ECM Daily Briefs | Page 5 of 123

In today’s briefing:

Midea Group H Share Listing (300 HK): Trading Debut
Auckland Airport Placement – Large NZ$1.4bn Raising, with ACC’s Overhang to Contend With
P N Gadgil Jewellers IPO Trading- Decent Anchor, Strong Insti Demand
Sung Woo IPO Preview
Sagility India Pre-IPO – Healthcare-Tech Exposure Although Alarming Concentration Risks to Watch For

Midea Group H Share Listing (300 HK): Trading Debut

Midea Group Co Ltd A (000333 CH) priced its H Share at HK$54.80 to raise HK$31,014 million (US$4.0 billion) in gross proceeds. The H Share will be listed tomorrow.
The H Share listing price implies an AH discount of 21.4% at the A Share price of RMB63.51. This compares to Haier Smart Home (6690 HK)‘s AH discount of 13.8%.
Futu grey market data shows that the H Shares closed 5.1% higher at HK$57.60. Our valuation analysis suggests that the H Share listing price is attractive.

Auckland Airport Placement – Large NZ$1.4bn Raising, with ACC’s Overhang to Contend With

Auckland Intl Airport (AIA NZ) is looking to raise NZ$1.4bn (US$863m) in its primary follow-on offering. The offering includes a NZ$1.2bn underwritten placement, together with a NZ$200m non-underwritten retail offer.
The underwritten placement alone is a large one for the stock to digest at 168 days of three month ADV.
In this note, we run the deal through our ECM framework and comment on deal dynamics.

P N Gadgil Jewellers IPO Trading- Decent Anchor, Strong Insti Demand

P N Gadgil Jewellers (1742652D IN) raised around US$130m in its India IPO.
It is an Indian organized jewellery player with product offerings which include traditional as well as modern and functional jewellery designs, in gold, diamond, silver and platinum.
In our previous notes, we looked at the company’s past performance and valuation. In this note, we talk about trading dynamics.

Sung Woo IPO Preview

Sung Woo is getting ready to complete its IPO in KOSDAQ in October 2024. Founded in 1992, Sung Woo produces components for cylindrical rechargeable battery, energy storage system, and automotive.
The IPO price range is from 25,000 won to 29,000 won. According to the bankers’ valuation, the expected market cap is 376 billion won to 436 billion won.
The book building for the institutional investors will be conducted from 10 to 16 October. The lead underwriter of this IPO is Korea Investment & Securities.

Sagility India Pre-IPO – Healthcare-Tech Exposure Although Alarming Concentration Risks to Watch For

Sagility India (2058883D IN) is looking to raise US$500m in its upcoming India IPO.
Sagility India is a pure-play healthcare focused solutions and services provider to Payers and Providers.
In this note, we look at the firm’s past performance.

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Sep 16

Daily Brief ECM: Midea Group: Offer Upsized at Top Tier. Updated Valuation Analysis and more

In today’s briefing:

Midea Group: Offer Upsized at Top Tier. Updated Valuation Analysis
Pre-IPO Midea Group H Share – Here Are the Risks Behind
Bajaj Housing Finance IPO – Valuation Might Get Stretched from Demand Overflow
ECM Weekly (16th Sep 2024) – Midea, Bajaj Housing, 99 Speed, P N Gadgil, Hozon, Trial, NextDC, Via

Midea Group: Offer Upsized at Top Tier. Updated Valuation Analysis

By Devi Subhakesan

Midea Group(000333 CH) has increased the shares on offer in Hong Kong by 15% to 565.9 million shares, priced at the top end of the range at HKD54.8 per share.
With strong investor interest, the company may exercise an over allotment option that could take the deal size to USD 4.6 billion.
Midea’s Hong Kong pricing reflects a nearly 21% discount to its A-share closing price, compared to the average 33% discount for dual-listed companies between Hong Kong and Shanghai or Shenzhen.

