ECM Daily Briefs | Page 8 of 123

In today’s briefing:

Hindustan Zinc OFS Early Look – Due for a Correction, Large Selling Pressure Looming
P N Gadgil Jewellers Pre-IPO – Strong Revenue Growth but Margin Worry Persists

Hindustan Zinc OFS Early Look – Due for a Correction, Large Selling Pressure Looming

Vedanta Ltd (VEDL IN) is looking to raise US$760m from selling some stake in Hindustan Zinc (HZ IN).
Overall, while the deal would represent just 2.6% of the firm’s outstanding shares, the deal is a large one to digest at 41 days of the stock’s three month ADV.
In this note, we take an early look at the deal, and comment on the deal dynamics.

P N Gadgil Jewellers Pre-IPO – Strong Revenue Growth but Margin Worry Persists

P N Gadgil Jewellers (1742652D IN) looking to raise up to US$132m in its upcoming 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.
In this note, we look at the company’s historical performance.

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Aug 14

Daily Brief ECM: WeRide IPO – Stiff Competition and Bleak Sentiment. Premium Valuation Doesn’t Help and more

In today’s briefing:

WeRide IPO – Stiff Competition and Bleak Sentiment. Premium Valuation Doesn’t Help
WeRide IPO: High-Risk Venture Investment and Unproven Business Model
China Resources Beverage Pre-IPO – Thoughts on Valuation

WeRide IPO – Stiff Competition and Bleak Sentiment. Premium Valuation Doesn’t Help

WeRide (WRD US) is looking to raise US$119m in its US IPO.
WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
We had looked at the firm’s past performance in our earlier notes. In this note, we discuss our thoughts on valuation.

WeRide IPO: High-Risk Venture Investment and Unproven Business Model

By Andrei Zakharov

WeRide, a pure-play autonomous driving company with operations in 7 countries, may raise up to $120M in upcoming IPO in the United States.
WeRide is expected to IPO this week. The company’s amended prospectus puts the price range per ADS at $15.50 to $18.50, implying a market cap of ~$4.6B at the midpoint.
The company has raised ~$1.4B in equity financing to date and was backed by Qiming Venture Partners and the venture capital fund of the Renault Nissan Mitsubishi Alliance, among others.

China Resources Beverage Pre-IPO – Thoughts on Valuation

China Resources Beverage is looking to raise US$1bn in its upcoming Hong Kong IPO.
China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
In our earlier notes, we talked about the company’s past performance and undertook a peer comparison. In this note, we will look at valuations.

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Aug 13

Daily Brief ECM: Brainbees (FirstCry) IPO Trading – Decent Subscription and Valuation and more

In today’s briefing:

Brainbees (FirstCry) IPO Trading – Decent Subscription and Valuation
WeRide (WRD US) IPO: The Bear Case
Ola Electric (OLAELEC IN) : Soaring High – How Much Higher Can It Go?
TS Lines Pre-IPO: Adjusted Book Value Approach Yields Estimated Equity Valuation of US$1.96-2.06 Bn

Brainbees (FirstCry) IPO Trading – Decent Subscription and Valuation

BrainBees Solutions (FirstCry) raised around US$500m in its India IPO.
FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products in terms of GMV, for the year ending Dec 2022 (9M23), according to RedSeer.
In our previous notes, we looked at the company’s past performance and valuations. In this note, we talk about the trading dynamics.

WeRide (WRD US) IPO: The Bear Case

By Arun George

WeRide (WRD US), a provider of autonomous driving products and services, seeks to raise up to US$119 million through a Nasdaq IPO and US$321 million through a concurrent private placement.
In WeRide (WRD US) 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 a volatile revenue profile, high customer concentration risk, widening losses that raise doubts on the path to profitability, elongated cash collection cycles and cash burn.

Ola Electric (OLAELEC IN) : Soaring High – How Much Higher Can It Go?

By Devi Subhakesan

Ola Electric’s stock has surged since its Friday listing, despite a lukewarm IPO response. We look at a possible base-to-bullish case valuation range for Ola Electric’s stock price.
With the e2W market up 96% YoY in July and Ola Electric’s sales soaring 114%, the momentum is strong. Likely catalyst on the horizon adds to investor optimism.
Currently, on FY2026E EV/Revenue, Ola Electric trades on par with its closest Indian e2W peer.

