In today’s briefing:
- HD Hyundai Marine Solution IPO Valuation Analysis
- WT Micro Placement – Another Well-Flagged Taiwan GDR Offering, This One Is Easier to Digest
- ZEEKR IPO: Latest Updates as the IPO Process Restarts
- OceanaGold Philippines IPO – Small yet Asking for a Lot
- Afcons Infrastructure Limited Pre-IPO Tearsheet
- Kayou Pre-IPO – The Negatives – Unexplained 9M23 Slump
HD Hyundai Marine Solution IPO Valuation Analysis
- Our base case valuation of HD Hyundai Marine Solution is target price of 98,254 won per share, representing an 18% upside from the high end of the IPO price range.
- The company’s ROE averaged 67% in 2022 and 2023. In comparison, the comps’ ROE averaged 10.6% in the same period. [HD Hyundai Marine Solution > Comps]
- Our base case valuation is based on 24.7x P/E (comps’ average) using our estimated net profit of 178.7 billion won for the company in 2024.
WT Micro Placement – Another Well-Flagged Taiwan GDR Offering, This One Is Easier to Digest
- WT Microelectronics (3036 TT) is looking to raise US$341m in its GDR offering. The proceeds will be used to purchase raw materials overseas.
- The deal is a very well flagged one, and will be a relatively small one to digest at just 4.8 days of the stock’s three month ADV.
- In this note, we run the deal through our ECM framework and comment on the deal dynamics.
ZEEKR IPO: Latest Updates as the IPO Process Restarts
- ZEEKR (ZK US), a premium Chinese BEV manufacturer and a subsidiary of Geely Auto (175 HK), has restarted its IPO process to raise US$500 million by listing on the NYSE.
- We previously discussed the IPO in ZEEKR IPO: The Bull Case and ZEEKR IPO: The Bear Case.
- The latest SEC filings reinforce the bear case due to weak industry sentiment, rapidly slowing growth, ongoing operating losses and volatile FCF.
OceanaGold Philippines IPO – Small yet Asking for a Lot
- OceanaGold Philippines (OGCP000D PM) is looking to raise up to US$140m in its Philippines IPO.
- OceanaGold Philippines (OGPI) is a producer of gold and copper in the Philippines, and a subsidiary of OceanaGold Corporation, a Toronto Stock Exchange (TSX) listed gold mining and exploration company.
- In this note, we talk about the company’s historical performance and share our quick thoughts on valuation.
Afcons Infrastructure Limited Pre-IPO Tearsheet
- Afcons Infrastructure Limited (6595396Z IN) is looking to raise US$840m in its upcoming India IPO. The bookrunners are Jefferies, Nomura, ICICI Securities, SBI Capital, DAM Capital, and Nuvama Wealth.
- Afcons Infrastructure Limited (Afcons) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group.
- As per the Fitch report, the firm was one of India’s largest international infrastructure companies as per the 2023 ENR top international contractors ranking, based on FY23 international revenue.
Kayou Pre-IPO – The Negatives – Unexplained 9M23 Slump
- Kayou is looking to raise up to US$500m in its upcoming HK IPO.
- Kayou is a Chinese pan-entertainment product retailer of toys, with trading cards in particular as its core product.
- In this note, we talk about the not-so-positive aspects of the deal.
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