ECM Daily Briefs | Page 48 of 118

In today’s briefing:

Harita Nickel IPO – The Negatives – Reliant on JVs and with Lygend Group. Market Is About to Shift
DPC Dash IPO – Might Be Worth a Small Slice
Trial Holdings IPO: Valuation Insights
Blue Jet Healthcare Pre-IPO – Marquee Clients but Inconsistent Growth and Margins
Harita Nickel IPO: The Bull Case
DPC Dash IPO Valuation: Looks Expensive Cf. Yum China & Dominos Master Franchisees in Other Regions
Kelsian Group Placement – Yet Another Acquisition to Add to Its Arsenal
ZKH IPO: Neither Good nor Bad

Harita Nickel IPO – The Negatives – Reliant on JVs and with Lygend Group. Market Is About to Shift

PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ) is looking to raise about US$650m in its Indonesian IPO.
PT Trimegah Bangun Persada Tbk (Harita Nickel, HN) is a vertically integrated pure-play nickel company operating on Obi Island, Indonesia.
In this note, we will talk about the not so positive aspects of the deal.

DPC Dash IPO – Might Be Worth a Small Slice

DPC Dash (1405 HK) is now looking to raise up to US$90m, after having shelved its last attempt to raise around US$75m in its Hong Kong IPO in December.
The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 604 stores across 17 cities, as of Feb 2023.
In this note, we run the deal through our ECM framework and talk about valuations.

Trial Holdings IPO: Valuation Insights

Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$380 million at the IPO reference price of JPY2,000. Pricing on 26 March.
We previously discussed the IPO in Trial Holdings IPO: The Bull Case and Trial Holdings IPO: The Bear Case.
In this note, we discuss valuation. Our analysis suggests that Trial is attractively valued at the IPO reference price of JPY2,000. We would participate in the IPO.

Blue Jet Healthcare Pre-IPO – Marquee Clients but Inconsistent Growth and Margins

Blue Jet Healthcare Ltd (BJHC IN) is looking to raise about US$300m in its upcoming India IPO.
Blue Jet Healthcare (BJH) is a specialty pharmaceutical and healthcare ingredient and intermediate company, offering niche products targeted toward innovator pharmaceutical companies and multinational generic pharmaceutical companies.
In this note, we look at the company’s past performance.

Harita Nickel IPO: The Bull Case

PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ), an Indonesian nickel play, has launched an IDX IPO to raise US$650 million. Book building ends on 21 March.
Harita is expected to become Indonesia’s largest pure nickel producer based on volume expectations of Harita’s nickel mining production in 2022.
The key elements of the bull case rest on good underlying revenue growth, near-term capacity expansion, high profitability, capex nearing the peak and manageable leverage.

DPC Dash IPO Valuation: Looks Expensive Cf. Yum China & Dominos Master Franchisees in Other Regions

By Oshadhi Kumarasiri

The exclusive master franchisee of Domino’s Pizza in mainland China, Hong Kong and Macau, DPC Dash’s IPO opened for subscriptions today at a price range of HK$ 46.0-55.0 per share.
The IPO valuation is not particularly enticing to lure us as we don’t think it’s at a sufficient discount to Yum China Holdings Inc (9987 HK)’s multiples.
DPC Dash (1405 HK) is also relatively more expensive than Domino’s Pizza (DPZ US) master franchisees in other regions.

Kelsian Group Placement – Yet Another Acquisition to Add to Its Arsenal

By Shifara Samsudeen, ACMA, CGMA

Kelsian Group (KLS AU) aims to raise around US$90m (A$135m) via an institutional placement. Together with the placement, the company will also undertake a US$95m (A$143m) non-renounceable entitlement offer.
The issuance of new shares will be a large one for the firm to digest, representing 150.6 days of three month ADV and 20.3% of current mcap.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

ZKH IPO: Neither Good nor Bad

ZKH Group (ZKH US) is a leading MRO procurement service platform in China offering digital and fulfilment solutions for participants in the industry value chain.
The company has filed for an IPO to list its shares in the US and plans to raise about US$200-300m through the IPO.
Having analyzed the limited information available, we are indifferent on ZKH’s operating performance and would only recommend if shares are priced attractively

