ECM Daily Briefs | Page 37 of 118

In today’s briefing:

Weekly Deals Digest (16 Jul) – Socionext, Tryt, IMAX, Shougang Resources, Invocare, Musgrave
Pre-IPO WuXi XDC – The Beautiful Story and the Truth Behind
Guangdong Archealth Health Industry Group Tearsheet

Weekly Deals Digest (16 Jul) – Socionext, Tryt, IMAX, Shougang Resources, Invocare, Musgrave

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 – Tryt Inc (9164 JP), Alibaba (ADR) (BABA US)‘s Cainiao & Cloud Intelligence Group, J&T Global Express (1936374D CH) IPOs & Socionext (6526 JP)‘s secondary placement.
Event-Driven developments – Chindata Group (CD US), IMAX China Holding (1970 HK), Shougang Fushan Resources (639 HK), Invocare Ltd (IVC AU), Musgrave Minerals (MGV AU).

Pre-IPO WuXi XDC – The Beautiful Story and the Truth Behind

By Xinyao (Criss) Wang

Although WuXi XDC has financing needs, we’re more inclined to view this spin-off listing as another capital operation of WuXi AppTec/WuXi Bio, who may not want to take risks alone.
Global ADC/broader bioconjugate market is at a nascent stage of development, with high R&D risks/commercialization uncertainties. We cannot guarantee whether WuXi XDC will maintain its industry-leading position in the future.
Although high growth can bring good stories, we’re not sure how much actual market space WuXi XDC will have in the future,which is the key to determining the valuation ceiling.

Guangdong Archealth Health Industry Group Tearsheet

Guangdong Archealth Health Industry Group (GAHI HK) is looking to raise around US$100m in its upcoming Hong Kong IPO. The bookrunners on the deal are CICC and ABCI.
Guangdong Archealth Health Industry Group (GAHI) is a digital health management provider.
According to F&S, the firm ranked first in the weight management industry and first in the digital weight management industry in China as per 2022 sales.

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Jul 16

Daily Brief ECM: ECM Weekly (16th July 2023) – LG Energy and more

In today’s briefing:

ECM Weekly (16th July 2023) – LG Energy, Socionext, Plus Alpha, Syngenta, Cinema XXI, Genda, Fadu
Unisound AI Technology IPO: Speech Recognition AI Unicorn And Developer of LLM UniGPT

ECM Weekly (16th July 2023) – LG Energy, Socionext, Plus Alpha, Syngenta, Cinema XXI, Genda, Fadu

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
In the IPO space, HK IPOs appear to be coming back to life with some deals managing to perform this week.
For placements, Socionext (6526 JP) and Plus Alpha Consulting (4071 JP) were joined by LG Energy Solution (373220 KS) and Patanjali Foods (PATANJAL IN) in a relatively busy week.

Unisound AI Technology IPO: Speech Recognition AI Unicorn And Developer of LLM UniGPT

By Andrei Zakharov

Founded in 2012, Unisound AI Technology is a Beijing-based pioneer in Artificial General Intelligence (AGI). The company offers easy-to-deploy AI products and solutions in China.
Unisound AI Technology seeks to raise capital for R&D activities, international expansion, and general working capital purposes. The company chose CICC and Haitong to tap capital markets with HK IPO.
I like growing brand recognition, in-house 60B-parameter LLM UniGPT, high growth in the Smart Life segment, and the opportunity to sell self-developed proprietary AI chips in China.

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Jul 15

Daily Brief ECM: ALT Co IPO Bookbuilding Results Analysis and more

In today’s briefing:

ALT Co IPO Bookbuilding Results Analysis

ALT Co IPO Bookbuilding Results Analysis

By Douglas Kim

ALT’s IPO price has been determined a 25,000 won, which is 22% higher than the high end of the IPO price range.
A total of 1,937 institutional investors participated in the IPO offering with a competition demand ratio of 1,836 to 1.
Our base case valuation of ALT is market cap of 299 billion won or 33,365 won per share, which represents 33% higher than the IPO price range of 25,000 won.