TS Lines Pre-IPO: Adjusted Book Value Approach Yields Estimated Equity Valuation of US$1.96-2.06 Bn

By Daniel Hellberg

Container ships are standardized, and fleets can be “market to market” values
This approach suggests TS Lines’ equity could be worth > US$2.0 bn
However, there are some caveats that come with this valuation approach

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Aug 12

Daily Brief ECM: ECM Weekly (12th Aug 2024) – Ola Electric and more

In today’s briefing:

ECM Weekly (12th Aug 2024) – Ola Electric, Brainbees, WeRide, Akum, CR Beverages, Eternal Beauty

ECM Weekly (12th Aug 2024) – Ola Electric, Brainbees, WeRide, Akum, CR Beverages, Eternal Beauty

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, the prior week witnessed a number of listings with divergent results.
Given the market volatility, there was only one large placements in the prior week.

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Aug 10

Daily Brief ECM: Rubicon Research Pre-IPO Tearsheet and more

In today’s briefing:

Rubicon Research Pre-IPO Tearsheet

Rubicon Research Pre-IPO Tearsheet

Rubicon Research Limited (1453591D IN) is looking to raise about US$130m in its upcoming India IPO. The deal will be run by Axis, IIFL, JM Fin and SBI Caps.
Rubicon Research is a pharmaceutical formulations company with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly, the United States.
It was ranked among the top 10 Indian companies, in terms of total Abbreviated New Drug Application (ANDA) approvals, as per Frost & Sullivan (F&S).

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Aug 09

Daily Brief ECM: Ola Electric IPO Trading – Decent Anchor and more

In today’s briefing:

Ola Electric IPO Trading – Decent Anchor, Tepid Overall Demand
Paras Healthcare Pre-IPO Tearsheet
Suraksha Diagnostic Pre-IPO Tearsheet
WeRide (WRD US) IPO: The Bull Case

Ola Electric IPO Trading – Decent Anchor, Tepid Overall Demand

Ola Electric managed to raise around US$734m in its India IPO.
Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells
In our previous notes, we looked at the company’s past performance and valuations. In this note, we talk about the trading dynamics.

Paras Healthcare Pre-IPO Tearsheet

Paras Healthcare Limited (0490145D IN) is looking to raise about US$180m in its upcoming India IPO. The deal will be run by ICICI, IIFL and Motilal Oswal.
Paras Healthcare is the fifth largest healthcare provider, in terms of bed capacity in North India, Bihar and Jharkhand, with an aggregate of 2,135 beds, as of March 31, 2024.
The company offers several clinical specialties across its hospitals including cardiac sciences, oncology, neuro sciences, gastro sciences and orthopedics and joint replacement.

Suraksha Diagnostic Pre-IPO Tearsheet

Suraksha Diagnostic (1481262D IN) is looking to raise up to US$230m in its upcoming India IPO. The deal will be run by ICICI Securities, Nuvama Wealth and SBI Capital.
Suraksha Diagnostic is a full-service and integrated diagnostic chain. It offers a one-stop integrated solution for pathology and radiology testing, and medical consultation services to its customers.
It has flagship central reference laboratory, eight satellite laboratories and 194 customer touchpoints, and 146 sample collection centres (primarily franchised) as of FY24, across certain states of India.

WeRide (WRD US) IPO: The Bull Case

By Arun George

WeRide (WRD US), a provider of autonomous driving products and services, seeks to raise between US$200 to US$300 million through a Nasdaq IPO.
WeRide is the most commercially successful L4 autonomous driving company globally, measured by commercialization revenue in 2021, 2022 and 2023.
The bull case rests on a large TAM, strong product capabilities, near-term mass commercialization, articulation of a path to profitability, improving earnings quality and presence of blue-chip investors.

