In today’s briefing:
- CTG Duty-Free H-Share Listing: Thoughts on First Day Trading
- CTG Duty Free H Share Listing: Trading Debut
- Leapmotor IPO: The Bear Case
- Go Digit General Insurance Pre-IPO Tearsheet
- Concord Biotech Pre-IPO Tearsheet
CTG Duty-Free H-Share Listing: Thoughts on First Day Trading
- CTG Duty-Free Group has priced its IPO at HK$158 per share, at a slight premium to the midpoint of the indicative IPO price range of HK$143.5-165.5 per share.
- At HK$158 per share, the company raised net proceeds of HK$15,892.3 (approx. US$2.0bn) and the IPO is priced at an almost 30% discount to CTG’s A-share last close price.
- Cornerstone investors subscribed for approx. 38.4% of the H-share offering (or 1.9% of the total issued share capital of the company post-offering) with some existing shareholders subscribing under placing guidelines.
CTG Duty Free H Share Listing: Trading Debut
- China Tourism Group Duty Free Corp Ltd (1880 HK)/CTGDF priced its H Share at HK$158.00 per share to raise net proceeds of US$2.0 billion. The H Share starts trading tomorrow.
- The H Share listing price implies an AH discount of 27.2% at A Share price of RMB189.80. This compares to an average AH discount of 46.6% of listed AH shares.
- The China Tourism Group Duty Free Corp Ltd (601888 CH) A Shares are trading close to fair value. The H Shares valuation is unattractive compared to peers.
Leapmotor IPO: The Bear Case
- Leapmotor (2007699D HK), a Chinese EV manufacturer, will start its listing hearing for a US$1.5 billion HKEx IPO this week, according to press reports.
- In Leapmotor IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on a slow ramp-up, lower revenue, high EBIT and FCF loss margin compared to peers at a similar stage of development.
Go Digit General Insurance Pre-IPO Tearsheet
- Go Digit General Insurance (1643133D IN) is looking to raise about US$503m in its upcoming India IPO. The deal will be run by ICICI, MS, Axis, Edelweiss, HDFC and IIFL.
- Go Digit General Insurance (GDGI) is a digital full stack insurance company, offering motor, health, travel, property, marine, liability and other insurance products, which are customizable, as per the company.
- GDGI accounted for approximately 82.9% (INR 52.68bn in Fiscal 2022) of the gross written premiums written, making it the largest digital full stack insurance player in India, according to RedSeer.
Concord Biotech Pre-IPO Tearsheet
- Concord Biotech Ltd (658823Z IN) is looking to raise about US$250m in its upcoming India IPO. The deal will be run by Kotak, Citi, and Jefferies.
- Concord Biotech is an India-based biopharma firm, which develops and manufactures fermentation-based APIs.
- As per F&S, it was one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on FY21 volume.
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