In today’s briefing:
- Tokyo Metro (9023 JP) IPO: Trading Debut
- Hyundai Motor India IPO Trading – Set for a Tricky Start
- Hyundai Motor India IPO: Little Downside. Low Retail Interest-Myopia, Misguidance, Misinterpretation
- Hyundai Motor India: Trading Strategy on the First Day of Trading
- Waaree Energies IPO Update- Forensic Analysis
- Horizon Robotics (9660 HK) IPO: Valuation Insights
- SF Holding Pre-IPO: Proposed Interim & Special Dividends of 1.40 CNY Per Share Ahead of HK Listing
- T.S. Lines Pre-IPO – PHIP Updates – Shipping Volumes Improved, However Paid Another Large Dividend
- Tokyo Metro IPO Trading – Robust Demand for Quality Asset
Tokyo Metro (9023 JP) IPO: Trading Debut
- Tokyo Metro (9023 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$2.3 billion. The shares will start trading on 23 October.
- We previously discussed the IPO in Tokyo Metro (9023 JP) IPO: The Bull Case, Tokyo Metro (9023 JP) IPO: The Bear Case and Tokyo Metro (9023 JP) IPO: Valuation Insights.
- The peers have modestly derated since the prospectus was released on 20 September. The IPO price remains attractive, particularly relating to the implied dividend yield.
Hyundai Motor India IPO Trading – Set for a Tricky Start
- Hyundai Motor (005387 KS) raised around US$3.3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
- HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
- In our previous notes, we looked at the company’s past performance and valuations. In this note, we will talk about the trading dynamics.
Hyundai Motor India IPO: Little Downside. Low Retail Interest-Myopia, Misguidance, Misinterpretation
- Hyundai Motor India is expected to close flat or slightly positive today, as low retail participation and modest expectations for gains on listing day could limit selling pressure.
- Many retail investors skipped the IPO, influenced by ‘finfluencers’ who had largely advised against it based on misinterpreted valuation comparison with Maruti Suzuki India (MSIL IN) .
- Hyundai Motor India’s meaningful discount to Maruti Suzuki on operating profit based valuation multiples suggest room for outperformance in the medium term.
Hyundai Motor India: Trading Strategy on the First Day of Trading
- Hyundai Motor India (1342Z IN) shares start trading on 22 October. The IPO price is 1,960 INR.
- Although there has been some solid interest on this IPO among many institutional investors, there have been a lower interest among retail investors.
- There has also been relatively low grey market premium. If the share price reaches in the positive upper single digits, we expect many traders to sell into this short-term rally.
Waaree Energies IPO Update- Forensic Analysis
- Waaree Energies (0656504D IN) awaited IPO is about to open on October 21. The IPO comprises of fresh issue worth INR 36 bn and OFS worth INR 7.2 bn.
- This insight is an update to the previous note on the company Waaree Energies IPO- Forensic Analysis , on the forensics front.
- The company still faces some of the forensic setbacks we found in the DRHP. These include capital purchases from related parties, heated receivables, bizarre lease accounting, unpaid dues, etc.
Horizon Robotics (9660 HK) IPO: Valuation Insights
- Horizon Robotics (9660 HK), a provider of autonomous driving products and services, is seeking to raise up to US$696 million through a HKEx IPO.
- We previously discussed the IPO in Horizon Robotics (9660 HK) IPO: The Bull Case and Horizon Robotics (9660 HK) IPO: The Bear Case.
- Our valuation analysis suggests that Horizon is unattractively valued at the IPO price range. Therefore, we would pass on the IPO.
SF Holding Pre-IPO: Proposed Interim & Special Dividends of 1.40 CNY Per Share Ahead of HK Listing
- SF Holding proposes interim & special dividends for owners of A-shares
- Combined cash dividend totals 1.40 CNY per share, yielding about 3.3%
- Meeting October 29 to approve dividends, Q3 results, planned HK listing
T.S. Lines Pre-IPO – PHIP Updates – Shipping Volumes Improved, However Paid Another Large Dividend
- T.S. Lines (TSL HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
- T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.
- In a previous note, we looked at the firm’s past performance. In this note, we talk about the recent updates from its filings.
Tokyo Metro IPO Trading – Robust Demand for Quality Asset
- Tokyo Metro (9023 JP)‘s shareholders raised around US$2.4bn in its Japan IPO.
- Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
- We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.
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