In today’s briefing:
- ASMedia GDR Offering – Well Flagged, and Momentum Has Been Strong Leading into the Offering
- Shift Up IPO: The Investment Case
- Shift Up IPO – Thoughts on Valuations – Bear/Base/Bull
- Pre-IPO Jiangxi Rimag Group (PHIP Updates) – Some Points Worth the Attention
ASMedia GDR Offering – Well Flagged, and Momentum Has Been Strong Leading into the Offering
- Asmedia Technology (5269 TT) is looking to raise up to US$335m in its global depository receipts (GDRs) offering.
- Overall, the deal would be a relatively small one for the stock to digest at just 5.6 days of its three month ADV.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Shift Up IPO: The Investment Case
- Shift Up (462870 KS) is Korea’s leading game development studio. It is seeking to raise up to US$320 million.
- Shift Up now focuses only on game development and has a policy of publishing games in cooperation with global partners such as Tencent (700 HK) and Sony Corp (6758 JP).
- The investment case rests on a stellar game development track record, several growth drivers, high profitability and cash generation.
Shift Up IPO – Thoughts on Valuations – Bear/Base/Bull
- Shift Up (462870 KS) plans to raise up to US$320m in its South Korean IPO.
- Shift Up is a South Korean games developer, which as released three games so far for the global markets.
- We have looked at the company’s performance in our past notes. In this note, we talk about valuations.
Pre-IPO Jiangxi Rimag Group (PHIP Updates) – Some Points Worth the Attention
- Considering the dominant position of medical imaging centers in public hospitals and challenges from other players, future development space of Rimag would be squeezed,and even will soon encounter growth bottlenecks.
- Although Rimag turned losses into profits, we still have doubts about its future profitability due to increasing costs and potential price decline.This business may fail to bring investors decent profits.
- Rimag’s post-investment valuation after last round financing isn’t cheap.Given the uncertainty of future revenue growth prospects and the real market space, P/S of below 3 is a more comfortable range.
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