In today’s briefing:
- Jeil M&S IPO Bookbuilding Results Analysis
- Cloudchain Pre-IPO – The Negatives – But Still Not Convinced
- Mao Geping Cosmetics Pre-IPO Tearsheet
- Pre-IPO Belle Fashion Group – Performance Has Picked Up, but Not yet Reversed
Jeil M&S IPO Bookbuilding Results Analysis
- Jeil M&S reported excellent IPO bookbuilding results. Jeil M&S’s IPO price has been determined at 22,000 won per share (22% higher than the high end of the IPO price range).
- A total of 2,164 institutional investors participated in this IPO book building. The demand ratio was 646 to 1. Samhyun will start trading on 30 April 2024.
- Our base case valuation of Jeil M&S is target price of 24,354 won per share, which is 11% higher than the IPO price.
Cloudchain Pre-IPO – The Negatives – But Still Not Convinced
- Cloudchain (CC CH) is looking to raise up to US$200m in its upcoming HK IPO.
- Cloudchain is an independent industry digital finance platform in China, serving anchor enterprises, chain-related enterprises, and financial institutions.
- In this note, we will talk about the not-so-positive aspects of the deal.
Mao Geping Cosmetics Pre-IPO Tearsheet
- Mao Geping Cosmetics (1478187D CH) is looking to raise around US$300m in its upcoming Hong Kong IPO. The bookrunner on the deal is CICC.
- Mao Geping Cosmetics (MGC) operates in the premium beauty segment. Operating via its two brands, MAOGEPING and Love Keeps, MGC offers a wide range of color cosmetics and skincare products.
- As per F&S, MGC was the only domestic market player among the top ten premium beauty groups in China, ranking eighth by 2022 retail sales.
Pre-IPO Belle Fashion Group – Performance Has Picked Up, but Not yet Reversed
- The core of Belle’s transformation is to inject “digitalization” into existing massive store assets, with strategy of “omnichannel+multi brands”. Belle also devotes significant resources to online channels and online-to-offline integration.
- Benefiting from the DTC retail model, Belle increases the probability of success when launching products. Licensing/acquisition are important ways to empower new brands and promote growth. Belle’s performance has rebounded.
- However, the path of transformation hasn’t yet been completed. Belle still mainly relies on heavy asset mode and is exposed to inventory risks. There ‘s still room for further improvement.
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