ECM Daily Briefs | Page 54 of 118

In today’s briefing:

CDP Holding Pre-IPO – Sales Have Grown but Continues to Rake in Losses
Rept Battero IPO: Intense Competition and Highly Scaled Competitors Stave Off Profits
Aequitas 2023 Asia IPO Pipeline – India, ADRs, Korea, Japan and ASEAN

CDP Holding Pre-IPO – Sales Have Grown but Continues to Rake in Losses

By Shifara Samsudeen, ACMA, CGMA

CDP Holdings (1782198D CH) is looking to raise up to US$400m in its upcoming Hong Kong IPO.
CDP Holding (CDP) is a human capital management (HCM) service provider.
As per CIC, CDP was the No. 1 HCM SaaS+ platform in China in terms of revenue generated from HCM SaaS+ services in 2021.

Rept Battero IPO: Intense Competition and Highly Scaled Competitors Stave Off Profits

Rept Battero is a lithium-ion battery manufacturer focusing on lithium-ion EV battery products and ESS battery products. The company has filed for an IPO on the Hong Kong Stock Exchange.
The company had recorded strong growth over all its battery segments and was the fastest growing battery manufacturer among top 10 lithium-ion battery manufacturers in China.
However, we find the company’s inability to generate profits at gross profit level concerning.

Aequitas 2023 Asia IPO Pipeline – India, ADRs, Korea, Japan and ASEAN

In this note, we will take a look at the Asia Pacific IPO pipeline for 2023, specifically for India, Asia-linked ADRs, Korea, Japan and ASEAN.
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 11

Daily Brief ECM: H World (HTHT) Follow-On Offering – A More Genuine Need and more

In today’s briefing:

H World (HTHT) Follow-On Offering – A More Genuine Need
SBFC Finance IPO: Forensic Analysis
Aequitas 2023 Asia IPO Pipeline – Hong Kong
Bharat Highways InVIT Pre-IPO Tearsheet

H World (HTHT) Follow-On Offering – A More Genuine Need

H World Group (HTHT US) aims to raise around US$260m via a follow-on ADS offering.
The company plans to use the proceeds mostly for investment. This will be the first deal by the company post its H-share listing in 2020.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

SBFC Finance IPO: Forensic Analysis

By Nitin Mangal

SBFC Finance Limited (SBFC123 IN) plans to come up with INR 16 bn IPO which comprises INR 7.5 bn worth of fresh issue.
The company is MSME focused NBFC-ND-SI, and has shown attractive growth in AUM, disbursements in the last few years. SBFC also offers loans against gold.
However, there are a few perils that must not be overlooked, such as lack of provisioning, low NII growth, mixed peer positioning, and few governance setbacks.

Aequitas 2023 Asia IPO Pipeline – Hong Kong

In this note, we will take a look at the Asia Pacific IPO pipeline for 2023, 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.

Bharat Highways InVIT Pre-IPO Tearsheet

Bharat Highways InVIT (BHINV IN) is looking to raise about US$242m in its upcoming India IPO. The deal will be run by ICICI Securities, Axis Capital, HDFC Bank and IIFL Securities.
Bharat Highways InVIT is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
The InVIT’s initial asset portfolio will consist of seven road assets, in the states of Punjab, Gujarat, Andhra Pradesh, Maharashtra and Uttar Pradesh with an aggregate length of approximately 497.292km.

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Jan 10

Daily Brief ECM: Bilibili Follow-On Offering – Seems Opportunistic and more

In today’s briefing:

Bilibili Follow-On Offering – Seems Opportunistic
China Education Group Placement – Recent Momentum Has Been Strong but past Deals Were Mixed
Lotte Chemical Offering: Schedule Clarifications & Trading Considerations
TEMC: Reduces IPO Price & Bookbuilding Results
Aequitas 2022 IPOs and Placements Performance Review – From the Busiest Year to the Slowest Year
Bilibili Follow-On Offering: Limited Upside
Honasa Consumer Pre-IPO Tearsheet

Bilibili Follow-On Offering – Seems Opportunistic

Bilibili Inc (BILI US) aims to raise around US$400m via a follow-on ADS offering.
The company plans to use most of the proceeds to redeem its 2026 notes.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

China Education Group Placement – Recent Momentum Has Been Strong but past Deals Were Mixed

China Education Group (839 HK) is looking to raise up to US$209m in its top-up placement.
This will be the fourth placement by the group since its listing in 2017, we have earlier looked at the past three placements as well.
In this note, we will look at the deal dynamics and run the deal through our ECM framework.

