In today’s briefing:
- Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?
- Afcons Infrastructure IPO – Decent Upside from the Price Range
- Pony AI Pre-IPO – The Positives – Scaling up Robotaxi & Robotrucks
- Horizon Robotics IPO Trading – More than 55% of the Deal Taken up by Existing Shareholders
- Rigaku Holdings (268A JP) IPO: Trading Debut
- Swiggy IPO: Zomato’s USD 1bn Fundraise Signals Looming Quick Commerce Challenges
- Orum Therapeutics IPO Valuation Analysis
- Pony AI IPO Preview: Small Scale and Early Stage Development. Is Exponential Growth Ahead?
- Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) – Some Points Worth the Attention
Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?
- According to Korea Zinc, it plans to disclose the treasury shares tender offer results on 28 October.
- We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post announcement of the tender offer results.
- All in all, this M&A fight for Korea Zinc remains tight with a slight advantage to MBK/Young Poong alliance.
Afcons Infrastructure IPO – Decent Upside from the Price Range
- Afcons Infrastructure Limited (6595396Z IN) is looking to raise around US$650m in its India IPO.
- Afcons Infrastructure Limited (Afcons) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group.
- In a previous note, we looked at the firm’s past performance. In this note, we look at the updates since, and discuss valuation.
Pony AI Pre-IPO – The Positives – Scaling up Robotaxi & Robotrucks
- Pony AI (PONY US) an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO.
- As per Frost & Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.
- In this note, we talk about the positive aspects of the deal.
Horizon Robotics IPO Trading – More than 55% of the Deal Taken up by Existing Shareholders
- Horizon Robotics (9660 HK) raised around US$800m, including over-allocation, in its Hong Kong IPO.
- Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
- We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading updates.
Rigaku Holdings (268A JP) IPO: Trading Debut
- Rigaku Holdings (268A JP) priced its IPO at JPY1,260 per share to raise gross proceeds of US$856 million. The shares will start trading on 25 October.
- We previously discussed the IPO in Rigaku Holdings (268A JP) IPO: The Bull Case, Rigaku Holdings (268A JP) IPO: The Bear Case, Rigaku Holdings (268A JP) IPO: Valuation Insights.
- The peers have modestly derated since the prospectus was released on 20 September. The IPO price remains attractive.
Swiggy IPO: Zomato’s USD 1bn Fundraise Signals Looming Quick Commerce Challenges
- Zomato (ZOMATO IN) ‘s proposed USD 1 billion fundraise highlights several potential risks for Quick Commerce players, including Swiggy (1255298D IN) .
- Beyond heightened competition, majority foreign-owned Quick Commerce businesses including Swiggy could face regulatory hurdles if classified as multi-brand retail, limiting their foreign ownership.
- Investors may fear about Swiggy’s regulatory risks and profitability struggles in this competitive landscape, which could dampen investor enthusiasm and IPO valuation.
Orum Therapeutics IPO Valuation Analysis
- Our base case target price for Orum Therapeutics is 35,170 won per share, which is within the IPO price range of 30,000 won to 36,000 won per share.
- Given the lack of upside relative to the target price, we have a Negative View of this IPO.
- FSS has requested correction to the company’s IPO prospectus. As a result, it now appears the IPO could be delayed.
Pony AI IPO Preview: Small Scale and Early Stage Development. Is Exponential Growth Ahead?
- Pony AI, a founder-led global autonomous driving company, filed for an IPO in the United States and may raise up to $300M on the Nasdaq exchange.
- The technology company operates fully driverless robotaxis (L4) in Beijing, Shanghai, Guangzhou and Shenzhen, Mainland China.
- Pony AI has raised ~$1.4B in equity financing from top-tier investors, including Toyota Motor, HongShan, IDG Capital, 5Y Capital, ClearVue Partners, and Eight Roads Ventures, among others.
Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) – Some Points Worth the Attention
- Biostar’s revenue growth decreased obviously in the first five months in 2024. Under the fierce competition and anti-corruption campaign, the expectation for the commercialization performance of Biostar is not high.
- Although Biostar has invested a lot of resources in market exposure, high customer concentration indicates that the Company faces challenges in marketing/customer relationship expansion. Biostar has also encountered overcapacity issues.
- After Series E Financing, Biostar’s post-investment valuation was RMB4.49 billion. But we’re not optimistic about the outlook of Biostar. This valuation could be difficult to achieve in HK stock market.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
