In this briefing:
- Dongzheng Auto Finance (东正汽车金融) Trading Update – Could Be Worth Setting up a Trade
- Bilibili Offering: Unnecessary and Opportunistic
- Bilibili Placement: Momentum Bodes Well
- Map Aktif Follow-On Offering – Lace up for a Potential Long Run
- Embassy Office Parks REIT Trading Update – Lowest Volume Traded for Any Indian Listing Since 2018
1. Dongzheng Auto Finance (东正汽车金融) Trading Update – Could Be Worth Setting up a Trade
Dongzheng Automotive Finance (2718 HK) raised US$208m at a fixed price of HK$3.06 per share. We have covered the IPO extensively in:
- Dongzheng Auto Finance (东正汽车金融) Pre-IPO Review – Dependent on Dealership Network for Growth
- Dongzheng Auto Finance (东正汽车金融) IPO Review – Better off Buying the Parent
- Dongzheng Auto Finance (东正汽车金融) IPO Review – Relaunched at Lower Price
In this insight, we will update on the deal dynamics, implied valuation, and include a valuation sensitivity table.
2. Bilibili Offering: Unnecessary and Opportunistic
On Monday, Bilibili Inc (BILI US) unveiled plans to raise around $192 million (based on the closing price of $18.95 per ADS) through a public offering of 10.6 million ADS and a concurrent offering of $300 million convertible senior notes. Also, certain selling shareholders will offer 6.5 ADS in the offering.
We believe bilibili’s fundamentals are mixed as rapid monthly active users (MAUs) and non-mobile games growth is offset by a declining margin and higher cash burn. Overall, the proposed offering is unnecessary and highly opportunistic, and we would not participate in the offering.
3. Bilibili Placement: Momentum Bodes Well
Bilibili announced a USD 300 million share placement and a USD 300 million convertible note placement after market close on Monday. This is the first major placement since Bilibili’s IPO in March 2018. In this insight, we will provide our thoughts on the deal and score the deal in our ECM Framework.
4. Map Aktif Follow-On Offering – Lace up for a Potential Long Run
CVC is looking to raise about US$353m through the sale of about 648m Map Aktif Adiperkasa PT (MAPA IJ) shares in the follow-on offering.
Map Aktif (MAPA) is a sports, leisure, and kids retailer in Indonesia. It is a subsidiary of Mitra Adiperkasa (MAPI IJ). The selldown might not be totally unexpected as CVC planned to exit its investment by 2020. However, post this selldown it will still have 192m share left.
5. Embassy Office Parks REIT Trading Update – Lowest Volume Traded for Any Indian Listing Since 2018
Embassy Office Parks REIT (EOP IN) raised US$665m in its IPO, making it the first REIT listing for India.
In my previous insights I’ve covered the company background, its projected growth, compared it to its main listed peer and other yield assets in India:
- Embassy Office Parks REIT – Good Assets but Projections Might Be a Tad Too Bullish
- Embassy Office Parks REIT – Comparison with AIT and a Look at the Required Yield, and
- Embassy Office Parks REIT IPO – FY19 Revised Down, Yield Propped up by Zero Coupon Bond
In this insight, I will re-visit some of the deal dynamics, comment on share price drivers and provide a table with implied valuations.
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