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Aug 08

Daily Brief ECM: Brainbees Solutions (FirstCry) IPO: Key Facts and more

In today’s briefing:

Brainbees Solutions (FirstCry) IPO: Key Facts, Financials and Valuations
Initial Thoughts on the K Bank IPO
Black Sesame IPO Trading – Lackluster Demand, Combined with Bad Timing
BrainBees Solutions IPO: Five Facts Why FirstCry Is Not a First Class Company
Innoscience Pre-IPO Tearsheet

Brainbees Solutions (FirstCry) IPO: Key Facts, Financials and Valuations

By Devi Subhakesan

BrainBees Solutions (0172540D IN) that operates FirstCry, India’s leading Online Mom and Child vertical, has launched a USD500 mn IPO that closes on August 8th.
The IPO pricing suggest a post-money equity valuation of around USD 2.8 billion and an EV/Revenue multiple in the range of 3.5X-3.7X.
Brainbees operates in an attractive online vertical noted for its high frequency purchases and long term customer relationship. However it has not built significant competitive advantages versus leading horizontal platforms.

Initial Thoughts on the K Bank IPO

By Douglas Kim

In this insight, we provide an update on the K Bank IPO, which is more likely in 1H 2025. K Bank is one of the largest Internet-only banks in Korea.
A successful IPO of K Bank could have a positive impact on KT Corp (030200 KS) which is the indirectly the largest shareholder of K Bank.
K Bank had total operating income of 51.5 billion won (up 328% YoY) in 1Q 2024. Operating margin improved materially from 5.7% in 1Q 2023 to 19.5% in 1Q 2024.

Black Sesame IPO Trading – Lackluster Demand, Combined with Bad Timing

Black Sesame Technologies (BLACKSES HK) raised around US$133m in its Hong Kong IPO, after pricing its IPO at the low-end.
Black Sesame International Holdings (BSIH) is an automotive-grade computing SoC and SoC-based intelligent vehicle solution provider.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

BrainBees Solutions IPO: Five Facts Why FirstCry Is Not a First Class Company

By Devi Subhakesan

We highlight several red flags with regard to BrainBees Solutions (0172540D IN) operations, business strategy and governance for investors’ careful consideration.
At the announced IPO price band of Rs440 – Rs465, Brainbees implied EV/Revenues (FY24) works out to 3.5X – 3.7X – a significant discount to India listed online retail verticals.
Despite seemingly inexpensive relative valuations, we do not see a compelling reason to invest in the company, specially given the several red flags discussed below.

Innoscience Pre-IPO Tearsheet

Innoscience (1992276D CH) is looking to raise up to US$300m in its upcoming HK IPO. The deal will be run by CICC, and CMB International.
Innoscience is a Chinese-based manufacturer of Gallium Nitride (GaN) semiconductor products. It offers various types of GaN products, including GaN wafers, GaN discrete chips, GaN ICs and GaN modules.
It tailors its solutions to customers in various industries such as consumer electronics, renewable energy and industrial applications, automotive electronics and data centers.

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Aug 07

Daily Brief ECM: Horizon Robotics IPO: High Valuation Is At Risk As NEV Production Forecasts Have Weakened and more

In today’s briefing:

Horizon Robotics IPO: High Valuation Is At Risk As NEV Production Forecasts Have Weakened
WeRide Pre-IPO – Peer Comparison – Boasting Partnerships, but Peers Aren’t Too Far Behind
Eternal Beauty Pre-IPO Tearsheet
China Resources Beverage Pre-IPO – Peer Comparison – Middling

Horizon Robotics IPO: High Valuation Is At Risk As NEV Production Forecasts Have Weakened

By Andrei Zakharov

Horizon Robotics, a leading provider of ADAS and AD solutions for passenger vehicles, plans to raise up to $500M in Hong Kong IPO.
I expect Horizon Robotics will price its IPO below last round valuation of ~$8.7B as revenue growth will slow below 50% y/y in 2024, down from 71% y/y in 2023.
The company’s key competitors, including Mobileye and Microchip Technology, revised their revenue guidance downwards for the second half of 2024.

WeRide Pre-IPO – Peer Comparison – Boasting Partnerships, but Peers Aren’t Too Far Behind

WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
We had looked at the firm’s past performance in an earlier note. In this note, we will undertake a peer comparison.