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Jul 14

Daily Brief ECM: Patanjali Foods FPO – Very Well Flagged with a Decent Discount and more

In today’s briefing:

Patanjali Foods FPO – Very Well Flagged with a Decent Discount
TRYT IPO: Valuation Updates
Genda IPO – Has Weathered the Pandemic Better, Although Sector Doesn’t Seem to Be Growing Much
Autostreets Development Pre-IPO Tearsheet

Patanjali Foods FPO – Very Well Flagged with a Decent Discount

By Shifara Samsudeen, ACMA, CGMA

The promoters of Patanjali Foods aim to sell up to 9% of the company via an FPO.
The sale is being done so as to increase the firm’s public shareholding to the minimum required 25% imposed by SEBI.
We have looked at the background of the deal in our earlier note, in this note we talk about the recent update and run the deal through our ECM framework.

TRYT IPO: Valuation Updates

TRYT has priced its IPO at ¥1,200 per share, at the midpoint of the indicative IPO price range, at a market capitalisation and post-money EV of ¥120bn and ¥151.6bn respectively.
In our previous insight, we compared the company’s implied trailing multiples with peer trailing multiples and concluded that TRYT’s IPO is overvalued at the above price range.
In this insight, we have discussed our forecasts for Tryt Inc (9164 JP) and updated our valuation for the company.

Genda IPO – Has Weathered the Pandemic Better, Although Sector Doesn’t Seem to Be Growing Much

Genda Inc (9166 JP) is looking to raise around US$100m in its Japan IPO.
Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.
In this note, we will undertake a peer comparison, share our earnings assumptions and discuss our thoughts on valuation.

Autostreets Development Pre-IPO Tearsheet

Autostreets Development (AUTOSTR0 CH) is looking to raise at least US$100m in its upcoming HK IPO. The deal will be run by Citic Securities and Haitong International.
Autostreets Development is China’s largest used vehicle transaction platform in terms of transaction volume in 2022, according to CIC.
In 2022, approximately 160,000 units of used vehicles were transacted through its transaction platform, with a market share of 12.6% among China’s used vehicle transaction platforms, as per the company.

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Jul 13

Daily Brief ECM: Genda IPO – Dreams of Reviving the Domestic Arcade Industry with a Roadmap of Doing so as Well and more

In today’s briefing:

Genda IPO – Dreams of Reviving the Domestic Arcade Industry with a Roadmap of Doing so as Well
Fadu IPO – Thoughts on Valuation
Nusantara Sejahtera Raya (Cinema XXI) IPO – Peer Comparison
Nusantara Sejahtera Raya (Cinema XXI) IPO – Thoughts on Valuation
Pre-IPO InSilico Medicine – AI Pharmaceutical Is Immature; Valuation Expansion Relies on Imagination

Genda IPO – Dreams of Reviving the Domestic Arcade Industry with a Roadmap of Doing so as Well

Genda Inc (9166 JP) is looking to raise around US$100m in its Japan IPO.
Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.
As of Apr 23, the firm operated 250 amusement facilities domestically and four facilities in Taiwan.

Fadu IPO – Thoughts on Valuation

Fadu (440110 KS) is looking to raise up to US$147m in its Korean IPO.
Fadu is a South Korean fabless semiconductor maker mainly engaged in flash storage technology innovation. Its core products are Enterprise Solid State Drive (SSD) and Enterprise SSDs.
In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.

Nusantara Sejahtera Raya (Cinema XXI) IPO – Peer Comparison

Cinema XXI (CINEMA IJ) aims to raise up to US$160m in its Indonesia IPO.
Cinema XXI is a premium theatrical exhibition, F&B and experience company. It is the largest cinema chain operator in Indonesia.
We have looked at the company’s past performance in our earlier notes. In this note, we will undertake a peer comparison.

Nusantara Sejahtera Raya (Cinema XXI) IPO – Thoughts on Valuation

Cinema XXI (CINEMA IJ) aims to raise up to US$160m in its Indonesia IPO.
Cinema XXI is a premium theatrical exhibition, F&B and experience company. It is the largest cinema chain operator in Indonesia.
We have looked at the company’s past performance and undertaken a peer comparison in our earlier notes. In this note, we talk about valuations.

