In today’s briefing:
- DPC Dash IPO – Might Be Worth a Small Slice
- Quiddity Flow Expectations HSCEI Jun 23: 2 ADDs/DELs Possible; Capping Flows US$585mn One-Way
- Trial Holdings IPO: Valuation Insights
- Iwataya Opens Lounge S – A New Space for the Truly Wealthy
- DPC Dash IPO Valuation: Looks Expensive Cf. Yum China & Dominos Master Franchisees in Other Regions
- Kelsian Group Placement – Yet Another Acquisition to Add to Its Arsenal
- Giant Biogene Holding (2367.HK) – The Situation May Not Be as Rosy as It Looks
DPC Dash IPO – Might Be Worth a Small Slice
- DPC Dash (1405 HK) is now looking to raise up to US$90m, after having shelved its last attempt to raise around US$75m in its Hong Kong IPO in December.
- The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 604 stores across 17 cities, as of Feb 2023.
- In this note, we run the deal through our ECM framework and talk about valuations.
Quiddity Flow Expectations HSCEI Jun 23: 2 ADDs/DELs Possible; Capping Flows US$585mn One-Way
- In this insight, we take a look at the potential index changes and the resultant capping flows for the HSCEI Index in June 2023.
- According to our estimation, there could be two changes for the HSCEI in June 2023 and there could be one-way index flows of US$585mn.
- The final index changes along with indicative capping and index weights could be published in Mid/Late-May 2023.
Trial Holdings IPO: Valuation Insights
- Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$380 million at the IPO reference price of JPY2,000. Pricing on 26 March.
- We previously discussed the IPO in Trial Holdings IPO: The Bull Case and Trial Holdings IPO: The Bear Case.
- In this note, we discuss valuation. Our analysis suggests that Trial is attractively valued at the IPO reference price of JPY2,000. We would participate in the IPO.
Iwataya Opens Lounge S – A New Space for the Truly Wealthy
- Like all department stores, Iwataya in Fukuoka is keen to grow services for its wealthiest customers.
- It already has special lounges for high spending customers and has now opened a new, invitation-only lounge for its top 300 clients, many of whom are under 40.
- Capturing more share of the wealth market is the only real hope department stores have to grow.
DPC Dash IPO Valuation: Looks Expensive Cf. Yum China & Dominos Master Franchisees in Other Regions
- The exclusive master franchisee of Domino’s Pizza in mainland China, Hong Kong and Macau, DPC Dash’s IPO opened for subscriptions today at a price range of HK$ 46.0-55.0 per share.
- The IPO valuation is not particularly enticing to lure us as we don’t think it’s at a sufficient discount to Yum China Holdings Inc (9987 HK)’s multiples.
- DPC Dash (1405 HK) is also relatively more expensive than Domino’s Pizza (DPZ US) master franchisees in other regions.
Kelsian Group Placement – Yet Another Acquisition to Add to Its Arsenal
- Kelsian Group (KLS AU) aims to raise around US$90m (A$135m) via an institutional placement. Together with the placement, the company will also undertake a US$95m (A$143m) non-renounceable entitlement offer.
- The issuance of new shares will be a large one for the firm to digest, representing 150.6 days of three month ADV and 20.3% of current mcap.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Giant Biogene Holding (2367.HK) – The Situation May Not Be as Rosy as It Looks
- Giant Biogene has been added to Hong Kong Stock Connect.There’s also positive sentiment driven by the consumption recovery after China reopens. But the Company is overvalued if compared with peers.
- The subsequent product pipeline progress is relatively slow, with a gap of nearly two years in the middle. So, Giant Biogene’s stock price performance may be relatively weak after 2024.
- Due to various restrictions, the actual market space of collagen in the future may not be as large as expected. This is a point investors need to be aware of.
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