Daily Brief ECM: JX Advance Metals IPO Trading – Demand Wasn’t Great and more

• JX Advanced Metals (5016 JP)’s parent, ENEOS Holdings (5020 JP), raised around US$2.5bn via selling more than half of its stake in JXAM in its Japan IPO.
• JXAM engages in business activities primarily focused on the development, manufacture and sale of materials made from copper and rare metals, which are used in the semiconductor and ICT fields.
• We have covered various aspects of the deal in our previous notes. In this note, we will talk about the trading dynamics.

• Wild card here is the FSS—they’re eyeing a shadow listing risk for DN Automotive (007340 KS). If they push for a revision, a 2-week delay busts the 135-day limit.
• 14x PE looks cheap, but comps are shaky—LS Electric’s AI play, Fanuc’s scale advantage, and DMG MORI’s automation pivot all make direct comparisons a stretch.
• DN Solutions is a pure-play machine tool name, making comps shaky. This IPO’s shaping up like an LG CNS rerun—solid numbers, fair valuation, but a weak growth story.

• Analyst and writer based in New York discusses the evolution of financial markets and reflects on personal experiences with Apollo
• Apollo is known for its hard work and talent in protecting their capital, with a focus on complexity and balance sheet analysis
• Apollo is a global alternative asset manager with around 750 billion in total AUM, divided into yield, hybrid, and equity strategies, making it one of the top players in the industry

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• Klarna is seeking to raise more than $1 billion in the IPO and targeting more than $15 billion in the listing.
• Klarna’s operating margin improved from -51.5% in 2022 to -14.2% in 2023, and -4.3% in 2024.
• Klarna generated revenue of US$2.8 billion (up 23.5% YoY) and operating loss of US$121 million in 2024 (versus operating loss of US$323 million in 2023).

• They have designed their platform to address a broad spectrum of Musculoskeletal system (MSK) care—from acute injury, to chronic pain, to post-surgical rehabilitation.
• As of December 31, 2024, they had over 532,000 members and more than 2,250 clients, compared to approximately 371,000 members and approximately 1,650 clients as of December 31, 2023.
• Their revenue was $390.4 million and $292.7 million for the years ended December 31, 2024 and 2023, respectively, representing a year-over-year growth rate of 33%.

• Visen Pharmaceuticals is looking at raising up to USD 100m to list in Hong Kong.
• In an apparently downsized deal, the company is trying to sell at a blue sky valuation.
• We disagree with its valuation and noted that tones have turned bearish in its offering documents.

• From the characteristics of quick-frozen food industry, companies usually have low pricing power. Since barriers to entry and exit are low, in the long run, the profits will be meager.
• Anjoy’s core business model is to develop the sinking market through distributors who have been operating for many years. Revenue growth shows an upward trend, but growth momentum is decreasing.
• Anjoy is facing performance growth pressure in China market, as well as uncertainties in terms of internationalization. High valuation becomes sustainable only when Anjoy successfully enters international markets.