In today’s briefing:
- Weekly Deals Digest (10 Jul) – Tianqi Lithium, Noah Holdings, Emperador, Link Admin, Hwa Hong
- Northbound Flows: Tianqi Lithium Inflow Before H-Share Listing
- WCP IPO Terms & Valuation Controversies
- Akeso Biopharma Placement (9926.HK) – The Concerns Behind and the Outlook
Weekly Deals Digest (10 Jul) – Tianqi Lithium, Noah Holdings, Emperador, Link Admin, Hwa Hong
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand and Chinese ADRs.
- On the ECM front, Tianqi Lithium (002466 CH), Noah Holdings (NOAH US) and Miniso (MNSO US) will debut on 13 July, Emperador Inc (EMP PM) is pre-marketing a US$300-500m IPO.
- Event-Driven developments at Link Administration (LNK AU), Giordano International (709 HK), DTAC/True, Ramsay Health Care (RHC AU), Hwa Hong Corp (HWAH SP), Infomedia Ltd (IFM AU), Cocoaland Holdings (COLA MK).
Northbound Flows: Tianqi Lithium Inflow Before H-Share Listing
- We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.
- Inflows into the consumer staple and health care were offset by the outflows from industrials and material sector.
- We highlight inflows into the Tianqi Lithium-A prior to its H-share debut next week.
WCP IPO Terms & Valuation Controversies
- It is hard to understand why WCP uses future EBITDA in the peer valuation while all the peers are based on the 1Q22 LTM figures.
- Not only that, of the eight valuation peers, only SKIET and Shenzhen Senior Tech are the only ones with sufficient business relevance to WCP.
- WCP’s intrinsic market cap is ₩2.35T with a price per share of ₩69,141, implying that the bankers’ indicative price band is rather at a 15.7-44.6% premium.
Akeso Biopharma Placement (9926.HK) – The Concerns Behind and the Outlook
- The current stock price is not high. Akeso is reluctant to diluting its shareholders too much. So, it plans to raise just HK$576.65 million, which won’t bring any fundamental change.
- Akeso (9926 HK)’s conservative management style, development mode, low cash balance and FDA’s “Guidance” on bispecific antibodies would limit the Company’s future development pace, commercialization, internationalization and valuation expansion prospects.
- We do not think Akeso is attractive at present, unless the Company could hit some big license-out deals, or IPO on SSE STAR Market to secure enough funds in advance.
Before it’s here, it’s on Smartkarma