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Mar 16

Daily Brief ECM: Harita Nickel IPO – The Positives – Earnings Staged a Recovery in Recent Periods and more

In today’s briefing:

Harita Nickel IPO – The Positives – Earnings Staged a Recovery in Recent Periods
Trial Holdings IPO: The Bear Case
Pre-IPO Shanghai Duoning Biotechnology – The Industry, the Business and the Concerns
W.W. Grainger Inc.: Initiation of Coverage – Business Strategy & Key Drivers
Rockwell Automation Inc.: Initiation of Coverage – Logix & Other Innovations
Advance Auto Parts Inc.: Initiation of Coverage – Business Strategy & Key Drivers
Tata Technologies Pre-IPO Tearsheet

Harita Nickel IPO – The Positives – Earnings Staged a Recovery in Recent Periods

PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ) is looking to raise about US$650m in its Indonesian IPO.
PT Trimegah Bangun Persada Tbk (Harita Nickel, HN) is a vertically integrated pure-play nickel company operating on Obi Island, Indonesia.
In this note, we will talk about the positive aspects of the deal.

Trial Holdings IPO: The Bear Case

Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$380 million at the IPO reference price of JPY2,000. Pricing on 26 March.
In Trial Holdings IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The key elements of the bear case rest on bottom quartile gross and operating margin, mid-tier FCF generation and unusual cash collection cycle.

Pre-IPO Shanghai Duoning Biotechnology – The Industry, the Business and the Concerns

By Xinyao (Criss) Wang

The logic of Duoning’s business layout is that self-produced upstream products reduce the cost and increase customer stickiness, then lock in the purchase of future customers from the source.
Although lagging behind imported enterprises in product performance, the upstream production cost control is one of the driving forces for the localization of pharmaceutical supply chain. Duoning has growth potential.
A slow-down or reversal of trend related to life sciences industry growth could have an adverse effect on Duoning’s business. Overseas sanctions and policy risks are also the concerns.

W.W. Grainger Inc.: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on W.W.
Grainger, Inc., a global distributor of MRO materials and other related products and services.
The company delivered an all-around beat for the final quarter of 2022 with a sales growth was 13.2% or 17.2% on a daily constant currency basis and solid growth in both segments.

Rockwell Automation Inc.: Initiation of Coverage – Logix & Other Innovations

This is our first report on Rockwell Automation, a major provider of digital transformation and industrial automation solutions across the globe.
Rockwell Automation produced an all-around beat in its last result as organic sales and earnings both exceeded market expectations and increased year over year.
In a very dynamic supply chain environment, organic sales were 10% higher than they had been the previous year.

Advance Auto Parts Inc.: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on Advance Auto Parts, a leading provider of automotive aftermarket parts in the U.S.
Advance Auto Parts had a difficult year in 2022 though it did manage to improve its top-line results in the fourth quarter and managed an all-around beat.
Mid-single-digit comp sales growth in DIY multichannel dominated the fourth quarter.

Tata Technologies Pre-IPO Tearsheet

Tata Technologies (TATATECH IN) is looking to raise about US$600m in its upcoming India IPO. The deal will be run by Bank of America, Citigroup and JM Financial.
Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers.
It has deep domain expertise in the automotive industry and serves clients in adjacent industries, such as aerospace, transportation and construction heavy machinery (TCHM), according to the company.

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Mar 15

Daily Brief ECM: SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off and more

In today’s briefing:

SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off
Trial Holdings IPO: The Bull Case
ZKH Group Pre-IPO – If Only Its Growth Was Sustainable
Trial Holdings Pre-IPO – The Negatives – Wafer-Thin Margins
Adicon Holdings Pre-IPO Tearsheet
DISH Network Corporation: Initiation of Coverage – Potential DirecTV Merger & Other Developments
WestRock Company: Initiation of Coverage – Business Strategy & Key Drivers

SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off

SBI Sumishin Net Bank (7163 JP) has introduced a price range of JPY1,200-1,260 per share in the wake of a sell-off in bank shares. Offer shares and timelines are unchanged.
We previously discussed the IPO in SBI Sumishin Net Bank IPO: The Investment Case and SBI Sumishin Net Bank IPO: Valuation Insights. The shares will be listed on 29 March.
Our analysis suggests that SBI Sumishin Net Bank is fairly valued at the new IPO price range. We would participate in the IPO.

