Daily Brief ECM: Tuhu Car Pre-IPO Peer Comp - While It Has Been Loss Making and more

In today’s briefing:

Tuhu Car Pre-IPO Peer Comp – While It Has Been Loss Making, GPM Expansion Has Been the Strongest
Aquila Acquisition Corp (7836 HK): ZG Group’s Punchy Valuation
Jupiter Life Line Hospitals (0372574D IN) IPO: A Niche Regional Play with Strong Track Record

Tuhu Car Pre-IPO Peer Comp – While It Has Been Loss Making, GPM Expansion Has Been the Strongest

Tuhu Car (2007986D HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
Tuhu is an integrated online and offline platform for automotive services in China.
We have looked at the firm’s past performance and PHIP updates in earlier notes. In this note, we undertake a peer comparison.

Aquila Acquisition Corporation (7836 HK) agreed to a De-SPAC transaction with ZG Group (formerly Zhaogang.com), the world’s largest digital platform for third-party steel transactions.
ZG has a questionable business model, struggling to generate profits or underlying FCF. This dynamic suggests that ZG has not established a sustainable competitive advantage.
The negotiated value of ZG in the De-SPAC transaction is HK$10,004 million (US$1,277 million). Our valuation analysis suggests that this negotiated value is unrealistic.

Jupiter Life Line Hospitals (0372574D IN) has hit the market to raise INR8.7B via an IPO. The IPO is a combination of a fresh issue and an OFS portion.
The company is a multi-specialty tertiary and quaternary healthcare provider in the Mumbai Metropolitan Area and western region of India. It intends to use the IPO proceeds for debt repayment.
In FY23, revenue increased 22% YoY to INR8.9B, while EBITDA margin expanded 210bps to 23.45%. Ramping up of Indore facility and upcoming greenfield hospital in Maharashtra are major growth drivers.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network