In today’s briefing:
- Interglobe Aviation (Indigo) Lockup – Time for Another Selldown, This Time Could Touch US$900m
- EbixCash IPO: The Bull Case
- Nexteel IPO Valuation Analysis
- WuXi XDC Cayman Pre-IPO Tearsheet
Interglobe Aviation (Indigo) Lockup – Time for Another Selldown, This Time Could Touch US$900m
- InterGlobe Aviation Ltd (INDIGO IN)’s co-founder Rakesh Gangwal’s 29%+ stake was released from lock-up today.
- He had earlier stated his intention to pare down his stake after a long drawn, and very public battle, with his co-founder Rahul Bhatia.
- In this note, we will talk about the lockup dynamics and possible placement.
EbixCash IPO: The Bull Case
- EbixCash (EBIXC IN), a subsidiary of Ebix Inc (EBIX US) and India’s largest end-to-end financial exchange, is seeking to launch an Rs60 billion (US$730 million) in July.
- EbixCash’s Forex operations have emerged as a leader in India’s airport Forex business. Also, EbixCash’s inward remittance business in India is the clear market leader.
- The key elements of the bull case rest on fast-paced growth, growth runaway from the post-COVID recovery, declining contract assets, improving balance sheet, and declining leverage.
Nexteel IPO Valuation Analysis
- Our base case valuation of Nexteel is target price of 18,671 won per share, which represents 49% higher than the high end of the IPO price range of 12,500 won.
- We estimate Nexteel to generate sales of 883.6 billion won (up 32.2% YoY) and operating profit of 257.4 billion won (up 42% YoY) in 2023.
- Nexteel’s main products include pipes used to extract oil and gas from oil wells. It also makes steel pipes for transporting oil & steam, construction, shipbuilding, and machinery industries.
WuXi XDC Cayman Pre-IPO Tearsheet
- WuXi XDC Cayman Inc (1877628D HK) is looking to raise >US$100m in its upcoming Hong Kong IPO. The bookrunners on the deal are Morgan Stanley, Goldman Sachs, and JP Morgan.
- WuXi XDC Cayman (WXDC) is a contract research, development, and manufacturing organization (CRDMO) focused on the global antibody drug conjugates (ADC) and broader bioconjugate market providing integrated and end-to-end services.
- As per Frost & Sullivan (F&S), the firm was the second largest CRDMO for ADCs and other bioconjugates globally in terms of FY22 sales.
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