In today’s briefing:
- Alibaba Cloud IPO: Regulatory Optimism Amidst Stability Challenges
- Hollysys (HOLI US): Board Starts a Formal Sale Process
- Symbio: Aussie Broadband Lobs Competing NBIO
- CaiNiao Smart Logistics Pre-IPO Part 1 | Business Model | Key Relationships | Differentiators
- Kokusai Electric Pre-IPO – Peer Comparison
- An Update with Rajesh Vashist of SiTime
- CCC Intelligent Solutions On The Sales Block: Why Are Bain
Alibaba Cloud IPO: Regulatory Optimism Amidst Stability Challenges
- Last week, the Cyberspace Administration of China (CAC) put forth a proposal to relax certain stringent regulations concerning the transfer of sensitive data to foreign countries.
- This could be advantageous for Alibaba Group Holding (9988 HK)‘s Cloud business, especially as a potential candidate for an IPO following the recent IPO filing of the logistics arm, Cainiao.
- Despite improved regulations, concerns about stability, leadership, and financial performance pose hurdles for Alibaba Cloud’s IPO.
Hollysys (HOLI US): Board Starts a Formal Sale Process
- The Hollysys Automation Technologies (HOLI US) Board succumbs to shareholder pressure by announcing the formation of a special committee to conduct a formal sale process.
- Hollysys has received non-binding proposals from six parties since December 2020. The most recent is a non-binding proposal from the Recco consortium at US$25.00 per share.
- The Board’s change of heart should encourage previous bidders to re-engage. Recco’s offer, while attractive, is not a knockout bid, suggesting a possible bidding war.
Symbio: Aussie Broadband Lobs Competing NBIO
- On the 22 September, Symbio Holdings (SYM AU) received a best and final NBIO from Superloop Ltd (SLC AU) : A$1.425 cash and 2.14 Superloop shares for each Symbio share.
- Those indicative terms backed out an implied price of A$2.85/share, or a 20% premium to undisturbed. Now Aussie Broadband (ABB AU) has snuck in with a superior cash/scrip Offer.
- The competing Offer’s implied consideration of A$3.151/share boasts a larger cash component vs. Superloop. Symbio’s board is supportive if terms are firmed. Superloop’s Offer has now lapsed.
CaiNiao Smart Logistics Pre-IPO Part 1 | Business Model | Key Relationships | Differentiators
- Business model: how does CaiNiao get paid, and by whom, and for what?
- Key relationships with parent Alibaba and with China’s listed express companies
- Differentiators: what makes CaiNiao different from other e-comm logistics names?
Kokusai Electric Pre-IPO – Peer Comparison
- KKR is looking to raise around US$750m via selling a stake in Kokusai Electric (6525 JP) (KE) in its Japan IPO.
- KE main business activities consist of the manufacturing, sales and maintenance service of semiconductor manufacturing equipment.
- In our previous notes we have looked at the company’s past performance. In this note, we will undertake a peer comparison.
An Update with Rajesh Vashist of SiTime
- This week, Rajesh Vashist of SiTime came to talk about SiTime’s new product launch, Epoch.
- SiTime is still the least understood story in semiconductors because timing is one of the least understood products or applications in semiconductors.
- Timing chips. They are the heartbeat of any system in any communications, processing, computing, or all of the above.
CCC Intelligent Solutions On The Sales Block: Why Are Bain
- This is a special, one-time report on CCC Intelligent Solutions Holdings Inc., a noteworthy provider specializing in car-insurance software, that has garnered substantial attention as it finds itself potentially at the cusp of a pivotal acquisition deal.
- The current ownership landscape of CCC is dominated by Advent International, holding a commanding 56% stake, and it has reportedly been exploring sale options following a Reuters report.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
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