In today’s briefing:
- Key Things to Watch in Ecopro HN’s Big Rights Offering
- Ecopro HN: Rights Offering of 200 Billion Won
- Namoi Cotton (NAM AU): Louis Dreyfus Declares Offer Unconditional
- Carraro India Pre-IPO Tearsheet
- Western Carriers Pre-IPO-Expanding Through a Combination of Asset-Light Model and Own Infrastructure
- Takamiya (2445 JP) – Full Report
Key Things to Watch in Ecopro HN’s Big Rights Offering
- Ecopro HN announced a ₩200 billion rights issue, offering 5.67 million shares (a 40% capital increase) with a stockholder allocation rate of 0.3 per share.
- The extended timeline likely results from the issuer’s 20% discount push, with Daishin, an underdog banker, extending it to boost subscriptions despite risking price stability.
- The strategy is to time entry when the stock rights and subscription costs create a solid spread versus the spot price, despite increased volatility making price predictions harder.
Ecopro HN: Rights Offering of 200 Billion Won
- On 4 September, Ecopro HN announced that it plans to conduct a rights offering capital raise of about 200 billion won.
- The company plans to issue 5.67 million new shares and the expected rights offering price is 35,300 won (23% lower than current price).
- We would not subscribe to this rights offering mainly due to lofty valuations, declining sales and profit growth, continued negative free cash flow, and concerns about excessive shares dilution.
Namoi Cotton (NAM AU): Louis Dreyfus Declares Offer Unconditional
- Louis Dreyfus Company (LDC) and Olam (OLG SP)‘s Olam Agri have been going toe-to-toe over Namoi Cotton (NAM AU) since the 1st February. LDC has now declared its Offer unconditional.
- It’s an interesting move. Namoi is trading through LDC’s A$0.67/share Offer terms. But unlike Olam’s Offer, LDC now has FIRB and ACCC under its belt.
- Currently trading at Olam’s A$0.70/share terms. All eyes are on ACCC giving Olam the green light. Or not.
Carraro India Pre-IPO Tearsheet
- Carraro India Limited (810618Z IN) is looking to raise about US$216m in its upcoming India IPO. The deal will be run by Axis, Nuvama and BNP Paribas.
- Carraro India Limited (CIL), is a technology driven integrated supplier that develops complex engineering products and solutions for its original equipment manufacturer (OEM) customers.
- CIL primarily manufactures axles and transmission systems for agricultural tractors and construction vehicles such as backhoe loaders, soil compactors, cranes, self-loading concrete mixers and small motor graders.
Western Carriers Pre-IPO-Expanding Through a Combination of Asset-Light Model and Own Infrastructure
- Western Carriers (1489172D IN) is looking to raise about US$100m in its upcoming India IPO.
- Western Carriers (India) Limited (WCIL) was the largest private, multimodal, rail focused, 4PL asset-light logistics company in India in terms of container volumes in FY22, as per 1Lattice.
- In this note, we talk about the company’s historical performance.
Takamiya (2445 JP) – Full Report
- The Company specializes in temporary construction equipment and offers a one-stop service from development and manufacturing to sales, rentals, design and installation, as well as management and logistics.
- Its flagship product, the next-generation scaffolding “Iq System,” was launched in 2014 and excels in safety and ease of use.
- The Company is transitioning its business to a platform-based model aimed at generating stable income with reduced rental asset intensity.
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