1. Denso (6902 JP): The Current Playbook
- Since the US$4.0 billion secondary placement announcement, Denso Corp (6902 JP)’s shares are down 4.3% from the undisturbed price of JPY2,298 per share (28 November).
- Looking at recent large Japanese placements is instructive to understand the potential trading pattern. So far, Denso’s shares have followed the pattern of previous large placements.
- The offering will likely be priced on 13 December. Investors participating in previous large Japanese placements tend to secure positive returns.
2. Zozo-Owned Yutori IPO This Month
- Zozo may lead in online fashion malls but its customer base, while young, is getting older.
- In 2020, it acquired a majority stake in Yutori, a fledgling fashion mall targeting the young, which will now list this month.
- Yutori has grown sales to ¥2.47 billion since launching five years ago. As well as Japan, it sees a major opportunity across Asia given Japanese street fashion popularity there.
3. GoTo: Thoughts on the New Tokopedia/TikTok Partnership
- GoTo Gojek Tokopedia Tbk PT (GOTO IJ) announced on Monday a partnership with TikTok which would combine former’s e-commerce biz Tokopedia with TikTok Shop Indonesia.
- TikTok was forced to close its e-commerce services in Indonesia following regulations banning online shopping on social media platforms in September citing protection of smaller merchants and data privacy.
- It seems TikTok will certainly be a winner if the deal is approved but surprised at GoTo’s move to retain a minority stake given e-commerce business is nearing profits.
4. Merdeka Battery Materials Lockup Expiry – US$1.5bn Lockup Expiry, Some Have Sold Beforehand
- Merdeka Battery Materials (MBMA IJ) was listed on 18th Apr 2023, when it raised around US$591m in its Indonesian IPO. Its eight-month lockup will expire on 11th Dec 2023.
- MBMA owns one of the world’s largest nickel mines in terms of contained nickel at the Konawe Nickel Mine.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
5. DS Dansuk IPO Bookbuilding Results Analysis
- DS Dansuk reported solid bookbuilding results. DS Dansuk IPO price has been determined at 100,000 won per share, which is 12.4% higher than high end of the IPO price range.
- A total of 1,843 institutional investors participated in this IPO book building. The demand ratio was 342 to 1. DS Dansuk IPO will start trading on 22 December.
- Given the strong IPO bookbuilding results, we believe shares of DS Dansuk are likely to trade above the high end of the IPO sensitivity analysis (137,877 won).
6. Mankind Pharma Placement – Its Expensive, but at Least It’s High Quality
- A group of shareholders is looking to raise around US$600m via selling a 6.9% stake in Mankind Pharma.
- MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
- We have looked at the IPO and lock-up release earlier. In this note, we talk about the other deal dynamics.
7. DOMS Industries IPO – Thoughts on Valuation – Isn’t Cheap, Neither Are Its Peers Cheap
- Doms (DOMS IN) is looking to raise around US$140m in its India IPO.
- DOMS is a leading player and brand in India’s stationery and art products market. It designs, manufactures, and sells a wide range of products, primarily under its flagship brand ‘DOMS’.
- We have looked at the company’s past performance in our earlier note. In this note, we talk about valuations.
8. Rept Battero IPO: Valuation Insights
- REPT BATTERO Energy (1998104D CH), a leading EV battery manufacturer, has launched an HKEx IPO to raise up to US$306 million. Pricing is on 14 December.
- We previously discussed the IPO in Rept Battero IPO: The Bull Case and Rept Battero IPO: The Bear Case.
- There are no cornerstone investors. Our valuation analysis suggests that the IPO price range is unattractive. Therefore, we would pass on the IPO.
9. India Shelter Finance IPO – Strong Track Record Could Justify a Premium Valuation
- India Shelter Finance (0570670D IN) is looking to raise US$144m from its India IPO.
- India Shelter Finance (ISF) is a retail-focused HFC targeting the self-employed customer with a focus on first time home loan takers in the low and middle income group.
- In this note, we will look at past performance, and share our thoughts on valuation.
10. Inox India IPO – Offering Access to a Niche Sector
- INOX India Limited (INOX IN) is looking to raise up to US$175m in its Indian IPO.
- Inox India is a manufacturer of cryogenic equipment. As per CRISIL, the firm was the largest Indian exporter of cryogenic tanks in terms of FY23 sales.
- In our previous note, we looked at the company’s background. In this note, we talk about the company’s performance and share our quick thoughts on valuation.
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