In today’s briefing:
- PhilEnergy IPO Bookbuilding Results Analysis
- Fadu IPO Valuation Analysis
- TRYT IPO: Margins on a Downward Trend
- Silver Dragon Water Supply Group Pre-IPO Tearsheet
- J&T Global Express Pre-IPO, Part 2: SE Asia Operation | Demand, Supply Profiles | Valuation Approach
- Lalatech Holdings Limited Pre-IPO – Peer Comparison – Not the Largest but Pulling Its Weight
PhilEnergy IPO Bookbuilding Results Analysis
- PhilEnergy’s IPO price has been determined a 34,000 won. The company will raise 95.6 billion won in this IPO offering.
- A total of 1,955 institutional investors participated in the IPO offering with a competition demand ratio of 1,812 to 1.
- Given the exceptional book building results, it is highly likely that PhilEnergy will have a strong price performance once it starts trading.
Fadu IPO Valuation Analysis
- Our base case valuation analysis suggests implied market cap of 2.2 trillion won or 43,676 won per share, representing 41% higher than the high end of the IPO price range.
- At the high end of our valuation sensitivity analysis, it suggests implied price of 62,893 won per share, representing 103% higher than the high end of the IPO price range.
- Fadu is a system semiconductor fabless company specializing in data centers, which is experiencing a strong growth due to higher data demand for cloud, AI/Big data, 5G, and autonomous driving.
TRYT IPO: Margins on a Downward Trend
- TRYT Group is engaged in job placement and temporary staffing in the medical and welfare fields. The company has filed for an IPO and plans to raise around $450m.
- The company’s top line has continued to expand; however, margins have continued to narrow down over the last 3-4 years.
- We remain concerned over the company’s growth prospects and would only recommend subscribing if the IPO is priced attractively.
Silver Dragon Water Supply Group Pre-IPO Tearsheet
- Silver Dragon Water Supply Group (2210081D CH) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The bookrunners on the deal are HSBC and Huatai International.
- Silver Dragon Water Supply Group (SDW) is principally engaged in the supply of tap water, raw water and pipeline direct drinking water in China.
- As per Frost & Sullivan (F&S), the firm had the largest water pipeline network in terms of water pipeline length among all water supply companies in China in 2022.
J&T Global Express Pre-IPO, Part 2: SE Asia Operation | Demand, Supply Profiles | Valuation Approach
- In this insight, we examine J&T Global Express (1936374D CH)‘s operation in SE Asia, where it’s the region’s dominant player, with market share of 22.5% by volume
- We profile SE Asian demand and supply and compare these to the development of China’s express industry, acknowledging the key role Alibaba (ADR) (BABA US) has played there
- We also present a framework for estimating the value of J&T’s SE Asian operation by identifying the most appropriate comps and EV valuation multiples
Lalatech Holdings Limited Pre-IPO – Peer Comparison – Not the Largest but Pulling Its Weight
- Lalatech Holdings Co Ltd (LALA HK) is looking to raise about US$1bn in its upcoming HK IPO.
- Lalatech operates via a marketplace model serving merchants and carriers. Its platform facilitates closed-loop transactions from online shipping order booking to intelligent order matching, and automated dispatching to after-sale services.
- We have looked at the company’s past performance in our earlier notes, in this note we will undertake a peer comparison.
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