In today’s briefing:
- ECM Asia Takeaways from Hong Kong Investor Meetings – Rakuten, Growatt, JD Industrial and Others
- Nippon Prologis REIT Placement – Well-Flagged and past Deals Have Performed Decently
- PhilEnergy IPO Valuation Analysis
- R R Kabel Pre-IPO Tearsheet
ECM Asia Takeaways from Hong Kong Investor Meetings – Rakuten, Growatt, JD Industrial and Others
- We spent the second half of last week meeting ECM focused clients in Hong Kong.
- Overall, the mood remains somewhat grim for Hong Kong/China and it will be up to a few upcoming deals to open up the market again.
- In this note, we talk about some of the feedback for the upcoming IPOs and placements.
Nippon Prologis REIT Placement – Well-Flagged and past Deals Have Performed Decently
- Nippon Prologis Reit (3283 JP) is looking to raise US$184m in its primary follow-on offering to acquire one property, namely Prologis Park Soka.
- The deal is a somewhat large one to digest, at 14 days of three month ADV but only 3% dilution.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
PhilEnergy IPO Valuation Analysis
- Our base case valuation of PhilEnergy is target price of 41,545 won per share, which represents 38% higher than the high end of the IPO price range of 30,000 won.
- We believe a premium valuation multiple to the comps (20%) is appropriate due to PhilEnergy’s higher sales growth rate and higher ROE than the comps in 2021 to 2023.
- We estimate the company to generate sales of 312.5 billion won in 2023 (up 64.7% YoY) and 361.5 billion won (up 15.7% YoY) in 2024.
R R Kabel Pre-IPO Tearsheet
- R R Kabel (2333180Z IN) is looking to raise about US$200m in its upcoming India IPO. The deal will be run by Axis Capital, Citigroup, HSBC and JM Financial.
- R R Kabel is an Indian consumer electrical company, which primarily sells wires, cables and fast moving electrical goods (FMEG).
- According to Technopak, the company is the fastest growing consumer electrical company among its peers in India, growing at a CAGR of 33.0% between FY20 and FY22 (31st Mar 2022).
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