In today’s briefing:
- Korea’s Financial Regs Drop New IPO Allocation and Delisting Rules: What It Means and What to Expect
- HKEx Consultation Paper – What Matters for ECM Investors
- Smithfield Foods (SFD): Terms Set for WH Group’s Spin-Off
- Guming Holdings (Good Me) IPO: The Bull Case
- Guming (Good Me) IPO: Key Facts and Financials at First Glance
- Odyssey Therapeutics, Inc.(ODTX): Biotech Combating Ulcerative Colitis, or UC, Files for IPO
- Infinity Natural Resources (INR): Peeking at the Prospectus of Next Oil & Natural Gas Assets IPO
Korea’s Financial Regs Drop New IPO Allocation and Delisting Rules: What It Means and What to Expect
- We might see a liquidity crunch post-listing, with tighter regulations and mandatory holding drying up liquidity, causing more volatile price swings.
- Big local players with heavy lock-ups will take a large allocation, creating significant overhang risk at the six-month mark. Stronger IPO eligibility boosts costs, pushing funds toward riskier trades.
- Overall, this feels like a quick fix. Rather than focusing on long-term market improvements, we should focus on the new pricing patterns likely to emerge in the short term.
HKEx Consultation Paper – What Matters for ECM Investors
- Stock Exchange of Hong Kong issued a consultation paper titled Proposals to Optimise IPO Price Discovery and Open Market Requirements with new mechanisms proposed for the IPO in the future.
- In this note, we summarize key points for ECM investors and analyze the impact from a historical perspective the impact for ECM investors.
- We are of the view that overall the changes will benefit ECM investors by reallocating a portion of the profits from cornerstone investors.
Smithfield Foods (SFD): Terms Set for WH Group’s Spin-Off
- Spin-Off of WH Group’s could raise up to $939 million if priced at the high-end of the range
- The IPO is set to price on Monday January 27th for a Tuesday, January 28th debut
- Flash numbers revealed sales for the three months ended December 29, 2024 will range from $3,873 million to $3,953 million (prev. year $3,998 million)
Guming Holdings (Good Me) IPO: The Bull Case
- Guming Holdings (GUM HK) (Good me), a freshly-made tea store brand, is pre-marketing an HKEx IPO to raise US$300 million, according to press reports.
- Guming is China’s largest mid-priced freshly-made tea store brand and the second largest freshly-made brand across all price ranges, regarding GMV in 2023.
- The bull case rests on a rising market share, strong franchisee profitability, top-tier revenue growth, high margins, cash generation and a strong balance sheet.
Guming (Good Me) IPO: Key Facts and Financials at First Glance
- Guming Holdings (GUM HK), a leading player in China’s freshly-made branded beverage sector, is widely expected to launch its IPO soon.
- Guming’s Good Me brand is China’s largest mid-priced freshly-made tea store brand in terms of store count as well as GMV.
- Guming reported robust revenue and profit growth for first nine months of 2024 led by new store openings, although same-store sales declined due to rising competition and weak consumer spending.
Odyssey Therapeutics, Inc.(ODTX): Biotech Combating Ulcerative Colitis, or UC, Files for IPO
- Biotech seeking to transform the standard of care for patients suffering from autoimmune and inflammatory diseases filed its IPO on January 18th
- Lead program, OD-07656, is currently in a Phase 2a monotherapy trial for ulcerative colitis
- Potential IPO for Odyssey Therapeutics would be the first half of February
Infinity Natural Resources (INR): Peeking at the Prospectus of Next Oil & Natural Gas Assets IPO
- Oil & Natural Gas company focusing on the Appalachian Basin sets terms for its IPO
- The company is offering 13.25mm shares at a range of $18.00-$21.00 and will debut on Friday, January 31
- Total oil, natural gas and NGL net revenues for the nine months ended September 30, 2024 increased by $100.6 million, or 114%
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