In today’s briefing:
- Timing the Announcement of POSCO Future M’s Rights Issue
- Weekly Deals Digest (13 Apr) – Suzuki, Canvest, Fengxiang, HKBN, Goldlion, Tsuruha/Welcia, Shibaura
- Chagee IPO: Luckin X Starbucks of Tea. Pricing, Valuation, Key Facts & Financials
- Pre-IPO Chagee Holdings – IPO Pricing Is Attractive, But Share Price May Underperform
- ECM Weekly (14 Apr 2025) – Suzuki, EBOS, Hengrui Pharma, Zenergy, Chagee, LG India, Huge Dental
- Jiangsu Zenergy Battery Technologies IPO Trading – Muted Overall Demand, No Stabilisation
Timing the Announcement of POSCO Future M’s Rights Issue
- All three local CRAs are pushing hard — an equity raise isn’t optional, it’s the only shot at keeping the AA- rating intact. Street says it’s not if, it’s when.
- Late April to mid-May looks like the key window. And start keeping tabs on the flow real tight.
- Leak channels are still active. FSC’s pointed at IB sales and law firm staff. If we see outsized sell prints—especially from local hedge funds, that’s our cue to act.
Weekly Deals Digest (13 Apr) – Suzuki, Canvest, Fengxiang, HKBN, Goldlion, Tsuruha/Welcia, Shibaura
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: Suzuki Motor (7269 JP) secondary offering; DN Solutions (298440 KS), Chagee Holdings (CHA US) and LG Electronics India (123D IN) IPOs.
- Event-Driven developments: Canvest, Shandong Fengxiang (9977 HK), HKBN Ltd (1310 HK), Goldlion Holdings (533 HK), Tsuruha Holdings (3391 JP), Shibaura Electronics (6957 JP), Abacus Storage King (ASK AU).
Chagee IPO: Luckin X Starbucks of Tea. Pricing, Valuation, Key Facts & Financials
- Chagee Holdings (CHA US) is offering 14.68 million shares for USD26 to USD28 each to raise upto USD411 million in its initial public offering in the US.
- Chagee’s premium branded teahouses blend traditional tea culture with modern, tech-driven service, distinctly setting itself apart from bubble tea kiosks.
- Chagee’s IPO is priced at a discount to forward valuations of recently listed (in HK) China-based freshly brewed drinks players and leading Cafe companies.
Pre-IPO Chagee Holdings – IPO Pricing Is Attractive, But Share Price May Underperform
- Chagee is seeking up to US$411 million by offering nearly 14.7 million ADS priced between US$26 and US$28 each, with market value to reach about US$4.8-US$5.1 billion.
- Chagee is facing performance headwinds. Whether the current high growth of Chagee is sustainable in the future is uncertain. This makes us tend to be conservative in Chagee’s valuation expectations
- Based on our forecast, P/E is about 11.5-12.3x if based on 2025 net profit. Such valuation is attractive, but “valuation discount” may occur due to market turmoil and geopolitical conflicts.
ECM Weekly (14 Apr 2025) – Suzuki, EBOS, Hengrui Pharma, Zenergy, Chagee, LG India, Huge Dental
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, we looked at the possible A/H premium for Jiangsu Hengrui Medicine (600276 CH), along with two live deals in Hong Kong .
- On the placements front, only Suzuki Motor (7269 JP)‘s shareholders were brave enough to launch a placement in the turbulent markets.
Jiangsu Zenergy Battery Technologies IPO Trading – Muted Overall Demand, No Stabilisation
- Jiangsu Zenergy Battery Technologies (JSZENERGY CH) raised US$130m in its Hong Kong IPO.
- Zenergy is an EV and energy storage system battery manufacturer providing integrated battery solutions, encompassing battery cells, modules, packs and battery management systems dedicated to large-scale applications of electrochemical products.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
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