In today’s briefing:
- JL Mag Rare-Earth A/H Listing – High-End a No Go, Post Correction
- Hyundai Engineering IPO Valuation Analysis
- Nomura, Credit Agricole, NAB Launch $ Bonds; Macro; Rating Changes; New Bond Issues; Top Gainers …
JL Mag Rare-Earth A/H Listing – High-End a No Go, Post Correction
- JL Mag Rare-earth Co. Ltd (JLM) aims to raise up to US$650m via its H-shares listing.
- JLM is a producer of high-performance REPMs. It ranked first in the world by high-performance REPM production volume in 2020 with a market share of approximately 14.5%.
- In this note, we look at the pricing and other deal dynamics.
Hyundai Engineering IPO Valuation Analysis
- Our base case valuation of Hyundai Engineering Co Ltd is EV of 3.3 trillion won, implied market cap of 5.4 trillion won, and target price of 67,475 won per share.
- This is within the IPO price range of 57,900 won and 75,700 won per share. Given the lack of upside, we have a Negative view of this IPO.
- Our base case valuation is based on 6.3x EV/EBITDA valuation multiple using 2022 estimated EBITDA of 526 billion won.
Nomura, Credit Agricole, NAB Launch $ Bonds; Macro; Rating Changes; New Bond Issues; Top Gainers …
US equity markets ended higher, with the S&P and Nasdaq up 0.6% and 1.2% respectively. Energy and Consumer Discretionary led the gainers, up 3.1% and 2.8% while Materials led the losers, down 1.4%. US 10Y Treasury yields soared 11bp to 1.62%. European markets were mostly higher with the DAX and CAC up 0.9% each while FTSE was down 0.3%. Brazil’s Bovespa was down 0.9%. In the Middle East, UAE’s ADX was down 0.3% while Saudi TASI was flat. Asian markets have opened mixed – Shanghai and HSI were down 0.6% and 0.3% while HSI and Nikkei were up 1.1% and 1.4% respectively. US IG CDS spreads were flat and HY CDS spreads widened 0.1bp. EU Main CDS spreads were flat and Crossover CDS spreads were 0.2bp wider. Asia ex-Japan CDS spreads tightened 2.7bp.
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