Pre-IPO InSilico Medicine – AI Pharmaceutical Is Immature; Valuation Expansion Relies on Imagination

By Xinyao (Criss) Wang

InSilico ’s business model is more of AI-CXO + AI-SaaS, but hasn’t reached the stage of AI-biotech, considering its current revenue streams, which may lead to InSilico ultimately changing its positioning.
The significance of pipeline lies in the need for InSilico to verify the effectiveness of AI platforms/algorithms/technology through successful product launch. However, valuation of InSilico could be different from biotech.
AI pharmaceutical industry is at its infancy, which is a far cry from current levels of investment and expectations in the sector.We advise investors to be rational about this field.

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Jul 12

Daily Brief ECM: Nusantara Sejahtera Raya (Cinema XXI) IPO – The Positive – High Market Share and more

In today’s briefing:

Nusantara Sejahtera Raya (Cinema XXI) IPO – The Positive – High Market Share, Steady Recovery
Utkarsh Small Finance Bank IPO- Forensic Analysis
Fadu Pre-IPO – Peer Comparison – Hardly Comparable in Scale to Its Peers
J&T Global Express Pre-IPO, Part 3: ‘New Markets’ & X-Border | Our Initial EV Estimate Is US$8.6 Bn
Nusantara Sejahtera Raya (Cinema XXI) IPO – The Negatives – Private Placement, Not a Primary Raising
Syngenta Pre-IPO – The Negatives – Margins Remain Razor Thin and Parent on Sanction List

Nusantara Sejahtera Raya (Cinema XXI) IPO – The Positive – High Market Share, Steady Recovery

Nusantara Sejahtera Raya (Cinema XXI) aims to raise up to US$160m in its Indonesia IPO.
Cinema XXI is a premium theatrical exhibition, F&B and experience company. It is the largest cinema chain operator in Indonesia.
In this note, we talk about the positive aspects of the deal.

Utkarsh Small Finance Bank IPO- Forensic Analysis

By Nitin Mangal

Utkarsh Small Finance Bank (1639303D IN) IPO opens for subscription this week.
The company currently is fifth largest SFB in India and has demonstrated robust growth in loan portfolio, deposits and improved productivity in the last two years.
However, one must be cautious of the write offs worth INR 6 bn done in the last two years which benefitted the NPAs

Fadu Pre-IPO – Peer Comparison – Hardly Comparable in Scale to Its Peers

Fadu (440110 KS) is looking to raise up to US$147m in its Korean IPO.
Fadu is a South Korean fabless semiconductor maker mainly engaged in flash storage technology innovation. Its core products are Enterprise Solid State Drive (SSD) and Enterprise SSDs.
In our previous notes, we looked at the company’s past performance. In this note, we talk about peer comparison.

J&T Global Express Pre-IPO, Part 3: ‘New Markets’ & X-Border | Our Initial EV Estimate Is US$8.6 Bn

By Daniel Hellberg

After analyzing J&T’s Chinese and SE Asian operations in previous insights, in this note we turn to the company’s ‘Others’ segment, made up of New Markets and X-Border logistics
Compared to China and SE Asia, J&T’s New Markets and X-Border logistics business lines are small (just 11% of 2022 Revenue) but could offer attractive growth in the medium-term
We conclude this insight with a preliminary sum-of-parts valuation of J&T as a whole. Based on available information, our initial estimate of J&T’s EV is US$8.6 bn (pre-IPO)

Nusantara Sejahtera Raya (Cinema XXI) IPO – The Negatives – Private Placement, Not a Primary Raising

Cinema XXI (CINEMA IJ) aims to raise up to US$160m in its Indonesia IPO.
Cinema XXI is a premium theatrical exhibition, F&B and experience company. It is the largest cinema chain operator in Indonesia.
In this note, we talk about the not-so-positive aspects of the deal.

