In today’s briefing:
- Webtoon Entertainment IPO – Further Thoughts on Valuation – Acquisitions, Buyouts
- Guzman Y Gomez IPO Trading – Strong Demand, Not All Shares in Escrow
- Innospace IPO Bookbuilding Results Analysis
- Black Sesame Pre-IPO – PHIP Updates – Unable to Shake off Its Loss-Making Tendencies
- Bajaj Housing Finance Pre-IPO – The Negatives – Carrying More Risky Loans
- Bloks Group IPO: Exceptional Revenue Hyper-Growth and Profitability Are Unique Among Toy Makers
- Telix Pharmaceuticals (TLX AU): Nasdaq IPO Plan Dropped; Future Growth Prospect Remains Intact
- Pre-IPO Soft International Group – Whether Performance Growth Can Be Sustained Is a Question Mark
Webtoon Entertainment IPO – Further Thoughts on Valuation – Acquisitions, Buyouts
- Webtoon Entertainment (WBTN US) is looking to raise up to US$315m in its US IPO, down from an earlier reported float of US$500m.
- Webtoon Entertainment is a global storytelling platform where a community of creators and users discover, create and share new content.
- In our previous notes, we talked about the company’s historical performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we share additional thoughts on valuation.
Guzman Y Gomez IPO Trading – Strong Demand, Not All Shares in Escrow
- Guzman Y Gomez raised around US$221m in its upsized Australian IPO.
- GYG is a quick service restaurant business with more than 200 restaurants globally. It mainly focuses on fresh, made-to-order, Mexican-inspired food.
- We have looked at the company’s performance and valuation in our past notes. In this note, we talk about the trading dynamics.
Innospace IPO Bookbuilding Results Analysis
- Innospace reported solid IPO bookbuilding results. Innospace’s IPO price has been determined at 43,300 won won, which is at the high end of the IPO price range.
- Our base case valuation of Innospace is target price of 51,481 won per share (12 month view), which is 19% higher than the IPO price.
- Innospace is involved in the satellite launch vehicle production and launch service business.
Black Sesame Pre-IPO – PHIP Updates – Unable to Shake off Its Loss-Making Tendencies
- Black Sesame Technologies (BLACKSES HK) is looking to raise around US$300m in its upcoming Hong Kong IPO.
- Black Sesame International Holdings (BSIH) is an automotive-grade computing SoC and SoC-based intelligent vehicle solution provider.
- In our previous note we looked at the company’s past performance. In this note, we discuss Black Sesame’s PHIP updates.
Bajaj Housing Finance Pre-IPO – The Negatives – Carrying More Risky Loans
- Bajaj Housing Finance (BHF IN) is looking to raise around US$830m in its upcoming India IPO.
- BHF is a non-deposit taking housing finance company engaged in mortgage lending since FY18. Its mortgage products include home loans, loans against property, lease rental discounting and developer financing.
- In this note, we talk about the not-so-positive aspects of the deal.
Bloks Group IPO: Exceptional Revenue Hyper-Growth and Profitability Are Unique Among Toy Makers
- Bloks Group, a fast-growing toy company and leader of assembly character toys, filed for a Hong Kong IPO. The company is headquartered in Shanghai, PRC, and has 410 full-time employees.
- Bloks Group has raised $200M+ to date from investors, including YF Capital, Legend Capital, Source Code Capital, Gaorong Capital and SinoMedia Asia Pacific.
- The Chinese toy maker has delivered an exceptional revenue hyper-growth of 169% y/y in 2023. Elite operating metrics and impressive financial profile make IPO attractive for investors.
Telix Pharmaceuticals (TLX AU): Nasdaq IPO Plan Dropped; Future Growth Prospect Remains Intact
- Telix Pharmaceuticals (TLX AU) has withdrawn its proposed IPO in the U.S. due to unfavorable market condition. The proposed Nasdaq listing was not predicated on the need to raise capital.
- As a profitable, cash generative company, Telix is confident that its existing and upcoming cash resources will be sufficient to meet R&D and commercialization needs.
- Following the successful commercial launch of Illuccix, Telix has demonstrated its ability to develop and commercialize innovative product portfolio, which should accelerate its growth trajectory.
Pre-IPO Soft International Group – Whether Performance Growth Can Be Sustained Is a Question Mark
- The top two biggest markets of Soft International (China and Russia) are encountering the challenge of slowing growth or even growth stagnation due to decreasing birth rate and increasing competition.
- Single-Digit net profit margin is not satisfactory for a company with strong consumption attributes. This makes us wonder if the personal hygienic disposables is not a money-making business.
- Overreliance on Russian Top-tier Retailer would bring risks to the business.Both revenue growth and profitability could decrease sharply if adverse situations occur. Soft International’s valuation could be lower than peers.
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