ECM Daily Briefs | Page 55 of 118

In today’s briefing:

JEIO Lowers IPO Price Range
TEMC IPO Valuation Analysis

JEIO Lowers IPO Price Range

By Douglas Kim

JEIO, a manufacturer of carbon nanotubes for rechargeable batteries, has lowered its IPO price range and offering amount in order to list on the KOSDAQ market.
The company lowered the IPO price range to 10,000 won to 13,000 won from 15,000 won to 18,000 won range previously.
Our base case valuation of JEIO is target price of 11,268 won per share, which is 2% lower than the mid-point of the IPO price range.

TEMC IPO Valuation Analysis

By Douglas Kim

Our base valuation of TEMC is target price of 38,363 won per share. At the mid point of the IPO price range, our target price would represent a 10% upside.
Typically, we require a 15-20% upside in terms of target price versus the IPO price. In this case, given the lack of upside, we have a Negative View.
Our target price is based on a target P/E of 8.5x in 2023 which is the average P/E of the comps.

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Dec 23

Daily Brief ECM: Indegene Pre-IPO Tearsheet and more

In today’s briefing:

Indegene Pre-IPO Tearsheet

Indegene Pre-IPO Tearsheet

Indegene Limited (1864095D IN) is looking to raise around US$400m in its upcoming India IPO. The bookrunners on the deal are Citigroup, JP Morgan, Kotak, and Nomura.
Indegene is a digital commercialisation firm focused exclusively on the global life sciences industry.
Its solutions enable biopharmaceutical, emerging biotech and medical devices companies to develop, launch and drive sales for their products in a more efficient manner.

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Dec 22

Daily Brief ECM: Sula Vineyards IPO Trading – Not a Whole Lot to Cheer About and more

In today’s briefing:

Sula Vineyards IPO Trading – Not a Whole Lot to Cheer About
Bionote IPO Trading – Weakest Demand Even After Cutting Price and Size
Protean EGov Technologies Pre-IPO – A Key Service Provider but Earnings Have Lagged

Sula Vineyards IPO Trading – Not a Whole Lot to Cheer About

Sula Vineyards raised around US$117m in its India IPO, although demand wasn’t all that great.
Sula Vineyards (SV) distributes wines under a bouquet of brands. In addition to its flagship brand “Sula,” popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia”.
We have looked at various aspects of the deal in our previous notes. In this note, we will talk about demand and trading dynamics.

Bionote IPO Trading – Weakest Demand Even After Cutting Price and Size

Bionote (377740 KS) raised US$72.2m in its Korean IPO. The IPO had consisted of both a primary and secondary selldown.
Bionote is an integrated producer of diagnostics test products and biocontent products.
In this note, we will talk about the demand for the deal and other trading dynamics.

Protean EGov Technologies Pre-IPO – A Key Service Provider but Earnings Have Lagged

Protean eGov Technologies (PET) is looking to raise up to US$600m in its upcoming India IPO.
Protean eGov Technologies (PET) is a key IT-enabled solutions company in India engaged in conceptualizing, developing and executing nationally critical greenfield technology solutions.
In this note, we look at the company’s past performance.

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Dec 21

Daily Brief ECM: REPT BATTERO Energy Pre-IPO Tearsheet and more

In today’s briefing:

REPT BATTERO Energy Pre-IPO Tearsheet
Zx Inc Pre-IPO Tearsheet

REPT BATTERO Energy Pre-IPO Tearsheet

REPT BATTERO Energy (REPT HK) is looking to raise US$1bn in its upcoming Hong Kong IPO. The bookrunners on the deal are Morgan Stanley, and Citic Securities.
REPT BATTERO Energy (REPT) is a lithium-ion battery manufacturer in China, focusing on R&D, production, and sales of EV/ESS lithium-ion battery products such as battery cells, modules and packs.
As per F&S, it was amongst the top ten lithium-ion battery manufacturers in China as per installations for new energy application in 2021.

Zx Inc Pre-IPO Tearsheet

By Ethan Aw

Zx Inc (ZX CH) is looking to raise about US$100m in its upcoming HK IPO. The deal will be run by CICC and China Securities International.
Zx Inc runs three different businesses, namely an interactive entertainment business (Tan Wan), an instant food brand (Zha Zha Hui) and pop toy business (Bro Kooli).
Its interactive entertainment business Tan Wan focuses on publishing game products while while leveraging its precision marketing, in-depth operation and brand incubation capabilities.

