In today’s briefing:
- Kioxoa Pre-IPO – Peer Comparison
- Kioxoa Pre-IPO – Thoughts on Valuations
- Kioxia (285A JP) IPO: The Bull Case
- Kioxia IPO: Initial Thoughts on Financials and Valuation
- Belrise Industries Ltd Pre-IPO Tearsheet
- Pateo Connect Pre-IPO: Undifferentiated and Unprofitable
Kioxoa Pre-IPO – Peer Comparison
- Kioxia Holdings (6600 JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
- It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
- We have looked at the company’s past performance in our earlier notes. In this note we undertake a peer comparison.
Kioxoa Pre-IPO – Thoughts on Valuations
- Kioxia Holdings (285A JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
- It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
- We have looked at the company’s past performance in our earlier notes. In this note we talk about valuations.
Kioxia (285A JP) IPO: The Bull Case
- Kioxia Holdings (6600 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.
- Bain Capital, Toshiba Corp (6502 JP) and Hoya Corp (7741 JP) currently own 56.23%, 40.64% and 3.13% of the voting rights, respectively.
- The bull case rests on an attractive market opportunity, a return to revenue growth, margins close to all-time highs, a favourable cash conversion cycle, and modest leverage.
Kioxia IPO: Initial Thoughts on Financials and Valuation
- Kioxia Holdings (285A JP) ’s long waited IPO is now live and plans to raise US$700m at a much lower valuation of US$4.8bn vs price paid by Bain 6-years ago.
- The company’s IPO is very timely as earnings have almost approached the cycle peak, but margins have continued to trail peers who have a more balanced product portfolio.
- Kioxia’s valuation has declined while market sentiment for memory names has also been that great. We will discuss our valuation in a follow-up insight.
Belrise Industries Ltd Pre-IPO Tearsheet
- Belrise Industries (9156339Z IN) is planning to raise about US$255m through its upcoming IPO in India. The lead bookrunners for the deal are Axis Capital, HSBC, Jefferies, SBI Capital
- Established in 1988, it specializes in safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
- As per Crisil report, Belrise held a market share of 24% in the two-wheeler metal components segment in India as of FY24.
Pateo Connect Pre-IPO: Undifferentiated and Unprofitable
- Pateo Connect Technology (PTC HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
- It is one of the largest domestic providers of smart cockpit and intelligent connectivity solutions in China, providing full-stack smart cockpit solution and cloud-based vehicle connectivity, for Chinese OEMs.
- In this note, we look at the firm’s past performance.
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