In today’s briefing:
- LG CNS IPO Details Out: My Read on This IPO
- LG CNS IPO Preview
- MNC Solution IPO Book Building Results Analysis
- Vishal Mega Mart Pre-IPO – The Positives – One-Stop Shop
- Aditya Infotech Pre-IPO – Expanding Channel Network and Increased Production Capacity to Drive Sales
- Vishal Mega Mart Pre-IPO – The Negatives – No Online Presence, PE Overhang
LG CNS IPO Details Out: My Read on This IPO
- The KRW 5T-6T valuation and 13x-16x PER look solid compared to local peers like SDS and Hyundai AutoEver, with CNS possibly getting a premium due to its smaller captive stake.
- Instos probably won’t push hard for lock-ups but will aggressively target pricing to secure larger allotments, knowing the company is likely to stick with a market-friendly price.
- On a separate note, I wouldn’t expect much of a NAV discount reduction for LG Corp, as LG CNS’s stake isn’t significant enough to move the needle.
LG CNS IPO Preview
- The long awaited IPO of LG CNS is finally getting ready to be completed in February 2025. The IPO price range is 53,700 won to 61,900 won.
- Expected market cap is between 5.2 trillion won to 6.0 trillion won. At the high end of the IPO price range, the total IPO offering would involve 1.2 trillion won.
- The bankers used three companies including Samsung Sds, Hyundai Autoever, and NTT Data Corp as comps. This is expected to be one of the largest IPOs in Korea in 2025
MNC Solution IPO Book Building Results Analysis
- MNC Solution reported its IPO book building results. The IPO price has been determined at 65,000 won, which is 18.8% lower than the low end of the IPO price range.
- A total of 198 institutional investors participated in the IPO demand forecast. The competition rate was low at 8.2 to 1.
- Our base case valuation of MNC Solution is target price of 92,842 won per share, which is 43% higher than the IPO price of 65,000 won.
Vishal Mega Mart Pre-IPO – The Positives – One-Stop Shop
- Vishal Mega Mart is planning to raise around US$950m through its upcoming IPO in India.
- Vishal Mega Mart Limited (VMM), is a one-stop retail destination. As per the company it targets middle and lower-middle income consumers across India
- In this note, we talk about the positive aspects of the deal.
Aditya Infotech Pre-IPO – Expanding Channel Network and Increased Production Capacity to Drive Sales
- Aditya Infotech Ltd (6596564Z IN) is looking to raise about US$155m in its upcoming India IPO.
- Aditya Infotech is a CCTV/video surveillance provider offering a range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under its CP PLUS brand.
- In this note, we talk about the company’s historical performance.
Vishal Mega Mart Pre-IPO – The Negatives – No Online Presence, PE Overhang
- Vishal Mega Mart is planning to raise around US$950m through its upcoming IPO in India.
- Vishal Mega Mart Limited (VMM), is a one-stop retail destination. As per the company it targets middle and lower-middle income consumers across India
- In this note, we talk about the not-so-good aspects of the deal.
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