In today’s briefing:
- Renesas Electronics Placement – Well Flagged US$1.8bn Deal, Accelerated but Index Flows Should Help
- Wuxi XDC IPO: Forecasts and Valuation
- Ecoeye IPO Book Building Results Analysis
- DOMS Industries Pre-IPO – Strong Earnings Growth but Will Probably Peter Out
- Chenqi Technology Pre-IPO – Listing Would Almost Feel like a Pipe Dream
Renesas Electronics Placement – Well Flagged US$1.8bn Deal, Accelerated but Index Flows Should Help
- INCJ aims to raise around US$1.8bn via a secondary sell-down in Renesas Electronics (6723 JP). This will be a clean-up trade as INCJ has been paring down its stake.
- The deal is a slightly large one to digest at 12 days of three month ADV and around 6% of current mcap.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Wuxi XDC IPO: Forecasts and Valuation
- Wuxi plans to issue 178.4m shares at an indicative IPO price range of HK$19.9-20.6 per share and will raise net proceeds of US$479m at the midpoint of the IPO price.
- The company’s revenues have seen robust growth during the last 3-years driven by growth in ADC outsourcing market while margins have continued to decline.
- We have valued WuXi XDC Cayman (1877628D HK) using a DCF valuation which offers price per share of HK$23.44, 15.7% higher than the midpoint of the IPO price of HK$20.25.
Ecoeye IPO Book Building Results Analysis
- Ecoeye announced that the IPO price has been determined at 34,700 won, which is at the high end of the IPO price range. The demand ratio was 75 to 1.
- An 81.1% of the IPO shares applied thought that the company’s value is more than 34,700 won per share. The IPO offering amount is 72 billion won.
- Our base case valuation of Ecoeye IPO is 45,421 won per share (31% higher than the IPO price). Given the solid upside, we have a positive view of Ecoeye IPO.
DOMS Industries Pre-IPO – Strong Earnings Growth but Will Probably Peter Out
- Doms (DOMS IN) is looking to raise around US$140m in its upcoming India IPO.
- DOMS is a leading player and brand in India’s stationery and art products market. It designs, manufactures, and sells a wide range of products, primarily under its flagship brand ‘DOMS’.
- In this note, we look at the company’s past performance.
Chenqi Technology Pre-IPO – Listing Would Almost Feel like a Pipe Dream
- Chenqi Technology Limited (CT HK) is looking to raise US$300m in its upcoming Hong Kong IPO.
- Chenqi Technology (Chenqi) is a mobility technology and service company in China, founded by the GAC Group and Tencent.
- Chenqi has grown its GTV fast on the back of network expansion. However, Dida’s inability to list and Chinese regulators’ scrutiny on Didi would likely dent sentiment surrounding Chenqi.
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