In today’s briefing:
- Alibaba Dual-Primary-Listing: An Opportunity to Raise Money Without A Trouble Alert
- Detailing Why LG Energy’s MSCI Index Up-Weight Is November, Not August
- Sula Vineyards Pre-IPO Tearsheet
- Matahari Department Store (LPPF IJ) – New Boots and Pants
- Pepperfry Tearsheet – Banking on Discovery
Alibaba Dual-Primary-Listing: An Opportunity to Raise Money Without A Trouble Alert
- Alibaba Group (9988 HK) announced yesterday that it is seeking to change its listing status in Hong Kong to a primary listing before the end of 2022.
- With the risk of de-listing from the US, a dual-primary-listing in Hong Kong would allow Alibaba (ADR) (BABA US) to smoothly transition all its trading from the US to Hong Kong.
- In addition, the company could possibly use this opportunity to raise more money from capital markets as it is desperately seeking funding for its loss making ventures.
Detailing Why LG Energy’s MSCI Index Up-Weight Is November, Not August
- Expectations are spreading in the market that the free-float rate of LG Energy will increase from 9% to 15% at the MSCI August QIR. However, this possibility is quite low.
- Only 1.57% will be reflected in this QIR, and 4.26% will be in November. So, the August IR will see 0.59x ADTV, and the November IR will welcome 2.93x ADTV.
- A conservative approach is still valid for flow trading on LG Energy for now, and a more aggressive approach is needed with long/short trading with LG Chem.
Sula Vineyards Pre-IPO Tearsheet
- Sula Vineyards (1332009D IN) is looking to raise about US$175m in its upcoming India IPO. The deal will be run by Kotak, CLSA and IIFL Securities.
- 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”.
- Currently, it produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.
Matahari Department Store (LPPF IJ) – New Boots and Pants
- Matahari Department Store (LPPF IJ) reports another positive set of results confirming the success of its ongoing transformation with the promise of an even stronger quarter ahead.
- Footwear and menswear continued to lead but womenswear, cosmetics, and babywear were also strong, with private labels Nevada Sports, Nevada Denim, Coles, and New Connections booking vibrant sales.
- Matahari Department Stores omnichannel initiatives are bearing fruit with another marketplace soon to come on stream whilst store opening and renovations will accelerate 2H2022, helping to drive growth.
Pepperfry Tearsheet – Banking on Discovery
- Pepperfry (0096696D IN) is one of the largest furniture and home decor marketplaces in India. Recently also started offering appliances to serve as a one-stop home shop.
- Our channels indicate higher AOVs and different customers compared to Swedish giant IKEA. Marketplaces like Pepperfry solve the problem of discovery for customers looking for furniture in a new location.
- The WFH tailwind is fading away. With revenues declining, profitability is distant, and with the financial position that is yet to improve caution is warranted.
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