In today’s briefing:
- Peptron Rights Issue: The 25% Discount Is an Attractive Outright Position Opportunity
- Lumir IPO Preview
- 99 Speed Mart IPO: The Bull Case
- Zomato Placement – Momentum Is Very Strong, past Ant Related Deals Have Been Mixed
- Star Asia Investment Corp Placement – Needs a Decent Correction Leading up to Pricing
- Pre-IPO Medtide – The Industry, the Business and the Concerns
- Hero Fincorp Pre-IPO – The Positives – Riding on the Parent’s Brand
Peptron Rights Issue: The 25% Discount Is an Attractive Outright Position Opportunity
- Peptron’s lack of single-stock futures means no risk-free arbitrage but also less speculative selling, making the 25% discount an attractive outright position opportunity.
- The low capital increase rate may stabilize the stock price, and more forfeited shares could lower the cost of securing subscription rights during the trading window.
- Consider buying rights during the trading period or targeting forfeited shares. Conservatively estimate the final offering price range to set a profitable cost for securing rights.
Lumir IPO Preview
- Lumir is getting ready to complete its IPO on KOSDAQ in September. The IPO which is expected to raise between 49.5 billion won to 61.5 billion won.
- Lumir specializes in the development of observation satellite technology including image data processing devices and onboard computers for a number of government satellite series.
- Lumir had sales of 12.1 billion won (up 90.5% YoY) in 2023. Its sales surged by 477% YoY to reach 8.2 billion won in 1H24.
99 Speed Mart IPO: The Bull Case
- 99 Speed Mart Retail Holdings (99SPD MK), a leading groceries retailer in Malaysia, is seeking to raise US$530 million at RM1.65 per share.
- 99 Speed Mart is Malaysia’s largest mini-market player and leading grocery retailer, holding a market share of 40.1% and 11.6% in 2023, respectively.
- The bull case rests on a large TAM, rising market share, robust revenue growth underpinned by SSSG, a store expansion-driven growth strategy, profitability, cash generation, and modest leverage.
Zomato Placement – Momentum Is Very Strong, past Ant Related Deals Have Been Mixed
- AntFin is looking to raise around US$400m by selling around 2% of Zomato (ZOMATO IN).
- Ant Group had earlier sold some of its stake in Nov 2023 and Mar 2024, with the deals producing a mixed bag result.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
Star Asia Investment Corp Placement – Needs a Decent Correction Leading up to Pricing
- Star Asia Investment (3468 JP) is looking to raise around US$118m in its primary follow-on offering to acquire four hotels. The acquisition will amount to a total of JPY34.7bn (US$237.5m).
- The deal is a somewhat large one to digest, at 83 days of three month ADV and 13.3% of TSO .
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Pre-IPO Medtide – The Industry, the Business and the Concerns
- Medtide relies heavily on limited number of customers to contribute performance. If there is any significant reduction in demand by its major customers, Medtide’s performance growth would be materially/adversely affected.
- Due to geopolitical conflicts, pharmaceutical companies are becoming more cautious about their reliance on China CXO. So, the development of Medtide’s overseas business would become more uncertain in this context.
- Medtide’s business scale is still small and its position in the global peptide CXO industry is not as strong as described. Valuation of Medtide should be lower than peers.
Hero Fincorp Pre-IPO – The Positives – Riding on the Parent’s Brand
- Hero FinCorp (HF) is looking to raise around US$438m in its upcoming India IPO.
- HF is a non-deposit taking NBFC. It offers a suite of financial products catering primarily to the retail segment and the MSME customer segment in India.
- In this note, we talk about the positive aspets of the deal.
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