Pre-IPO Midea Group H Share – Here Are the Risks Behind

By Xinyao (Criss) Wang

For the reasons why Midea is eager to IPO in HK, investors shouldn’t just look at the surface of its glory, but delve into the “real motives” behind capital operations.
The policy of subsidizing the trade-in of home appliances belongs to “early overdraft of demand” and is unsustainable. Valuation logic for the performance increment brought by such policy is P/B.
If Midea cannot achieve the expected breakthroughs in To B business or internationalization in 2025-2026 to hedge against the weak domestic business, Midea’s performance/valuation in following years would inevitable decline.

Bajaj Housing Finance IPO – Valuation Might Get Stretched from Demand Overflow

Bajaj Housing Finance (BHF IN) raised around US$800m in its India IPO.
BHF is a non-deposit taking housing finance company engaged in mortgage lending since FY18. Its mortgage products include home loans, loans against property, lease rental discounting and developer financing.
In our previous notes, we looked at the company’s past performance and valuation. In this note, we will talk about the trading dynamics.

ECM Weekly (16th Sep 2024) – Midea, Bajaj Housing, 99 Speed, P N Gadgil, Hozon, Trial, NextDC, Via

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Midea Group Co Ltd A (000333 CH) hogged much of the limelight this week, although Bajaj Housing Finance (BHF IN) created some history as well.
We covered the Nextdc Ltd (NXT AU) and Terumo Corp (4543 JP) placements and looked at the possible deals in Trial Holdings (5882 JP) and Via Technologies (2388 TT).

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Sep 15

Daily Brief ECM: SHEIN and Temu: New Rule Could Crush “De Minimis” Imports | New Front In “War” Vs DTC Platforms and more

In today’s briefing:

SHEIN and Temu: New Rule Could Crush “De Minimis” Imports | New Front In “War” Vs DTC Platforms
K Bank IPO Preview
Weekly Deals Digest (15 Sep) – Midea, Seven & I, Raysum, Haitong/GJTA, Dyna-Mac
K-Bank’s IPO Details Out: Aggressive Pricing, but as a Crypto Play, It Might Surprise

SHEIN and Temu: New Rule Could Crush “De Minimis” Imports | New Front In “War” Vs DTC Platforms

By Daniel Hellberg

Biden Administration rule would make “de minimis” items subject to tariffs
Besides adding to landed cost of those items, reporting requirements would rise
In addition, US/EU governments launch probes of SHEIN/Temu product safety

K Bank IPO Preview

K Bank finally provided its IPO prospectus which includes more details of the IPO than what the company already announced about the IPO several days ago.
Bankers used KakaoBank, SBI Sumishin Net Bank, and Bancorp Inc as comps. Average PBR of 2.56x was used to value K Bank.
Some investors will question the inclusion of overseas comps including SBI Sumishin Net Bank and Bancorp in the valuation of K Bank.

Weekly Deals Digest (15 Sep) – Midea, Seven & I, Raysum, Haitong/GJTA, Dyna-Mac

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: Midea Group Co Ltd A (000333 CH) upsized H Share listing, Terumo Corp (4543 JP) placement.
Event-Driven developments: Haitong Securities Co Ltd (H) (6837 HK)/Guotai Junan Securities (2611 HK), Seven & I Holdings (3382 JP), Raysum Co Ltd (8890 JP), Dyna Mac Holdings (DMHL SP).

K-Bank’s IPO Details Out: Aggressive Pricing, but as a Crypto Play, It Might Surprise

By Sanghyun Park

Compared to its overseas peers, K-Bank’s high valuation still stands out due to a significant gap in net income size relative to market cap.
The offering structure, with 50% secondary sales and weak lock-up commitments, means post-IPO float could spike to around 40%, making a stock price bump unlikely.
K-Bank’s crypto-focused model might attract investors valuing it as a crypto play, potentially influencing IPO pricing and post-listing stock performance.

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Sep 13

Daily Brief ECM: CR Beverage IPO: The Bear Case and more

In today’s briefing:

CR Beverage IPO: The Bear Case
Shuangdeng Group Pre-IPO Tearsheet
Duality Biotherapeutics (映恩生物) Pre-IPO: Too Early, Too Ambitious

CR Beverage IPO: The Bear Case

China Resources Beverage (CRB HK), China’s largest purified drinking water company, has received HK listing approval for a US$1 billion IPO.
In CR Beverage 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 core business’ pricing pressure, a slow pace of revenue diversification, a sizeable pre-IPO dividend, and margin and FCF generation below its key peer.

