In today’s briefing:
- Fortescue Placement – Discount Appears Attractive, but Momentum Has Been Very Weak
- Ola Electric: India’s First EV IPO – Key Facts, Financials & Valuation
- Pre-IPO Herbs Generation Group Holdings – Concerns Behind the Strong Growth
- Carote Limited Pre-IPO – Expanding Product Portfolio, Although Some Questions Remain Unanswered
Fortescue Placement – Discount Appears Attractive, but Momentum Has Been Very Weak
- An undisclosed shareholder is looking to raise US$1.25bn (A$1.91bn) from selling some stake in Fortescue Metals (FMG AU).
- The deal is a large one to digest at 13 days of the stock’s three month ADV. The selling shareholder will be locked up for 45 days.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Ola Electric: India’s First EV IPO – Key Facts, Financials & Valuation
- Ola Electric (1700674D IN) , India’s leading electric 2-wheeler backed by Softbank Group ‘s Vision Fund, will launch its USD 735 million IPO on Friday, August 2.
- The IPO pricing suggests a post-money equity valuation of around USD 4 billion, significantly lower than its earlier funding levels.
- Government incentives for EVs are being revised, with the current scheme valid only until the end of September, creating uncertainty that has possibly impacted valuations.
Pre-IPO Herbs Generation Group Holdings – Concerns Behind the Strong Growth
- Herbs Generation’s performance growth momentum is strong, with growth rate of net profit higher than that of revenue. However, net profit margin is not high due to high SG&A expenses.
- Due to small market size in Hong Kong, growth ceiling of Herbs Generation is obvious. It’s quite challenging to seize market share from top ranking providers due to fierce competition.
- We’re concerned that future revenue could decline to single-digit growth, as the effectiveness of continuing to invest in marketing/promotion will diminish. Valuation of Herbs Generation should be lower than peers.
Carote Limited Pre-IPO – Expanding Product Portfolio, Although Some Questions Remain Unanswered
- Carote Ltd (CARO HK) is looking to raise US$150m in its upcoming Hong Kong IPO.
- Carote Ltd is a distributor of kitchenware products. Expanding its lineup of products, Carote aims to meet its customers’ varied kitchen scenarios and enhance their culinary experience.
- In this note, we look at the firm’s past performance.
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