In today’s briefing:
- Doosan Robotics: Strong Initial Book Building Results
- Innovent Biologics Placement (1801.HK) – There Is No Such Thing as a Free Lunch
- Viva Energy Placement – News Leak Helps but It’s Still a Big One to Digest
- ARM IPO Breakdown
- 4Paradigm IPO: PHIP Updates
- Doosan Robotics IPO – Updated Thoughts on Valuation – Sentiments Going Out of Control
- Seoul Guarantee Insurance Corp IPO Preview
- 4Paradigm IPO: The Bull Case
- R R Kabel IPO – Peer Comp & Thoughts on Valuation – Fifth in Market Share but First in Sales Growth
- R R Kabel Ltd IPO- Forensic Analysis
Doosan Robotics: Strong Initial Book Building Results
- Chosun Business Daily mentioned today that initial results of Doosan Robotics book building have been very strong. The current IPO price range is from 21,000 won to 26,000 won.
- There is a high probability that the IPO price will be set at 26,000 won or more and close to 30,000 won.
- Our base case valuation per share of Doosan Robotics is 42,826 won, which is 65% higher than the high end of the IPO valuation range.
Innovent Biologics Placement (1801.HK) – There Is No Such Thing as a Free Lunch
- Innovent is actually not short of money, so the Placing this time looks “strange”.If Innovent is unable to deliver performance that matches expectations, investors would reconsider its future financing needs.
- Innovent is undergoing important transition from quantitative change to qualitative change as turning losses into profits is within reach. So, the “concept validation” of Innovent’s business model has been completed.
- Innovent decides to place the shares at this moment reflects that its stock price is already high. Based on our forecast, there could be limited upside room for share price.
Viva Energy Placement – News Leak Helps but It’s Still a Big One to Digest
- Viva Energy Group (VEA AU)‘s parent, Vitol, aims to raise around US$460m via selling 15% of the company
- The news of a possible selldown was leaked overnight in the local press and hence, the stock has corrected going into the placement.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
ARM IPO Breakdown
- ARM prices this Wednesday and trades on Thursday.
- I have a lot of thoughts. This will be a great post if you want to learn about ARM.
- So, without further adieu, let’s dive into the most important IP company in the world.
4Paradigm IPO: PHIP Updates
- 4Paradigm is a pioneer and leader in enterprise AI. The company offers platform-centric AI solutions to enterprises that can be deployed on a large scale to support decision making.
- The company’s application for HKEx IPO has been approved and this insight focuses on new data points from the company’s latest PHIP release (dated 07th Sep 2023).
- 4Paradigm (1764934D HK) revenues have continued to expand with significant reduction in operating losses, and we remain positive on the company’s growth prospects.
Doosan Robotics IPO – Updated Thoughts on Valuation – Sentiments Going Out of Control
- Doosan Robotics (454910 KS) is looking to raise up to US$318m 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 assessed the company’s past performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we share our updated thoughts on valuation.
Seoul Guarantee Insurance Corp IPO Preview
- Seoul Guarantee Insurance Corp is getting ready to complete its IPO in Korea in the next several weeks. The IPO price range is from 39,500 won to 51,800 won.
- Market cap is from 2.8 trillion won to 3.6 trillion won. At the high end of the IPO price range, this could be the biggest IPO in Korea in 2023.
- Many investors will be skeptical on the bankers including two overseas comps (Travelers and Coface) which have much higher valuations.
4Paradigm IPO: The Bull Case
- 4Paradigm (1764934D HK), a leader in enterprise artificial intelligence (AI) in China, is pre-marketing a US$150-200 million HKEx IPO.
- 4Paradigm was the largest player by revenue in China’s platform-centric decision-making AI market with a market share of 22.6% in 2022, according to CIC.
- The bull case rests on the success in increasing key account customer numbers, net dollar expansion rates, improving revenue visibility, strong growth in application development services and reducing loss margin.
R R Kabel IPO – Peer Comp & Thoughts on Valuation – Fifth in Market Share but First in Sales Growth
- R R Kabel (2333180Z IN) is looking to raise up to US$238m in its India IPO.
- R R Kabel is an Indian consumer electrical company, which primarily sells wires, cables and fast moving electrical goods (FMEG).
- In our previous notes, we looked at the company’s past performance. In this note, we undertake a quick peer comparison and share our thoughts on valuation.
R R Kabel Ltd IPO- Forensic Analysis
- R R Kabel (2333180Z IN) ‘s IPO will go live this week.
- The company is the fifth largest player in the wires and cables market in India, having a market share of 5% overall and 7% among the branded players.
- However, there our numerous aspects about the company and financials that warrant attention. These include RPT with promoters, misleading high CFO, promoter classification, high discounting, etc.
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