Trial Holdings IPO: The Bull Case

Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$380 million at the IPO reference price of JPY2,000. Pricing on 26 March.
Trial aims to act as a one-stop shopping store where a consumer can buy whatever they want at a great price. Trial’s basic pricing strategy is Every Day Low Price.
The key elements of the bull case rest on top quartile revenue growth, encouraging same-store sales growth, solid margin profile and cash generation.

ZKH Group Pre-IPO – If Only Its Growth Was Sustainable

ZKH Group (ZKH US) is looking to raise about US$300m in its upcoming US IPO.
ZKH Group is a leading maintenance repair and operations (MRO) procurement service platform in China, according to CIC, providing one-stop MRO procurement and management services and digital and fulfillment solutions.
ZKH Group’s revenue has been primarily driven by its product sales segment during the track record period. However, its GMV growth slowed dramatically and its sales growth doesn’t appear sustainable.

Trial Holdings Pre-IPO – The Negatives – Wafer-Thin Margins

Trial Holdings (5882 JP) is looking to raise around US$375m in its Japan IPO.
TH operates a network of retail stores that offer one-stop shopping under its everyday low price model, across a variety of daily necessities, food items and other products.
In this note, we will talk about the not-so-positive aspects of the deal.

Adicon Holdings Pre-IPO Tearsheet

ADICON Holdings Limited (ADI HK) is looking to raise about US$400m in its upcoming HK IPO. The deal will be run by Morgan Stanley and CICC.
Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&S.
It offers comprehensive testing services primarily to hospitals and health check centers through an integrated network of self-operated laboratories across China.

DISH Network Corporation: Initiation of Coverage – Potential DirecTV Merger & Other Developments

This is our first report on DISH Network Corporation, a leading provider of television entertainment and technology.
DISH’s wireless and broadband networks, as well as DISH and Sling services, are still up and running and functioning regularly.
DISH Network further launched Samsung-supported sites for the DISH Wireless 5G network, kicking off Samsung’s participation in the operator’s nationwide rollout.

WestRock Company: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on WestRock Company, one of the largest providers of fiber-based paper and packaging solutions in the world.
Pension and foreign exchange rates also had a $57 million negative impact on its year-over-year consolidated adjusted EBITDA growth.
But Corrugated Packaging improved quarter over quarter, with North American packaging shipments increasing 2% to 373 million square feet per day.

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Mar 14

Daily Brief ECM: Japan Post Bank (7182 JP): JPY1 and more

In today’s briefing:

Japan Post Bank (7182 JP): JPY1,131 Offer Price; Updated Playbook
SBI Sumishin Net Bank IPO – It Was All Good, till Friday
Sona Blw Precision Placement – US$585m Clean-Up Sale by Blackstone Will Lift the Overhang
ZKH Group IPO: The Bull Case
FMC Corporation: Initiation of Coverage – Business Strategy & Key Drivers
DaVita Inc.: Initiation of Coverage – Strong Value Proposition & Key Drivers
Parker-Hannifin Corporation: Initiation of Coverage – The Meggitt Synergies & Other Drivers
CF Industries Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers
Centene Corporation: Initiation of Coverage – Recent Restructuring & Other Drivers
Trial Holdings Pre-IPO – The Positives – Steady past Performance with an Expanding Footprint

Japan Post Bank (7182 JP): JPY1,131 Offer Price; Updated Playbook

Japan Post Bank (7182 JP) priced its offer at JPY1,131, a discount of 2.1% to the last close. JPB’s on-market buyback period runs from 22 March to 12 May.
Japan Post Holdings (6178 JP)/ JPH’s 2021 offering suggests that the share price will have support to trade above the offer price at delivery date and the on-market buyback period.
The offer price’s forward P/B of 0.45x and yield of 4.42% are attractive vs peers. JPB’s price ratio at the offer price is undemanding vs TOPIX Banks ETF and JPH.

