In today’s briefing:
- Rakuten Bank (5838) IPO – Post-IPO Trading Volume Decay and RB’s Place Among Banks (Part 3)
- Yuexiu Property (123 HK): US$1.1bn Dilutive and Unnecessary Rights Issue
- Mankind Pharma IPO: Valuation Insights
- IMotion Automotive Technology Pre-IPO – The Negatives – But Profitability Still a Black Box
Rakuten Bank (5838) IPO – Post-IPO Trading Volume Decay and RB’s Place Among Banks (Part 3)
- To look at the Rakuten Bank (5838 JP) IPO and how trading and pricing may occur, some are looking at SBI Sumishin Net Bank (7163 JP).
- To understand the movements of SBI Sumishin Net Bank, it may help to look at other IPOs in Japan and how they trade post-IPO.
- I looked at the last 200+ IPOs in Japan to understand volume decay and price evolution. It leads to suggestions for investors regarding Rakuten Bank.
Yuexiu Property (123 HK): US$1.1bn Dilutive and Unnecessary Rights Issue
- Yuexiu Property (123 HK) will raise US$1.1bn through a rights offering – 30 rights shares for every 100 existing shares. The subscription price is HK$9.00, a 23.3% discount to TERP.
- As Yuexiu is in no danger of breaching the three red lines, the rights issue is an opportunistic play on capitalising on the strong share price run.
- Rights shares will be entitled to the final and special dividend announced on 15 March. Shares go ex-rights on 2 May and the rights start trading on 15 May.
Mankind Pharma IPO: Valuation Insights
- Mankind Pharma (6596876Z IN), a pharmaceutical company, is seeking to raise up to Rs43.3 billion (US$527 million) at Rs1,026-1,080 per share. The public offer runs from 25-27 April.
- We previously discussed the IPO in Mankind Pharma IPO: The Bull Case, Mankind Pharma IPO: The Bear Case and Mankind Pharma IPO: Updates Warrant Caution.
- Our valuation analysis suggests that Mankind Pharma is fully valued at the IPO price range. Therefore, we are inclined to pass on this IPO.
IMotion Automotive Technology Pre-IPO – The Negatives – But Profitability Still a Black Box
- IMotion Automotive Technology (1812706D CH) is looking to raise about US$300m in its upcoming HK IPO.
- The company possesses advanced full-stack R&D capabilities including self-developed algorithms and hardware-software co-design capabilities. It provides two AD domain controller product lines, and the self-designed iDC series.
- In this note, we talk about the not-so-positive aspects of the deal.
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