Daily Brief ECM: ECM Weekly (23rd Sep 2024) - Tokyo Metro and more

In today’s briefing:

ECM Weekly (23rd Sep 2024) – Tokyo Metro, Midea, Intermestic, Sagility, Belstar, Kuaishou, Bajaj HF
Pre-IPO Zhejiang Taimei Medical Technology (PHIP Updates) – Some Points Worth the Attention
IREDA QIP Early Look – Strong Momentum, Although Valuations Are Eye-Popping

ECM Weekly (23rd Sep 2024) – Tokyo Metro, Midea, Intermestic, Sagility, Belstar, Kuaishou, Bajaj HF

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Midea Group Co Ltd A (000333 CH) and Bajaj Housing Finance (BHF IN) hogged much of the limelight this week as well.
On the placements front, there were a few large US$400m+ placements across the region this week.

Declining customer retention rate indicates that a slowdown in future revenue growth seems inevitable. If revenue growth stagnates, it means Taimei’s business model hasn’t been fully validated by the market.
Taimei’s IPO on SSE STAR Market was rejected. This means regulatory authorities don’t recognize Taimei’s core technology/performance prospects. Taimei has to take a step back and list on the HKEX.
Post-Investment valuation reached RMB8.1 billion after Series F financing. However, considering the continuous decline in valuation of its peers, we are concerned about Taimei’s future stock price performance after IPO.

IREDA (1845911D IN) is looking to raise INR45bn (US$538m) via its qualified institutional placement (QIP).
Most recently on 19th Sept 2024, IREDA received the Department of Investment and Public Asset Management’s (DIPAM) approval for said QIP.
Overall, the deal wouldn’t be a large one for the stock to digest at just 4.7 days of three month ADV.

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