In today’s briefing:
- Hitachi Transport (9086 JP) – Tender Launch Likely Soon But Watch for Flow
- SG Holdings Placement – Had Suffered from Weak Price Momentum, Buyback Should Support Share Price
- CALB IPO: The Bear Case
- Interglobe Aviation (Indigo) Placement – The Beginning of the End of the Overhang
Hitachi Transport (9086 JP) – Tender Launch Likely Soon But Watch for Flow
- Hitachi Transport System (9086 JP) has had a “long” wait to get its approvals, but EC and China are in, any remaining should be in shortly.
- Yesterday, as a footnote on the SG Holdings offering document, there was a comment about SG Holdings selling shares. This was likely more good corporate governance hygiene than warning.
- Shares are down this morning. I’d expect final approvals and launch quite soon. I would therefore look to buy the dip on flow – block or not.
SG Holdings Placement – Had Suffered from Weak Price Momentum, Buyback Should Support Share Price
- MUFG Bank and Sumitomo Mitsui Banking Corp are looking to raise a combined US$210m from trimming their respective stakes in SG Holdings (9143 JP).
- While representing 16 days of three month ADV, comprising only 10.1m shares, 1.57% of the firm’s current market cap, the deal is a small one on an absolute basis.
- In this note, we will talk about the placement and run the deal through our ECM framework.
CALB IPO: The Bear Case
- CALB (CALBLZ CH), a leading EV battery manufacturer, is seeking to raise US$2.0 billion through an HKEx IPO, according to press reports.
- In CALB IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on its small scale, low profitability and high FCF burn compared to listed peers.
Interglobe Aviation (Indigo) Placement – The Beginning of the End of the Overhang
- InterGlobe Aviation Ltd (INDIGO IN)’s co-founder Rakesh Gangwal aims to raise around US$250m via selling 2.8% of the company.
- He had earlier stated his intention to pare down his stake after a long drawn, and very public battle, with the other co-founder Rahul Bhatia.
- In this note, we will talk about the placement and run the deal through our ECM framework.
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