SBI Sumishin Net Bank IPO – It Was All Good, till Friday

SBI Sumishin Net Bank (7163 JP) (SSNB) is looking to raise around US$390m in its second listing attempt.
SBI Sumishin Net Bank is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group.
In this note, we talk about implied valuations in the IPO price range

Sona Blw Precision Placement – US$585m Clean-Up Sale by Blackstone Will Lift the Overhang

Singapore VII Topco III (Blackstone-affiliate) is looking to raise at least US$585m in its stake sale of Sona BLW Precision Forgings (SONACOMS IN) .
The share sale is a clean-up one and will lift the overhang on the stock.
The block is marketed at a floor price of INR400/share, at a 8.3% discount to last close.

ZKH Group IPO: The Bull Case

ZKH Group (ZKH US), a leading MRO (maintenance, repair, and operations) procurement service platform in China, is pre-marketing an NYSE IPO to raise US$200-300 million.
The ZKH platform is for enterprise customers and the GBB platform is for micro businesses. Key backers include Tencent (700 HK) and Tiger Global.
The key elements of the bull case rest on large addressable markets, solid customer loyalty, improving gross margin, lower operating losses and a strong balance sheet.

FMC Corporation: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on FMC Corporation, a major agricultural sciences company in the U.S.
FMC achieved significant results in the quarter because of high volume growth and aggressive pricing and it managed to deliver an all-around beat.
Its new product sales are growing quickly, nearly doubling year over year, accounting for 11% of overall sales in the quarter.

DaVita Inc.: Initiation of Coverage – Strong Value Proposition & Key Drivers

This is our first report on major healthcare provider, DaVita.
DaVita produced an adjusted operating income of $317 million and adjusted profits per share from continuing operations of $1.11 for the fourth quarter, bringing the entire year squarely at the top of the revised target range it provided last quarter.
During the previous quarter, the international adjusted operating income fell by $15 million.

Parker-Hannifin Corporation: Initiation of Coverage – The Meggitt Synergies & Other Drivers

This is our first report on Parker-Hannifin Corporation, a global leader in motion and control technologies.
Parker-Hannifin delivered strong operating performance throughout the second quarter of the current fiscal and delivered an all-around beat.
We initiate coverage on the stock of Parker-Hannifin Corporation with a ‘Hold’ rating.

CF Industries Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on one of the largest producers of nitrogen products in the world – CF Industries.
CF’s overall performance was fairly good against the backdrop of a continually tight global supply-demand balance for nitrogen.
We initiate coverage on the stock of CF Industries with an ‘Outperform’ rating.

Centene Corporation: Initiation of Coverage – Recent Restructuring & Other Drivers

This is our first report on Centene Corporation, one of the largest health insurance players in the U.S.
Centene had a successful year in 2022 and ended it on a positive note with an all-around beat.
Total revenue grew by $3 billion, driven by strong organic growth in Medicaid, strong growth in Medicare membership, and the acquisition of Magellan.

Trial Holdings Pre-IPO – The Positives – Steady past Performance with an Expanding Footprint

Trial Holdings (5882 JP)‘s is looking to raise around US$375m in its Japan IPO.
TH operates a network of retail stores that offer one-stop shopping under its everyday low price model, across a variety of daily necessities, food items and other products.
In this note, we will talk about the positive aspects of the deal.

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Mar 13

Daily Brief ECM: Weekly Deals Digest (12 Mar) – Japan Post Bank and more

In today’s briefing:

Weekly Deals Digest (12 Mar) – Japan Post Bank, SBI Sumishin, ASMPT, Oishi, InvoCare, Olam

Weekly Deals Digest (12 Mar) – Japan Post Bank, SBI Sumishin, ASMPT, Oishi, InvoCare, Olam

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 – Japan Post Holdings (6178 JP)‘s large offering of Japan Post Bank (7182 JP)‘s shares, SBI Sumishin Net Bank (7163 JP) aims to raise up to US$440 million.
Event-Driven developments – ASM Pacific Technology (522 HK), Yashili International Holdings (1230 HK), Invocare Ltd (IVC AU), Oishi Group PCL (OISHI TB), Olam Group (OLG SP), Halcyon Agri (HACL SP).

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Mar 12

Daily Brief ECM: ECM Weekly (12th Mar 2023) – Meituan and more

In today’s briefing:

ECM Weekly (12th Mar 2023) – Meituan, Japan Post Bank, SBI Sumishin, JFW, Ventia, Doosan, DXN, DPC

ECM Weekly (12th Mar 2023) – Meituan, Japan Post Bank, SBI Sumishin, JFW, Ventia, Doosan, DXN, DPC

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
IPO activity appears to be picking up across the region, with deal in Japan, Hong Kong, US and Indonesia being lined up.
Placements as well picked up pace, despite the ongoing Japan Post Bank (7182 JP)‘s mega deal set to suck liquidity out of the system for a while.

