In today’s briefing:
- I-Tail Corporation IPO Trading – Should Be Able to Provide Some Holiday Cheer
- I-Tail Corporation IPO: Trading Debut
- Tian Tu Capital Pre-IPO – The Negatives – Hampered by Weakened Market Sentiment. Guiding Weak FY22
- Sunshine Insurance Group IPO: Trading Debut
- Growatt IPO: PHIP Update
- VinFast Auto IPO: The Bull Case
- VinFast Auto Pre-IPO – The Negatives – … But Starting Low
- PagerDuty Inc: Major Drivers
- Pre-IPO Medbanks Network Technology – PHIP Updates: The Business Model Has yet to Be Verified
- Box Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (12/22)
I-Tail Corporation IPO Trading – Should Be Able to Provide Some Holiday Cheer
- I-Tail, an OEM in the wet pet food category, raised around US$600m in its Thailand IPO. It is a subsidiary of Thai Union Group (TU TB).
- As per ITC, it was the number two pet food company in Asia and in the top ten pet food companies globally. ITC expertise lies in fish-based wet pet food.
- In our previous notes, we have looked at the company’s past performance, undertaken a peer comparison and spoken about valuation. In this note, we will talk about the trading dynamics
I-Tail Corporation IPO: Trading Debut
- I-Tail (ITC TB) priced its IPO at THB32 per share, the top-end of the price range, to raise gross proceeds of THB21,120m (US$608m). The shares will start trading tomorrow.
- We previously discussed the IPO I-Tail Corporation IPO: The Bull Case, I-Tail Corporation IPO: The Bear Case, I-Tail Corporation IPO: A Strong 3Q Results Update, I-Tail Corporation 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.
Tian Tu Capital Pre-IPO – The Negatives – Hampered by Weakened Market Sentiment. Guiding Weak FY22
- Tian Tu Capital (1390587D CH) is looking to raise US$300m in its upcoming Hong Kong IPO.
- Tiantu Capital (TTC) is a private equity/venture capital investor and fund manager with a focus on Chinese consumer brands and companies.
- The fund manages capital from investors including institutional investors, multinational corporations, financial institutions, and high net-worth individuals. It also directly invests through its own capital as well.
Sunshine Insurance Group IPO: Trading Debut
- Sunshine Insurance (6963 HK) priced its IPO at HK$5.83 per share to raise net proceeds of HK$6.4 billion (US$824 million). The shares will start trading tomorrow.
- We previously discussed the IPO in Sunshine Insurance Group IPO: The Bull Case, Sunshine Insurance Group IPO: The Bear Case and Sunshine Insurance Group IPO: Valuation Insights.
- Peers have modestly re-rated and the IPO price continues to imply a premium to the median peer CY2022 P/EV and P/B multiples. Therefore, the IPO price remains unattractive.
Growatt IPO: PHIP Update
- Growatt is a distributed energy solution provider with the #1 market share for PV inverters and energy storage inverters, allowing them strong potential to benefit from a growing market.
- In November 2022, the company received approval from the Hong Kong Stock Exchange and the IPO has a placeholder value of US$1bn, making it HKEX’s fourth largest IPO of 2022.
- In this follow-up insight, we have highlighted and discussed some of the key new data points from the company’s latest Post Hearing Information Pack (PHIP).
VinFast Auto IPO: The Bull Case
- VinFast (1905332D VN), a Vietnamese EV (electric vehicle) manufacturer and a majority-owned affiliate of Vingroup Jsc (VIC VN), has filed for a US$1.0 billion IPO to list on Nasdaq.
- VinFast is in the middle of a transition from an ICE to a pure-play EV manufacturer. VF 8, its second EV SUV, will be delivered in the US in 4Q22.
- The key elements of the bull case rest on a credible EV roadmap, speed-to-market, solid consumer interest and models with attractive range-to-price ratios and total cost of ownership.
VinFast Auto Pre-IPO – The Negatives – … But Starting Low
- VinFast (1905332D VN) is looking to raise up to US$1bn in its upcoming US IPO.
- VinFast is a full-scale mobility platform focused primarily on designing and manufacturing premium EVs, electric scooters and electric buses.
- In this note, we talk about the not-so-positive aspects of the deal.
PagerDuty Inc: Major Drivers
- PagerDuty performed well in the last quarter despite the relatively uncertain environment and delivered an all-around beat.
- The company saw a good performance in financial services, tech retail, and other verticals.
- Total paid and free customers on its platform grew, and consumers continued to adopt more products and services and expand users.
Pre-IPO Medbanks Network Technology – PHIP Updates: The Business Model Has yet to Be Verified
- Specialty Pharmacy Business is the main revenue contributor,but it’s hard for Medbanks to achieve breakeven or turn loss into profits by relying on this business due to its low margin.
- Physician Research Assistance and Health Insurance Services have higher margin, but they have to face different challenges based on our analysis. They are hard to turn things around.
- In fact, Medbanks does not control the core resources or establish high barriers in front of competition. Whether its ecological story would finally work still needs time to verify.
Box Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (12/22)
- Box had a mixed third quarter, with revenue below Wall Street expectations but stronger than expected earnings.
- Their leading security and data governance tools, Box Governance and Box Shield have received many significant upgrades.
- The Box Shield ethical wall feature was also made public during the quarter.
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