In today’s briefing:
- Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect
- CIFI Holdings Placement – Won’t Do Much to Alleviate Debt Profile. Latest Deal Underwater
- Dmall Pre-IPO Tearsheet
- Pre-IPO Shandong Boan Biotechnology – Conservative About the Outlook
Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect
- Beauty Farm Medical and Health Industry (BFM HK) is the largest provider of traditional beauty services and the fourth largest non-surgical aesthetic medical service provider in China.
- The company seeks to raise $300 million from an IPO in Hong Kong market. Morgan Stanley, Haitong International, and Huatai International are the joint sponsors for the proposed IPO.
- COVID-19 has hurt recent financial performance of the company and forced it to shut many of the stores in multiple locations. Further, stretched valuation make the IPO unappealing to investors.
CIFI Holdings Placement – Won’t Do Much to Alleviate Debt Profile. Latest Deal Underwater
- CIFI Holdings (884 HK) is looking to raise US$127m in a top-up placement. Proceeds from the raising are expected to refinance its existing loans and for general corporate purposes.
- While the deal represents just 2.1 days of three month ADV, total shares offered would amount to 7.5% of current mcap.
- In this note, we will run the deal through our ECM framework and talk about the recent updates.
Dmall Pre-IPO Tearsheet
- Dmall Inc (1751691D CH) is looking to raise about US$200m in its upcoming HK IPO. The deal will be run by Credit Suisse and CMB International.
- Dmall provides cloud-based, end-to-end SaaS platforms purpose-built for the local retail industry.
- Its service offerings consist of a retail core service cloud, an e-commerce service cloud and a marketing and advertising service cloud.
Pre-IPO Shandong Boan Biotechnology – Conservative About the Outlook
- Without the advantages in product efficacy, production capacity, clinical progress and speed of approval, Boan’s products have lost their pricing power in both China and overseas markets.
- Due to the lack of differentiation and frontier enough target layout, the product commercialization potential is bound to be more easily questioned, with limited value in the long term.
- Even if Boan could go public successfully, investors may not be able to achieve the expected returns because of the unfriendly market sentiment and a lack of liquidity in HKEX.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
