Daily BriefsECM

Daily Brief ECM: Korea’s Financial Regs Drop New IPO Allocation and Delisting Rules: What It Means and What to Expect and more

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

By Sanghyun Park

  • 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

By Ke Yan, CFA, FRM

  • 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

By IPO Boutique

  • 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

By Arun George

  • 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

By Devi Subhakesan

  • 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

By IPO Boutique

  • 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

By IPO Boutique

  • 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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