN IPOs + Placements Broker Performance 2023

In this note, we will take a look at broker performance for ASEAN IPOs and placements in 2023.
The following dataset includes all ASEAN IPOs and placements above US$100m, which amounted to a total of 18 deals.
The deals you see in this note are based on our historical IPO and placement tracker. Feel free to drop us a message for additional information.

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Jan 14

Daily Brief ECM: ECM Weekly (14th Jan 2024) – Samsung and more

In today’s briefing:

ECM Weekly (14th Jan 2024) – Samsung, Lasertec, Ayala, Indigo, Amer, IPO Pipeline, 2023 Performance

ECM Weekly (14th Jan 2024) – Samsung, Lasertec, Ayala, Indigo, Amer, IPO Pipeline, 2023 Performance

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 large filings over the holidays is somewhat positive for 2024 prospects.
On the placement front, 2024 picked up where 2023 left off, with Samsung Electronics (005930 KS) leading the way.

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Jan 12

Daily Brief ECM: Aequitas 2024 Asia IPO Pipeline – India and more

In today’s briefing:

Aequitas 2024 Asia IPO Pipeline – India
Ola Electric IPO: Negatives Outweigh the Positives
Zhubajie Pre-IPO Tearsheet
Amer Sports Pre-IPO – The Positives – Great Brands, Strong Growth
Aequitas Korea IPOs + Placements Broker Performance 2023

Aequitas 2024 Asia IPO Pipeline – India

By Shifara Samsudeen, ACMA, CGMA

In this note, we will take a look at the Asia Pacific IPO pipeline for 2024, following up with India after having looked at Hong Kong earlier.
This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

Ola Electric IPO: Negatives Outweigh the Positives

Ola Electric is a vertically integrated pure EV player in India with both technology and manufacturing capabilities for EVs and EV components (including battery packs, motors and vehicle frames).
The company has filed for an IPO to raise US$600m through the sale of new shares making it the first ever EV company to go for an IPO in India.
Though the company’s growth story has been impressive, the sales volume is largely dependent on government subsidies raising concerns over its future prospects.

Zhubajie Pre-IPO Tearsheet

Zhubajie Co Ltd (ZHUHKZ HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The bookrunners on the deal are Citic Securities, and CCB International.
Zhubajie (ZBJ) is a customized enterprise services e-commerce platform in China.
The firm focuses on using technologies to match the service demands of enterprise clients with the skills of service providers, facilitating transactions between its ZBJ platform.

Amer Sports Pre-IPO – The Positives – Great Brands, Strong Growth

Amer Sports (AS US) plans to raise more than US$1bn in its US IPO. Proceeds will be used to pay down loans to Anta Sports Products (2020 HK) led consortium.
Amer Sports is a sports and outdoor brands company making clothing and other sporting equipment for use in snow sports, running, climbing, baseball, american football, tennis and other sports.
In this note, we talk about the positive aspects of the deal.

Aequitas Korea IPOs + Placements Broker Performance 2023

In this note, we will take a look at broker performance for Korea IPOs and placements in 2023.
The following dataset includes all Korean IPOs and placements above US$100m, which amounted to a total of seven deals. Given the small number of deals, we’ll keep the note short.
The deals you see in this note are based on our historical IPO and placement tracker. Feel free to drop us a message for additional information.

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Jan 11

Daily Brief ECM: Samsung Electronics Placement – Somewhat Well Flagged but Could Have Timed It Better and more

In today’s briefing:

Samsung Electronics Placement – Somewhat Well Flagged but Could Have Timed It Better
Lasertec (6920) Accelerated Block Offering – ¥60bn Likely Easily Taken Up
Lasertec Placement – Opportunistic Selldown Will Be Easily Digested by the Market
Aequitas India IPOs + Placements Broker Performance 2023
Aequitas Japan IPOs + Placements Broker Performance 2023
Amer Sports IPO: The Bear Case

Samsung Electronics Placement – Somewhat Well Flagged but Could Have Timed It Better

KEB Hana Bank, on behalf of the Lee family, is looking to raise up to US$1.6bn via selling 0.5% of Samsung Electronics (005930 KS)
The deal appears to be somewhat well flagged, however, the timing could have been much better.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

Lasertec (6920) Accelerated Block Offering – ¥60bn Likely Easily Taken Up

By Travis Lundy

Today after the close, there was word of an Accelerated Block Offering by two banks on Lasertec Corp (6920 JP), selling ¥61+bn or US$425mm of shares.
The Nikkei 225 hit a new 34-year high today, and this caused some tech stocks and high-weights to perform very well vs their peers.
This should cause the deal to get taken up easily. HOWEVER, it pays to know where the stock is. The register isn’t what volume tells you it might be.

