In today’s briefing:
- Brainbees Solutions (FirstCry) IPO: Key Facts, Financials and Valuations
- Initial Thoughts on the K Bank IPO
- Black Sesame IPO Trading – Lackluster Demand, Combined with Bad Timing
- BrainBees Solutions IPO: Five Facts Why FirstCry Is Not a First Class Company
- Innoscience Pre-IPO Tearsheet
Brainbees Solutions (FirstCry) IPO: Key Facts, Financials and Valuations
- BrainBees Solutions (0172540D IN) that operates FirstCry, India’s leading Online Mom and Child vertical, has launched a USD500 mn IPO that closes on August 8th.
- The IPO pricing suggest a post-money equity valuation of around USD 2.8 billion and an EV/Revenue multiple in the range of 3.5X-3.7X.
- Brainbees operates in an attractive online vertical noted for its high frequency purchases and long term customer relationship. However it has not built significant competitive advantages versus leading horizontal platforms.
Initial Thoughts on the K Bank IPO
- In this insight, we provide an update on the K Bank IPO, which is more likely in 1H 2025. K Bank is one of the largest Internet-only banks in Korea.
- A successful IPO of K Bank could have a positive impact on KT Corp (030200 KS) which is the indirectly the largest shareholder of K Bank.
- K Bank had total operating income of 51.5 billion won (up 328% YoY) in 1Q 2024. Operating margin improved materially from 5.7% in 1Q 2023 to 19.5% in 1Q 2024.
Black Sesame IPO Trading – Lackluster Demand, Combined with Bad Timing
- Black Sesame Technologies (BLACKSES HK) raised around US$133m in its Hong Kong IPO, after pricing its IPO at the low-end.
- Black Sesame International Holdings (BSIH) is an automotive-grade computing SoC and SoC-based intelligent vehicle solution provider.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
BrainBees Solutions IPO: Five Facts Why FirstCry Is Not a First Class Company
- We highlight several red flags with regard to BrainBees Solutions (0172540D IN) operations, business strategy and governance for investors’ careful consideration.
- At the announced IPO price band of Rs440 – Rs465, Brainbees implied EV/Revenues (FY24) works out to 3.5X – 3.7X – a significant discount to India listed online retail verticals.
- Despite seemingly inexpensive relative valuations, we do not see a compelling reason to invest in the company, specially given the several red flags discussed below.
Innoscience Pre-IPO Tearsheet
- Innoscience (1992276D CH) is looking to raise up to US$300m in its upcoming HK IPO. The deal will be run by CICC, and CMB International.
- Innoscience is a Chinese-based manufacturer of Gallium Nitride (GaN) semiconductor products. It offers various types of GaN products, including GaN wafers, GaN discrete chips, GaN ICs and GaN modules.
- It tailors its solutions to customers in various industries such as consumer electronics, renewable energy and industrial applications, automotive electronics and data centers.
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