In today’s briefing:
- Daiwa House REIT Placement – Sponsor Cutting Stake, Would Likely Need a Wider Correction
- Doosan Robotics IPO – Thoughts on Valuation – A Punt at Best, a Crash at Worst
- Auckland Airport Placement – Well Flagged, LO Support but Still a Bit Tricky
- Doosan Robotics IPO: Valuation Insights
- DOMS Industries Pre-IPO Tearsheet
- Five Star Placement – Well Flagged but Have a Lot More Stock to Get Through
- Pre-IPO BrainAurora Medical Technology – The Outlook Is Highly Uncertain
- Epack Durable Pre-IPO Tearsheet
Daiwa House REIT Placement – Sponsor Cutting Stake, Would Likely Need a Wider Correction
- Daiwa House Industry (1925 JP) is looking to raise US$175m from trimming a portion of its stake in Daiwa House Reit Investment (8984 JP).
- Given that a selldown in the REIT hadn’t been explicitly guided, we would thus argue that the deal here isn’t particularly well flagged.
- Overall, the base deal would represent 4.09% of the REIT’s total outstanding shares, representing 20 days of three month ADV.
Doosan Robotics IPO – Thoughts on Valuation – A Punt at Best, a Crash at Worst
- Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO.
- Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
- In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.
Auckland Airport Placement – Well Flagged, LO Support but Still a Bit Tricky
- Auckland City Council plans to sell around 4.5% of Auckland Intl Airport (AIA NZ) to fund its budget requirements for 2023-24.
- The deal is very well flagged with Auckland City Council having publicly stated their intention to sell 7% of the stock in Jun 2023.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
Doosan Robotics IPO: Valuation Insights
- Doosan Robotics (454910 KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.
- We previously discussed the IPO in Doosan Robotics IPO: The Bull Case and Doosan Robotics IPO: The Bear Case.
- In this note, we look at the syndicate’s valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we would pass on the IPO.
DOMS Industries Pre-IPO Tearsheet
- Doms (DOMS IN) is looking to raise around US$140m (estimated) in its upcoming India IPO. The deal will be run by JM Financial, BNP, ICICI Securities and IIFL Securities.
- DOMS is a leading player and brand in India’s stationery and art products market. It designs, manufactures, and sells a wide range of products, primarily under its flagship brand ‘DOMS’.
- Its core products such as pencils and mathematical instrument boxes had market shares of 29% and 30% by value in FY23, respectively, as per Technopak.
Five Star Placement – Well Flagged but Have a Lot More Stock to Get Through
- Three PE investors are looking to raise up to US$158m via selling 5.9% of Five Star Business Finance (FIVESTAR IN) (FSB).
- Five-Star Business is a non-banking financial company that provides secured business loans to micro-entrepreneurs and self-employed individuals. FSB had raised around US$190m in its India IPO in Nov 2022.
- In this note, we will talk about the deal dynamics and updates since our last note.
Pre-IPO BrainAurora Medical Technology – The Outlook Is Highly Uncertain
- DTx industry is still in the early stages of development. The establishment of a matching operation/service system is a very difficult task. There is a long distance from mature commercialization.
- BrainAurora’s sales scale is small because its products haven’t received widespread recognition from medical system in China. Internationalization is challenging because it requires cross-border transfer of personal or scientific data.
- BrainAurora’s business prospects is still unclear.As the attitude of capital market towards DTx has become more rational, investors have begun to doubt if this field could really bring good return.
Epack Durable Pre-IPO Tearsheet
- Epack Durable (1936389D IN) is looking to raise up to US$100m in its upcoming India IPO. The deal will be run by Axis Capital, DAM Capital and ICICI Securities.
- Epack Durable (ED) is the fastest Indian growing room air conditioner original design manufacturer (ODM) based on growth in volume manufactured between FY20-23 (Year ended 31st Mar), according to F&S.
- Further, it is the second largest ODM manufacturer in the Indian room air conditioner manufacturing market, with 29% market share in terms of volume manufactured in FY23, as per F&S.
💡 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
