Daily Brief ECM: JEIO IPO: Book Building Results Analysis and more

In today’s briefing:

JEIO IPO: Book Building Results Analysis
New Ruipeng Pet Group IPO: Struggling Pet Hospital Operator. Hard To Justify Premium Valuation
Greatpower Nickel and Cobalt Materials Pre-IPO – Should Turnaround once COVID Is Over

JEIO IPO: Book Building Results Analysis

Jeio (418550 KS) announced its IPO price of 13,000 won, which was at the high end of the recently revised down IPO price range of 10,000 won to 13,000 won.
There were 1,174 institutional investors that participated in this IPO survey. The demand ratio was 352.6 to 1.
Our base case valuation of JEIO is target price of 12,575 won per share, which is 3.3% lower than the IPO price 13,000 won.

New Ruipeng Pet Group, a China-based pet clinic operator and provider of pet care services, filed for a U.S. IPO. The company plans to list ADSs under the ticker “RPET.”
The company’s most recent private round was a $500M venture round led by Boehringer Ingelheim and Tencent at a ~$4.4B valuation in September 2020.
We believe investors should think twice before investing in the New Ruipeng IPO as the pet hospital operator struggled to grow revenues, operating losses mounted, and labor costs increased.

Greatpower Nickel & Cobalt Materials (1919613D CH) is looking to raise about US$300m in its upcoming Hong Kong IPO.
Greatpower Nickel and Cobalt Materials (GNCM) is a supplier of new energy battery materials in China, with a dual focus on nickel and cobalt for the production of cathode materials.
The firm has made itself one of the top Chinese players in terms of cobalt refining by sales volume and nickel by trading volume. However, its profitability was significantly impacted.

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