In today’s briefing:
- Midea Group HK IPO Valuation Analysis
- NEXTDC Placement – Good Track Record but Seems Opportunistic
- LG Electronics India IPO: Potential Big Gains. Booming Demand, Buoyant Valuations
- Midea HK Listing: Valuation Insights
- National Infrastructure Trust Pre-IPO Tearsheet
- Key Updates on Bicara Therapeutics IPO: ~$800M Valuation at the Midpoint and Strong Balance Sheet
Midea Group HK IPO Valuation Analysis
- We would subscribe to the HK offering of Midea Group due to its attractive valuations, strong fundamentals, and meaningful price discount relative to the A shares.
- We believe a premium valuation relative to the comps is appropriate for Midea Group due to its higher sales growth, EBIT margin, and ROE.
- Pricing of this offering is expected to be completed on 13 September and listing on 17 September.
NEXTDC Placement – Good Track Record but Seems Opportunistic
- Nextdc Ltd (NXT AU) aims to raise around US$366m via a fully underwritten institutional placement, along with another US$133m via a non-underwritten SPP.
- The company has undertaken a number of deals in the past, most of which have done ok. Although this one appears to be a bit opportunistic.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
LG Electronics India IPO: Potential Big Gains. Booming Demand, Buoyant Valuations
- LG Electronics’s India business IPO could be valued above USD 7 billion, exceeding market expectations, driven by its dominant position in India’s growing home appliances market and strong sector valuations.
- Favourable market conditions and robust sector growth make now an ideal time for LG Electronics (066570 KS) to launch its India IPO, securing high investor interest and compelling valuations.
- In a recent interview, LG Electronics(066570 KS) CEO William Cho mentioned that an Indian market debut is one of several options being considered to revitalise the company’s consumer electronics business.
Midea HK Listing: Valuation Insights
- Chinese home appliance maker Midea has announced the terms for its IPO. The company plans to raise $3.46bn at an indicative price range of HK$52.0-54.8 per share.
- The company has a diversified product portfolio, well-balanced exposure to domestic as well as overseas markets and a growing robotics business.
- As we expected, the HK offering is priced at around 25% discount to it’s A-shares and our analysis suggests that Midea’s HK offering is priced attractively.
National Infrastructure Trust Pre-IPO Tearsheet
- National Infrastructure Trust (NIT IN) is looking to raise about US$190m in its upcoming India IPO. The deal will be run by SBI Caps and HDFC Bank.
- National Infrastructure Trust is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
- Its initial asset portfolio will consist of nine road assets, in the states of Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka with an aggregate length of ~683.875km.
Key Updates on Bicara Therapeutics IPO: ~$800M Valuation at the Midpoint and Strong Balance Sheet
- Bicara Therapeutics unveiled the terms of its IPO: a clinical-stage biotech company offers ~11.8M shares at the price range of $16.00-$18.00, implying a market cap of ~$800M at the midpoint.
- Existing shareholders do not intend to sell shares in this offering and Bicara Therapeutics shares will list on the Nasdaq under the ticker symbol “BCAX”.
- The biotech company is focused on patients with HPV-negative head and neck cancer, and I view Bicara’s IPO valuation as attractive, with major catalysts coming up in 2025.
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