Eternal Beauty Pre-IPO Tearsheet

Eternal Beauty Holdings Limited (EBHL12 HK) is looking to raise about US$200m in its upcoming Hong Kong IPO. The deal will be run by BNP Paribas, Citic, CMBI and DBS.
Eternal Beauty is the largest brand management company of perfumes in the combined markets of Mainland China, Hong Kong and Macau, in terms of retail sales in 2023.
The company has a diverse portfolio of iconic brands of not only perfumes, but also color cosmetics, skincare products, personal care products, eyewear and home fragrances under management.

China Resources Beverage Pre-IPO – Peer Comparison – Middling

China Resources Beverage is looking to raise US$1bn in its upcoming Hong Kong IPO.
China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
In our earlier note, we talked about the company’s past performance. In this note, we will undertake a peer comparison.

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Aug 06

Daily Brief ECM: Ola Electric IPO: Forecasts and Valuation and more

By Shifara Samsudeen, ACMA, CGMA

In today’s briefing:

Ola Electric IPO: Forecasts and Valuation
Akums Drugs and Pharmaceuticals IPO Trading – Strong Demand and a Decent Margin of Safety
MDL Wholesale Pre-IPO Tearsheet
Saint Bella IPO: Growth Story Intact, A First-Mover Advantage in Postpartum Care Market in China

Ola Electric IPO: Forecasts and Valuation

Ola Electric (1700674D IN) plans to raise INR55bn through fresh issue of shares while existing shareholders will offer 84.9m shares at an indicative IPO price band of INR72-76 per share.
We expect the company’s revenues to continue to expand and grow at much higher rates during the next few years compared to competitors in the Indian two-wheeler market.
Our valuation analysis suggests that Ola Electric’s IPO is attractively priced compared to peers and we would suggest subscribing for the company’s IPO.

Akums Drugs and Pharmaceuticals IPO Trading – Strong Demand and a Decent Margin of Safety

Akums Drugs and Pharmaceuticals (0200361D IN) raised around US$222m in its India IPO, after pricing the deal at the top end of the range at INR679/share.
Akums Drugs and Pharmaceuticals (ADP) is a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas.
We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.

MDL Wholesale Pre-IPO Tearsheet

MDL Wholesale (WMHGCZ CH) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by UBS, CMS, CMBI, Deutsche Bank, BOCI, and China Galaxy.
MDL Wholesale is a leading food and FMCG distribution solution provider in China, providing a broad range of customers and retailers with high-quality merchandise and convenient solutions
Its solutions mainly include (i) food service and distribution, (ii) welfare and gifting, (iii) retailer distribution (comprising product sales to retailers and supply chain services) and (iv) merchandise wholesale.

Saint Bella IPO: Growth Story Intact, A First-Mover Advantage in Postpartum Care Market in China

By Andrei Zakharov

Saint Bella, a premium postpartum care service provider, filed to go public in Hong Kong. UBS and CITIC Securities are leading the offering.
Saint Bella operates ultra-premium postpartum centers in Asia, which are located at luxury hotels and detached villas. The company opened its first postpartum center in Hangzhou in 2017.
With strong multi-brand strategy and asset-light business model, Saint Bella is uniquely positioned in premium segment under Saint Bella, Bella Isla and Baby Bella brands.

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Aug 05

Daily Brief ECM: Black Sesame IPO – Paying Up-Front for Its Monetization Potential and more

In today’s briefing:

Black Sesame IPO – Paying Up-Front for Its Monetization Potential
ECM Weekly (5th Aug 2024) – Ola Electric, Brainbees, WeRide, Sanil, CR Beverages, Carote, Fortescue
Brainbees Solutions (FirstCry) IPO: Valuation Insights

Black Sesame IPO – Paying Up-Front for Its Monetization Potential

Black Sesame Technologies (BLACKSES HK) is looking to raise US$143m in its Hong Kong IPO.
Black Sesame International Holdings (BSIH) is an automotive-grade computing SoC and SoC-based intelligent vehicle solution provider.
In our earlier notes, we looked at the past performance of the deal. In this note, we discuss peers and share our thoughts on valuation.

ECM Weekly (5th Aug 2024) – Ola Electric, Brainbees, WeRide, Sanil, CR Beverages, Carote, Fortescue