ECM Weekly (5th September 2021) - JR West, Kakaobank, Helen's, ANE, Weilong Snacks, NewMed

Events next week:

In Hong Kong this week, Helen's International Holding (9869 HK) launched its IPO bookbuild

• Helens Intl (海伦司国际) Pre-IPO - Peer Comparison
• Helens Intl (海伦司国际) IPO - Cheap Drinks, Expensive Valuation

We initiated coverage on other upcoming IPOs like ANE Logistics (1292621D CH) and Shanghai NewMed Medical (NMM HK) while Ming Lu took a trip down to the local supermarket and convenience store in China to get a sense of how Weilong Delicious Global (WDG HK)'s products compare to competitors.

• ANE Logistics Pre-IPO - Margins Expanding but Appears to Be Falling Behind
• NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR
• Weilong Delicious Global: A Store Visit for “Spicy Stick”

In Japan, we shared our thoughts on peer comparison and valuation of Simplex Holdings (4373 JP). We also initiated on upcoming South Korean IPOs like Kakao Pay (377300 KS) and K Car (KCAR KS) which are looking to raise up to US$1.3bn and US$629m, respectively.

• Simplex Holdings Pre-IPO - Peer Comp, Valuation - Lagging in Size but Leading in Growth and Margins
• Kakao Pay IPO - Guided by Ant Financial to Be a Mini Ant
• K Car Pre-IPO - Dominant Leadership in the Online Space

There were a handful of placements too. Most notably, West Japan Railway Co (9021 JP) was launched its unexpected US$2.7bn follow-on offering to fund strategic investments and repay debt.

• West Japan Railway Placement - A Large, Unexpected Dilution

The deal will price on 13th September. In Japan, Korea Post sold its entire (US$947m) stake in KakaoBank (323410 KS) in a block trade. The deal only represented 1.5 days ADV and was reported to be multiple times covered. Share price is still holding above deal price on Friday.

• Kakao Bank Placement - Its Expensive but the Discount Is Enticing

Finally, in Hong Kong, Dongyue Group (189 HK) raised about US$440m in its placement. The deal closed 15% above its deal price with books also multiple times covered.

• Dongyue Group (东岳集团) Placement - Opportunistic Raise at All Time High but Easily Digestible