Shuangdeng Group Pre-IPO Tearsheet

Shuangdeng Group Co Ltd (JISHUZ CH) is looking to raise about US$150m in its upcoming Hong Kong IPO. The deal will be run by CICC, CCBI and Huatai.
Shuangdeng Group Co Ltd is engaged in energy storage business for big-data and telecommunication industries with a focus on design, R&D, manufacturing and sales of energy storage batteries and systems.
It was ranked first among global telecom base station and data-center energy storage battery providers in terms of shipment volume, achieving a 10.4% market share in 2023, according to F&S.

Duality Biotherapeutics (映恩生物) Pre-IPO: Too Early, Too Ambitious

By Ke Yan, CFA, FRM

Duality Biotherapeutics, a China-based clinical-stage biotechnology company, plans to raise up to US$300m via a Hong Kong listing.
In this note, we examine the company’s two core products, namely DB-1313 (HER2 ADC) and DB-1311 (B7-H3 ADC). We think the company’s products are not yet convincing.
While the management has expertise as biotech investors, biotech-related operational experience seems to be lacking.

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Sep 12

Daily Brief ECM: DAM Capital Pre-IPO Tearsheet and more

In today’s briefing:

DAM Capital Pre-IPO Tearsheet
The Born Korea IPO Valuation Vs Recent M&A Valuation of Compose Coffee by Jollibee Foods
Hozon New Energy Automobile Pre-IPO – The Negatives – Remains Far from Being Profitable
Trial Holdings IPO Lockup – Large Number of Small Holders Hold Around US$400m of Stock

DAM Capital Pre-IPO Tearsheet

DAM Capital (930970Z IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by Nuvama Wealth.
DAM Capital provides a range of financial solutions in investment banking comprising equity capital markets, mergers and acquisitions, private equity, structured finance advisory; and institutional equities comprising broking and research.
According to CRISIL, DAM Capital was the fastest growing investment bank in India by revenue CAGR from FY22-24 along with the highest profit margin in FY24.

The Born Korea IPO Valuation Vs Recent M&A Valuation of Compose Coffee by Jollibee Foods

In this insight, we compare the IPO valuation of The Born Korea (475560 KS) versus the recent M&A valuation of Compose Coffee by Jollibee Foods (JFC PM).
Using the recent M&A multiples of Compose Coffee by Jollibee Foods suggests an attractive upside to The Born Korea (relative to the IPO price range).
No other listed company in Korea has a restaurant business model that is consistently profitable, with strong balance sheet, and solid sales growth as The Born Korea.

Hozon New Energy Automobile Pre-IPO – The Negatives – Remains Far from Being Profitable

Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO.
Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
In this note, we talk about the not-so-positive aspects of the deal.

Trial Holdings IPO Lockup – Large Number of Small Holders Hold Around US$400m of Stock

Trial Holdings (5882 JP) raised around US$259m in Mar 2024. Its IPO lockup is set to expire soon.
TH operates a network of retail stores in Japan that offer one-stop shopping under its everyday low price (EDLP) model.
In this note, we will talk about the lockup dynamics and possible placement.

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Sep 11

Daily Brief ECM: Midea Group HK IPO Valuation Analysis and more

In today’s briefing:

Midea Group HK IPO Valuation Analysis
NEXTDC Placement – Good Track Record but Seems Opportunistic
LG Electronics India IPO: Potential Big Gains. Booming Demand, Buoyant Valuations
Midea HK Listing: Valuation Insights
National Infrastructure Trust Pre-IPO Tearsheet
Key Updates on Bicara Therapeutics IPO: ~$800M Valuation at the Midpoint and Strong Balance Sheet

Midea Group HK IPO Valuation Analysis

We would subscribe to the HK offering of Midea Group due to its attractive valuations, strong fundamentals, and meaningful price discount relative to the A shares.
We believe a premium valuation relative to the comps is appropriate for Midea Group due to its higher sales growth, EBIT margin, and ROE.
Pricing of this offering is expected to be completed on 13 September and listing on 17 September.

