In today’s briefing:
- Rakuten (4755 JP): The Current Playbook
- Alibaba Kicks Off Overhaul With Spinoff and Share Sale Targets
- Growatt Technology IPO: The Investment Case
- JSW Infrastructure Pre-IPO Tearsheet
- Syngenta Moves $9.4 Billion IPO to Main Board in Shanghai
- Ingersoll Rand: Acquisition of Paragon Tank Truck Equipment & Other Drivers
- Jupiter Life Line Hospitals Pre-IPO Tearsheet
- Marathon Oil Corporation: Significant Strategic Progress in Equatorial Guinea – Key Drivers
- CVS Health Corporation: Does The Signify Acquisition Make It A Sureshot Buy? – Key Drivers
Rakuten (4755 JP): The Current Playbook
- Since the announcement of the placement, Rakuten (4755 JP)’s shares are down -15.7% from the undisturbed price of JPY707 per share (12 May prior to press reports of the placement).
- To understand how the shares will trade as the offer is launched, we think it is instructive to look at recent large Japanese placements. Pricing date is likely 24 May.
- So far, Rakuten’s shares have mostly followed the pattern of previous large placements. Investors participating in previous large Japanese placements tend to secure positive returns.
Alibaba Kicks Off Overhaul With Spinoff and Share Sale Targets
- Alibaba Group Holding Ltd. outlined timetables for several key business units to complete spinoffs or pursue independent share sales, kicking off major moves in a sweeping reorganization to break up the gigantic conglomerate and unleash new growth momentum.
- Alibaba’s board of directors approved a full spinoff of its cloud services division while exploring initial public offerings for the logistics and grocery arms, the company said Thursday.
- The e-commerce giant plans to carve out the Cloud Intelligence Group within 12 months through a stock dividend distribution to shareholders, meaning it could relinquish control of China’s biggest cloud services platform.
Growatt Technology IPO: The Investment Case
- Growatt Technology (1833969D CH), a leading PV inverters manufacturer, is pre-marketing a US$400 million HKEx IPO, according to press reports.
- We previously discussed the IPO in Growatt Technology IPO: Growing Watts, Growatt Technology IPO: The Bull Case and Growatt Technology IPO: The Bear Case.
- The updated PHIP which disclosed the 2022 results and latest developments suggests that Growatt continues to deliver profitable and cash-generative growth.
JSW Infrastructure Pre-IPO Tearsheet
- JSW Infrastructure (5978490Z IN) is looking to raise up to US$341m in its upcoming India IPO.
- The deal will be run by JM Financial, Axis Capital, Credit Suisse, DAM Capital, HSBC, ICICI Securities, Kotak and SBI Capital.
- JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
Syngenta Moves $9.4 Billion IPO to Main Board in Shanghai
- Swiss agricultural giant Syngenta Group is moving its $9.4 billion initial public offering to the main board of the Shanghai Stock Exchange and dropping a plan to go public on the Nasdaq-like STAR Market, the company said Thursday.
- The unit of Chinese state-owned ChemChina said it made the decision after China fully rolled out its registration-based share issuance system across all boards in February.
- Syngenta Group will be a better fit on the main board, making the stock available to more diversified investors, Syngenta said.
Ingersoll Rand: Acquisition of Paragon Tank Truck Equipment & Other Drivers
- It was a successful Q1 for Ingersoll Rand as the company delivered an all-around beat with double-digit adjusted EBITDA and EPS growth with strong free cash flow generation.
- Their organic growth initiatives leveraged mega sustainability trends, digitization, and quality of life using their tool, DGX within IRX, to capture above-market growth.
- With new acquisitions, they are focused on cost improvement and maintaining focus on growth, accelerating organic growth across three levers.
Jupiter Life Line Hospitals Pre-IPO Tearsheet
- Jupiter Life Line Hospitals (0372574D IN) is looking to raise about US$135m in its upcoming India IPO. The deal will be run by ICICI Securities, Edelweiss Financial Services and JM Financial.
- Jupiter Life Line Hospitals (JLLH) is among the key multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area (MMR) and western region of India, according to CRISIL.
- Its hospitals function on an ‘all-hub-no-spoke’ model with each hospital being a full-service hospital, operating independently and offering services such as diagnostics to surgery and rehabilitation.
Marathon Oil Corporation: Significant Strategic Progress in Equatorial Guinea – Key Drivers
- It was a successful first quarter for Marathon Oil as it delivered an all-around beat with strong financial and operational performance.
- The company exceeded its commitment to return at least 40% of its cash flow from operations to shareholders, generating strong free cash flow despite not receiving any EG cash dividends.
- First-quarter oil production was consistent with guidance, and the company expects an improving trend in the second and third quarters.
CVS Health Corporation: Does The Signify Acquisition Make It A Sureshot Buy? – Key Drivers
- CVS Health Corporation’s first quarter results were an all-around beat as the company performed well in terms of revenue growth, operating cash flow, and adjusted profits per share.
- Revenues for the first quarter of $85.3 billion were up 11% year over year, demonstrating significant growth in all of their businesses.
- However, the company anticipates decreases for the remainder of the year as the public health emergency ends.
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