In today’s briefing:
- Kioxia (285A JP) IPO: The Bear Case
- Mr DIY Indonesia IPO – Has Aggressively Expanded Its Network
- SHEIN and Temu: Higher Tariffs Under 2nd Trump Admin an Additional Threat Beyond “De Minimis” Reform
- ECM Weekly (2nd Dec 2024) – Kioxia, FineToday, MNC Solutions, JST, Pateo, Carraro, Hulic, Sanrio
Kioxia (285A JP) IPO: The Bear Case
- Kioxia Holdings (285A JP) is a leading player in the NAND flash memory market. It will list on 18 December and seek to raise up to US$740 million.
- In Kioxia (285A JP) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on unrealistic long-term financial model assumptions, market share losses, high customer concentration risk, volatile gross margin due to JV and weak FCF profile.
Mr DIY Indonesia IPO – Has Aggressively Expanded Its Network
- PT Daya Intiguna Yasa Tbk (Mr DIY Indonesia) (2517930D IJ) is looking to raise US$296m from its Indonesia IPO.
- Mr DIY Indonesia (MRDIYI) is a home improvement retailer. The firm is the largest home improvement retailer in Indonesia with a 25.2% market share as per 2023 sales
- In this note, we look at the firm’s past performance.
SHEIN and Temu: Higher Tariffs Under 2nd Trump Admin an Additional Threat Beyond “De Minimis” Reform
- US President-elect Trump has proposed new tariffs on China (and others) by January
- Higher tariffs on Chinese goods could make Chinese imports more expensive in the US
- For SHEIN & Temu, larger threat still comes from potential reform of de minimis rules
ECM Weekly (2nd Dec 2024) – Kioxia, FineToday, MNC Solutions, JST, Pateo, Carraro, Hulic, Sanrio
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPOs front, listing in the past week didn’t do much, while a number of comapnies are still looking to beat the year end deadline.
- On the placements front, there were a number of secondary selldowns in Japan.
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