Lotte Chemical Offering: Schedule Clarifications & Trading Considerations

By Sanghyun Park

The subscription starts on January 19, so the pricing is January 16, three trading days earlier. The shorting restriction runs until January 16, which means the 16th is inclusive.
There was no arb spread opening during the last four trading days of the subscription rights trade period. Nonetheless, this event had some impact on Lotte Chemical’s futures trading.
Considering this, the trade that can be considered at this point would be unhedged shorting. We target potential inflow to adjust the second issuing price downwardly and post-listing overhangs.

TEMC: Reduces IPO Price & Bookbuilding Results

By Douglas Kim

TEMC announced its IPO price of 28,000 won, which was lower than the IPO price range of 32,000 won to 38,000 won.
There were 560 institutions that participated in the IPO bookbuilding survey and the demand ratio was 31.3 to 1.
Our base valuation is 38,363 won per share, representing a 37% upside to the IPO price of 28,000 won. The reduced IPO price has made the IPO more attractive.

Aequitas 2022 IPOs and Placements Performance Review – From the Busiest Year to the Slowest Year

By Shifara Samsudeen, ACMA, CGMA

2022 marked our seventh year covering Equity Capital Markets (ECM) in Asia Pacific. 2022 was rather quiet ending with us covering one of the lowest number of IPOs and placements.
We ended 2022 with an accuracy rate of 74.6% across 55 IPOs that we covered and 70.5% across 78 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.

Bilibili Follow-On Offering: Limited Upside

Bilibili announced a follow-on equity offering of 15.34m ADS priced at $26.65 per ADS partially in exchange for convertible senior notes due 2026 (US$384.8m) and to replenish its cash reserves.
Each ADS represents one ordinary share and new equity offering of 15.34m shares will account for approx. 3.7% of the company’s extended share capital post follow-on offering.
Bilibili Inc (BILI US) ADS dropped 5.76% following the announcement of the follow-on offering and we believe there is limited upside.

Honasa Consumer Pre-IPO Tearsheet

Honasa Consumer (1652951D IN) is looking to raise about US$350m in its upcoming India IPO. The deal will be run by Kotak, Citibank, JM Financial and JP Morgan.
Honasa Consumer is the largest digital-first beauty and personal care (BPC) company in India in terms of revenue for FY22 (Year ended 31st Mar 2022) according to RedSeer.
Honasa Consumer’s product portfolio includes products in the baby care, face care, body care, hair care, color cosmetics and fragrances segments.

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Jan 09

Daily Brief ECM: Youlife International Pre-IPO Tearsheet and more

In today’s briefing:

Youlife International Pre-IPO Tearsheet

Youlife International Pre-IPO Tearsheet

Youlife International Holdings (1759732D CH) is looking to raise at least US$100m in its upcoming HK IPO. The deal will be run by Macquarie and CCB International.
Youlife International is a blue-collar lifetime service platform in China. It assists blue-collar talent with upskilling and lifetime career development.
According to CIC, Youlife ranked first among all blue-collar lifetime service platforms in China in terms of revenue generated from blue-collar lifetime services in 2021.

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Jan 08

Daily Brief ECM: ECM Weekly (8th Jan 2022) – Sinohytec and more

In today’s briefing:

ECM Weekly (8th Jan 2022) – Sinohytec, Beauty Farm, Sula, Kfin, Bionote, Meidong, CIFI, Jinxin Fert

ECM Weekly (8th Jan 2022) – Sinohytec, Beauty Farm, Sula, Kfin, Bionote, Meidong, CIFI, Jinxin Fert

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, only the smaller issuers were active with most following through on year end listing plans.
On placements front, HK market got going in a jiffy, riding on the coattails of China reopening.

