In today’s briefing:
- K Bank IPO Bookbuilding: To Price Lower than Low IPO Price Range or Even Potential Cancellation
- Horizon Robotics (9660 HK) IPO: The Bull Case
- CR Beverage IPO: Forecasts and Valuation
- APA Group Placement – While the Overhang Remains, Selldown Appears Well Flagged
- Intermestic IPO Trading – Drew a Strong Institutional Demand
- Horizon Robotics IPO (9660.HK): Global Offering and Valuation Update
- CK Solution IPO Preview
- Waaree Energies IPO Trading – Will Ride on Premier Energies IPO Wave
K Bank IPO Bookbuilding: To Price Lower than Low IPO Price Range or Even Potential Cancellation
- Chosun Business Daily mentioned that K Bank IPO book building results among institutional investors have been very poor so far.
- As a result, the bankers and K Bank are currently considering on potentially reducing the IPO price to about 8,500 won or even cancelling the IPO altogether.
- Our base case valuation of K Bank is target price of 9,151 won per share. Even if the IPO is priced at 8,500 won, we would pass on this IPO.
Horizon Robotics (9660 HK) IPO: The Bull Case
- Horizon Robotics (9660 HK), a provider of autonomous driving products and services, is seeking to raise up to US$696 million through a HKEx IPO.
- Horizon ranked fourth among all global ADAS and AD solution providers in China by solution installation volume in 2023 and 1H24, with a market share of 9.3% and 15.4%, respectively.
- The bull case rests on a large TAM, a blue-chip customer base, a robust backlog, a core business in good health, a high gross margin, and a strong balance sheet.
CR Beverage IPO: Forecasts and Valuation
- China Resources Beverage (2460 HK) plans to raise US$650m at the upper end of the indicative IPO price range at a market capitalisation and EV of HK$34bn and HK$27bn respectively.
- Though the company has a strong business model and fundamentals, the packaged drinking water market is intensely competitive creating a price war and dragging down growth rates.
- CR Beverage is less diversified and has inferior margins compared to Nongfu Spring (9633 HK) , hence priced at a deep discount to its peer, making the IPO pricing attractive.
APA Group Placement – While the Overhang Remains, Selldown Appears Well Flagged
- Unisuper is looking to raise A$500m (US$333m) via trimming a portion of its stake in APA Group (APA AU).
- The deal will be a large one to digest at 24 days of the stock’s three month ADV.
- In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.
Intermestic IPO Trading – Drew a Strong Institutional Demand
- Intermestic (262A JP) raised around US$120m in its Japan IPO.
- Intermestic is an eyewear manufacturer of eyeglasses and eyeglass accessories in Japan.
- We have looked at the company’s past performance in our previous notes. In this note, we talk about the trading dynamics.
Horizon Robotics IPO (9660.HK): Global Offering and Valuation Update
- Horizon Robotics, a Beijing-based fast-growing provider of integrated ADAS and AD solutions for passenger vehicles, plans to raise ~$700M at the high end of the range at HK$3.99/share.
- The IPO is expected to be between HK$3.73 and HK$3.99. However, the offer price may be, but is not expected to be, lower than the lower end of the range.
- I believe that at the high end of the range, the company’s valuation is full, and I would await a share pull-back before becoming more positive on the stock.
CK Solution IPO Preview
- CK Solution is getting ready to complete its IPO in KOSPI in November. Its IPO price range is from 15,700 won to 18,000 won.
- The IPO offering amount ranges from 49.4 billion won to 56.6 billion won. The book building for the institutional investors lasts from 4 to 8 November.
- CK Solution specializes in dry room system for the rechargeable batteries manufacturing process. Rechargeable battery sector accounted for 92.9% of total sales in 1H 2024 followed by semiconductor (3.1%).
Waaree Energies IPO Trading – Will Ride on Premier Energies IPO Wave
- Waaree Energies is looking to raise up to US$514m in its India IPO.
- Waaree Energies is a solar PV module manufacturer in India with an aggregate installed capacity of 12 GW, as of Jun 2024.
- We have looked at the company’s past performance in our earlier note. In this note, we talk about the RHP updates and valuations.
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