In today’s briefing:
- Japan Post Bank (7182) – Report of ¥600bn Offer Would Lead to Index Flows, and a New Future
- Japan Post Bank (7182 JP): Japan Post Holding (6178 JP)’s Rumoured Offering
- Korean IPOs: Cornerstone Bill Back in Play—This Time, It Might Stick
- Vigonvita Life Sciences (旺山旺水) Pre-IPO Tearsheet
- Kestra Medical Technologies, Ltd (KMTS): Defibrillator Maker to Break IPO Thaw
- Pre-IPO Fujian Haixi Pharmaceuticals – The Concerns on the Pipeline and the Outlook
- SeedWorks International Ltd Pre-IPO Tearsheet
Japan Post Bank (7182) – Report of ¥600bn Offer Would Lead to Index Flows, and a New Future
- On 22-February-2023 a Reuters suggested JPH (6178) had “started talks” to sell a big stake in JP Bank (7182). Five days later they announced a complicated deal discussed here.
- Today, an article suggests Japan Post Holdings (6178 JP) will sell ¥600bn in Japan Post Bank (7182 JP) to get ownership below 50% (as with JPI). A buyback might appear.
- JPB has issued a “there’s smoke” release. Like last time. Expected unwind of known overhang means minimal surprise here. The question is whether they could surprise (big buyback? capital plan?).
Japan Post Bank (7182 JP): Japan Post Holding (6178 JP)’s Rumoured Offering
- Reuters reports that Japan Post Holdings (6178 JP) (JPH) is planning to sell shares in Japan Post Bank (7182 JP) (JPB), which could total some JPY600 billion (US$4.0 billion).
- The potential offering would align with JPH’s stated goal of reducing its equity interest in JPB to 50% or less by FY 2025.
- The potential offering is relatively smaller than JPB’s 2023 offering. Compared to its peers, JPB’s valuation remains undemanding.
Korean IPOs: Cornerstone Bill Back in Play—This Time, It Might Stick
- The odds of the cornerstone system getting the green light are significantly higher than they were two years ago.
- With bills typically taking a year to kick in, we need to stay on this—if all goes smoothly, cornerstone investors could hit Korean IPOs as early as next year.
- In the early stages, cornerstone allocations will be key to shaping our IPO trading playbook. Staying ahead of these shifts is crucial.
Vigonvita Life Sciences (旺山旺水) Pre-IPO Tearsheet
- Vigonvita is looking to raise at least US$100 million via a Hong Kong listing.
- Vigonvita has commercialized COVID-19 anti-viral drug and is expanding the indication to RSV.
- The main contributor to the company’s develop is not holding a key management role.
Kestra Medical Technologies, Ltd (KMTS): Defibrillator Maker to Break IPO Thaw
- Kestra was founded in 2014 by Bain Capital private equity and leaders from the external (AED) and internal (ICD) defibrillation industries.
- The company is seeking a valuation between $667m-$762m based on the $14-$16 range.
- Given the financials, sector in which this company operates in and the strong backing, it is our early opinion that the IPO will likely be well-received.
Pre-IPO Fujian Haixi Pharmaceuticals – The Concerns on the Pipeline and the Outlook
- Sales of generic drugs are the largest performance contributor. However, due to VBP and the price reduction, Haixi’s generic drug business may shrink and is hard to drive future growth.
- Haixi’s valuation outlook would be mainly based on innovative drug pipeline. The primary goal is to address the issue of druggability of C019199. Haixi needs to provide convincing clinical data.
- Valuation of Haixi was about RMB1.948 billion in 2022. Considering the VBP, R&D failure risk of C019199, no licensing cooperation with MNCs, we think valuation could be lower than peers.
SeedWorks International Ltd Pre-IPO Tearsheet
- SeedWorks International Ltd (1441147D IN) (SIL) is looking to raise about US$115m in its upcoming India IPO. The bookrunners for the deal are Equirus, DAM, SBI.
- SIL is a seed research and development organization engaged in the research, production, and marketing of hybrid seeds as well as open-pollinated variety (OPV) seeds for rice, wheat, and mustard.
- According to F&S Report, the company was the second fastest-growing Indian seed company in terms of revenues between FY21-24, with a CAGR of 11.98%.
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