ECM Daily Briefs | Page 74 of 118

In today’s briefing:

Bumhan Fuelcell IPO Preview

Bumhan Fuelcell IPO Preview

By Douglas Kim

Bumhan Fuel Cell is one of the leading players in the hydrogen fuel cell industry in Korea.
Amid very difficult capital markets, a Korean company called Bumhan Fuelcell is getting ready to complete its IPO in June 2022.
IPO price range is from 32,200 won to 40,000 won. The expected market cap after the IPO is from 288 billion won to 358 billion won.

Before it’s here, it’s on Smartkarma

May 12

Equity Capital Markets: Vista REIT, Thai Beverage and more

In today’s briefing:

Vista REIT IPO – Smallest of the Lot, Sector Has Been Under Pressure
ThaiBev BeerCo 2022 Pre-IPO – Peer Comp and Thoughts on Valuation

Vista REIT IPO – Smallest of the Lot, Sector Has Been Under Pressure

Vista REIT (VR PM) is looking to raise about US$158m in its Philippines IPO. This would be a 100% secondary selldown by the Sponsors.
VREIT’s larger assets have seen their occupancies dwindle since FY19. A bulk of its office tenants are up for expiry in FY22 and sector momentum hasn’t been the greatest.
VREIT would also hold the smallest portfolio in terms of appraised valuation and would be the smallest REIT, as per mcap.

ThaiBev BeerCo 2022 Pre-IPO – Peer Comp and Thoughts on Valuation

On 5th May 2022, Thai Beverage announced that BeerCo will resume its Proposed Spin-off Listing. This time the company is aiming to raise less than US$1bn, as per media reports.
We have looked at various aspects of the deal earlier, as the company had tried to spin-off BeerCo in 2021 as well before finally calling it off in April 2021.
In this note we undertake a peer comparison and talk about valuations

Before it’s here, it’s on Smartkarma

May 11

Equity Capital Markets: Vista REIT, Thai Beverage and more

In today’s briefing:

VistaREIT IPO – Bulk Expiries in the near Term and Larger Assets Saw Dwindling Performance
ThaiBev BeerCo Pre-IPO – Back for Another Round

VistaREIT IPO – Bulk Expiries in the near Term and Larger Assets Saw Dwindling Performance

Vista REIT (VR PM) is looking to raise about US$158m in its Philippines IPO. This would be a 100% secondary selldown by the Sponsors.
VREIT is a Philippine REIT which owns commercial properties, comprising both retail and office properties. The initial portfolio consists of 12 Properties with an aggregate GLA of 256,403.95 sqm.
VREIT had weathered the effects of COVID relatively well, given its exposure towards essential providers and BPO tenants. However, its larger assets have seen their occupancies dwindle since FY19.

ThaiBev BeerCo Pre-IPO – Back for Another Round

On 5th May 2022, Thai Beverage announced that BeerCo will resume its Proposed Spin-off Listing. This time the company is aiming to raise less than US$1bn, as per media reports.
We have looked at various aspects of the deal earlier, as the company had tried to spin-off BeerCo in 2021 as well before finally calling it off in April 2021.
In this note, we talk about the recent updates for BeerCo.

Before it’s here, it’s on Smartkarma

May 10

Equity Capital Markets: Delhivery, Rainbow Children’s Hospital, Ngern Tid Lor and more

By Shifara Samsudeen, ACMA, CGMA

In today’s briefing:

Delhivery IPO: Peer Comparison and Valuation
Rainbow Children’s Hospital IPO Trading – Decent Anchor, Strong Insti Subs but Limited Upside
Ngern Tid Lor IPO Lock-Up – A US$660m Overhang. Selldown Is a Question of When, Not If.

Delhivery IPO: Peer Comparison and Valuation

Delhivery (1058656D IN) IPO will run from 11-13th May. The company plans to raise INR52.35bn (US$680m) through the issuance of a mix of new shares and OFS by existing shareholders.
At the indicative IPO price range of INR462-487 per share, Delhivery will have a market capitalisation of INR334.7-352.8bn and a post-money EV of INR294.8-312.9bn.
Delhivery plans to use the IPO proceeds for funding organic growth initiatives such as building scale and expanding network infrastructure as well as for funding inorganic growth.