NEXTDC Placement – Good Track Record but Seems Opportunistic

By Shifara Samsudeen, ACMA, CGMA

Nextdc Ltd (NXT AU) aims to raise around US$366m via a fully underwritten institutional placement, along with another US$133m via a non-underwritten SPP.
The company has undertaken a number of deals in the past, most of which have done ok. Although this one appears to be a bit opportunistic.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

LG Electronics India IPO: Potential Big Gains. Booming Demand, Buoyant Valuations

By Devi Subhakesan

LG Electronics’s India business IPO could be valued above USD 7 billion, exceeding market expectations, driven by its dominant position in India’s growing home appliances market and strong sector valuations.
Favourable market conditions and robust sector growth make now an ideal time for LG Electronics (066570 KS) to launch its India IPO, securing high investor interest and compelling valuations.
In a recent interview, LG Electronics(066570 KS) CEO William Cho mentioned that an Indian market debut is one of several options being considered to revitalise the company’s consumer electronics business.

Midea HK Listing: Valuation Insights

Chinese home appliance maker Midea has announced the terms for its IPO. The company plans to raise $3.46bn at an indicative price range of HK$52.0-54.8 per share.
The company has a diversified product portfolio, well-balanced exposure to domestic as well as overseas markets and a growing robotics business.
As we expected, the HK offering is priced at around 25% discount to it’s A-shares and our analysis suggests that Midea’s HK offering is priced attractively.

National Infrastructure Trust Pre-IPO Tearsheet

National Infrastructure Trust (NIT IN) is looking to raise about US$190m in its upcoming India IPO. The deal will be run by SBI Caps and HDFC Bank.
National Infrastructure Trust is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
Its initial asset portfolio will consist of nine road assets, in the states of Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka with an aggregate length of ~683.875km.

Key Updates on Bicara Therapeutics IPO: ~$800M Valuation at the Midpoint and Strong Balance Sheet

By Andrei Zakharov

Bicara Therapeutics unveiled the terms of its IPO: a clinical-stage biotech company offers ~11.8M shares at the price range of $16.00-$18.00, implying a market cap of ~$800M at the midpoint.
Existing shareholders do not intend to sell shares in this offering and Bicara Therapeutics shares will list on the Nasdaq under the ticker symbol “BCAX”.
The biotech company is focused on patients with HPV-negative head and neck cancer, and I view Bicara’s IPO valuation as attractive, with major catalysts coming up in 2025.

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Sep 10

Daily Brief ECM: Midea Group H Share Listing (300 HK): Valuation Insights and more

In today’s briefing:

Midea Group H Share Listing (300 HK): Valuation Insights
Midea A/H Listing – Bigger Deal, Better Pricing
Terumo Placement Follow-Up – Correction Has Been Inline with Recent Cross-Shareholding Unwind
Terumo (4543 JP): The Current Playbook
K Bank IPO – The Biggest IPO in Korea in 2024
Bajaj Housing Finance IPO- Forensic Analysis
P N Gadgil Jewellers IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
The Story Behind K-Bank Leaking Pricing Details Before the IPO Prospectus Dropped
Via Technologies Early Look – Wouldn’t Be a Large One to Digest
Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up

Midea Group H Share Listing (300 HK): Valuation Insights

Midea Group Co Ltd A (000333 CH) has launched its H Share listing at HK$52.00-54.80 per share. Pricing will be on 13 September, and the listing on 17 September.
We previously discussed the listing in Midea Group H Share Listing: Latest Updates Points to a Business in Rude Health and Midea Group H Share Listing: AH Discount Views.
Our valuation analysis suggests that the H Share listing range is attractive. We would participate in the listing.

