In today’s briefing:
- Hanwha Aerospace’s Monster Raise: Checking Key Angles
- Hanwha Aerospace: Rights Offering of 3.6 Trillion Won (Negative on Entire Korean Defense Sector)
- CoreWeave (CRWV): Valuation, Cash Raise Lighter than Expected as Company Pushes Ahead with IPO
- EAAA India Pre-IPO – Quality Management Fee Stream but Future AUM Raising Could Be Difficult
Hanwha Aerospace’s Monster Raise: Checking Key Angles
- Market sees this as an M&A play, not just de-leveraging. Sentiment’s split, and despite a tight discount, uncertainty on take-up could spark major dislocations in stock and rights.
- Hanwha’s ₩3.6T raise drops just a week after Samsung SDI’s ₩2T—₩5.5T back-to-back. Absorption looks brutal, setting up serious volatility and prime trading opps if liquidity tightens.
- The FSC fast-tracked this, flagging it instantly but also hinting approval. With regulator risk off, any cash market snapback tomorrow should stay in check.
Hanwha Aerospace: Rights Offering of 3.6 Trillion Won (Negative on Entire Korean Defense Sector)
- Hanwha Aerospace (012450 KS) announced a rights offering capital raise of 3.6 trillion won (US$2.5 billion), which is the largest ever rights offering capital raise in Korea.
- We believe this capital raise is likely to result in higher concerns about shares dilution at Hanwha Aerospace and negatively impact its share price.
- It is also likely to have a significant negative impact on the entire Korean defense stocks, as it signals a top on this sector.
CoreWeave (CRWV): Valuation, Cash Raise Lighter than Expected as Company Pushes Ahead with IPO
- CoreWeave (CRWV US) officially set terms for an IPO on Thursday morning coming in with a valuation and cash raise that was much lower than previously reported.
- Furthermore, the underwriters placed a wider-than-normal spread on the range, $47-$55. This insinuates a negotiation process between the buy-side.
- The valuation coming in lower than anticipated will allow investors to put money to work at a more attractive risk-reward profile.
EAAA India Pre-IPO – Quality Management Fee Stream but Future AUM Raising Could Be Difficult
- EAAA India Alternatives Ltd (1619210D IN) is planning to raise about US$177m through its upcoming India IPO.
- It is one of the leading alternatives platforms in India, with AUM of INR 572.62bn (US$6.63bn), as of 9M24, amassing 15 years of experience.
- In this note, we look at the firm’s past performance.
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