In today’s briefing:
- Guming Holding IPO Valuation Analysis
- Sionna Therapeutics Inc. (SION): RA Capital Backed Biotech IPO Booms in Debut
- Titan America (TTAM): Spin-Off Successful as US Infrastructure Play Finds a Bid in IPO Aftermarket
- Weekly Deals Digest (09 Feb) – Guming, Hexaware, Shibaura, Fuji Soft, Proto, Tohto, Pentamaster
Guming Holding IPO Valuation Analysis
- Our base case valuation of Guming Holding is implied target price of HKD 13.70, which is 38% higher than the high end of the IPO valuation range.
- Given the solid upside, we have a Positive view of this IPO. Our valuation sensitivity analysis suggests a range of HKD 11.09 to HKD 16.57 per share.
- Our base case valuation is based on 2025E P/S multiple of 3x, which is a 30% premium to the two closest comps (Sichuan Baicha Baidao Industrial and Helens International Holdings).
Sionna Therapeutics Inc. (SION): RA Capital Backed Biotech IPO Booms in Debut
- Biopharmaceutical company on a mission to revolutionize the current treatment paradigm for cystic fibrosis opened its IPO 39% above issue.
- The transaction was upsized from 8.8mm shares to 10.6mm shares and priced at the high-end of the range.
- The IPOs that are more apt to see “follow-through” in the aftermarket are those with product candidates in later stage. This IPO does not meet that criteria.
Titan America (TTAM): Spin-Off Successful as US Infrastructure Play Finds a Bid in IPO Aftermarket
- After the deal’s order book finished multiple-times oversubscribed, the company priced at the lower-half of the range and opened for a minimal gain.
- Buyers stepped in and rebounded the stock past its opening price and as high as $17.27 for a gain of 8% at its top-tick.
- Value investors found favor in the secular tailwinds of US infrastructure and the positives this company will be able to extract as a newly-formed company.
Weekly Deals Digest (09 Feb) – Guming, Hexaware, Shibaura, Fuji Soft, Proto, Tohto, Pentamaster
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: Hexaware Technologies (HEXW IN) seeks to raise US$1 billion, and Guming Holdings (1364 HK) seeks to raise US$202 million.
- Event-Driven developments: Shibaura Electronics (6957 JP), Fuji Soft Inc (9749 JP), Proto Corp (4298 JP), Tohto Suisan (8038 JP), Tecnos Japan (3666 JP), Pentamaster International (1665 HK).
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