Midea A/H Listing – Bigger Deal, Better Pricing

Midea Group Co Ltd A (000333 CH) aims to raise up to US$3.5bn in its H-share listing, the deal is somewhat larger than what was being spoken about earlier.
Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.
We have covered the deal background in our previous notes. In this note, we talk about valuations.

Terumo Placement Follow-Up – Correction Has Been Inline with Recent Cross-Shareholding Unwind

A group of shareholders are looking to raise around US$1.36bn from selling ~5% stake in Terumo Corp (4543 JP).
We have covered the background of the deal in our earlier note, Terumo Placement – US$1.4bn Secondary Selldown, Buyback Should Aid Deal Dynamics.
In this note, we talk about the updates since and look at the performance of some of the past large Japan deals.

Terumo (4543 JP): The Current Playbook

Since the US$1.4 billion secondary placement announcement, Terumo Corp (4543 JP)’s shares are down 3.5% from the undisturbed price of JPY2,771 per share (29 August).
Looking at recent large Japanese placements is instructive to understand the potential trading pattern. So far, Terumo’s shares have followed the pattern of previous large placements.
The offering will likely be priced on 10 September. Despite Kokusai and Honda’s disappointing performance, the average large Japanese placement tends to generate positive returns.

K Bank IPO – The Biggest IPO in Korea in 2024

K Bank is the biggest IPO in Korea in 2024. The IPO price range is from 9,500 won to 12,000 won. It is offering 82 million shares in this IPO.
According to the bankers’ valuation, the expected market cap of the company is from 4.0 trillion won to 5.0 trillion won.
The IPO deal size is 779 billion (US$579 million) to 984 billion won (US$732 million).

Bajaj Housing Finance IPO- Forensic Analysis

By Nitin Mangal

Bajaj Housing Finance (BHF IN) upcoming IPO is worth INR 65.6 bn, comprising of fresh issue worth INR 35.6 bn and offer for sale worth INR 30 bn.
The company reports strong KPIs and has been better than peers in several aspects. AUM growth is strong and is driven by Developer Financing and Lease Rental Discounting.
There are few important cautions regarding the NHB observations and assignments.

P N Gadgil Jewellers IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation

P N Gadgil Jewellers (1742652D IN) is looking to raise up to US$132m in its India IPO.
P N Gadgil Jewellers (PNGJ) is an Indian organized jewellery player. Its product offerings include traditional as well as modern and functional jewellery designs, in gold, diamond, silver and platinum.
Previously, we talked about the company’s historical performance. In this note, we provide a summary of its RHP updates and share our quick thoughts on peer comparison and valuation.

The Story Behind K-Bank Leaking Pricing Details Before the IPO Prospectus Dropped

By Sanghyun Park

To justify a higher multiple, K-Bank is comparing itself to international internet banks, with KakaoBank as the only local peer. Differences in market conditions could complicate this comparison.
This might explains why K-Bank is cautiously testing the market by announcing the rights issue first and delaying the prospectus, amid regulatory crackdowns on inflated IPOs.
Controversy over high multiples from overseas peers and KakaoBank’s legal discount will be key in setting K-Bank’s IPO pricing.

Via Technologies Early Look – Wouldn’t Be a Large One to Digest

Via Technologies (2388 TT) is looking to raise US$220m in its upcoming global depository receipts (GDRs) offering.
In July 2024, Via Technologies (Via Tech) announced its board’s resolution to issue up to 75m common shares via a GDR offering.
Similar to previous GDR listings, the deal is a long drawn out process with the firm required to jump through a number of board/shareholder/regulatory approval loops.

Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up

Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO.
Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
In this note, we talk about the positive aspects of the deal.

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Sep 09

Daily Brief ECM: Pre-IPO Midea Group H Share (PHIP Updates) – Some Points Worth the Attention and more

In today’s briefing:

Pre-IPO Midea Group H Share (PHIP Updates) – Some Points Worth the Attention
ECM Weekly (9th Sep 2024) – Midea, Bajaj Housing, Carote, Western Digital, Challenger, CICT, Premier
Hive Box Holdings Pre-IPO, Part 2: Segments, P&L, Balance Sheet & CF, Key Drivers, & More Questions

Pre-IPO Midea Group H Share (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

China’s home appliance industry is facing challenges. Even with large-scale “trade in” activities, its expansion effect on market size still appears limited, making it difficult to trigger significant growth momentum.
However, Midea still achieved strong performance growth in 24H1. Both revenue and net profit showed double-digit growth rates. Midea’s business expansion and product profitability are much better than peers.
Performance drivers are overseas business and air conditioners. Our forecast is Midea’s 2024 net profit would reach about RMB37 billion. Valuation of Midea could be higher than Haier Smart Home.

