In today’s briefing:
- Key Things to Watch in Ecopro HN’s Big Rights Offering
- Midea Group H Share Listing: AH Discount Views
- Bajaj Housing Finance IPO – Will Trade at a Premium
- Carraro India Pre-IPO Tearsheet
- Challenger Limited Placement – Discount Isn’t Enticing Enough for a Surprise Selldown
- Western Carriers Pre-IPO-Expanding Through a Combination of Asset-Light Model and Own Infrastructure
- General Insurance Corp of India OFS – Large One to Digest, and a Potential Overhang to Contend With
- Carote Limited Pre-IPO – PHIP Updates – Recent Growth Led by International Markets
Key Things to Watch in Ecopro HN’s Big Rights Offering
- Ecopro HN announced a ₩200 billion rights issue, offering 5.67 million shares (a 40% capital increase) with a stockholder allocation rate of 0.3 per share.
- The extended timeline likely results from the issuer’s 20% discount push, with Daishin, an underdog banker, extending it to boost subscriptions despite risking price stability.
- The strategy is to time entry when the stock rights and subscription costs create a solid spread versus the spot price, despite increased volatility making price predictions harder.
Midea Group H Share Listing: AH Discount Views
- Midea Group Co Ltd A (000333 CH), the world’s biggest home appliances maker, is premarketing an H Share listing to raise US$3 billion.
- In Midea Group H Share Listing: Latest Updates Points to a Business in Rude Health, we noted that Midea is in good health, with strong growth, margins, and cash generation.
- In this note, we examine the likely discount that Midea will offer its H Shares compared to the A Shares.
Bajaj Housing Finance IPO – Will Trade at a Premium
- Bajaj Housing Finance (BHF IN) is looking to raise around US$800m in its India IPO.
- BHF is a non-deposit taking housing finance company engaged in mortgage lending since FY18. Its mortgage products include home loans, loans against property, lease rental discounting and developer financing.
- In our previous notes, we looked at the company’s past performance. In this note, we will talk about valuations.
Carraro India Pre-IPO Tearsheet
- Carraro India Limited (810618Z IN) is looking to raise about US$216m in its upcoming India IPO. The deal will be run by Axis, Nuvama and BNP Paribas.
- Carraro India Limited (CIL), is a technology driven integrated supplier that develops complex engineering products and solutions for its original equipment manufacturer (OEM) customers.
- CIL primarily manufactures axles and transmission systems for agricultural tractors and construction vehicles such as backhoe loaders, soil compactors, cranes, self-loading concrete mixers and small motor graders.
Challenger Limited Placement – Discount Isn’t Enticing Enough for a Surprise Selldown
- AP Liberty (Apollo) is looking to raise US$318m from trimming its stake in Challenger Ltd (CGF AU).
- Apollo’s stake in the firm dates back to Jul 2021, when the investor first acquired a 18% stake in the firm for A$720m.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Western Carriers Pre-IPO-Expanding Through a Combination of Asset-Light Model and Own Infrastructure
- Western Carriers (1489172D IN) is looking to raise about US$100m in its upcoming India IPO.
- Western Carriers (India) Limited (WCIL) was the largest private, multimodal, rail focused, 4PL asset-light logistics company in India in terms of container volumes in FY22, as per 1Lattice.
- In this note, we talk about the company’s historical performance.
General Insurance Corp of India OFS – Large One to Digest, and a Potential Overhang to Contend With
- The GoI is looking to raise up to US$600m from selling its stake in General Insurance Corp Of India (GICRE IN).
- Earlier in Apr 2024, there were media reports indicating that the GoI planned to offload a 10% stake in the insurer over multiple tranches.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Carote Limited Pre-IPO – PHIP Updates – Recent Growth Led by International Markets
- Carote Ltd (CARO HK) is looking to raise around US$120m in its upcoming Hong Kong IPO.
- Carote Ltd is a distributor of kitchenware products. Expanding its lineup of products, Carote aims to meet its customers’ varied kitchen scenarios and enhance their culinary experience.
- We had looked at the firm’s past performance in an earlier note. In this note, we discuss its PHIP updates.
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