In today’s briefing:
- AMTD Digital: Irrational Frenzy 2.0
- Zomato Placement – Opportunistic Selldown, Momentum Hasn’t Been the Greatest
- Chongqing Hongjiu Fruit Pre-IPO – PHIP Updates
- Giant Biogene Pre-IPO – The Positives – Fast Growth and Juicy Margins
AMTD Digital: Irrational Frenzy 2.0
- AMTD Digital (HKD US) shares are up 230x since its listing at US$7.80 per ADS on 15 July. Its market cap is a staggering US$334 billion.
- AMTD Idea Group (AMTD US) accounts for 99.4% of the voting power. In January 2022, it increased its AMTD Digital shareholding to 97.1% of outstanding shares at US$1.2 billion valuation.
- AMTD Digital’s financials are uninspiring and cannot justify the share price ramp. No sane valuation methodology can support the share price.
Zomato Placement – Opportunistic Selldown, Momentum Hasn’t Been the Greatest
- Uber (UBER US) is looking to raise US$420m in its share sale in Zomato (ZOMATO IN). The selldown will be a clean-up sale.
- Uber had earlier inherited its stake in Zomato in 2020 when it sold UberEats India to the latter.
- We had earlier flagged the possibility of a selldown given that most of Zomato’s investors would come off their respective one-year lockups.
Chongqing Hongjiu Fruit Pre-IPO – PHIP Updates
- Chongqing Hongjiu Fruit (CHF HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
- Chongqing Hongjiu Fruit (CHJF) is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. They have 1.0% market share as China’s second largest fruit distributor.
- It appears that CHJF had benefited from a slight increase in margins of certain core fruit products. However, we continue to remain doubtful of its long-term prospects.
Giant Biogene Pre-IPO – The Positives – Fast Growth and Juicy Margins
- Giant Biogene (GB) aims to raise around US$500m in its Hong Kong IPO.
- GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
- In this note, we talk about the positive aspects of the deal.
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