Syngenta Pre-IPO – The Negatives – Margins Remain Razor Thin and Parent on Sanction List

Syngenta Group (1844795D CH) is looking to raise around US$9.2bn in its upcoming China A-share IPO.
Syngenta Group (Syngenta) is one of the largest agricultural firms globally, developing, producing and commercializing a portfolio of crop protection, seeds, crop nutrition products.
In this note, we will talk about the not so positive aspects of the deal.

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Jul 11

Daily Brief ECM: Socionext (6526 JP): The Current Playbook and more

In today’s briefing:

Socionext (6526 JP): The Current Playbook
Kelun-Biotech (科伦博泰) IPO Trading: Lukewarm Demand but Peers Have Done Well Recently
PhilEnergy IPO: Trading Strategy on the First Day of Trading
Oddity Tech IPO Valuation Analysis: Growth and Profitability, Solid Upside With Limited Risk
Pre-IPO HighTide Therapeutics – Its Outlook in NASH Field Is Not Optimistic, with High Risks
Syngenta Pre-IPO – The Positives – Giant in the Agriculture Industry Set to Benefit from Policies
Unisound AI Technology Pre-IPO Tearsheet

Socionext (6526 JP): The Current Playbook

By Arun George

Since the announcement of the US$1.9 billion secondary placement, Socionext (6526 JP)’s shares are down -25.0% from the undisturbed price of JPY21,950 per share (5 July).
So far, Socionext’s shares have mostly followed the pattern of previous large placements. Investors participating in previous large Japanese placements tend to secure positive returns.
The offering will likely be priced on 11 July. Due to the steep share price decline, Socionext is trading at an undemanding multiple compared to global SoC peers.

Kelun-Biotech (科伦博泰) IPO Trading: Lukewarm Demand but Peers Have Done Well Recently

By Ke Yan, CFA, FRM

Kelun-Biotech raised HKD 1,259m (USD 161m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, July 10th.
In our previous note, we looked at the company’s business lines of ADC products. We were of the view that the IPO is fairly priced, at best.
In this note, we provide an update for the IPO before trading debut.

PhilEnergy IPO: Trading Strategy on the First Day of Trading

By Douglas Kim

PhilEnergy IPO will start trading this Friday on 14 July. We believe that PhilEnergy’s share price will surge higher on the first day of trading.
We believe PhilEnergy’s shares could OVERSHOOT by more than 200% versus the IPO price on the first day of trading, which would be more than 102,00 won or more.
Our trading strategy on PhilEnergy on the first day of trading would be to take partial profits (30-50%) if its price overshoots higher (by 200% or more than IPO price).

Oddity Tech IPO Valuation Analysis: Growth and Profitability, Solid Upside With Limited Risk

By Andrei Zakharov

Oddity Tech, the owner of popular and fastest-growing global brands IL MAKIAGE and SpoiledChild, set terms for an upcoming IPO. The company offers ~10.5M Class A shares.
Selling shareholders (private equity firm L. Catterton and Oran Holtzman, Co-founder & CEO) offer ~8.77M Class A shares, while Oddity Tech offers ~1.75M Class A shares.
The net proceeds from the sale of Class A shares will be ~$41M. Oddity Tech will not receive any proceeds from the sale of shares by the selling shareholders.

Pre-IPO HighTide Therapeutics – Its Outlook in NASH Field Is Not Optimistic, with High Risks

By Xinyao (Criss) Wang

The mechanism of NASH has not yet been accurately determined. Among the major players, FDA has postponed the approval of OCA (FXR) for NASH. THR-β is currently the most promising.
HighTide claims that HTD1801 is able to achieve the goal of improving effectiveness and reducing toxicity. However, HTD1801 hasn’t reached pathological endpoints. We’ll have to wait for future clinical data.
This Company actually has high risk due to cash shortage and uncertain R&D progress, which could lead to lower-than-expected stock price performance. We are conservative about HighTide based on analysis.

