In today’s briefing:
- Harita Nickel IPO: Trading Debut
- JD Property Pre-IPO Tearsheet
- Zhejiang Supcon Technology GDR Listing – Momentum Has Been Strong and Not a Large Deal to Process
- Harita Nickel IPO Trading – Quality Names in the Bookbuild Should Aid Sentiment
- Manyo Factory IPO Valuation Analysis
- Mankind Pharma IPO: The Bull Case
- ADICON Holdings IPO: Covid Driven Earnings to Decline While Growth Prospects Remain Uncertain
- Adicon Holdings Pre-IPO – Too Much Growth from COVID-19
Harita Nickel IPO: Trading Debut
- PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ) priced its IPO at IDR1,250 per share to raise gross proceeds of US$660 million. The shares will start trading tomorrow.
- We previously discussed the IPO in Harita Nickel IPO: The Bull Case, Harita Nickel IPO: The Bear Case and Harita Nickel IPO: Valuation Insights.
- Peers have re-rated and the IPO price continues to imply a discount to the median peer CY2023 P/E multiple. Therefore, the IPO price remains attractive.
JD Property Pre-IPO Tearsheet
- Jingdong Property (JDP HK) is looking to raise about US$1bn in its upcoming Hong Kong IPO.
- JD Property (JDP) develops and manages modern infrastructure, consisting primarily of logistics parks, as well as business parks and others in China and in Asia.
- As of Dec 22, the firm’s portfolio of Modern Infrastructure Assets has a total AUM of RMB93.7bn, occupying a total gross floor area (GFA) of 23.3m sqm.
Zhejiang Supcon Technology GDR Listing – Momentum Has Been Strong and Not a Large Deal to Process
- Zhejiang Supcon Technology (688777 CH) is looking to raise around US$347m in its Swiss GDR listing. Huatai and CLSA are bookrunners on the deal.
- The firm is offering 12.5m GDRs (1 GDR to 2 ordinary A-shares) for sale, at a 8.1-10.8% discount to last close on the A-share leg.
- The deal is a relatively small one for the firm to digest, representing just 5.9 days of three month ADV on its A-share leg.
Harita Nickel IPO Trading – Quality Names in the Bookbuild Should Aid Sentiment
- PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ) raised around US$660m in its Indonesian IPO.
- PT Trimegah Bangun Persada Tbk (Harita Nickel, HN) is a vertically integrated pure-play nickel company operating on Obi Island, Indonesia.
- In this note, we will talk about the trading dynamics and valuation.
Manyo Factory IPO Valuation Analysis
- Our base case valuation of Manyo Factory is target price of 29,555 won per share, which represents 111% higher than the high end of the IPO price range.
- We estimate the company to generate sales of 147.7 billion won in 2023 (up 45.1% YoY) and its operating margins to improve from 24.1% in 2022 to 24.7% in 2023.
- We believe a 20% premium valuation multiple to the comps is appropriate due to its higher sales growth rate, higher operating margins, and higher ROE than the comps.
Mankind Pharma IPO: The Bull Case
- Mankind Pharma (6596876Z IN), a pharmaceutical company, is seeking to raise up to Rs45 billion (US$550 million) in April, according to press reports.
- Mankind Pharma is India’s fourth-largest pharmaceutical company in terms of domestic sales and second-largest in terms of sales volume in FY22, according to IQVIA.
- The key elements of the bull case rest on a track record of growing brands and market share, accelerating growth rates, and profitability with margins in a relatively tight range.
ADICON Holdings IPO: Covid Driven Earnings to Decline While Growth Prospects Remain Uncertain
- ADICON Holdings is one of top three independent clinical laboratories (ICL) in China based on total revenues. The company offers testing services primarily to hospitals and health check centres.
- The company’s application for a HKEx listing has been approved and according to news media outlets, ADICON plans to raise around US$400m through the IPO.
- Over the last three years, most of ADICON Holdings Limited (ADI HK) ’s growth were driven by Covid-19 related testing services which are likely to see huge decline going forward.
Adicon Holdings Pre-IPO – Too Much Growth from COVID-19
- ADICON Holdings Limited (ADI HK) is looking to raise about US$400m in its upcoming HK IPO.
- Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&S.
- Adicon’s revenue growth has been driven by its medical diagnostic testing services segment, during the track record period. However, much of its growth appears to be driven by COVID-19 testing.
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