In today’s briefing:
- NIO HK Placement – Lots of Reasons to Avoid and Only One to Invest
- The Hidden Play in Hanwha’s Noisy Stake Reshuffling: Hanwha Corp’s Rights Issue
- A/H Premiums and past A/H Listings Performance Data – Mixed Results but Size Matters
- Eco-Shop Marketing Pre-IPO – Deserving a Premium Valuation
- CoreWeave Inc. (CRWV): IPO Terms Being Reworked at Eleventh Hour; Caution Needed
- D’Alba Global IPO Valuation Analysis
NIO HK Placement – Lots of Reasons to Avoid and Only One to Invest
- NIO (9866 HK) is looking to raise around US$450m via a primary placement in Hong Kong.
- The shares haven’t done much this year or ever since they were listed.
- In this note, we will talk about the placement and run the deal through our ECM framework.
The Hidden Play in Hanwha’s Noisy Stake Reshuffling: Hanwha Corp’s Rights Issue
- Hanwha Corp’s chances of raising 1T KRW without a capital call are slim, likely channeling Hanwha Energy’s 1.3T KRW into Hanwha Corp intead of Hanwha Aero.
- A shareholder-allotted rights issue from Hanwha Corp looks likely, and with short-selling resumption, it sets up a clean arbitrage play with low risk before the official announcement.
- Timing is key—Hanwha’s using debt for now, but likely won’t delay long. Expect Hanwha Corp’s rights issue to follow Hanwha Aero’s, probably between June and July.
A/H Premiums and past A/H Listings Performance Data – Mixed Results but Size Matters
- Given the slew of A/H offerings in the Hong Kong IPO pipeline, in this note, we talk about the overall A/H premiums currently.
- We also had a quick look at the past A/H listing performance, including subscription rates and A/H premiums at the time of listing.
- Overall, most of the A/H listings haven’t done much in the near term, with a few exceptions.
Eco-Shop Marketing Pre-IPO – Deserving a Premium Valuation
- Eco-Shop Marketing (ECO MY) is looking to raise about US$226m in its upcoming Malaysia IPO.
- It is the largest dollar chain in Malaysia, as per the number of stores it operates, as of 31 October 2024.
- We have looked at the company’s past performance in our earlier notes. In this note, we discuss latest industry dynamics, conduct a quick peer comparison and discuss the company’s valuation.
CoreWeave Inc. (CRWV): IPO Terms Being Reworked at Eleventh Hour; Caution Needed
- According to sources, the deal is being reworked with significant share size reduction and a downwardly-revised price.
- Ultimately, a smaller size transaction with a more attractive valuation will make this IPO easier to digest.
- We lack conviction in this IPO at this time and believe that investors looking to have a long-term position in the company may be better suited as an aftermarket participant.
D’Alba Global IPO Valuation Analysis
- Our base case valuation is based on a P/E of 21.9x (40% premium to the comps) our estimated net profit of 58.9 billion won in 2025.
- We believe d’Alba Global should trade at a premium valuation to the comps due to higher sales and operating profit growth, higher ROE and operating margins than the comps.
- Our base case valuation of d’Alba Global target price of 101,609 won per share, which represents 53% higher than the high end of the IPO valuation range.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
Unlock all research summaries