Daily Brief ECM: Shiyue Daotian Pre-IPO - Looks Good at First Sight and more

In today’s briefing:

Shiyue Daotian Pre-IPO – Looks Good at First Sight, but Not Great if One Digs Deeper
SCG Chemicals Pre-IPO -The Negatives – Recent Performance Has Been Weak
Tata Technologies IPO: Negatives Outweigh the Positives

Shiyue Daotian Pre-IPO – Looks Good at First Sight, but Not Great if One Digs Deeper

Shiyue Daotian (1892269D CH) is looking to raise about US$200m in its upcoming HK IPO.
Shiyue Daotian is a pantry staple food company in China, providing consumers with pre-packaged premium rice, whole grain, bean, and dried food products.
Shiyue Daotian’s largest revenue contributor is its rice products segment. However, the company experienced declining ASPs over the track record period while production and sales volume growth fell.

SCG Chemicals (SCGC TB) (SCGC) is looking to raise around US$1bn in its upcoming Thailand IPO.
SCG Chemicals, a part of the SCC group, is an integrated chemicals player in ASEAN, involved primarily in manufacturing, marketing and selling a diversified range of petrochemical products.
In this note, we talk about the not-so-positive aspects of the deal.

Tata Technologies (TATATECH IN) , a subsidiary of Tata Motors, offers turnkey product engineering and digital transformation solutions to global OEMs and operates across automobiles, heavy industrials and aerospace sectors.
The company has filed for an IPO in India to raise around US$600m through an offer for sale of its shares by existing shareholders including Tata Motors.
Though the company’s revenues and margins have seen improvement over the last 2-3 years, we have highlighted a few concerns which investors should wary about.

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