ECM Daily Briefs | Page 79 of 118

In today’s briefing:

GoTo IPO – Past Performance Hasn’t All Been Great
GoTo Gojek Tokopedia IPO Initiation: Island Shopping
Ferretti Group Pre-IPO: Peer Comp and Valuation
Green Tea Group Pre-IPO – Growing for the Sake of Growth

GoTo IPO – Past Performance Hasn’t All Been Great

GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors.
GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
In this note, we talk about the company’s past performance.

GoTo Gojek Tokopedia IPO Initiation: Island Shopping

By Arun George

GoTo (1379371D IJ) is the leading digital ecosystem in Southeast Asia. It seeking to raise up to $1.3 billion. Bookbuilding runs from 15 to 21 March.
The fundamentals are mixed as the high growth is accompanied by ongoing losses and cash burn. A credible path to profitability is yet to be established.
In an environment where growth-at-all costs tech firms and peers have materially sold-off and are out of favour, GoTo is not for the faint-hearted.

Ferretti Group Pre-IPO: Peer Comp and Valuation

Ferretti is a leading yacht builder based in Italy. The company is looking to raise up to USD 300m via a Hong Kong listing.
In our previous note, we looked at the company’s key product segments, operating metrics, financials, and industry.
In this note, we compare the company with its close peer and provide our thoughts on valuation.

Green Tea Group Pre-IPO – Growing for the Sake of Growth

By Clarence Chu

Green Tea Group (GT HK) is looking to raise about US$150m in its upcoming Hong Kong IPO.
Green Tea Group is a restaurant chain operator for fusion cuisine in China.
As of the latest practicable date (LPD), it had a restaurant network of 236 restaurants covering 18 provinces, four municipalities and three autonomous regions in the PRC.

Before it’s here, it’s on Smartkarma

Mar 16

Equity Capital Markets: GoTo and more

In today’s briefing:

GoTo Pre-IPO – Quick Take on US$1bn+ Domestic Listing

GoTo Pre-IPO – Quick Take on US$1bn+ Domestic Listing

GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors. The company has filed its prospectus today.
GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
In this note, we will take a quick look at the company’s financial performance.

Before it’s here, it’s on Smartkarma

Mar 15

Equity Capital Markets: JD.com Inc (ADR) and more

In today’s briefing:

JD.com Tencent Div Distribution – The US$10bn Overhang

JD.com Tencent Div Distribution – The US$10bn Overhang

On 23rd Dec, Tencent declared a dividend in the form of distribution in specie of 457.326m shares of JD.com, i.e. 1 share of JD.com for every 21 shares of Tencent.
While Tencent went ex-div on 20th Jan 2022, the actual settlement of the distribution is expected to happen on or about 25th Mar 2022.
In this note, we look at Tencent’s shareholding in order to decipher the impact on JD.com’s shares once the distribution is settled to determine who the sellers could be.

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Mar 13

Equity Capital Markets: Tencent and more

In today’s briefing:

ECM Weekly (13th Mar 2022)-Arrail, Aquila, Propguru, Ferretti, Jinmao, Nio, Fabindia, Hyu Hvy, Cosmo

ECM Weekly (13th Mar 2022)-Arrail, Aquila, Propguru, Ferretti, Jinmao, Nio, Fabindia, Hyu Hvy, Cosmo

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
As SBI Sumishin Net Bank (7163 JP) called off its listing, Government of India is still vacillating on Life Insurance Corp of India (LIC) (1248Z IN).
Placement scene remains quiet with Cosmo Energy Holdings (5021 JP) deeply discounted block following up on ZIP Holdings (ZHL AU) deeply discounted block the previous week.

Before it’s here, it’s on Smartkarma

Mar 11

Equity Capital Markets: Green Tea Group, Ferretti SpA, Arrail Group and more

In today’s briefing:

Green Tea Group IPO Preview
Ferretti Group Pre-IPO: Might Disappoint Again
Arrail IPO: Peer Comparison and Valuation

Green Tea Group IPO Preview

By Oshadhi Kumarasiri

Green Tea Group (GT HK) received the Hong Kong Stock Exchange approval to launch its IPO on 7th March 2022, almost a year after filing its first application.
The company expects to raise around US$100-200m via an IPO jointly sponsored by Citi and CMB International.
Growth prospects look decent with plans to open 75-100 new restaurants each year. However, We aren’t excited about the IPO as the Company’s business model seems significantly weaker than peers.

