In today’s briefing:
- Merdeka Battery Materials IPO Peer Comparison & Valuation – Might Be Worth a Shot
- JD Property Inc IPO: Debt-Loaded and Overvalued at Previous Private Market Valuation
- Gigavis IPO Preview
- ZJLD Group IPO: The Bull Case
- Lalatech IPO Preview: Disrupting The Traditional Logistics Industry
Merdeka Battery Materials IPO Peer Comparison & Valuation – Might Be Worth a Shot
- Merdeka Battery Materials (2012725D IJ) is looking to raise around US$580m in its Indonesian IPO.
- It has the largest resource globally in terms of contained nickel at the Konawe Nickel Mine (the SCM Mine), according to Wood Mackenzie
- In this note, we undertake a quick peer comparison, talk about our earnings assumptions, and share our thoughts on valuation.
JD Property Inc IPO: Debt-Loaded and Overvalued at Previous Private Market Valuation
- Just after Alibaba’s big news of a business split and possible fundraising and IPOs for spun-out entities, JD.com announced that they will list its Properties and Industrials businesses in HK.
- The pre-IPO funding round of $800m, led by Hillhouse and Warburg Pincus valued Jingdong Property (JDP HK) at RMB 7.15 per-share, which valued the company at RMB 46.8bn market cap.
- This implies a price-to-book multiple of 1.1x, which is towards the high side considering that the sector is trading at an average discount of roughly 10% to its book value.
Gigavis IPO Preview
- Gigavis is offering 2.22 million shares in this IPO. The expected market cap of the IPO is from 436 billion won to 503 billion won.
- The maximum IPO offering amount is 88.1 billion won. The IPO price is between 34,400 won to 39,700 won.
- Gigavis makes automatic optical repair equipment (AOR) for the semiconductor industry.
ZJLD Group IPO: The Bull Case
- ZJLD Group (ZJLD HK), a baijiu company in China, is pre-marketing an HKEx IPO to raise upto US$400 million, according to press reports.
- ZJLD is the fourth largest privately-owned baijiu company and ranked third among all baijiu companies with three or more aroma types, in terms of revenue in 2021.
- The key elements of the bull case rest on market share gains, competitive production capacity, premiumization, rising gross margin and inventory days in good shape vs peers.
Lalatech IPO Preview: Disrupting The Traditional Logistics Industry
- Lalatech Holdings, one of the largest Asia-based providers of on-demand delivery platform, filed for Hong Kong IPO, with Goldman Sachs, BofA Securities and J.P. Morgan leading the offering.
- I like profitable growth at tremendous scale, hybrid monetization model and leadership position in Mainland China with a 40%+ share, well ahead of its major peers.
- Lalatech Holdings was backed by top-tier VC investors, including Hillhouse Capital Group, Sequoia Capital, Shunwei Capital, MindWorks Capital and Vitruvian Partners, among others.
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