In today’s briefing:
- Kokusai Electric Pre-IPO – The Positives – Well Established with High Market Share
- Kokusai Electric (6525 JP) IPO – Index Demand On The Follow
- Ecopro Materials IPO Prospectus Filed Today: Anticipating Inevitable Valuation Controversy
- Star Entertainment Entitlement+Placement – Would You Rescue Me? Again?
- Ecopro Materials IPO Preview
- Tuhu Car IPO Trading – Lukewarm Subscription, Small Float Could Impact Trading
- JSW Infrastructure Ltd IPO- Forensic Analysis
- Seoul Guarantee Insurance Pre-IPO Peer Comparison – While ROE Lagged, Has Been Overcapitalised
- Kokusai Electric Pre-IPO – The Negatives – Can’t Avoid the Cycles
- Indian Renewable Energy Development Authority Pre-IPO Tearsheet
Kokusai Electric Pre-IPO – The Positives – Well Established with High Market Share
- KKR is looking to raise around US$750m via selling a stake in Kokusai Electric (6525 JP) (KE) in its Japan IPO.
- KE main business activities consist of the manufacturing, sales and maintenance service of semiconductor manufacturing equipment.
- In this note, we talk about the positive aspects of the deal.
Kokusai Electric (6525 JP) IPO – Index Demand On The Follow
- Niche Japanese Semiconductor Production Equipment specialist Kokusai Electric (6525 JP) last Thursday announced the TSE approved its late October IPO (with indicative pricing, shares to be sold, and initial prospectus).
- This insight looks at initial shareholder structure, selling group, post-IPO shareholder structure with index inclusion timing, and follow-on flow possibilities.
- At ¥435bn indicative market cap, it will be the largest IPO in Japan since pre-covid, despite coming in a cycle trough. I expect it will be hot.
Ecopro Materials IPO Prospectus Filed Today: Anticipating Inevitable Valuation Controversy
- The indicative price band is ₩36,200 to ₩46,000. Accordingly, the market capitalization implied by the price band is ₩2.68T to ₩3.40T.
- The concern arises as to whether Ecopro Materials can consistently deliver a level of profitability that justifies receiving an equivalent valuation multiple to that of Ecopro BM.
- The timing of this IPO coincides with the ongoing valuation correction in the local battery sector, making the valuation issue the most critical point to watch in this IPO.
Star Entertainment Entitlement+Placement – Would You Rescue Me? Again?
- Star Entertainment Group (SGR AU) (SGR) plans to raise around US$480m (A$750m) via an entitlement offer cum institutional placement.
- SGR undertook a similar sized raising earlier this year in Feb 2023, at a price which was double the current deal price.
- In this note, we will talk about the deal dynamics.
Ecopro Materials IPO Preview
- Ecopro Materials is getting ready to complete its IPO in KOSPI in November 2023. The IPO price range is from 36,200 won to 46,000 won.
- The IPO offering amount is from 524 billion won to 666 billion won. The expected IPO market cap is from 2.7 trillion won to 3.4 trillion won.
- The bankers used four companies including CNGR, Posco Future M (003670 KS), L&F, and Cosmo AM&T (005070 KS) as comps for Ecopro Materials.
Tuhu Car IPO Trading – Lukewarm Subscription, Small Float Could Impact Trading
- Tuhu Car (2007986D HK) raised around US$151m in its Hong Kong IPO.
- Tuhu is an integrated online and offline platform for automotive services in China.
- We have covered various aspects of the deal in our previous notes. In this note, we will talk about the demand and trading dynamics.
JSW Infrastructure Ltd IPO- Forensic Analysis
- JSW Infrastructure (5978490Z IN) will open up for its IPO subscription this week.
- The company is into ports and maritime infrastructure and is the second largest commercial port operator in India in terms of cargo handling capacity.
- While the company has grown rapidly, the financials do indicate few concerns such as critical dependence/high RPT with JSW group, high debt-high cash balance sheet, forex risk, etc.
Seoul Guarantee Insurance Pre-IPO Peer Comparison – While ROE Lagged, Has Been Overcapitalised
- Seoul Guarantee Insurance (031210 KS) is looking to raise around US$270m in its Korean IPO.
- Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.
- We have looked at the firm’s past performance in earlier notes. In this note, we undertake a peer comparison.
Kokusai Electric Pre-IPO – The Negatives – Can’t Avoid the Cycles
- KKR is looking to raise around US$750m via selling a stake in Kokusai Electric (6525 JP) (KE) in its Japan IPO.
- KE main business activities consist of the manufacturing, sales and maintenance service of semiconductor manufacturing equipment.
- In this note, we talk about the not-so-positive aspects of the deal.
Indian Renewable Energy Development Authority Pre-IPO Tearsheet
- IREDA (1845911D IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by IDBI Capital, SBI Capital and Bob Capital.
- Indian Renewable Energy Development Authority (IREDA) is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE).
- It is registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Deposit-taking Non-Banking Finance Company (NBFCND-SI), with Infrastructure Finance Company (IFC) status.
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