In today’s briefing:
- ARM Holdings Limited – The Positives – Pervasive Global Presence
- Integral Corporation IPO: The Bear Case
- Union Bank of India QIP – Well-Flagged Deal, Recent Momentum Has Been Strong
- Samhi Hotels Pre-IPO – The Negatives – Peer Comp and Valuation
ARM Holdings Limited – The Positives – Pervasive Global Presence
- Softbank Group (9984 JP) aims to raise around US$8-10bn via selling some of its stake in ARM Holdings ’ US IPO.
- ARM develops and licences high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
- In this note, we talk about the positive aspects of the deal.
Integral Corporation IPO: The Bear Case
- Integral Corporation (5842 JP) is an independent Japanese private equity firm seeking to raise about US$175 million. The pricing is on 4 September, and the listing is on 20 September.
- In Integral Corporation IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rest on the declining mix of fee-earning AUM, growth driven by volatile investment income and uninspiring 1HFY22 performance in fee-related revenue growth and margin.
Union Bank of India QIP – Well-Flagged Deal, Recent Momentum Has Been Strong
- Union Bank Of India (UNBK IN) is looking to raise US$301m from its qualified institutional placement (QIP). Included in the deal is an option to effectively double its base deal.
- The deal is a relatively large one to digest with the base deal alone representing 21.1 days of three months ADV.
- That being said, the deal here is a very well flagged one with the firm having earlier reported to look to do so to boost its free float.
Samhi Hotels Pre-IPO – The Negatives – Peer Comp and Valuation
- SAMHI Hotels (SAMHI IN) plans to raise around US$200m (estimated) in its Indian IPO.
- Samhi is India’s third-largest hotel asset owner, by number of keys, with a portfolio of 25 operating hotel assets comprising 3,839 keys, as of Feb 2023.
- In this note, we will undertake a peer comparison and provide our thoughts on valuation.
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