In today’s briefing:
- Midea Group H Share Listing (300 HK): Valuation Insights
- Midea A/H Listing – Bigger Deal, Better Pricing
- Terumo Placement Follow-Up – Correction Has Been Inline with Recent Cross-Shareholding Unwind
- Terumo (4543 JP): The Current Playbook
- K Bank IPO – The Biggest IPO in Korea in 2024
- Bajaj Housing Finance IPO- Forensic Analysis
- P N Gadgil Jewellers IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
- The Story Behind K-Bank Leaking Pricing Details Before the IPO Prospectus Dropped
- Via Technologies Early Look – Wouldn’t Be a Large One to Digest
- Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up
Midea Group H Share Listing (300 HK): Valuation Insights
- Midea Group Co Ltd A (000333 CH) has launched its H Share listing at HK$52.00-54.80 per share. Pricing will be on 13 September, and the listing on 17 September.
- We previously discussed the listing in Midea Group H Share Listing: Latest Updates Points to a Business in Rude Health and Midea Group H Share Listing: AH Discount Views.
- Our valuation analysis suggests that the H Share listing range is attractive. We would participate in the listing.
Midea A/H Listing – Bigger Deal, Better Pricing
- Midea Group Co Ltd A (000333 CH) aims to raise up to US$3.5bn in its H-share listing, the deal is somewhat larger than what was being spoken about earlier.
- Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.
- We have covered the deal background in our previous notes. In this note, we talk about valuations.
Terumo Placement Follow-Up – Correction Has Been Inline with Recent Cross-Shareholding Unwind
- A group of shareholders are looking to raise around US$1.36bn from selling ~5% stake in Terumo Corp (4543 JP).
- We have covered the background of the deal in our earlier note, Terumo Placement – US$1.4bn Secondary Selldown, Buyback Should Aid Deal Dynamics.
- In this note, we talk about the updates since and look at the performance of some of the past large Japan deals.
Terumo (4543 JP): The Current Playbook
- Since the US$1.4 billion secondary placement announcement, Terumo Corp (4543 JP)’s shares are down 3.5% from the undisturbed price of JPY2,771 per share (29 August).
- Looking at recent large Japanese placements is instructive to understand the potential trading pattern. So far, Terumo’s shares have followed the pattern of previous large placements.
- The offering will likely be priced on 10 September. Despite Kokusai and Honda’s disappointing performance, the average large Japanese placement tends to generate positive returns.
K Bank IPO – The Biggest IPO in Korea in 2024
- K Bank is the biggest IPO in Korea in 2024. The IPO price range is from 9,500 won to 12,000 won. It is offering 82 million shares in this IPO.
- According to the bankers’ valuation, the expected market cap of the company is from 4.0 trillion won to 5.0 trillion won.
- The IPO deal size is 779 billion (US$579 million) to 984 billion won (US$732 million).
Bajaj Housing Finance IPO- Forensic Analysis
- Bajaj Housing Finance (BHF IN) upcoming IPO is worth INR 65.6 bn, comprising of fresh issue worth INR 35.6 bn and offer for sale worth INR 30 bn.
- The company reports strong KPIs and has been better than peers in several aspects. AUM growth is strong and is driven by Developer Financing and Lease Rental Discounting.
- There are few important cautions regarding the NHB observations and assignments.
P N Gadgil Jewellers IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
- P N Gadgil Jewellers (1742652D IN) is looking to raise up to US$132m in its India IPO.
- P N Gadgil Jewellers (PNGJ) is an Indian organized jewellery player. Its product offerings include traditional as well as modern and functional jewellery designs, in gold, diamond, silver and platinum.
- Previously, we talked about the company’s historical performance. In this note, we provide a summary of its RHP updates and share our quick thoughts on peer comparison and valuation.
The Story Behind K-Bank Leaking Pricing Details Before the IPO Prospectus Dropped
- To justify a higher multiple, K-Bank is comparing itself to international internet banks, with KakaoBank as the only local peer. Differences in market conditions could complicate this comparison.
- This might explains why K-Bank is cautiously testing the market by announcing the rights issue first and delaying the prospectus, amid regulatory crackdowns on inflated IPOs.
- Controversy over high multiples from overseas peers and KakaoBank’s legal discount will be key in setting K-Bank’s IPO pricing.
Via Technologies Early Look – Wouldn’t Be a Large One to Digest
- Via Technologies (2388 TT) is looking to raise US$220m in its upcoming global depository receipts (GDRs) offering.
- In July 2024, Via Technologies (Via Tech) announced its board’s resolution to issue up to 75m common shares via a GDR offering.
- Similar to previous GDR listings, the deal is a long drawn out process with the firm required to jump through a number of board/shareholder/regulatory approval loops.
Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up
- Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO.
- Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
- In this note, we talk about the positive aspects of the deal.
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