In today’s briefing:
- China Resources Beverage IPO – Volatility Makes Pricing a Bit Tricky
- CR Beverage (2460 HK) IPO: Valuation Insights
- CR Beverage IPO Preview and Valuation Analysis: Strong Profitability Growth, IPO Valuation Is Cheap
- Rigaku IPO: Forecasts and Valuation
- Rubicon Research Pre-IPO – Robust Product Development Pipeline Driving Revenue Growth
- Vikran Engineering Limited Pre-IPO Tearsheet
- NTPC Green Pre-IPO – The Positives – Backed by India’s Largest Power Company
China Resources Beverage IPO – Volatility Makes Pricing a Bit Tricky
- China Resources Beverage (CRB HK) is looking to raise up to US$650m in its Hong Kong IPO.
- China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
- We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.
CR Beverage (2460 HK) IPO: Valuation Insights
- China Resources Beverage (CRB HK), China’s largest purified drinking water company, has launched its HKEx IPO to raise up to US$650 million.
- We previously discussed the IPO in CR Beverage IPO: The Bull Case, CR Beverage IPO: The Bear Case and CR Beverage IPO: The Investment Case.
- Our valuation analysis suggests that CR Beverage is attractively valued at the IPO price range. Therefore, we would participate in the IPO.
CR Beverage IPO Preview and Valuation Analysis: Strong Profitability Growth, IPO Valuation Is Cheap
- CR Beverage, a pioneer in China’s packaged drinking water industry with a forty years history, sets terms for upcoming IPO in Hong Kong.
- The IPO is expected to be between HK$13.50 and HK$14.50. At the midpoint of the range, CR Beverage would command a market value of ~HK$33B or ~$4.2B.
- I view IPO valuation as attractive vs. domestic peers as profitability and gross profit margins improved. UBS, BOCI, CITIC Securities and Bank of America are leading the offering.
Rigaku IPO: Forecasts and Valuation
- Rigaku Holdings (268A JP) has opened its books for the IPO, and the IPO will raise $753m purely through the sale of shares by the existing shareholders.
- Unlike its competitors, Rigaku has a very specialized product portfolio that is entirely focused on X-ray technology which makes the company unique among its competitors.
- Our analysis reveals that Rigaku’s IPO is attractively priced compared to its competitors and there is more than 15-20% upside to the indicative IPO price range.
Rubicon Research Pre-IPO – Robust Product Development Pipeline Driving Revenue Growth
- Rubicon Research Limited (1453591D IN) is looking to raise about US$130m in its India IPO.
- It is a pharmaceutical formulations company with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly, the United States.
- In this note, we talk about the company’s historical performance.
Vikran Engineering Limited Pre-IPO Tearsheet
- Vikran Engineering Limited (1635154D IN) is planning to raise about US$119m through its upcoming IPO in India. The lead bookrunners for the deal are Pantomath Limited, Systematix Group.
- Vikran Engineering Limited (VEL) based in Mumbai, operates as an Engineering, Procurement & Construction (EPC) firm, focusing on power, water, and railway infrastructure projects.
- VEL plans to allocate its funds towards financing the company’s working capital needs and general corporate purposes.
NTPC Green Pre-IPO – The Positives – Backed by India’s Largest Power Company
- NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
- NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU).
- In this note, we will talk about the positive aspects of the deal.
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