In today’s briefing:
- LG Energy IPO – What to Watch Leading Into Listing Day
- LG Energy Post-Listing Flow Tracking by Date: Passive Inflows & Lockup Release Outflows
- Citicore Energy REIT IPO – Stable Dividend Generation but Needs to Come at a Wider Discount to Peers
- Huitongda IPO: Huge Churn Rate Indicates That Things Could Go Bad Very Quickly
- Voronoi IPO Preview
- Pre-IPO OrbusNeich Medical Group: A Scale Player, With Comprehensive Portfolio in PCI Balloon Market
- Beijing Yuanxin (北京圆心) Pre-IPO – Growing at the Expense of Margins
- Microport NeuroTech (微创脑科学) Pre-IPO: Decent Name for Neuro-Interventional Devices
LG Energy IPO – What to Watch Leading Into Listing Day
- LG Energy Solutions priced its IPO at the top of the range amid massive oversubscription numbers.
- If anything it was slightly surprising that pricing was not raised above the range.
- Nevertheless, we feel prospects here are mixed even if slightly tilted positive.
LG Energy Post-Listing Flow Tracking by Date: Passive Inflows & Lockup Release Outflows
- The KOSPI inclusion will be officially implemented on January 28. As a result, local active funds benchmarking the KOSPI will compete to buy LG Energy on the listing date.
- Passive Inflow appears one week after listing, particularly MSCI and KODEX/TIGER battery ETFs. The KODEX/TIGER rebalancing effective date is virtually confirmed on February 10, meaning rebalancing trading on February 9.
- Another two weeks later, the KOSPI 200 and KRX BBIG rebalancing await us. Combined with KRX BBIG, there will be a passive inflow of about 0.5% of SO.
Citicore Energy REIT IPO – Stable Dividend Generation but Needs to Come at a Wider Discount to Peers
- Citicore Energy REIT (CREIT PM) is looking to raise around US$170m in its Philippines IPO.
- The initial portfolio will consist of the Clark Solar Power Plant, Armenia Property, Toledo Property, Silay Property, and the Dalayap Property, which had a total appraised valuation of PHP10.9bn (US$214.3m).
- In this note, we will look at peer comparison and share our thoughts on valuation.
Huitongda IPO: Huge Churn Rate Indicates That Things Could Go Bad Very Quickly
- Alibaba Group (9988 HK) backed B2B e-commerce business, Huitongda (1566215D CH) is looking to go public to raise $500m to save the business.
- With churn rates as high as 50%, things could get ugly rather quickly if customer acquisition falls below sub optimal levels.
- We fear this is an attempt to save a failing business that could be worthless in few years.
Voronoi IPO Preview
- Voronoi (VOR KS) is getting ready to complete its IPO in Korea in March. The IPO offering base deal size is from $84 million to $109 million.
- The company has developed a genotype-directed therapy that is effective for tumors caused by mutations in kinases, and has successfully conducted global technology transfers.
- The total amount of accumulated milestones for three global technology exports of Voronoi is $1.79 billion (about 2.1 trillion won) which is very impressive.
Pre-IPO OrbusNeich Medical Group: A Scale Player, With Comprehensive Portfolio in PCI Balloon Market
- OrbusNeich Medical Group focuses on coronary and peripheral interventional instruments, such as balloons and stents used in PCI (coronary)/PTA (peripheral) procedures.
- Comprehensive and innovative product portfolio for endovascular interventional procedures, established global sales network, and robust pipeline are the major strength of OrbusNeich.
- Fierce competition, commoditized nature of the offering, centralized procurement leading to substantial price drop are some of the concerns for the company.
Beijing Yuanxin (北京圆心) Pre-IPO – Growing at the Expense of Margins
- Beijing Yuanxin Tech (BYT) is looking to raise US$500m in its upcoming Hong Kong IPO.
- As per F&S, the firm is the No. 1 integrated healthcare fulfilment platform in China focusing on prescription drugs
- In this note, we look at the company’s fundamentals and operations and share our thoughts about the IPO.
Microport NeuroTech (微创脑科学) Pre-IPO: Decent Name for Neuro-Interventional Devices
- Microport NeuroTech is a leading neuro-interventional device company in China. The company is looking to raise up to USD 300m via a Hong Kong listing.
- We look at the company’s key segments and products. We like the company’s comprehensive coverage of neuro-interventional devices.
- Its management team has decent experience as it is a spin-off from Microport. We also highlight the risk of the stock.
Before it’s here, it’s on Smartkarma