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Jan 06

Daily Brief ECM: Weimob Placement – Share Price Momentum over the past Few Months Have Been Strong and more

In today’s briefing:

Weimob Placement – Share Price Momentum over the past Few Months Have Been Strong
Vikram Solar Pre-IPO – Has Diversified Its Sales, Although Concentration Risk Remains High
Hygeia Healthcare Placement (6078.HK)- The Prospect Is More Certain After the Policy Risk Is Removed

Weimob Placement – Share Price Momentum over the past Few Months Have Been Strong

Weimob Inc. (2013 HK) is looking to raise about US$205m in its primary placement to fund R&D, upgrade marketing systems, and for general working capital purposes.
On an ADV basis, the deal is a relatively small one at just 3.6 days of the firm’s three month ADV.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

Vikram Solar Pre-IPO – Has Diversified Its Sales, Although Concentration Risk Remains High

Vikram Solar (0490158D IN) is looking to raise around US$260m in its upcoming India IPO.
Vikram Solar (VS) is an integrated solar photo-voltaic (PV) modules producer and an integrated solar energy solutions provider.
As per CRISIL, it was one of India’s largest module manufacturers and held a 19% domestic market share, as per operational module capacity.

Hygeia Healthcare Placement (6078.HK)- The Prospect Is More Certain After the Policy Risk Is Removed

By Xinyao (Criss) Wang

The government has changed its tone and started to encourage social capital to run hospitals, indicating that the previous concerns about the policy risk on Hygeia has been relieved.
At this stage, Hygeia has more investment value, greater expansion space and higher market demand than Aier Eye Hospital. Meanwhile, the Company performs better in trans provincial expansion than Topchoice.
Due to large investment/“heavy asset” model, Hygeia would continue to face capital pressure. Its expansion pace may not be as fast as expected if it hopes to control expansion quality.

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Jan 05

Daily Brief ECM: China MeiDong Auto Placement – Strong Track Record and Past Deals Have Held Up and more

In today’s briefing:

China MeiDong Auto Placement – Strong Track Record and Past Deals Have Held Up
Jinxin Fertility Group Placement – Weak Track Record And Recent Deals Have Performed Poorly

China MeiDong Auto Placement – Strong Track Record and Past Deals Have Held Up

China MeiDong Auto (1268 HK) is looking to raise US$100m via a top-up placement.
Proceeds from the offering will be geared towards potential M&A and general working capital purposes.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

Jinxin Fertility Group Placement – Weak Track Record And Recent Deals Have Performed Poorly

Jinxin Fertility Co Ltd (1951 HK) is looking to raise US$122m via a top-up placement.
Proceeds from the offering will be used to repay its outstanding convertible bond and general corporate purposes.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

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Dec 30

Daily Brief ECM: Radiant Cash Management IPO: A Bland Mix and more

In today’s briefing:

Radiant Cash Management IPO: A Bland Mix

Radiant Cash Management IPO: A Bland Mix

By Nitin Mangal

Radiant Cash Management Services (1926794D IN) has come up with INR 3.9 bn IPO which includes fresh issue to the tune of INR 600 mn.
In spite of being one of the largest players in the retail cash management segment, there are few cautions one must take note of.
These primarily include related party transactions with promoters, concentration risk and few industry related restraints

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Dec 29

Daily Brief ECM: Kingsoft Cloud HK Listing: Significant Upside in the Medium Term and more

By Shifara Samsudeen, ACMA, CGMA

In today’s briefing:

Kingsoft Cloud HK Listing: Significant Upside in the Medium Term
KFin Technologies IPO Trading – Previous Deals with Lackluster Demand Had Mixed Debuts

Kingsoft Cloud HK Listing: Significant Upside in the Medium Term

Kingsoft Cloud (KC US) shares will begin trading on the Main Board of the HKEx on Friday, 30th December by way of an introduction.
The company’s competitive pricing strategy to onboard customers has impacted its profitability, however, KC has begun to shift focus on profitability by raising prices in the medium term.
Raising prices in the medium term will likely support KC’s profitability and we have valued the company using potential price hikes to non-key customers.

KFin Technologies IPO Trading – Previous Deals with Lackluster Demand Had Mixed Debuts

KFin Technologies (1804170D IN) raised around US$180m in its India IPO. The IPO had been a 100% OFS.
KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
We have looked at various aspects of the deal in our previous note, in this note, we talk about the demand and trading dynamics.

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Dec 28

Daily Brief ECM: Pre-IPO Beauty Farm Medical and Health Industry – Hard to Make Money Due to Industry Characteristics and more