In today’s briefing:
- Passive Flow Schedule Driven by Local Sector ETFs for Ecopro Materials
- Ecopro Materials IPO – Pushing Ahead with Listing Despite the Controversies
- Cainiao Pre-IPO – The Negatives – Growth Still Driven by China Ops, Pricing Pressure Persists
- Londian Wason Energy Tech: Planning an IPO in the US in 2024 (Impact on SK Inc)
- Seoul Guarantee Insurance Pre-IPO Thoughts on Valuation – Needs a Discount to Its Larger Peers
Passive Flow Schedule Driven by Local Sector ETFs for Ecopro Materials
- Ecopro Materials will benefit from passive flows generated by being a part of the battery-themed ETFs in the Korean local ETF market. And this will create noteworthy flow instances.
- There will be a total of six flow events occurring consecutively from March to June next year. For all except for K-New Deal, there is a high likelihood of inclusion
- In particular, it appears that we should target the rebalancing trading of the TIGER Secondary Cell ETF, which occurs on the second Thursday of April next year.
Ecopro Materials IPO – Pushing Ahead with Listing Despite the Controversies
- EcoPro Materials (ECO123 KS) is looking to raise up to US$500m in its Korean IPO.
- Ecopro Materials (EPM) manufactures and sells high-nickel precursors, one of the key materials for high-nickel cathode materials for secondary (rechargeable) batteries.
- Ecopro Materials’ revenue has grown by more than three times over the track record period. However, its parent company Ecopro and sister company Ecopro BM have been mired in controversy.
Cainiao Pre-IPO – The Negatives – Growth Still Driven by China Ops, Pricing Pressure Persists
- Cainiao Smart Logistics, Alibaba Group Holding (9988 HK)’s logistics linked arm, is planning to raise at least US$1bn in its Hong Kong IPO.
- Cainiao is the largest provider of cross-border e-commerce logistics services globally and a leader in China logistics services, according to CIC.
- In this note, we talk about the not-so-positive aspects of the deal.
Londian Wason Energy Tech: Planning an IPO in the US in 2024 (Impact on SK Inc)
- According to SCMP, Londian Wason is getting ready for an IPO in the US in 2024. Londian Wason is planning to raise nearly US$500 million in pre-IPO funding and IPO.
- SK Inc owns about 30% stake in Londian Wason, a leading copper foil maker in China. It is estimated that SK Inc’s stake is worth about US$1.1 billion.
- In 2022, Londian Wason generated sales of 1.47 trillion won. Since SK’s investment in Londian Wason in 2019, the company’s sales has been growing at more than 50% per annum.
Seoul Guarantee Insurance Pre-IPO Thoughts on Valuation – Needs a Discount to Its Larger Peers
- Seoul Guarantee Insurance (031210 KS) is looking to raise around US$270m in its Korean IPO.
- Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.
- We have looked at the firm’s past performance and undertaken a peer comparison in earlier notes. In this note, we discuss our thoughts on valuation.
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