In today’s briefing:
- PHC Holdings IPO Lock-Up – Stock Might Be Cheap but It’s Stuck with a US$1bn Overhang
- Zhihu HK Secondary – Going Further than Autohome and Weibo, Stock Might Go Further Down as Well
- Kurly’s Mgmt Needs to Drastically Lower Valuation Expectations to Complete IPO in Next 6 Months
- Zhihu Secondary: There Is Upside Potential but Be Cautious
PHC Holdings IPO Lock-Up – Stock Might Be Cheap but It’s Stuck with a US$1bn Overhang
- PHC Holding had raised US$645m in its Japan IPO in Oct 2021, after the deal was downsized and priced at the low-end.
- PHC is engaged in the development, manufacturing and sale of healthcare devices and services. The company has three main segments: Diabetes Management; Healthcare Services; and Diagnosis/Life Science.
- The pre-IPO shareholders will be released from the lockup today on 11th Apr 2022. Its largest shareholder is KKR, who still owns a 39% stake in the company.
Zhihu HK Secondary – Going Further than Autohome and Weibo, Stock Might Go Further Down as Well
- Zhihu plans to raise around US$130m via a dual primary listing in Hong Kong.
- Unlike all the prior dual primary/secondary listings which have been done via offering either only primary or a mix of primary+secondary shares, Zhihu’s offering will consist of only secondary shares.
- In this note, we’ll talk about the deal dynamics and structure.
Kurly’s Mgmt Needs to Drastically Lower Valuation Expectations to Complete IPO in Next 6 Months
- Kurly’s management team needs to drastically lower its valuation expectation in this difficult market environment.
- Due to weak market conditions, it is likely to have a difficult time completing this IPO if its valuation is stretched to about 6 trillion won to 7 trillion won.
- In our view, the company could complete its IPO if the valuation is close to about 3.5 trillion won to 4.5 trillion won.
Zhihu Secondary: There Is Upside Potential but Be Cautious
- Zhihu has filed for a dual primary listing on the HKEx through offering of 26m shares (Class A) by existing shareholders at a maximum offer price of HK$51.8 per share.
- Two ADS represent one Class A ordinary share and shares closed at US$2.56 per ADS, and the maximum offer price implies a 31.5% premium to the last close.
- Zhihu’s business model seems to work in favour and the company’s shares are extremely cheap at the current multiples. There is upside but we would remain cautious.
Before it’s here, it’s on Smartkarma