Rainbow Children’s Hospital IPO Trading – Decent Anchor, Strong Insti Subs but Limited Upside

Rainbow Children’s Hospital (RCH) raised around US$200m via issuing a mix of primary and secondary shares in its India IPO.
RCH is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.
In this note, we will talk about our the trading updates.

Ngern Tid Lor IPO Lock-Up – A US$660m Overhang. Selldown Is a Question of When, Not If.

Ngern Tid Lor (NTL), a financial service provider based in Thailand, raised around US$1bn in its Thailand IPO in May 2021.
NTL provides hire purchase loans for motorcycles and cars, along with new and used trucks. It also provides insurance brokerage services through its branches for non-life and life insurance.
The lock-up on its two main shareholders will expire today.

Before it’s here, it’s on Smartkarma

May 09

Equity Capital Markets: Life Insurance Corp of India (LIC) and more

In today’s briefing:

ECM Weekly (9th May 22) – LIC, Campus, Rainbow, Delhivery, Shieldus, Yunkang, PAG, Keep, Air NZ

ECM Weekly (9th May 22) – LIC, Campus, Rainbow, Delhivery, Shieldus, Yunkang, PAG, Keep, Air NZ

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 IPOs front, LIC’s anchor book wasn’t great while Delhivery finally launched its IPO and Hong Kong market saw its first launch in a while.
Placements remained few and far between with only Air New Zealand (AIR NZ) launching its shortfall bookbuild.

Before it’s here, it’s on Smartkarma

May 08

Equity Capital Markets: Delhivery, Yunkang Group and more

In today’s briefing:

Delhivery IPO: Valuation Insights
Yunkang Group IPO – Futile to Try and Gauge Its Post-COVID Performance

Delhivery IPO: Valuation Insights

By Arun George

Delhivery (1058656D IN) is the largest and fastest-growing 3PL express parcel delivery player in India. It will launch its Rs52.4 billion ($0.7 billion) IPO on 11 May.
In Delhivery IPO: Yet to Convincingly Deliver, we noted that the negatives outweigh the positives.
In this note, we look at the valuation metrics. We think that Delhivery is at best fairly valued at the IPO price range.

Yunkang Group IPO – Futile to Try and Gauge Its Post-COVID Performance

Yunkang Group (2325 HK) is looking to raise US$139m in its Hong Kong IPO.
Yunkang Group has grown its on-site diagnostics centers and has grand plans to add new centers with the IPO proceeds.
However, its business performance had been largely impacted by COVID, where COVID-related tests amounted to 83.6% of total tests performed in FY21, while contributing 58.1% to total revenue.

Before it’s here, it’s on Smartkarma

May 07

Equity Capital Markets: Delhivery, Campus Activewear Ltd, Yunkang Group and more

In today’s briefing:

Delhivery IPO – Thoughts on Valution, Touch-And-Go
Campus Activewear IPO Trading – Strong Bookbuild and Anchor
Yunkang IPO (PHIP): Growth Still Largely Driven by COVID

Delhivery IPO – Thoughts on Valution, Touch-And-Go

Delhivery is now looking to raise around US$700m in its upcoming India IPO, the company is backed by a host of financial investors, the largest being Softbank
Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.
We have covered various aspects of the deal in our earlier notes. In this note, we talk about valuation.

Campus Activewear IPO Trading – Strong Bookbuild and Anchor

By Shifara Samsudeen, ACMA, CGMA

Campus Activewear Ltd (1535013D IN) India IPO raised around US$184m. The IPO was a 100% secondary selldown.
The overall subscription rate for Campus had led the likes of Zomato, PAYTM and PB Fintech, and was most similar to that of Polycab India.
Campus’ growth outlook and vertically integrated model should warrant it to trade at a premium to Metro Brands, while at a discount to Relaxo, given the latter’s more diversified offering.