Lasertec Placement – Opportunistic Selldown Will Be Easily Digested by the Market

MUFG Bank and Mitsubishi UFJ Trust and Banking are looking to raise around US$425m from selling their respective stakes in Lasertec Corp (6920 JP).
Given the strong momentum on the stock, combined with the wave of shareholders ending their cross-shareholdings in Japan, we would argue that the deal is somewhat expected.
Despite the remaining overhang on the stock, the deal would be easily digested by the market as well, representing just 0.14 days of the firm’s three month ADV.

Aequitas India IPOs + Placements Broker Performance 2023

In this note, we will take a look at broker performance for Indian IPOs and placements in 2023.
The following dataset includes all Indian IPOs and placements above US$100m, which amounted to a total of 66 deals.
The deals you see in this note are based on our historical IPO and placement tracker. Feel free to drop us a message for additional information.

Aequitas Japan IPOs + Placements Broker Performance 2023

In this note, we will take a look at broker performance for Japanese IPOs and placements in 2023.
The following dataset includes all Japanese IPOs and placements above US$100m, which amounted to a total of 32 deals.
The deals you see in this note are based on our historical IPO and placement tracker. Feel free to drop us a message for additional information.

Amer Sports IPO: The Bear Case

Amer Sports (AS US) is a global iconic sports and outdoor brand group. According to press reports, it has filed for a NYSE IPO to raise US$2 billion.
In Amer Sports 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 ball & racquet sports’ deteriorating performance, EBIT margin not materially improving under the consortium’s ownership, cash burn and high leverage.

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Jan 10

Daily Brief ECM: Amer Sports IPO: The Bull Case and more

In today’s briefing:

Amer Sports IPO: The Bull Case
Ayala Corp Placement – While Overhang Will Exist, the Stock’s Momentum Has Been Strong
Aequitas 2024 Asia IPO Pipeline – Hong Kong
Pre-IPO MIXUE Group – The Snow King Opens up a Lot More Room for Imagination than Expected
Guming Holdings (Goodme) Pre-IPO Tearsheet
Brainbees Solutions (FirstCry) Pre-IPO Tearsheet

Amer Sports IPO: The Bull Case

Amer Sports (AS US) is a global iconic sports and outdoor brand group. According to press reports, it has filed for a NYSE IPO to raise US$2 billion.
In 2019, a consortium of Anta Sports Products (2020 HK), FountainVest, Anamered Investments and Tencent (700 HK) acquired Amer at an EV of €5.5 billion.
The bull case rests on the rapid growth and gross margin improvement under the consortium’s ownership, along with technical apparel and outdoor performance’s improving revenue and margin profile.

Ayala Corp Placement – While Overhang Will Exist, the Stock’s Momentum Has Been Strong

Mitsubishi Corp (8058 JP) is looking to raise US$100m via trimming a portion of its stake in Ayala Corporation (AC PM).
Despite being not explicitly well flagged, Mitsubishi had sold before back in Jan 2019, and in Mar 2018. Thus, we would argue that the deal here is somewhat expected.
While the deal would represent 43 days of the stock’s three month ADV, the recent selldowns by Mitsubishi had held up in the first week.

Aequitas 2024 Asia IPO Pipeline – Hong Kong

In this note, we will take a look at the Asia Pacific IPO pipeline for 2024, starting with Hong Kong.
This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

Pre-IPO MIXUE Group – The Snow King Opens up a Lot More Room for Imagination than Expected

By Xinyao (Criss) Wang

The business model of MIXUE is S2B2C. The expansive and highly efficient supply chain is the bedrock of MIXUE’s industry leading performance and scale, setting it apart from its peers.
MIXUE has more flexibility to diversify its business to explore new growth points and is also more resilient to risks/industry changes, which determines sustainability and growth ceiling of future development.
As competition for freshly-made tea drinks industry intensifies, capital has become “impatient”. As an industry leader, now is the best time for an IPO. MIXUE’s valuation could reach US$10 billion.

Guming Holdings (Goodme) Pre-IPO Tearsheet

Guming Holdings (GUM HK) is looking to raise US$300m in its upcoming Hong Kong IPO. The bookrunners on the deal are Goldman Sachs, and UBS.
Guming Holdings (Guming) is a maker of freshly-made beverages in China.
As per CIC, its “Good me” brand is China’s largest mid-priced freshly-made tea store brand in terms of both GMV in 2023 and store count as of Dec 2023.

