In today’s briefing:
- IdeaForge Technologies IPO- Forensic Analysis
- Tryt IPO – The Positives – Supportive Macro Backdrop and Has Weathered the Pandemic Well
- The IPO Shot in the Arm for Softbank (9984 JP), but Is It Enough?
- 4Paradigm Pre-IPO – Refiling Updates – Has Been Paring Down Losses but Cash Runway Seems Short
- J&T Global Express IPO: SEA Margins Declining and Other Businesses Far from Profitability
- Luyuan Group IPO Preview: An Ambitious Manufacturer of Electric Bicycles Based in China
- JST Group Pre-IPO Tearsheet
IdeaForge Technologies IPO- Forensic Analysis
- IdeaForge Technology Limited (1475641D IN)‘s IPO opens for subscription this week.
- The company is said to be the market leader in manufacturing of drones, an industry that is expected to grow rapidly in the next five years.
- However, there are several forensic takeaways that include disclosure errs relating to litigations, treatment of R&D, cash generation, etc.
Tryt IPO – The Positives – Supportive Macro Backdrop and Has Weathered the Pandemic Well
- Tryt Inc (9164 JP) is looking to raise about US$460m in its Japan IPO.
- Tryt Inc (Tryt) offers employee placement services and temporary staffing services for the elderly care, nursing care and childcare workers segments.
- In this note, we will talk about the positive aspects of the deal.
The IPO Shot in the Arm for Softbank (9984 JP), but Is It Enough?
- We believe that Masa’s AI predictions and ambitions in the AGM presentation may well need a reality check; nonetheless, Softbank subsidiary Arm is a beneficiary of increasing AI applications
- The prospective Arm IPO is a key driver in the recent Softbank group share price rally; we look at AMD’s acquisition of Xilinx for an indication of Arm’s potential valuation
- Softbank group’s stated NAV discount narrowed by 19 pp to 31%; we explore Arm IPO valuation scenarios for NAV upside but we only see Softbank upside in a super-premium valuation
4Paradigm Pre-IPO – Refiling Updates – Has Been Paring Down Losses but Cash Runway Seems Short
- 4Paradigm (1764934D HK) is looking to raise about US$600m in its upcoming IPO in Hong Kong.
- 4P is a platform-centric AI enterprise solutions provider. It was the largest player by revenue in the platform-centric decision-making AI market in China in 2022, as per CIC.
- In our previous note, we took a look at the company’s background and financial performance. In this note, we will cover the firm’s refiling updates.
J&T Global Express IPO: SEA Margins Declining and Other Businesses Far from Profitability
- Global logistics and express delivery service provider J&T Express (1936374D CH) has filed for an IPO on the HKEx to raise about US$500m-1bn.
- J&T’s SEA operation is the only gross margin making business, however, the segment’s gross margin has been on a declining trend.
- Though the gross losses of China biz has reduced during 2020-2022, J&T continues to invest in China to capture market share which we think would delay profits.
Luyuan Group IPO Preview: An Ambitious Manufacturer of Electric Bicycles Based in China
- Luyuan Group (LUYUAN HK), a founder-led company and a pioneer in the e-bike industry in China, is looking to raise capital via the upcoming Hong Kong IPO.
- Luyuan Group (LUYUAN HK) is an extremely ambitious manufacturer of electric bicycles and electric motorcycles in China. ”Luyuan” is a trusted and well-known brand in Asia and worldwide.
- I like profitable growth at scale and believe Luyuan Group IPO would be attractive to investors, given the company’s 40% y/y revenue growth and valuable brand.
JST Group Pre-IPO Tearsheet
- JST Group (1703609D CH) is looking to raise at least US$100m in its upcoming HK IPO. The deal will be run by CICC and JP Morgan.
- Jushuitan (JST) is China’s largest e-commerce SaaS ERP provider in terms of revenue in 2022, with a market share of 20.7%, according to CIC.
- The firm offers a suite of cloud-based e-commerce SaaS products, and is able to connect merchants with over 350 e-commerce platforms in China and across the world.
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