In today’s briefing:
- WM Motor Pre-IPO Tearsheet
- Tuhu Car Pre-IPO – The Negatives – Remains Unprofitable and Have Been Racking up Its Payables
- GOGOX IPO: Growth at All Costs
- Pre-IPO Mega Genomics – Immature Market and Over-Reliance on Meinian Put Future Performance in Doubt
- 58 Freight (GogoX) Pre-IPO – (June 2022) PHIP Updates – Prospects Seem Bleaker
- Net Protections Holding IPO Lock-Up – Small Expiry Now, Before 20% Is Released Later in the Year
WM Motor Pre-IPO Tearsheet
- WM Motor Technology Co Ltd (WMT CH) is looking to raise about US$1bn in its upcoming Hong Kong IPO. The deal will be run by Haitong International, CMBI and BOCI.
- WM Motor is a smart EV player in China. As of the latest practicable date, it had a total of four main EV models (with various versions of each model).
- As per the CIC, it was the first EV automaker in China to have established its own manufacturing facilities from the outset.
Tuhu Car Pre-IPO – The Negatives – Remains Unprofitable and Have Been Racking up Its Payables
- Tuhu Car (2007986D HK) is looking to raise up to US$400m in its upcoming Hong Kong IPO.
- Tuhu is an integrated online and offline platform for automotive services in China.
- The firm remains loss making with no signs of being profitable in the near/medium term given its aggressive growth strategy.
GOGOX IPO: Growth at All Costs
- GoGoX Holdings (GOGO HK) is a major online intra-city logistics platform in Asia. It has passed the listing hearing for an HKEx IPO to raise US$100-150 million.
- In GOGOX IPO Initiation: A Less than Perfect Delivery, we noted that as the losses are expected to persist over the next three years, we would avoid the IPO.
- In this note, we examine the PHIP for the 2021 results and recent developments. The fundamentals remain unattractive and we would give the IPO a pass.
Pre-IPO Mega Genomics – Immature Market and Over-Reliance on Meinian Put Future Performance in Doubt
- Mega should establish core competitiveness via entering hospital market and being recognized by hospitals. It’s not a long-term solution to exploit the market by mainly relying on Meinian.
- Although Mega’s competitive advantage in the channels is still more obvious due to Meinian, it is actually a double-edged sword, especially when Meinian is in financial difficulty.
- Without Meinian, whether Mega can develop independently is a question mark. In terms of valuation, BGI and Berry could be comparable companies, and Mega’s valuation could be lower than Berry.
58 Freight (GogoX) Pre-IPO – (June 2022) PHIP Updates – Prospects Seem Bleaker
- 58 Freight (GogoX) (1903638D HK) is looking to raise US$150m in its upcoming Hong Kong IPO.
- GogoX is an online intra-city logistics platform in Asia. The company operates in more than 30 cities across five countries and regions in Asia.
- GGX’s platform services segment continues to languish, even after the firm expended much higher incentives during the fiscal period. In this note, we look at GGX’s June 2022 PHIP updates.
Net Protections Holding IPO Lock-Up – Small Expiry Now, Before 20% Is Released Later in the Year
- Net Protections Holdings, a buy now pay later service provider, raised around US$570m via selling a mix of primary and secondary shares in its Japan IPO in Dec 2021.
- As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
- In this note, we will talk about the upcoming lock-up expiry on 12th Jun 2022.
Before it’s here, it’s on Smartkarma