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Mar 11

Daily Brief ECM: Corteva Inc.: Launch Of Vorceed Enlist Corn Products & Other Drivers and more

In today’s briefing:

Corteva Inc.: Launch Of Vorceed Enlist Corn Products & Other Drivers
Fidelity National Information Services Inc.: Major Drivers
Vertex Pharmaceuticals: Launch Of First CRISPR Gene Editing Therapy & Other Developments

Corteva Inc.: Launch Of Vorceed Enlist Corn Products & Other Drivers

Corteva had a strong fourth quarter and managed to deliver an all-around beat.
Strong organic sales led to $370 million in profitability for the quarter, an increase in the margin of more than 200 basis points.
Strong demand for new products was the primary factor in the 9% annual increase in crop protection volume.

Fidelity National Information Services Inc.: Major Drivers

Fidelity National Information Services achieved its financial targets for the fourth quarter and delivered an all-around beat.
In the fourth quarter, merchants increased by 2% on a constant currency basis.
We give Fidelity National Information Services a ‘Buy’ rating with a revised target price.

Vertex Pharmaceuticals: Launch Of First CRISPR Gene Editing Therapy & Other Developments

Vertex Pharmaceuticals ended the year on a strong note, with full-year global CF product revenue rising 18% from 2021.
Their mid- and late-stage clinical pipeline holds the opportunity to provide patients across 8 disease areas with potentially transformative impact.
The management forecast for product revenue for the entire 2023 fiscal year is $9.55 billion to $9.7 billion, which, after factoring in an estimated 1.5% FX headwind, represents 7% to 9% growth year over year.

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Mar 10

Daily Brief ECM: JF Wealth IPO Trading – Tepid Subscription Here Probably Won’t Buck Recent HK IPO Trends and more

In today’s briefing:

JF Wealth IPO Trading – Tepid Subscription Here Probably Won’t Buck Recent HK IPO Trends
Pavilion REIT Placement – MY$2.2bn (US$487m) Acquisition Expected to Increase Distributable Income
Fangda Carbon New Material GDR Listing – Share Price Has Outperformed Index over the past 3 Months
Doosan Robotics (Number One Player in Collaborative Robots in Korea) & NAV Analysis of Doosan Corp
DPC Dash IPO: No Match For Pizza Hut
Beisen IPO Preview and Valuation Analysis

JF Wealth IPO Trading – Tepid Subscription Here Probably Won’t Buck Recent HK IPO Trends

JF Wealth Holdings (9636 HK) raised around US$129m in its Hong Kong IPO.
JF Wealth (JFW) is an online investment decision-making solution provider in China, focusing on the online investor content services market.
We have covered various aspects of the deal in our previous notes. In this note we will talk about the demand and trading dynamics.

Pavilion REIT Placement – MY$2.2bn (US$487m) Acquisition Expected to Increase Distributable Income

Pavilion Real Estate Investment Trust (PREIT MK) is expected to raise MYR$1.27bn (US$280m) to partially fund its acquisition of Pavilion Bukit Jalil mall (PBJ mall).
Non-Interested unitholders will vote on the planned acquisition in the next EGM to be held on 22 March 2023.
In this note, we will discuss the deal dynamics, details on the planned acquisition, and the REIT’s recent financial performance.

Fangda Carbon New Material GDR Listing – Share Price Has Outperformed Index over the past 3 Months

Fangda Carbon New Material Co, Ltd. (600516 CH) is looking to raise around US$124m in its Swiss GDR listing. Huatai is the sole bookrunner in the deal.
The firm is offering 13.91m GDRs (1 GDR to 10 A-shares) for sale at US$8.63-8.9/GDR, or at a 8.3-11.1% discount to last close on the A-share leg.
As per the firm, it plans to use the net proceeds from the offering to support its business expansion, repay debt, supplement working capital and for general corporate purposes.

