In today’s briefing:
- Mitsubishi Estate Logistics REIT Placement – Decent Track Record but Lacks Accretion
- Blibli IPO: The Bull Case
- Giant Biogene Pre-IPO – Peer Comparison – Might Need to Spend a Lot More Online
- BioNote IPO Valuation Analysis
Mitsubishi Estate Logistics REIT Placement – Decent Track Record but Lacks Accretion
- Mitsubishi Estate Logistics (3481 JP) (MEL) is looking to raise US$145m from its primary follow-on offering to acquire eight properties.
- The offering is a large one, resulting in a 10.2% dilution, and would represent 34 days of three month ADV.
- In this note, we will look at the deal dynamics, and run the deal through our framework.
Blibli IPO: The Bull Case
- Blibli (1437710D IJ), a leading Indonesian e-commerce player, has launched an IDR8.2 trillion (US$530 million) Indonesian IPO. Bookbuilding is from 17 to 24 October.
- According to Frost & Sullivan, Blibli.com was No. 1 in the fresh food category and 1P consumer electronics in the B2C omnichannel among e-commerce players in Indonesia in 2021.
- The key elements of the bull case rest on a large and growing addressable market, strong ecosystem, high order values, rising cohort spending and fast-paced growth.
Giant Biogene Pre-IPO – Peer Comparison – Might Need to Spend a Lot More Online
- Giant Biogene Holding (GBH HK) aims to raise around US$500m in its Hong Kong IPO.
- GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
- We had looked at the company’s past performance in our previous notes. In this note, we’ll undertake a peer comparison.
BioNote IPO Valuation Analysis
- Our base case valuation is target price of 16,182 won per share, which is 10% lower than the low end of the IPO price range.
- We estimate BioNote to generate sales of 535.2 billion won (down 14% YoY) in 2022 and 349 billion won (down 34.8% YoY) in 2023.
- Given the downside risk relative to the IPO price range, we have a Negative View of the BioNote IPO.
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