In today’s briefing:
- Large GS Yuasa (6674) Placement – 20% Dilution, Needs Lots of Love
- GS Yuasa Placement – Well Flagged but Relatively Large Deal, Liquidity Might Be an Issue
- DS Dansuk IPO Preview
- Flair Writing Industries IPO- Forensic Analysis
- CaiNiao’s FYQ2: Revenue +25% Y/Y, Led by Int’l | EBITA Margin Up, Too | Solid Showing Ahead of IPO
- AZ Com Maruwa Placement – Mixed Feelings About the Mixed Offering
- Zeekr Pre-IPO – Peer Comparison – Catching up with Little Spending
Large GS Yuasa (6674) Placement – 20% Dilution, Needs Lots of Love
- Today after the close, noted Japanese battery maker Gs Yuasa Corp (6674 JP) announced a public equity offering accompanied by a 3rd party placement to Honda Motor (7267 JP).
- Total $300mm+ raise is nearly 20.0mm shares against ~80mm shares out now. That’s 20% EPS dilution at a still-decent discount to book value.
- This creates a weird situation of a low ROE stock becoming lower ROE, at a lower PBR, with “more growth ahead” in a hyper-competitive space.
GS Yuasa Placement – Well Flagged but Relatively Large Deal, Liquidity Might Be an Issue
- Gs Yuasa Corp (6674 JP) (GSY) is looking to raise around US$240m via a public offering, along with placing shares via third-party allotment with Honda Motor (7267 JP) .
- The company formed a JV with Honda Motors earlier this year and will use the bulk of the proceeds for investments in the JV.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
DS Dansuk IPO Preview
- DS Dansuk is getting ready to complete its IPO in Korea in the next several weeks. The IPO price range is from 79,000 won to 89,000 won.
- The book building for the institutional investors will be from 5-11 December. The IPO offering amount is from 96.4 billion won to 108.6 billion won.
- According to the bankers’ valuation, DS Dansuk’s valuation would range from 462 billion won to 522 billion won.
Flair Writing Industries IPO- Forensic Analysis
- Flair Writing Industries (1656496D IN) ‘s INR 5.9 bn upcoming IPO consists of fresh issue worth INR 2.9 bn and OFS worth INR 3 bn (at the upper end).
- The company is the largest pen manufacturer in India and one of the top three players in the Indian Writing Instruments Industry.
- While the company has shown a handsome growth since the pandemic, some operating metrics pertaining to employees don’t seem to add up.
CaiNiao’s FYQ2: Revenue +25% Y/Y, Led by Int’l | EBITA Margin Up, Too | Solid Showing Ahead of IPO
- Led by international activity, CaiNiao booked +25% Y/Y revenue growth in FYQ2
- FYQ2 EBITA margin improved Y/Y and Q/Q, even as express companies struggled
- Result bolsters CaiNiao status as vehicle to access BABA’s international growth
AZ Com Maruwa Placement – Mixed Feelings About the Mixed Offering
- AZ-Com Maruwa Holdings (9090 JP) is looking to raise around US$206m in its mixed follow-on offering.
- The deal will be a large one to digest, at 129 days of three month ADV, 5.5% dilution and 12.2% of current mcap.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Zeekr Pre-IPO – Peer Comparison – Catching up with Little Spending
- ZEEKR (ZK US), a premium EV brand by Geely Auto (175 HK), aims to raise around US$500m in its US listing.
- Zeekr was formed in Mar 2021 as a JV between Geely and its founder. Its first model was launched in Apr 21 with deliveries starting in Oct 21.
- We have looked at the company’s past performance in our earlier notes . In this note, we will undertake a peer comparison.
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