In today’s briefing:
- SF Holdings A/H Listing – Lower End Looks Digestable
- KDC REIT Placement – Accretive Acquisitions Should Garner Strong Support
- SF Holding H Share Listing (6936 HK): Valuation Insights
- Oswal Pumps Pre-IPO – Revenue Surge Driven by Growing Demand in Solar Projects
- Pre-IPO S.F. Holding (6936 HK) – Thoughts on Valuation and the Outlook
- DigiCo REIT – The Negatives – Not All Engines Are Firing
- NTPC Green IPO – Grand Plans to Grow Its Portfolio, but Appears Expensive
SF Holdings A/H Listing – Lower End Looks Digestable
- S.F. Holding (002352 CH), China’s largest express delivery company, is now looking to raise around US$800m in its H-share listing in Hong Kong.
- SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
- We have covered the company and deal background in our previous notes. In this note, we talk about the IPO pricing.
KDC REIT Placement – Accretive Acquisitions Should Garner Strong Support
- Keppel DC REIT (KDCREIT SP) is looking to raise S$600m (US$450m) from a primary placement. The proceeds will be used to acquire interest in two data centers in Singapore.
- The deal will be a large one to digest, accounting for 47 days of the stock’s three month ADV. That said, the acquisitions appear to be accretive to bottomline.
- In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.
SF Holding H Share Listing (6936 HK): Valuation Insights
- S.F. Holding (002352 CH) has launched its H Share listing at HK$32.30-36.30 per share. Pricing will be on 25 November, and the listing on 27 November.
- We previously discussed the listing in SF Holding H Share Listing: Updates Point to Improving Fundamentals and SF Holding H Share Listing: AH Discount Views.
- Our valuation analysis suggests that the H Share listing range is attractive. We would participate in the listing.
Oswal Pumps Pre-IPO – Revenue Surge Driven by Growing Demand in Solar Projects
- Oswal Pumps (1019841D IN) (OPL), established in 2003, specializes in the manufacturing of solar-powered and conventional pumps, electric motors, and related components for agricultural, residential, and industrial applications.
- The company has established itself as a leading player in the solar pump market, benefiting from government initiatives such as the PM Kusum scheme
- OPL aims to use its IPO proceeds to fund its expansion plans, including increasing manufacturing capacity and diversifying its product offerings.
Pre-IPO S.F. Holding (6936 HK) – Thoughts on Valuation and the Outlook
- One important reason S.F. chose to go public on Hong Kong stock market is due to financial pressure, which mainly comes from its heavy asset development model and internationalization strategy.
- Considering the discount of the H-share price versus the A-share price, if the IPO pricing is at the lower limit of the range, then the safety margin would be higher.
- In the short term, S.F. is better than JD Logistics, so its valuation should be higher than JD Logistics and industry average. Future valuation expansion depends on international business performance.
DigiCo REIT – The Negatives – Not All Engines Are Firing
- DigiCo REIT (DIGICO AU) aims to raise over US$1bn in its Australian IPO.
- DigiCo REIT (DREIT) aims to be a diversified owner, operator and developer of data centres, with a global portfolio and broad investment mandate across stabilised, value-add and development opportunities
- In this note, we talk about the not-so-positive aspects of the deal.
NTPC Green IPO – Grand Plans to Grow Its Portfolio, but Appears Expensive
- NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
- NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU).
- In an earlier note, we looked at the firm’s past performance. In this note, we look at its RHP updates, undertake a peer comparison and discuss our thoughts on valuation.
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