In today’s briefing:
- Lygend Resources & Technology IPO: Trading Debut
- Sunshine Insurance Group IPO: Valuation Insights
- Lava International IPO: Forensic Analysis
- Esco Lifesciences Pre-IPO Tearsheet
- Lygend Resources & Technology IPO Trading – Tepid Subscription but Potential Upside Remains
- Marketingforce Management Pre-IPO Tearsheet
- Weilong Delicious Global Pre-IPO – Updated Peer Comp and Valuation
Lygend Resources & Technology IPO: Trading Debut
- Lygend Resources & Technology (2245 HK) priced its IPO at HK$15.80 per share to raise net proceeds of HK$3.5 billion (US$450 million). The shares will start trading tomorrow.
- We previously discussed the IPO in Lygend Resources & Technology IPO: Riding the Wave and Lygend Resources & Technology IPO: Valuation Insights.
- Peers have re-rated and the IPO price continues to imply a discount to the median peer CY2023 P/E multiple. Therefore, the IPO price remains attractive.
Sunshine Insurance Group IPO: Valuation Insights
- Sunshine Insurance (6963 HK) has launched its HKEx listing at HK$5.83-6.45 per share to raise up to US$951 million. Books are open from 30 November to 5 December.
- We previously discussed the IPO in Sunshine Insurance Group IPO: The Bull Case and Sunshine Insurance Group IPO: The Bear Case.
- At the IPO price range, Sunshine trades at a significant premium to median peer multiples. Therefore, we would avoid the IPO.
Lava International IPO: Forensic Analysis
- Lava International (9263793Z IN) is one of the leading end-to-end focused mobile handset and mobile handset Solutions Company based in India, with operations in a number of countries.
- Major business risk arises from external environment, as Lava is one of the prominent leaders in feature phone segment, where the market is dying.
- Key forensic takeaways pertain to ECL provisioning and some absurd trend in line items. There are several discomforts on the governance end as well which must not be ignored.
Esco Lifesciences Pre-IPO Tearsheet
- Esco Lifesciences Group (1891571D SP) is looking to raise about US$300m in its upcoming HK IPO. The deal will be run by JP Morgan, BofA and Jefferies.
- Esco Lifesciences (EL) is a global provider of life sciences, pharmaceutical and bioprocessing tools, with an aim to develop, discover and commercialize technology-driven life sciences, pharmaceutical and bioprocessing tools.
- According to CIC, it is the second largest supplier of biosafety cabinets and the third largest supplier of time-lapse incubators globally as measured by revenue in 2021.
Lygend Resources & Technology IPO Trading – Tepid Subscription but Potential Upside Remains
- Lygend Resources & Technology (2245 HK) raised US$470m in its Hong Kong IPO.
- Lygend Resources & Technology (Lygend) is a nickel trading and production firm with a portfolio covering multiple areas across the nickel industry value chain.
- In this note we will talk about the trading dynamics.
Marketingforce Management Pre-IPO Tearsheet
- Marketingforce Management (MFM HK) is looking to raise about US$100m in its upcoming HK IPO. The deal will be run by CICC and CCB International.
- Marketingforce Management (MFM) is a domestic marketing and sales SaaS solution provider in China and considered the largest in terms of revenue in 2021, according to Frost & Sullivan.
- Through its Marketingforce platform, MFM delivers integrated cloud-based solutions that cover the entire marketing and sales management process of enterprises, from content and experience to strategy and management, amongst others.
Weilong Delicious Global Pre-IPO – Updated Peer Comp and Valuation
- Weilong Delicious Global (WDG HK), a spicy snack food company in China, aims to raise around US$200m in its Hong Kong IPO.
- According to F&S, WDG ranked first among spicy snack food enterprises in China, with a market share of 6.2%, and in the seasoned flour product and spicy vegetable snacks categories.
- In this note, we provide an update to our earlier peer comparison and valuations.
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