Syngenta Pre-IPO – The Positives – Giant in the Agriculture Industry Set to Benefit from Policies

Syngenta Group (1844795D CH) is looking to raise around US$9.2bn in its upcoming China A-share IPO.
Syngenta Group (Syngenta) is one of the largest agricultural firms globally, developing, producing and commercializing a portfolio of crop protection, seeds, crop nutrition products.
In this note, we will talk about the positive aspects of the deal.

Unisound AI Technology Pre-IPO Tearsheet

Unisound AI Technology (1053075D CH) is looking to raise at least US$300m in its upcoming HK IPO. The deal will be run by CICC and Haitong International.
The firm offers AI solutions centered around its computing cluster, scheduling computing power for machine learning tasks. It provides support to the development, optimization and commercialization of frontier AI models.
Its computing cluster currently harbors a computing power of over 200 peta floating point operations per second (PFLOPS), and a storage capacity of over 1.6 petabytes (PB).

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Jul 10

Daily Brief ECM: Weekly Deals Digest (09 Jul) – Socionext and more

In today’s briefing:

Weekly Deals Digest (09 Jul) – Socionext, Tryt, Costa, Musgrave, United Malt, Yachiyo, Metro Pacific
Plus Alpha Consulting Placement – Pulling Out All Stops for Deal Success as Insiders Are Selling
Xiamen International Investment Pre-IPO Tearsheet

Weekly Deals Digest (09 Jul) – Socionext, Tryt, Costa, Musgrave, United Malt, Yachiyo, Metro Pacific

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 – Tryt Inc (9164 JP), Alibaba (ADR) (BABA US)‘s Cainiao & Cloud Intelligence Group, J&T Global Express (1936374D CH) IPOs & Socionext (6526 JP)‘s secondary placement.
Event-Driven developments – Costa Group Holdings (CGC AU), Musgrave Minerals (MGV AU), Yachiyo Industry (7298 JP), Metro Pacific Investments Co (MPI PM), Healthway Medical Corp (HMED SP).

Plus Alpha Consulting Placement – Pulling Out All Stops for Deal Success as Insiders Are Selling

Three shareholders of Plus Alpha Consulting (4071 JP) (PAC) aim to raise around US$230m via selling over 26% of the company.
PAC was listed in 2021 and after a somewhat tepid initial performance it has been doing well over the past year.
In this note, we talk about the deal dynamics and run the deal through our ECM framework

Xiamen International Investment Pre-IPO Tearsheet

Xiamen International Investment (1567256D HK) is looking to raise up to US$1.3bn in its upcoming HK IPO. The deal will be run by CICC, Citic Securities, Huatai and Industrial Securities.
Xiamen International Investment (XII) is an integrated financial services group based in China’s Greater Bay Area.
The Group has two commercial banks headquartered in Hong Kong and Macau, respectively and operates through its two banks Chiyu Banking Corporation (CYB) and Luso International Banking (LIB).

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Jul 09

Daily Brief ECM: ALT Co IPO Valuation Analysis and more

In today’s briefing:

ALT Co IPO Valuation Analysis
ECM Weekly (9th July 2023) – Socionext, Yongtai, Tryt, Redox, S.F. Holding, Lalatech, Fadu, Amman

ALT Co IPO Valuation Analysis

By Douglas Kim

Our base case valuation of ALT is 33,365 won per share, which represents 63% higher than the high end of the IPO price range of 20,500 won.
We estimate the company to generate sales of 69.7 billion won (up 57.3% YoY) in 2023 and 92.2 billion won (up 32.3% YoY) in 2024.
ALT’s main business is in the testing of non-memory semiconductor value chain products including Display Drive IC, CMOS image sensor, and Power Management IC.

ECM Weekly (9th July 2023) – Socionext, Yongtai, Tryt, Redox, S.F. Holding, Lalatech, Fadu, Amman

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
In the IPO space, Tryt Inc (9164 JP) announced a somewhat reasonable pricing range, while Fadu (440110 KS) looks to open up the Korean market for larger IPOs again.
On the placement front, Socionext (6526 JP) found itself in the eye of a storm after its stupendous 6x increase since listing.

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Jul 08

Daily Brief ECM: Black Sesame Pre-IPO: Earnings Show Strong Potential and more