In today’s briefing:
- Trial Holdings IPO: Valuation Thoughts
- Nippon Express Placement – Lukewarm Track Record, Although Buyback Could Lift Share Price
- Chongho Bridge Pre-IPO Tearsheet
- ECM Weekly (4th Mar 2024) – Tokyo Metro, Mixue, Xtalpi, Bharat InvIT, Renesas, ITC/BAT, Precinct
Trial Holdings IPO: Valuation Thoughts
- Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$236 million at the IPO reference price of JPY1,550 per share.
- We previously discussed the IPO in Trial Holdings IPO: The Investment Case.
- In this note, we discuss valuation. Our analysis suggests that Trial is attractively valued at the IPO reference price of JPY1,550. We would participate in the IPO.
Nippon Express Placement – Lukewarm Track Record, Although Buyback Could Lift Share Price
- A group of shareholders are looking to raise US$220m from selling their stakes in Nippon Express Holdings (9147 JP).
- Overall, the deal would be a relatively large one to digest at 11 days of Nippon Express’ three month ADV, and 4.8% of the firm’s total shares outstanding.
- Together with the announcement, the firm has also guided towards a share buyback program which should provide some share price support a month post-deal, in our view.
Chongho Bridge Pre-IPO Tearsheet
- Chongho Bridge (2314866D CH) is looking to raise up to US$500m in its upcoming HK IPO. The deal will be run by CICC.
- Chongho Bridge (CB) is an integrated services provider to China’s rural population. It offers rural inclusive credit services, agricultural production services, rural consumer goods and rural clean energy services.
- According to F&S, CB is the largest non-traditional financial institution targeting China’s rural market in terms of total loan balance as of FY22 (31st Dec 22).
ECM Weekly (4th Mar 2024) – Tokyo Metro, Mixue, Xtalpi, Bharat InvIT, Renesas, ITC/BAT, Precinct
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, we took an early look at the possible summer 2024 listing of Tokyo Metro.
- For placements, there was another large selldown in Renesas Electronics (6723 JP), while ITC Ltd (ITC IN) could see one as well soon from British American Tobacco (BATS LN).
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