In today’s briefing:
- Alibaba/JD.com: Thoughts On The Recent Convertible Bond Issuance
- Exedy Corporation Placement – Relatively Large One, Although Buyback Should Aid Share Price
- Barito Renewables Lockup Expiry – US$8bn Lockup Expiry for Largest Indonesian Market Cap Stock
- Lalatech Compared to Full Truck Alliance, SF Intra-City, and GOGOX in Eleven Easy Charts
- Telix Pharmaceutical US ADS – Past Deal Record Hasn’t Been Strong, but Fortune Could Be Turning
- Shift Up IPO – Peer Comparison – Small in Size but Ranks High on Growth and Margins
Alibaba/JD.com: Thoughts On The Recent Convertible Bond Issuance
- Alibaba Group Holding (9988 HK) and JD.com (9618 HK) both announced the issuance of convertible debt last week (Alibaba on May 23 and JD.com on May 21).
- Both have mentioned that the reasons for the issuance are the low funding cost (0.25% coupon for JD.com and 0.5% for Alibaba) and to fund their current share repurchase program.
- I think the convertible debt structures makes sense and it is beneficial for both companies to buy back as much as possible at the current share price.
Exedy Corporation Placement – Relatively Large One, Although Buyback Should Aid Share Price
- Aisin (7259 JP) is looking to raise US$290m from selling its entire stake in Exedy Corp (7278 JP).
- While the selldown doesn’t seem to be particularly well-flagged, this appears to be another cross-shareholder unwind in Japan.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Barito Renewables Lockup Expiry – US$8bn Lockup Expiry for Largest Indonesian Market Cap Stock
- Barito Renewables Energy (BREN IJ) raised around US$200m in its Indonesian IPO, after pricing at the top end at IDR780/share. Its eight-month lockup will expire on 29th May 2024.
- Barito Renewables (BR) is Indonesia’s largest geothermal power producer, and the third-largest globally by installed capacity, as per the firm.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Lalatech Compared to Full Truck Alliance, SF Intra-City, and GOGOX in Eleven Easy Charts
- We compare Lalatech’s scale, P&L, Balance Sheet, and Cash Flow to peers
- On several measures, Lalatech is comparable to Full Truck Alliance, SF-Intra
- Small, unprofitable GOGOX not an appropriate comp for Lalatech, in our view
Telix Pharmaceutical US ADS – Past Deal Record Hasn’t Been Strong, but Fortune Could Be Turning
- Telix Pharmaceuticals (TLX AU) aims to raise at least US$100m in its US ADS listing. The bookrunners on the deal are Jefferies, Morgan Stanley, Truist Securities, and William Blair.
- TLX is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutic and diagnostic radiopharmaceuticals.
- In this note, we talk about the deal dynamics and the listing impact.
Shift Up IPO – Peer Comparison – Small in Size but Ranks High on Growth and Margins
- Shift Up (462870 KS) plans to raise up to US$320m in its upcoming South Korean IPO.
- Shift Up is a South Korean games developer, which as released three games so far for the global markets.
- In our previous note, we looked at the company’s past performance. In this note, we will undertake a peer comparison.
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