Doosan Robotics (Number One Player in Collaborative Robots in Korea) & NAV Analysis of Doosan Corp

By Douglas Kim

The Doosan Group is aiming to complete the IPO of Doosan Robotics in 2H 2023. Doosan Robotics is expected to be one of the largest IPOs in Korea in 2023.
The local media have mentioned that Doosan Robotics could receive at least 1 trillion won (US$0.8 billion) in market cap valuation.
Established in 2015, Doosan Corp owns a 90.9% stake in Doosan Robotics, which is the largest collaborative robot manufacturer in Korea.

DPC Dash IPO: No Match For Pizza Hut

By Oshadhi Kumarasiri

After giving up the IPO plan late last year, DPC Dash (1405 HK) has restarted its IPO with hopes of capitalising on China’s reopening boom.
DPC Dash is not positioned to benefit from the ending of lockdowns. It also didn’t outperform Pizza Hut when dine-in demand was absent.
Therefore, DPC Dash is likely going to remain a minor player in a segment dominated by Pizza Hut.

Beisen IPO Preview and Valuation Analysis

By Andrei Zakharov

China-Based HCM technology unicorn Beisen Holdings (1667838D CH) filed for an IPO in Hong Kong. Morgan Stanley and CICC are leading the upcoming offering.
Beisen Holdings (1667838D CH) is the leading provider of integrated HR SaaS and talent management platform with ~12% market share of the overall cloud-based HCM industry in China.
We believe the company’s expected IPO valuation may reach $1B, making it one of the largest providers of cloud-native HCM solutions in China scheduled to go public this year.

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Mar 09

Daily Brief ECM: Japan Post Bank (7182 JP): The Current Playbook and more

In today’s briefing:

Japan Post Bank (7182 JP): The Current Playbook
Carsales Renounceable Entitlement Offer – Following up on a Decade-Old Acquisition
Ryman Healthcare Renounceable Entitlement Offer – Retail Shortfall Manageable
Shum Yip Property Operations Group Pre-IPO Tearsheet
DPC Dash Pre-IPO – Refiled PHIP Updates – Growth Picking up Again

Japan Post Bank (7182 JP): The Current Playbook

Since the offer announcement, Japan Post Bank (7182 JP)/JPB’s shares have risen by 4.4%. On 1 March, JPB completed the ToSTNeT-3 buyback by acquiring 59.5 million shares for JPY70 billion.
To understand JPB’s trading pattern, it is instructive to look at Japan Post Insurance (7181 JP)/JPI’s 2019 offering and Japan Post Holdings (6178 JP)/ JPH’s 2021 offering.
JPB’s shares should follow the trading pattern playbook of JPI’s 2019 and JPH’s 2021 offerings and start trading below the pre-offer last trading price during the subscription period.

Carsales Renounceable Entitlement Offer – Following up on a Decade-Old Acquisition

Carsales.Com Ltd (CAR AU) aims to raise around US$330m (A$501m) via a renounceable entitlement offer. The deal is relatively large to digest at 28.2 days of three month ADV.
The use of proceeds will be to acquire 40% of Webmotors SA and strengthen its balance sheet.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Ryman Healthcare Renounceable Entitlement Offer – Retail Shortfall Manageable

Ryman Healthcare (RYM NZ) announced a US$569m (NZ$902m) raising via a renounceable entitlement offer to reset the firm’s capital structure and reduce its gearing.
The institutional part of the entitlement offer saw a strong take up and the shares have held up above the entitlement offer price since the deal was announced.
In this note, we will talk about the upcoming retail shortfall bookbuild and other updates since our last note.

Shum Yip Property Operations Group Pre-IPO Tearsheet

Shum Yip Property Operations Group (SYPOG HK) is looking to raise about US$200m in its upcoming Hong Kong IPO.
Shum Yip Property Operations Group (SYPOG) is a property management, commercial operational and city services provider in China.
As per Frost & Sullivan (F&S), the firm was eighth among comprehensive property management, commercial operational and city services providers in China as per 2021 revenue.

DPC Dash Pre-IPO – Refiled PHIP Updates – Growth Picking up Again

DPC Dash (1405 HK) aimed to raise around US$75m in its Hong Kong IPO in December. The company is now back with a revised PHIP which incorporates its FY22 performance.
The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 562 stores across 13 cities, as of Nov 2022.
In this note, we talk about the updates from its refiled PHIP.

