In today’s briefing:
- Sungeel HiTech IPO – The Highest Ever Bookbuilding Demand Ratio for a Korean IPO
- Deewin Tianxia IPO Trading – Weak Subscription Rates, Retail Portion Undersubscribed
- Bharat FIH Pre-IPO – The Negatives – Not a Whole Lot to Show Yet
- Innova Captab Pre-IPO Tearsheet
- WCP IPO – The Negatives – Patent, Going Concern, Customer Concentration
Sungeel HiTech IPO – The Highest Ever Bookbuilding Demand Ratio for a Korean IPO
- Sungeel Hitech announced its IPO book building results. The IPO price has been determined at 50,000 won, higher than the high end of IPO price of 47,500 won.
- The demand ratio for Sungeel Hitech IPO was 2,269.7 to 1 which broke all time records in terms of highest ever demand ratio for a Korean IPO.
- Our base case valuation is implied price per won of 70,992 won per share, which represents 42% higher than the IPO price of 50,000 won.
Deewin Tianxia IPO Trading – Weak Subscription Rates, Retail Portion Undersubscribed
- Deewin Tianxia (2418 HK) raised around US$123m in its Hong Kong IPO.
- DT’s subscription rates had been lackluster with weak coverage on the institutional tranche and the retail portion being undersubscribed.
- Given its smaller size, in our view, the firm should come in at a discount to its peer average.
Bharat FIH Pre-IPO – The Negatives – Not a Whole Lot to Show Yet
- Bharat FIH (BFIH) aims to raise around US$660m in its India IPO via selling a mix of both primary and secondary shares. BFIH is a subsidiary of Foxconn.
- Its initial operations were focused on mobile phones, of late it has been expanding its portfolio to include mechanics, electric vehicles, televisions and hearables.
- In this note, we will talk about the not so positive aspects of the deal.
Innova Captab Pre-IPO Tearsheet
- Innova Captab (1605221D IN) is looking to raise about US$115m in its upcoming India IPO. The deal will be run by ICICI and JM Financial.
- Innova Captab is an integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports.
- Its business includes a contract development and manufacturing organization (CDMO) business providing manufacturing services to Indian pharmaceutical companies, a domestic branded generics business and an international branded generics business.
WCP IPO – The Negatives – Patent, Going Concern, Customer Concentration
- WCP aims to raise around US$690m via selling a mix of primary and secondary shares in its Korean IPO.
- WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries
- In this note, we will talk about the not-so-positive aspects of the deal.
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