In today’s briefing:
- Doosan Bobcat Placement – Past Deal Didn’t Do Well, This Time Could Be Different
- Balaji Speciality Chemicals Pre-IPO – Stupendous Growth but Likely to Normalize
- Ventia Services Group Placement – Well-Flagged and Coming off Escrow
- DXN Holdings Pre-IPO – The Positives – Diverse and Growing Portfolio. Strong Long-Term Record
- The Interpublic Group of Companies Inc.: Major Drivers
- PTC Inc.: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (03/23)
- Regeneron Pharmaceuticals Inc.: Major Drivers
- RingCentral Inc.: Major Drivers
- Southwest Airlines Co.: Major Drivers
- Steel Dynamics Inc.: Major Drivers
Doosan Bobcat Placement – Past Deal Didn’t Do Well, This Time Could Be Different
- A group of shareholders aim to raise around US$138m by selling all of their remaining stake in Doosan Bobcat.
- The same shareholders had earlier sold in Nov 22, see Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag. That deal didn’t do well.
- In this note, we will run the deal through our ECM framework and comment on other deal dynamics.
Balaji Speciality Chemicals Pre-IPO – Stupendous Growth but Likely to Normalize
- Balaji Speciality Chemicals (1742663D IN) is looking to raise about US$126m in its upcoming India IPO.
- Balaji Speciality Chemicals (BSC) is the sole manufacturer in India of niche chemicals such as Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines and Amino Ethyl Piperazine, according to CRISIL.
- BSC’s profitability growth has been stupendous, given its quick production ramp up. However, its growth is very likely to normalize.
Ventia Services Group Placement – Well-Flagged and Coming off Escrow
- Ventia (VNT AU)’s two largest shareholders, Apollo Global Management and CIMIC Group, aim to raise around US$272m via a secondary block deal.
- The deal is a relatively large one to digest at 77 days of three month ADV and about 19.5% of current mcap.
- In this note, we will talk about the placement and run the deal through our ECM framework.
DXN Holdings Pre-IPO – The Positives – Diverse and Growing Portfolio. Strong Long-Term Record
- DXN Holdings (2080694D MK) is looking to raise up to US$200m in its upcoming Malaysia IPO.
- DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.
- In this note, we will talk about the positive aspects of the deal.
The Interpublic Group of Companies Inc.: Major Drivers
- The Interpublic Group of Companies had a successful year and ended it on a positive note with an all-around beat.
- Its organic net revenue increase for the fourth quarter was 3.8%, bringing the three-year growth performance to 9.7%.
- IPG Mediabrands’ double-digit growth was the main driver of the 5% organic growth in Media, Data & Engagement Solutions.
PTC Inc.: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (03/23)
- PTC produced a mixed set of results for the first quarter of fiscal 2023.
- The 14% organic ARR growth was followed by the additional point of inorganic growth from Codebeamer.
- They achieved this so rapidly by utilizing Windchill+’s out-of-the-box functionality, which PTC provided to the user as a secure preconfigured service.
Regeneron Pharmaceuticals Inc.: Major Drivers
- Regeneron Pharmaceuticals delivered impressive fourth-quarter results with revenues as well as earnings being well above analyst expectations.
- These initiatives position Regeneron for a potential U.S. launch in late August this year.
- We give Regeneron Pharmaceuticals a ‘Hold’ rating with a revised target price.
RingCentral Inc.: Major Drivers
- RingCentral delivered a mixed set of results and failed to meet the revenue expectations of analysts given the challenging macroeconomic backdrop.
- Given the importance of privacy and security to their consumers, management intends to keep investing in these areas to maintain their position.
- Furthermore, the company started a new collaboration with AWS to deliver technologies and ideas that enhance corporate communications for today’s hybrid workforce.
Southwest Airlines Co.: Major Drivers
- Southwest Airlines had a disastrous quarter and failed to meet the revenue expectations of Wall Street while continuing to face a variety of new difficulties.
- Also, consumer refunds and reimbursements continue to be a top priority as they remain laser-focused on their clients and future plans.
- Although disappointing, Southwest Airlines anticipates another loss in Q1 of this year due to a drag on revenue from the operational disruption.
Steel Dynamics Inc.: Major Drivers
- Steel Dynamics had a strong quarter, generating sales, earnings, and cash flow above market expectations.
- Sinton is demonstrating considerable operating improvement and has a clear path to profitability in the second quarter of 2023.
- While metal spreads continue to widen due to stable product pricing and decreased steel input costs, steel fabrication businesses had a solid quarterly operating income of $682 million.
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