ECM Weekly (9th Sep 2024) – Midea, Bajaj Housing, Carote, Western Digital, Challenger, CICT, Premier

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, we looked at Midea Group Co Ltd A (000333 CH) and Bajaj Housing Finance (BHF IN), which are two relatively large listings coming up.
Placement were flowing through again this week, across the region.

Hive Box Holdings Pre-IPO, Part 2: Segments, P&L, Balance Sheet & CF, Key Drivers, & More Questions

By Daniel Hellberg

A change in depreciation policy boosted reported profits in Jan-May 2024
But Adjusted EBITDA margins have declined consistently in recent periods
Among our growing list of questions: why hasn’t Hive Box grown faster?

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Sep 08

Daily Brief ECM: Weekly Deals Digest (08 Sep) – Midea and more

In today’s briefing:

Weekly Deals Digest (08 Sep) – Midea, Fuji Soft, Pasco, Seven & I, Xingda, CPMC, PSC, Rex, Latin Res
The Born Korea IPO Valuation Analysis
99 Speedmart Holdings IPO Trading – Poised for a Steady Listing

Weekly Deals Digest (08 Sep) – Midea, Fuji Soft, Pasco, Seven & I, Xingda, CPMC, PSC, Rex, Latin Res

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: Midea Group Co Ltd A (000333 CH) premarketing its H Share listing, Terumo Corp (4543 JP) placement and 99 Speed Mart Retail Holdings (99SPD MK) IPO.
Event-Driven developments: Fuji Soft Inc (9749 JP), Pasco Corp (9232 JP), Seven & I Holdings (3382 JP), Xingda International (1899 HK), CPMC Holdings (906 HK), Psc Insurance (PSI AU).

The Born Korea IPO Valuation Analysis

According to our valuation analysis, it suggests an implied price of 34,365 won, which is 27% higher than the high end of the IPO price range.
We estimate The Born Korea to generate sales of 467.7 billion won (up 13.1% YoY) and operating profit of 31.4 billion won (up 22.8% YoY) in 2024.
We believe a premium to comps’ valuation is appropriate for The Born Korea mainly due to its higher sales growth, higher ROE, stronger balance sheet, and higher profit margins.

99 Speedmart Holdings IPO Trading – Poised for a Steady Listing

99 Speed Mart Retail Holdings (99SPD MK) raised around US$530m in its Malaysia IPO. The IPO had been a mix of primary and secondary shares.
99 Speed Mart Retail Holdings (99 Speedmart) operates the “99 Speedmart” chain of mini-market outlets, retailing daily necessities across Malaysia.
We have covered various aspects of the deal in our previous notes. In this note, we will talk about the demand and trading dynamics.

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Sep 07

Daily Brief ECM: Midea Group: Initial Thoughts on the Hong Kong IPO Listing and more

In today’s briefing:

Midea Group: Initial Thoughts on the Hong Kong IPO Listing
Hero Motors Pre-IPO Tearsheet

Midea Group: Initial Thoughts on the Hong Kong IPO Listing

Midea Group Co Ltd A (000333 CH) is getting ready for a Hong Kong IPO listing, trying to raise at least US$3 billion.
Midea Group is trading a relatively attractive valuations. It is trading at P/E of 11.8x, EV/EBITDA of 8.1x, and P/B of 2.5x based on 2024 consensus earnings estimates.
In the past five days, Midea’s price is down 2.3%. Some investors have been selling shares in Midea due to concerns about higher discount price offered at HK IPO listing.

Hero Motors Pre-IPO Tearsheet