In today’s briefing:
- Socionext (6526 JP): The Current Playbook
- Kelun-Biotech (科伦博泰) IPO Trading: Lukewarm Demand but Peers Have Done Well Recently
- PhilEnergy IPO: Trading Strategy on the First Day of Trading
- Oddity Tech IPO Valuation Analysis: Growth and Profitability, Solid Upside With Limited Risk
- Pre-IPO HighTide Therapeutics – Its Outlook in NASH Field Is Not Optimistic, with High Risks
- Syngenta Pre-IPO – The Positives – Giant in the Agriculture Industry Set to Benefit from Policies
- Unisound AI Technology Pre-IPO Tearsheet
Socionext (6526 JP): The Current Playbook
- Since the announcement of the US$1.9 billion secondary placement, Socionext (6526 JP)’s shares are down -25.0% from the undisturbed price of JPY21,950 per share (5 July).
- So far, Socionext’s shares have mostly followed the pattern of previous large placements. Investors participating in previous large Japanese placements tend to secure positive returns.
- The offering will likely be priced on 11 July. Due to the steep share price decline, Socionext is trading at an undemanding multiple compared to global SoC peers.
Kelun-Biotech (科伦博泰) IPO Trading: Lukewarm Demand but Peers Have Done Well Recently
- Kelun-Biotech raised HKD 1,259m (USD 161m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, July 10th.
- In our previous note, we looked at the company’s business lines of ADC products. We were of the view that the IPO is fairly priced, at best.
- In this note, we provide an update for the IPO before trading debut.
PhilEnergy IPO: Trading Strategy on the First Day of Trading
- PhilEnergy IPO will start trading this Friday on 14 July. We believe that PhilEnergy’s share price will surge higher on the first day of trading.
- We believe PhilEnergy’s shares could OVERSHOOT by more than 200% versus the IPO price on the first day of trading, which would be more than 102,00 won or more.
- Our trading strategy on PhilEnergy on the first day of trading would be to take partial profits (30-50%) if its price overshoots higher (by 200% or more than IPO price).
Oddity Tech IPO Valuation Analysis: Growth and Profitability, Solid Upside With Limited Risk
- Oddity Tech, the owner of popular and fastest-growing global brands IL MAKIAGE and SpoiledChild, set terms for an upcoming IPO. The company offers ~10.5M Class A shares.
- Selling shareholders (private equity firm L. Catterton and Oran Holtzman, Co-founder & CEO) offer ~8.77M Class A shares, while Oddity Tech offers ~1.75M Class A shares.
- The net proceeds from the sale of Class A shares will be ~$41M. Oddity Tech will not receive any proceeds from the sale of shares by the selling shareholders.
Pre-IPO HighTide Therapeutics – Its Outlook in NASH Field Is Not Optimistic, with High Risks
- The mechanism of NASH has not yet been accurately determined. Among the major players, FDA has postponed the approval of OCA (FXR) for NASH. THR-β is currently the most promising.
- HighTide claims that HTD1801 is able to achieve the goal of improving effectiveness and reducing toxicity. However, HTD1801 hasn’t reached pathological endpoints. We’ll have to wait for future clinical data.
- This Company actually has high risk due to cash shortage and uncertain R&D progress, which could lead to lower-than-expected stock price performance. We are conservative about HighTide based on analysis.
Syngenta Pre-IPO – The Positives – Giant in the Agriculture Industry Set to Benefit from Policies
- Syngenta Group (1844795D CH) is looking to raise around US$9.2bn in its upcoming China A-share IPO.
- Syngenta Group (Syngenta) is one of the largest agricultural firms globally, developing, producing and commercializing a portfolio of crop protection, seeds, crop nutrition products.
- In this note, we will talk about the positive aspects of the deal.
Unisound AI Technology Pre-IPO Tearsheet
- Unisound AI Technology (1053075D CH) is looking to raise at least US$300m in its upcoming HK IPO. The deal will be run by CICC and Haitong International.
- The firm offers AI solutions centered around its computing cluster, scheduling computing power for machine learning tasks. It provides support to the development, optimization and commercialization of frontier AI models.
- Its computing cluster currently harbors a computing power of over 200 peta floating point operations per second (PFLOPS), and a storage capacity of over 1.6 petabytes (PB).
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