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Dec 20

Daily Brief ECM: Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect and more

In today’s briefing:

Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect
CIFI Holdings Placement – Won’t Do Much to Alleviate Debt Profile. Latest Deal Underwater
Dmall Pre-IPO Tearsheet
Pre-IPO Shandong Boan Biotechnology – Conservative About the Outlook

Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect

By Tina Banerjee

Beauty Farm Medical and Health Industry (BFM HK) is the largest provider of traditional beauty services and the fourth largest non-surgical aesthetic medical service provider in China.
The company seeks to raise $300 million from an IPO in Hong Kong market. Morgan Stanley, Haitong International, and Huatai International are the joint sponsors for the proposed IPO.
COVID-19 has hurt recent financial performance of the company and forced it to shut many of the stores in multiple locations. Further, stretched valuation make the IPO unappealing to investors.

CIFI Holdings Placement – Won’t Do Much to Alleviate Debt Profile. Latest Deal Underwater

CIFI Holdings (884 HK) is looking to raise US$127m in a top-up placement. Proceeds from the raising are expected to refinance its existing loans and for general corporate purposes.
While the deal represents just 2.1 days of three month ADV, total shares offered would amount to 7.5% of current mcap.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

Dmall Pre-IPO Tearsheet

By Ethan Aw

Dmall Inc (1751691D CH) is looking to raise about US$200m in its upcoming HK IPO. The deal will be run by Credit Suisse and CMB International.
Dmall provides cloud-based, end-to-end SaaS platforms purpose-built for the local retail industry.
Its service offerings consist of a retail core service cloud, an e-commerce service cloud and a marketing and advertising service cloud.

Pre-IPO Shandong Boan Biotechnology – Conservative About the Outlook

By Xinyao (Criss) Wang

Without the advantages in product efficacy, production capacity, clinical progress and speed of approval, Boan’s products have lost their pricing power in both China and overseas markets.
Due to the lack of differentiation and frontier enough target layout, the product commercialization potential is bound to be more easily questioned, with limited value in the long term.
Even if Boan could go public successfully, investors may not be able to achieve the expected returns because of the unfriendly market sentiment and a lack of liquidity in HKEX.

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Dec 19

Daily Brief ECM: Korea FSC’s Official Rule Changes for Local IPOs & Key Takeaways and more

In today’s briefing:

Korea FSC’s Official Rule Changes for Local IPOs & Key Takeaways

Korea FSC’s Official Rule Changes for Local IPOs & Key Takeaways

By Sanghyun Park

Extending bookbuilding period to seven days (and test-the-waters) is unlikely to make any real difference. Leaving the financial capacity check to underwriters will likely cause sharp confusion in the market.
The purpose of penalizing so-called hot money, like flippers and non-pricing institutions, is understandable. However, whether FSC has fully considered the side effects caused by uniformly applying this is questionable.
Expanding the allowable price range on a listing day is the most crucial point we should pay attention to, and we must design a post-IPO trading strategy accordingly.

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Dec 18

Daily Brief ECM: ECM Weekly (18th Dec 2022) – China ADRs and more

In today’s briefing:

ECM Weekly (18th Dec 2022) – China ADRs, Skymark, Daiei, Weilong, KFintech, Sula, Endeavour, Adani

ECM Weekly (18th Dec 2022) – China ADRs, Skymark, Daiei, Weilong, KFintech, Sula, Endeavour, Adani

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, things are started to cool down in to the year end with some smaller issuers still trying their luck to get listed before the year end.
On placements front, most of the action was in India with Australia seeing a large offering after a while.

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Dec 17

Daily Brief ECM: KFin Technologies IPO – Profit Growth Has Outpaced Peer and more

In today’s briefing:

KFin Technologies IPO – Profit Growth Has Outpaced Peer, However Valuation Isn’t Cheap

KFin Technologies IPO – Profit Growth Has Outpaced Peer, However Valuation Isn’t Cheap

KFin Technologies (1804170D IN) is looking to raise around US$180m in its India IPO.
KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
In this note, we will look at its RHP updates, peer comparison, earnings assumptions, and share our thoughts on valuation.

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Dec 16

Daily Brief ECM: IRCTC OFS – Well Flagged Deal for an Overly Well Priced Stock and more

In today’s briefing:

IRCTC OFS – Well Flagged Deal for an Overly Well Priced Stock

IRCTC OFS – Well Flagged Deal for an Overly Well Priced Stock

Government of India (GoI) aims to raise up to US$360m via selling its 5% stake in Indian Railway Catering and Tourism (IRCTC IN).
This is not the first selldown by GoI and won’t be the last either. However, the stock now looks more expensive than ever.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

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Dec 15

Daily Brief ECM: Our IPO Calls for 2022 and more