Ferretti Group Pre-IPO: Might Disappoint Again

By Shifara Samsudeen, ACMA, CGMA

Ferretti is a leading yacht builder based in Italy. The company is looking to raise up to USD 500 m via a Hong Kong listing.
We look at the company’s key product segments, operating metrics, financials, and industry.
We provide our quick thoughts on the industry, valuation, and our concerns.

Arrail IPO: Peer Comparison and Valuation

Arrail, the largest dental services provider in China’s premium dental service market has announced the terms for its IPO.
The company plans to raise net proceeds of approx. HK$590m (US$75.9m) through issuing 46.5m at a price of HK$14.62 per share.
Cornerstone investors have agreed to purchase approx. US$65m worth of shares and these investors include Abax, Harvest, Hudson Bay, OrbiMed and TVHKL.

Before it’s here, it’s on Smartkarma

Mar 10

Equity Capital Markets: Cosmo Energy Holdings, Arrail Group, Fabindia, Jinmao Property Services, Ascent ENT Group Holdings and more

In today’s briefing:

Cosmo Energy Holdings Placement – Stock Has Done Well, Deal Might Be Expected but It’s Accelerated
Arrail Group (瑞尔集团) IPO: Downsized Deal Mostly Taken by Cornerstones
Fabindia Pre-IPO – The Positives – Strong Urban Brand
Jinmao Property Services IPO Trading – Expect a Modest Debut with Low Liquidity
Arrail IPO: Strong Growth Prospects with Further Upside to Margins
Pre IPO Ascent ENT Group Holdings – Conservative About the Outlook
Fabindia Pre-IPO – The Negatives – Past Financial Performance Trends Remain Unclear

Cosmo Energy Holdings Placement – Stock Has Done Well, Deal Might Be Expected but It’s Accelerated

Mubadala aims to raise around US$287m via selling its 15.8% stake in Cosmo Energy Holdings (5021 JP).
The stock has been doing well owing to the rise in crude prices and Mubadala has sold some stock before and hence, the deal might not be wholly unexpected.
However, its an accelerated bookbuild in Japan, which don’t have a great track record.

Arrail Group (瑞尔集团) IPO: Downsized Deal Mostly Taken by Cornerstones

Arrail is a leading premium dental service provider in China. The company launched book building to raise up to USD 87m via a Hong Kong listing.
In our previous notes, we looked at the company’s background, its operation, its financials, and its expansion plan, and compared its key metrics with peers and provide thoughts on valuation.
In this note, we provide a quick update for the book building.

Fabindia Pre-IPO – The Positives – Strong Urban Brand

By Shifara Samsudeen, ACMA, CGMA

Fabindia is a consumer lifestyle platform with a 62-year legacy focused on authentic, sustainable and Indian traditional lifestyle products. It is looking to raise around US$500m in its India IPO.
Fabindia offers a diverse portfolio of lifestyle products to its customers across Apparel and Accessories, Home and Lifestyle, Personal Care and Organic Food categories.
In this note, we will talk about the positive aspects of the deal.

Jinmao Property Services IPO Trading – Expect a Modest Debut with Low Liquidity

By Clarence Chu

Jinmao Property Services (816 HK) raised around US$105m in its Hong Kong IPO.
In our view, the firm doesn’t deserve to trade at a premium to peers given its weaker margins and slower growth in FY20.
In this note, we will look at the trading dynamics and current valuation.

Arrail IPO: Strong Growth Prospects with Further Upside to Margins

Arrail is the largest dental services provider in China’s premium private dental service market and the third in the overall market in terms of total revenues in 2020.
The company has filed for an IPO to list on the Hong Kong Stock Exchange and plans to raise about US$86m.
The group has experienced strong growth despite the impact of COVID-19 and China’s growing private dental market offers large potential for the company to grow.

Pre IPO Ascent ENT Group Holdings – Conservative About the Outlook

By Xinyao (Criss) Wang

For ENT services, the number of patients and scale of ENT field are relatively stable, with growth ceiling.
Due to the limited doctor resources in Singapore and the intensified multi-party competition faced by Ascent, there may not be exciting future growth potential.
So, we are conservative about the Company’s outlook if it just operates the business within Singapore or without diversifying its business effectively.

