In today’s briefing:
- Cosmo Energy Holdings Placement – Stock Has Done Well, Deal Might Be Expected but It’s Accelerated
- Arrail Group (瑞尔集团) IPO: Downsized Deal Mostly Taken by Cornerstones
- Fabindia Pre-IPO – The Positives – Strong Urban Brand
- Jinmao Property Services IPO Trading – Expect a Modest Debut with Low Liquidity
- Arrail IPO: Strong Growth Prospects with Further Upside to Margins
- Pre IPO Ascent ENT Group Holdings – Conservative About the Outlook
- Fabindia Pre-IPO – The Negatives – Past Financial Performance Trends Remain Unclear
Cosmo Energy Holdings Placement – Stock Has Done Well, Deal Might Be Expected but It’s Accelerated
- Mubadala aims to raise around US$287m via selling its 15.8% stake in Cosmo Energy Holdings (5021 JP).
- The stock has been doing well owing to the rise in crude prices and Mubadala has sold some stock before and hence, the deal might not be wholly unexpected.
- However, its an accelerated bookbuild in Japan, which don’t have a great track record.
Arrail Group (瑞尔集团) IPO: Downsized Deal Mostly Taken by Cornerstones
- Arrail is a leading premium dental service provider in China. The company launched book building to raise up to USD 87m via a Hong Kong listing.
- In our previous notes, we looked at the company’s background, its operation, its financials, and its expansion plan, and compared its key metrics with peers and provide thoughts on valuation.
- In this note, we provide a quick update for the book building.
Fabindia Pre-IPO – The Positives – Strong Urban Brand
- Fabindia is a consumer lifestyle platform with a 62-year legacy focused on authentic, sustainable and Indian traditional lifestyle products. It is looking to raise around US$500m in its India IPO.
- Fabindia offers a diverse portfolio of lifestyle products to its customers across Apparel and Accessories, Home and Lifestyle, Personal Care and Organic Food categories.
- In this note, we will talk about the positive aspects of the deal.
Jinmao Property Services IPO Trading – Expect a Modest Debut with Low Liquidity
- Jinmao Property Services (816 HK) raised around US$105m in its Hong Kong IPO.
- In our view, the firm doesn’t deserve to trade at a premium to peers given its weaker margins and slower growth in FY20.
- In this note, we will look at the trading dynamics and current valuation.
Arrail IPO: Strong Growth Prospects with Further Upside to Margins
- Arrail is the largest dental services provider in China’s premium private dental service market and the third in the overall market in terms of total revenues in 2020.
- The company has filed for an IPO to list on the Hong Kong Stock Exchange and plans to raise about US$86m.
- The group has experienced strong growth despite the impact of COVID-19 and China’s growing private dental market offers large potential for the company to grow.
Pre IPO Ascent ENT Group Holdings – Conservative About the Outlook
- For ENT services, the number of patients and scale of ENT field are relatively stable, with growth ceiling.
- Due to the limited doctor resources in Singapore and the intensified multi-party competition faced by Ascent, there may not be exciting future growth potential.
- So, we are conservative about the Company’s outlook if it just operates the business within Singapore or without diversifying its business effectively.
Fabindia Pre-IPO – The Negatives – Past Financial Performance Trends Remain Unclear
- Fabindia is a consumer lifestyle platform with a 62-year legacy focused on authentic, sustainable and Indian traditional lifestyle products. It is looking to raise around US$500m in its India IPO.
- Fabindia offers a diverse portfolio of lifestyle products to its customers across Apparel and Accessories, Home and Lifestyle, Personal Care and Organic Food categories.
- In this note, we talk about the not so positive aspects of the deal.
Before it’s here, it’s on Smartkarma
