In today’s briefing:
- HD Hyundai Marine Solution IPO Preview
- Mankind Pharma Placement – Well Flagged, past Deals Have Done Well but Its Expensive
- Bharti Hexacom IPO: The Bull Case
- Pre-IPO Beijing Health Guard Biotechnology – The Story of the HPV Vaccine Is Not as Good as Imagined
- GL-Carlink Technology Pre-IPO Tearsheet
- Sichuan Baicha Baidao Pre-IPO – PHIP Updates – Store Additions Driving Growth as SSSG Lags
HD Hyundai Marine Solution IPO Preview
- HD Hyundai Marine Solution is getting ready to complete its IPO in KOSPI in May 2024. This will be one of the largest IPOs in Korea in 2024.
- The IPO price range is from 73,300 won to 83,400 won. The IPO offering amount is from 652.4 billion won to 742.3 billion won.
- A key beneficiary of HD Hyundai Marine Solution IPO is HD Hyundai (62% ownership). Our NAV analysis suggests implied price of 95,632 for HD Hyundai (40% higher than current price).
Mankind Pharma Placement – Well Flagged, past Deals Have Done Well but Its Expensive
- ChrysCap is looking to raise around US$295m via selling a 2.8% stake in Mankind Pharma.
- MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
- We have looked at the IPO, lock-up release and prior placement in our earlier notes. In this note, we talk about the current deal dynamics.
Bharti Hexacom IPO: The Bull Case
- Bharti Hexacom (6597372Z IN), a 70% owned subsidiary of Bharti Airtel (BHARTI IN), aims to raise around US$500 million at a valuation of US$3.3-4.2 billion.
- The offer is a pure secondary offering. The Government of India aims to reduce its stake from 30% to 15% of outstanding shares.
- The bull case rests on market share gains, ARPU growth, low churn rates, improving margins, cash generation and low leverage.
Pre-IPO Beijing Health Guard Biotechnology – The Story of the HPV Vaccine Is Not as Good as Imagined
- The real market space of China’s HPV vaccines is much smaller-than-expected. Investment logic of vaccine companies is different from biotech – They either become large vaccine enterprises or are eliminated.
- Low-Valent HPV vaccines would easily enter a price war or be included in National Immunization Program. 9-valent HPV vaccines would be the main battlefield, which is a highly competitive market.
- Health Guard is facing increasing survival risks. Based on the concerns about the commercialization outlook of HPV vaccines, we’re not sure if the Company would bring expected returns to investors.
GL-Carlink Technology Pre-IPO Tearsheet
- GL-Carlink Technology (1818017D CH) is looking to raise >US$100m in its upcoming HK IPO. The deal will be run by CCBI.
- GL-Carlink (GLC) is a connected services provider for players within the automotive aftermarket industry in China, selling in-vehicle hardware products and the provision of SaaS marketing and management services.
- As per CIC, connected services refer to connecting vehicles with the Internet and providing comprehensive hardware products, software services, and value-added services for customers such as 4S stores.
Sichuan Baicha Baidao Pre-IPO – PHIP Updates – Store Additions Driving Growth as SSSG Lags
- Sichuan Baicha Baidao Industrial (SBBI) is looking to raise up to US$300m in its upcoming HK IPO.
- SBBI sells new-style tea drinks through its ChaPanda stores. According to F&S, SBBI ranked third in China’s new-style tea shop market with a market share of 6.8% in FY23.
- We have looked at the company’s past performance in our earlier notes. In this note, we talk about the updates from its recent filings.
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