Fabindia Pre-IPO – The Negatives – Past Financial Performance Trends Remain Unclear

Fabindia is a consumer lifestyle platform with a 62-year legacy focused on authentic, sustainable and Indian traditional lifestyle products. It is looking to raise around US$500m in its India IPO.
Fabindia offers a diverse portfolio of lifestyle products to its customers across Apparel and Accessories, Home and Lifestyle, Personal Care and Organic Food categories.
In this note, we talk about the not so positive aspects of the deal.

Before it’s here, it’s on Smartkarma

Mar 09

Equity Capital Markets: Arrail Group and more

In today’s briefing:

Arrail Group (瑞尔集团) Pre-IPO: Peer Comp and Thoughts on Valuation

Arrail Group (瑞尔集团) Pre-IPO: Peer Comp and Thoughts on Valuation

Arrail is a leading dental service provider in China. The company is looking to raise up to USD100m via a Hong Kong listing.
In our previous note, we looked at the company’s background, its operation, its financials, and its expansion plan.
In this note, we compare the key metric with its peer and provide our thoughts on the valuation.

Before it’s here, it’s on Smartkarma

Mar 06

Equity Capital Markets: SBI Sumishin Net Bank and more

In today’s briefing:

ECM Weekly (6th Mar 2022) – SBI Sumishin, Farm Fresh, Arrail, NIO, LIC, ZIP, IDP Education

ECM Weekly (6th Mar 2022) – SBI Sumishin, Farm Fresh, Arrail, NIO, LIC, ZIP, IDP Education

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
Market volatility has put Life Insurance Corp of India (LIC) (1248Z IN)‘s IPO launch in time while SBI Sumishin Net Bank (7163 JP) will have to lower its asking valuation.
Placement scene remains quiet with only Zip Co Ltd (Z1P AU) placement and IDP Education (IEL AU) blocks.

Before it’s here, it’s on Smartkarma

Mar 04

Equity Capital Markets: NIO Inc, Farm Fresh Berhad and more

In today’s briefing:

NIO HK Listing – Ticking the Box
Farm Fresh IPO: Valuation Insights

NIO HK Listing – Ticking the Box

NIO announced that it would look to list in the HK by way of introduction with trading set to begin on 10th March 2022.
Unlike a secondary or a dual primary listing, there will be no new capital raised and there will be no secondary shares sold either.
In this note we take a quick look at the deal dynamics.

Farm Fresh IPO: Valuation Insights

By Arun George

Farm Fresh Berhad (FF MY) is a leading vertically integrated dairy player in Malaysia. It has launched an IPO to raise $239 million.
In Farm Fresh IPO Initiation: Bet the Farm, we stated that the IPO is worth a closer look on a fundamental basis. The offer period is from 28 February-10 March.
30 cornerstone investors will take up c.80% of the institutional offering tranche. Our valuation analysis suggests that the IPO price is attractive.

Before it’s here, it’s on Smartkarma

Mar 03

Equity Capital Markets: SBI Sumishin Net Bank, Farm Fresh Berhad and more

In today’s briefing:

SBI Sumishin Net Bank Pre-IPO – Earnings Forecast and Thoughts on Valuations
Farm Fresh IPO Initiation: Bet the Farm
Farm Fresh IPO – Not the Cheapest but Could Be Worth the Price

SBI Sumishin Net Bank Pre-IPO – Earnings Forecast and Thoughts on Valuations

SBI Sumishin Net Bank (SSNB) will be looking to raise around US$1.1bn in its upcoming IPO.
SSNB 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, a financial services firm.
The deal, if successful, would be Japan’s first online-only bank to go public. In this note, we will talk about our earnings forecast and throughts in valuations.

Farm Fresh IPO Initiation: Bet the Farm

By Arun George

Farm Fresh Berhad (FF MY) is a leading vertically integrated dairy player in Malaysia. It has launched an IPO to raise $239 million.
The business is navigating the normalisation of consumer demand and input cost inflation by delivering healthy growth, market share gains, creditable margin performance and cash generation.
Overall, this IPO is worth a closer look. The offer period is from 28 February to 10 March. The listing is on 22 March.

Farm Fresh IPO – Not the Cheapest but Could Be Worth the Price

By Clarence Chu

Farm Fresh Berhad (FF MY) is looking to raise US$239m in its Malaysia IPO.
While not exactly the cheapest per se, including Nestle Malaysia, were the firm to trade towards its domestic peer’s simple average, there is an upside potential of 26%-33.3%.
In this note, we will look at peers, assumptions, and share our thoughts on valuation.

Before it’s here, it’s on Smartkarma