Yunkang IPO (PHIP): Growth Still Largely Driven by COVID

Yunkang Group (2325 HK) is a medical operation service provider in China and offers a full suite of diagnostic testing services.
The company’s IPO application has been approved and plans to raise about US$139m. In this insight, we have highlighted some of the key new data points from PHIP filing.
Revenue grew 8.8% YoY in 2021 excl. Cov-19 tests (vs 80.2% from Cov-19 tests) and we are yet to see major improvements excluding the positive impact on margins from COVID.

Before it’s here, it’s on Smartkarma

May 06

Equity Capital Markets: Delhivery, Keep Inc, Yunkang Group and more

In today’s briefing:

Delhivery IPO – Peer Comparison, What It Gains in Growth It Gives up in Margins
Keep Pre-IPO – Market Leader in a Growing Market, However, Has Been on a Spending Spree
Delhivery (RHD Updates): Unit Economics Have Taken a Beat
Yunkang Group IPO – Has Improved Its Operating Metrics, but Still Reliant on COVID Boost

Delhivery IPO – Peer Comparison, What It Gains in Growth It Gives up in Margins

Delhivery is now looking to raise around US$700m in its upcoming India IPO, the company is backed by a host of financial investors, the largest being Softbank.
Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.
We have covered various aspects of the deal in our earlier notes. In this note, we will undertake a peer comparison.

Keep Pre-IPO – Market Leader in a Growing Market, However, Has Been on a Spending Spree

By Shifara Samsudeen, ACMA, CGMA

Keep Inc (KEEP HK) is looking to raise around US$500m in its upcoming Hong Kong IPO.
Keep is an online fitness platform, offering online fitness content, smart fitness devices and fitness products.
The firm aims to develop a closed-loop system where its offerings are complementary, thus servicing an individual’s entire fitness life cycle.

Delhivery (RHD Updates): Unit Economics Have Taken a Beat

Delhivery (1058656D IN) is a fully integrated logistics player in India. The company’s application for a listing has been approved by the regulators.
The IPO will be open from 11-13th May and the company has downsized the IPO from INR7,460 crore to INR5,235 crores, with existing shareholders offloading shares worth of INR1,235 crores.
This insight focuses on new data points from the company’s Red Herring Document (RHD).

Yunkang Group IPO – Has Improved Its Operating Metrics, but Still Reliant on COVID Boost

Yunkang Group (YK HK) is looking to raise US$139m in its Hong Kong IPO.
Yunkang Group is a medical operation service provider in China and as per F&S, had a market share of 3.7% in China’s medical operation service market as per 2020 revenue.
Yunkang saw its full-year FY21 performance pulled up in the later half of the year. Number of tests administered had also surged 3.45x YoY in FY21.

Before it’s here, it’s on Smartkarma

May 05

Equity Capital Markets: SK Shieldus, Delhivery, Pag, Betters Medical Investment Holdings and more

In today’s briefing:

SK Shieldus: Likely to Lower IPO Price by 19% Post Bookbuilding Results
Delhivery Pre-IPO – RHP Updates – Growth Remains Strong, Pricing Remains Under Pressure
Delhivery IPO: Yet to Convincingly Deliver
PAG Pre-IPO – The Negatives – Planned Reorg Don’t Sound Great
Pre-IPO Betters Medical Investment Holdings – The Industry, the Business and the Concerns

SK Shieldus: Likely to Lower IPO Price by 19% Post Bookbuilding Results

By Douglas Kim

Numerous local Korean media outlets reported today after the market close that SK Shieldus is likely to lower the IPO price by about 19% to 25,000 won.
Our revised base case valuation of SK Shieldus is target price of 36,948 won per share, representing 48% upside from the estimated IPO price of 25,000 won.
We maintain our same earnings estimates for SK Shieldus. We slightly lowered the valuation multiples mainly due to lower valuations of the comps and weaker market sentiment on IPOs.

