In today’s briefing:
- Sai Life Sciences Pre-IPO Tearsheet
- Hyundai Motor India Pre-IPO – Thoughts on Valuation
- Zinka Logistics (Blackbuck) Pre-IPO Tearsheet
- Pre-IPO TYK Medicines (PHIP Updates) – Some Points Worth the Attention
- Solera IPO Preview: Low Single-Digit Growth and $8B+ of Variable Rate Indebtedness
Sai Life Sciences Pre-IPO Tearsheet
- SAI Life Sciences(SLS) is looking to raise up to US$500m in its upcoming India IPO. The deal will be run by Kotak, IIFL, Jefferies and MS.
- SLS is a CRDMO. It provides end-to-end services across the drug discovery, development and manufacturing value chain, for small molecule NCE to global pharmaceutical innovators and biotechnology firms
- As per Frost & Sullivan, SLS was the fastest-growing Indian CRDMOs among listed Indian peers in terms of revenue CAGR as well as EBITDA CAGR from FY22 to FY24.
Hyundai Motor India Pre-IPO – Thoughts on Valuation
- Hyundai Motor (005385 KS) is looking to raise around US$3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
- HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
- In our previous notes, we have looked at the company’s past performance and undertaken a peer comparison. In this note, we talk about valuations.
Zinka Logistics (Blackbuck) Pre-IPO Tearsheet
- Blackbuck (1355652D IN) is looking to raise up to US$300m in its upcoming India IPO. The deal will be run by Axis Capital, Morgan Stanley, JM Financial, IIFL Securities.
- Blackbuck is India’s largest digital platform for truck operators, with 963,345 operators in India transacting on its Blackbuck platform in FY24, comprising 27.52% of India’s truck operators, as per Redseer.
- Through Blackbuck, its customers digitally manage payments for tolling and fueling, monitor drivers and fleets using telematics, find loads on its marketplace and get access to used vehicle financing.
Pre-IPO TYK Medicines (PHIP Updates) – Some Points Worth the Attention
- TY-9591 has differentiated indication compared with the current listed third-generation EGFR-TKI, but it still depends on the final clinical results, which also bring more uncertainty to the commercialization performance.
- TYK’s development strategy requires it to invest heavily on head-to-head trials.Due to cash shortage, until TYK successfully addresses survival pressure,we recommend a more cautious assessment of pipeline prospects/future R&D arrangements.
- TYK is a “mediocre” company. The valuation (RMB3.08 billion) is based on optimistic expectations that core product will be successfully developed, become Me-Better, and commercialized smoothly.We’re, however, conservative about this.
Solera IPO Preview: Low Single-Digit Growth and $8B+ of Variable Rate Indebtedness
- Solera Corp, the global leader in vehicle lifecycle management and automotive software solution provider, filed to list IPO on New York Stock Exchange.
- The software company plans to raise capital and repay a portion of massive debt obligations, which exceeded $8B as of Jun-24. Goldman Sachs is leading the offering.
- With $8B+ of variable rate indebtedness and low single-digit growth, the risk-reward profile of Solera IPO looks increasingly skewed to the downside.
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