Brainbees Solutions (FirstCry) Pre-IPO Tearsheet

FirstCry (0172540D IN) seeks to raise up to US$700m in its upcoming India IPO. The deal will be run by Kotak, Morgan Stanley, Bank of America, JM Financial and Avendus.
FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products in terms of GMV, for the year ending Dec 2022 (9M23), according to RedSeer.
In India, FirstCry sells Mothers’, Babies’ and Kids’ products through its online platform, company-owned modern stores, franchisee-owned modern stores and general trade retail distribution.

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Jan 09

Daily Brief ECM: Ola Electric Mobility Pre-IPO Tearsheet and more

In today’s briefing:

Ola Electric Mobility Pre-IPO Tearsheet
Ola Electric IPO: The Bear Case
Aequitas HK IPOs + Placements Broker Performance 2023
Inabata & Co Placement – Should Come as a Surprise
MIXUE Group Pre-IPO Tearsheet
Kerry Logistics Network to Pay Dividend in Form of KEX Shares | SF Holding’s Role & Objectives
Aequitas 2023 IPOs and Placements Performance Review – IPOs Forming a Low Base, Placements Pick Up
Pre-IPO IVF Hospital Management Group – The Industry, the Business and the Risks Behind

Ola Electric Mobility Pre-IPO Tearsheet

Ola Electric (1700674D IN) is looking to raise about US$1bn in its upcoming India IPO. The bookrunners are Kotak, Citigroup, BofA, Goldman Sachs, Axis, ICICI Sec, SBI Caps, BoB Caps.
Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
The firm manufactures EVs and certain core EV components like battery packs, motors and vehicle frames.

Ola Electric IPO: The Bear Case

Ola Electric (1700674D IN), the largest Indian electric two-wheel vehicles (E2W) player, is seeking US$660 million from a primary raise along with a secondary raise at a US$7-8 billion valuation.
In Ola Electric 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 R&D capitalization, ongoing losses, high attrition, declining contract liabilities, cash burn and deteriorating balance sheet.

Aequitas HK IPOs + Placements Broker Performance 2023

In this note, we will take a look at broker performance for HK IPOs and placements in 2023.
The following dataset includes all HK IPOs and placements above US$100m, which amounted to a total of 27 deals.
The deals you see in this note are based on our historical IPO and placement tracker. Feel free to drop us a message for additional information.

Inabata & Co Placement – Should Come as a Surprise

Sumitomo Chemical (4005 JP) and Mizuho Trust & Banking are looking to raise around US$180m through the sale of their stake in Inabata & Co (8098 JP).
The deal is a large one to digest, at 90 days of three month ADV and 15% of current mcap.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

MIXUE Group Pre-IPO Tearsheet

MIXUE Group (1860056D CH) is looking to raise about US$1bn in its upcoming Hong Kong IPO. The bookrunners on the deal are Bank of America, Goldman Sachs, and UBS.
MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
The firm is the largest domestically freshly-made drinks company in terms of number of stores as of Sept 23, and number of cups sold during 9M23, according to CIC.

Kerry Logistics Network to Pay Dividend in Form of KEX Shares | SF Holding’s Role & Objectives

By Daniel Hellberg

Kerry Logistics Network will pay a special dividend in the form of KEX shares
This will trigger a general offer by SF Holding for all KEX shares at THB 5.50
Why is SF Holding doing this, & how could its int’l express business change?

Aequitas 2023 IPOs and Placements Performance Review – IPOs Forming a Low Base, Placements Pick Up

2023 marked our eighth year covering Equity Capital Markets in Asia Pacific. In 2023, IPOs didn’t pick up much from the low base of 2022 while placements showed upward momentum.
We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115 placements.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.

Pre-IPO IVF Hospital Management Group – The Industry, the Business and the Risks Behind

By Xinyao (Criss) Wang

IVF Hospital’s profitability and growth momentum look good at this stage, but the Company is still in early stage of development, with obvious gap with leading players in the industry.
IVF penetration rate in China is not high and the rate of improvement is slow. With public hospitals accounting for over 90% market share, IVF Hospital’s growth space is limited.
Licensing is a big barrier for development, slowing down the pace of nationwide expansion. The “good story” should be based on internationalization, which is actually the weakness of IVF Hospital.

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Jan 08

Daily Brief ECM: Weekly Deals Digest (07 Jan) – Ola Electric and more

In today’s briefing:

Weekly Deals Digest (07 Jan) – Ola Electric, Mixue, Aoki Super, Hollysys, Weiqiao Textile, Vinda
Temu Versus Dollar Tree: More Online & Offline Adventures in Pursuit of Ultra-Cheap Stuff

Weekly Deals Digest (07 Jan) – Ola Electric, Mixue, Aoki Super, Hollysys, Weiqiao Textile, Vinda