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Mar 08

Daily Brief ECM: Doosan Bobcat Placement – Past Deal Didn’t Do Well and more

In today’s briefing:

Doosan Bobcat Placement – Past Deal Didn’t Do Well, This Time Could Be Different
Balaji Speciality Chemicals Pre-IPO – Stupendous Growth but Likely to Normalize
Ventia Services Group Placement – Well-Flagged and Coming off Escrow
DXN Holdings Pre-IPO – The Positives – Diverse and Growing Portfolio. Strong Long-Term Record
The Interpublic Group of Companies Inc.: Major Drivers
PTC Inc.: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (03/23)
Regeneron Pharmaceuticals Inc.: Major Drivers
RingCentral Inc.: Major Drivers
Southwest Airlines Co.: Major Drivers
Steel Dynamics Inc.: Major Drivers

Doosan Bobcat Placement – Past Deal Didn’t Do Well, This Time Could Be Different

A group of shareholders aim to raise around US$138m by selling all of their remaining stake in Doosan Bobcat.
The same shareholders had earlier sold in Nov 22, see Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag. That deal didn’t do well.
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

Balaji Speciality Chemicals Pre-IPO – Stupendous Growth but Likely to Normalize

Balaji Speciality Chemicals (1742663D IN) is looking to raise about US$126m in its upcoming India IPO.
Balaji Speciality Chemicals (BSC) is the sole manufacturer in India of niche chemicals such as Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines and Amino Ethyl Piperazine, according to CRISIL.
BSC’s profitability growth has been stupendous, given its quick production ramp up. However, its growth is very likely to normalize.

Ventia Services Group Placement – Well-Flagged and Coming off Escrow

Ventia (VNT AU)’s two largest shareholders, Apollo Global Management and CIMIC Group, aim to raise around US$272m via a secondary block deal.
The deal is a relatively large one to digest at 77 days of three month ADV and about 19.5% of current mcap.
In this note, we will talk about the placement and run the deal through our ECM framework.

DXN Holdings Pre-IPO – The Positives – Diverse and Growing Portfolio. Strong Long-Term Record

DXN Holdings (2080694D MK) is looking to raise up to US$200m in its upcoming Malaysia IPO.
DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.
In this note, we will talk about the positive aspects of the deal.

The Interpublic Group of Companies Inc.: Major Drivers

The Interpublic Group of Companies had a successful year and ended it on a positive note with an all-around beat.
Its organic net revenue increase for the fourth quarter was 3.8%, bringing the three-year growth performance to 9.7%.
IPG Mediabrands’ double-digit growth was the main driver of the 5% organic growth in Media, Data & Engagement Solutions.

PTC Inc.: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (03/23)

PTC produced a mixed set of results for the first quarter of fiscal 2023.
The 14% organic ARR growth was followed by the additional point of inorganic growth from Codebeamer.
They achieved this so rapidly by utilizing Windchill+’s out-of-the-box functionality, which PTC provided to the user as a secure preconfigured service.

Regeneron Pharmaceuticals Inc.: Major Drivers

Regeneron Pharmaceuticals delivered impressive fourth-quarter results with revenues as well as earnings being well above analyst expectations.
These initiatives position Regeneron for a potential U.S. launch in late August this year.
We give Regeneron Pharmaceuticals a ‘Hold’ rating with a revised target price.

RingCentral Inc.: Major Drivers

RingCentral delivered a mixed set of results and failed to meet the revenue expectations of analysts given the challenging macroeconomic backdrop.
Given the importance of privacy and security to their consumers, management intends to keep investing in these areas to maintain their position.
Furthermore, the company started a new collaboration with AWS to deliver technologies and ideas that enhance corporate communications for today’s hybrid workforce.

Southwest Airlines Co.: Major Drivers

Southwest Airlines had a disastrous quarter and failed to meet the revenue expectations of Wall Street while continuing to face a variety of new difficulties.
Also, consumer refunds and reimbursements continue to be a top priority as they remain laser-focused on their clients and future plans.
Although disappointing, Southwest Airlines anticipates another loss in Q1 of this year due to a drag on revenue from the operational disruption.

Steel Dynamics Inc.: Major Drivers