In today’s briefing:
- Rakuten Bank IPO: Trading Debut
- Mankind Pharma IPO – Quality Name but Might Not Have a Whole Lot of Upside
- Mankind Pharma IPO: Updates Warrant Caution
- Indegene Pre-IPO – Growing Client Base and Cross/Up-Selling Led to Growth
- Mankind Pharma (6596876Z IN) IPO: Pricey Valuation Limits Upside Potential
- Pre IPO MedSci Healthcare Holdings – Some Points Worth the Attention
- Roku Inc.: The SVB Nightmare & Other Developments
- IMotion Automotive Technology Pre-IPO – The Positives – Strong Growth Ahead with Some Big Names
- Lear Corporation: Benefits From Kongsberg Acquisition – Key Drivers
- Bumble Inc.: Continued App Improvement Driving Users – Key Drivers
Rakuten Bank IPO: Trading Debut
- Rakuten Bank (5838 JP) priced its IPO at JPY1,400 per share to raise gross proceeds of US$620 million. The shares will start trading on 21 April.
- We previously discussed the IPO in Rakuten Bank IPO: The Investment Case, Rakuten Bank Vs SBI Sumishin Net Bank and Rakuten Bank IPO: New Price Range Is a Steal.
- Peers have re-rated and our valuation analysis points to a fair value of around JPY1,900 per share, 36% above the IPO price. Therefore, the IPO price remains attractive.
Mankind Pharma IPO – Quality Name but Might Not Have a Whole Lot of Upside
- Mankind Pharma (MP) is looking to raise up to US$527m in its upcoming India IPO.
- MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products
- We have looked at various aspects of the deal in our earlier notes. In this note, we talk about the implied valuations.
Mankind Pharma IPO: Updates Warrant Caution
- 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 and Mankind Pharma IPO: The Bear Case.
- The 9MFY23 (nine months to December) disclosure showcases a slowdown in growth, market share losses, margin pressure and declining RoCE. We are cautious about the IPO.
Indegene Pre-IPO – Growing Client Base and Cross/Up-Selling Led to Growth
- Indegene Limited (1864095D IN) is looking to raise about US$400m in its upcoming India IPO.
- Indegene is a “digital-first” commercialisation firm with an exclusive focus on the global life sciences industry.
- Its solutions aim to enable biopharmaceutical, emerging biotech and medical devices companies to develop, launch and drive sales for their products in a more efficient manner.
Mankind Pharma (6596876Z IN) IPO: Pricey Valuation Limits Upside Potential
- Mankind Pharma (6596876Z IN) IPO will open for public subscription on April 24 and close on April 27. The shares are expected to be listed on May 9.
- The company has set IPO price band of INR1,026 –1,080 per share, valuing the company at INR433 billion at the top of the price band.
- The IPO price band implies P/E of 30.9x at the lower band and 32.6x at the upper band. This is pricier than other India focused pharmaceutical companies.
Pre IPO MedSci Healthcare Holdings – Some Points Worth the Attention
- MedSci’s profit quality/business structure is “healthier” than Medlive. MedSci is better able to cope with the negative impact of external changes, and its performance growth is more resilient than Medlive.
- MedSci’s physician platform solutions business is stronger than Medlive’s medical knowledge solutions business. Considering the logic and significance of this business, MedSci is expected to have bigger growth potential.
- If considering the cash balance, MedSci’s IPO valuation seems not that cheap. However, we think MedSci’s valuation would narrow the gap with Medlive or even surpass it in the future.
Roku Inc.: The SVB Nightmare & Other Developments
- Roku struggled amidst the controversy associated with its huge exposure to SVB (nearly 26% of its total cash reserves).
- The collapse of the bank resulted in a significant level of panic among the company’s investors.
- While Q4 platform revenue exceeded its estimates and platform revenue was up 5% year over year to $731 million, inflation and macroeconomic uncertainties continue to put pressure on consumers and advertisers.
IMotion Automotive Technology Pre-IPO – The Positives – Strong Growth Ahead with Some Big Names
- 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 positive aspects of the deal.
Lear Corporation: Benefits From Kongsberg Acquisition – Key Drivers
- Lear had a strong quarterly performance and managed an all-around beat.
- Its sales increased by 10% to $5.4 billion, and core operating profitability rose by 67% to $265 million.
- The Lear Forward initiative also improved the company’s cash flow performance.
Bumble Inc.: Continued App Improvement Driving Users – Key Drivers
- Bumble ended the quarter on a mixed note, with total revenue of $242 million that was above market expectations.
- The Bumble App revenue increased by 31%, with an increase of over 500,000 paying customers.
- Product development expenses increased from $14 million to $16 million over the same time last year.
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