In today’s briefing:
- Webtoon Entertainment IPO Preview
- Yankuang Energy Placement – Doesn’t Appear Well Flagged Although Deal Size Is Large
- Pre-IPO QuantumPharm (PHIP Updates) – Some Points Worth the Attention
Webtoon Entertainment IPO Preview
- Webtoon Entertainment is getting ready to complete its IPO on the NASDAQ exchange in 2H 2024. Webtoon Entertainment is a subsidiary of Naver Corp (035420 KS).
- Webtoon is seeking to raise as much of US$500 million at a valuation of US$3 billion to US$4 billion.
- Webtoon Entertainment is one of the largest Korean company related IPOs in 2024.
Yankuang Energy Placement – Doesn’t Appear Well Flagged Although Deal Size Is Large
- Yankuang Energy Group (1171 HK) is looking to raise up to US$608m through a primary follow-on, via selling 270m H-shares.
- The deal is a somewhat large one to digest, at 10.6 days of three month ADV and 2.7% of current mcap.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Pre-IPO QuantumPharm (PHIP Updates) – Some Points Worth the Attention
- We have always been concerned about QuantumPharm’s business model. It is relatively difficult for a service provider like QuantumPharm to scale up revenue by just relying on charging service fees.
- For AI pharmaceutical companies, how to make money is a pain point for entire industry. Just focusing on preclinical stages would limit profitability.We haven’t seen any certainty of achieving breakeven.
- Increasing competition would bring more challenges for QuantumPharm. Post-investment valuation in 2021 was too expensive.If its future performance falls short of expectations, then sooner or later the valuation will collapse.
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