In today’s briefing:
- Invincible Investment Corp Placement – Decent Accretion Despite the Large Dilution
- L&F Considering On Switching Listing from KOSDAQ to KOSPI
- Lalatech IPO: The Bear Case
- Yibin City Commercial Bank Pre-IPO Tearsheet
- Rookie International Pre-IPO Tearsheet
- Rakuten Securities IPO Early Look – The Negatives – Growth Has Slowed Down
Invincible Investment Corp Placement – Decent Accretion Despite the Large Dilution
- Invincible Investment (8963 JP) plans to raise around US$230m to fund the acquisition of six hotel assets in Japan.
- The stock has done well over the past year and so have most of its deals which we have covered in the past.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
L&F Considering On Switching Listing from KOSDAQ to KOSPI
- On 19 July, there were local media accounts that L&F Co Ltd (066970 KS) is considering on switching its listing from KOSDAQ to KOSPI.
- L&F’s main business involves making cathode active materials for rechargeable batteries.
- Despite this positive move, we believe the valuations of L&F have become too high. Its operating margins also worsened from 9.6% in 1Q 2022 to 3.0% in 1Q 2023.
Lalatech IPO: The Bear Case
- Lalatech Holdings Co Ltd (LALA HK), a leading logistics transaction platform, has filed for an HKEx IPO to raise US$1 billion, according to press reports.
- In Lalatech IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on market share pressure, KPIs declining growth, declining revenue visibility, maiden profitability built on a shaky foundation and barely positive underlying FCF.
Yibin City Commercial Bank Pre-IPO Tearsheet
- Yibin City Commercial Bank Co Ltd (1315463D CH) is looking to raise around US$300m in its upcoming Hong Kong IPO. The bookrunners on the deal are CCBI and ICBC.
- Yibin City Commercial Bank (YCCB) is a city commercial bank in Yibin, Sichuan Province of China.
- As per CBIRC Yibin Office, it was the largest bank in Yibin in terms of total assets as of Dec 22.
Rookie International Pre-IPO Tearsheet
- Rookie International (1962144D CH) is looking to raise at least US$100m in its upcoming HK IPO. The deal will be run by Citic Securities and CMBI.
- Rookie International is a fully-integrated operator of childrenswear brands in Greater China. It operates a portfolio of childrenswear brands, by designing, manufacturing and distributing branded products in Greater China.
- It generates revenue primarily by selling licensed products which it has self-designed or curated under the brands (for which it has access to licenses) in Greater China.
Rakuten Securities IPO Early Look – The Negatives – Growth Has Slowed Down
- Rakuten Securities, the online securities arm of Rakuten, aims to raise around US$500m (estimated) in its Japan listing.
- It is the largest online securities firm in Japan with a 33.7% market share. In FY22, it had over 8.64m accounts, with around JPY18.2tn (US$131bn) of assets under custody.
- In this note, we talk about the not-so-positive aspects of the deal.
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