Delhivery Pre-IPO – RHP Updates – Growth Remains Strong, Pricing Remains Under Pressure

Delhivery is now looking to raise around US$700m in its upcoming India IPO, the company is backed by a host of financial investors, the largest being Softbank.
Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.
In this note, we talk about the updates from its RHP.

Delhivery IPO: Yet to Convincingly Deliver

By Arun George

Delhivery is the largest and fastest-growing 3PL express parcel delivery player in India. It has cut its IPO raise from Rs74.6 billion ($1 billion) to Rs52.4 billion ($0.7 billion).
In Delhivery IPO Initiation: Can It Deliver?, we noted that the fundamentals are mixed as it has been unable to leverage strong growth to deliver profits or cash generation.
In this note, we look at the RHP which discloses 9MFY22 results. We continue to believe the negatives outweigh the positives. We are inclined to give the IPO a pass.

PAG Pre-IPO – The Negatives – Planned Reorg Don’t Sound Great

PAG aims to raise around US$2bn via its Hong Kong IPO.
PAG is an alternative investment firm focused on Asia-Pacific (APAC), it had approximately US$50bn in assets under management (AUM), as of Dec 21.
In this note, we will talk about the not so positive aspects of the deal.

Pre-IPO Betters Medical Investment Holdings – The Industry, the Business and the Concerns

By Xinyao (Criss) Wang

The MWA market that Betters belongs to has showed rapid growth and large potential. Obviously, Betters would benefit from it based on its existing products and leading market position.
However, the medical device industry in China is subject to strict policy supervision. It cannot rule out the possibility that the Company’s products would be included in the centralized procurement.
In terms of valuation, Micro-Tech Nanjing Co Ltd (688029 CH) could be a comparable company, but Betters’ valuation should be lower than it.

Before it’s here, it’s on Smartkarma

May 04

Equity Capital Markets: Air New Zealand, Life Insurance Corp of India (LIC), LG Corp, Pag and more

In today’s briefing:

Air New Zealand Shortfall – Not a Great Take-Up Probably Because of the Large Retail Holding
Life Insurance Corporation of India IPO – Anchor Book Results Weren’t Great
Initial Thoughts on the LG CNS IPO
PAG Pre-IPO – The Positives – Past Record Has Been Decent

Air New Zealand Shortfall – Not a Great Take-Up Probably Because of the Large Retail Holding

Air New Zealand (AIR) was aiming to raise around US$827m (NZ$1.2bn) via a renounceable rights issue. It has now launched a shortfall of around US$153m, at last close.
We have covered the background of the rights and expected shortfall in our earlier note, Air New Zealand Rights and Possible Shortfall – Delayed Boarding but Its Priced to Fly.
In this note, we talk about the recent updates and shortfall pricing.

Life Insurance Corporation of India IPO – Anchor Book Results Weren’t Great

Government of India (GoI) is looking to raise around US$2.7bn via selling a 3.5% stake in Life Insurance Corporation of India (LIC) in its upcoming India IPO.
This is less than half of its initial plans in terms of fundraising target and comes at less than half of its initial valuation target.
We have looked at various aspects of the deal in our earlier notes. In this note, we compare it’s anchor book results with recent listings.

Initial Thoughts on the LG CNS IPO

By Douglas Kim

LG CNS is getting ready to complete its IPO in 2023. LG CNS is one of the largest system integration (SI) companies in Korea.
LG Corp owns 49.95% stake in LG CNS. Local media mentioned the LG CNS value could reach about 4 trillion won to 5 trillion won after it completes its IPO.
If LG CNS is valued at 5 trillion won, a 50% stake would be valued at 2.5 trillion won which is more than 12x book value on its balance sheet.

PAG Pre-IPO – The Positives – Past Record Has Been Decent

PAG aims to raise around US$2bn via its Hong Kong IPO.
PAG is an alternative investment firm focused on Asia-Pacific (APAC), it had approximately US$50bn in assets under management (AUM), as of Dec 21.
In this note, we will talk about the positive aspects of the deal.

Before it’s here, it’s on Smartkarma