Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

Flat Glass IPO Preview: The tale of top two PV glass players

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

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Equity Capital Markets

Flat Glass plans to raise US$122-155m in its IPO. We have covered this deal through a series of earlier insights.<ul><li>In the first one we looked at the latest color of the broad solar industry and the PV glass segment, you can find it <a href="http://www.smartkarma.com/insights/xinyi-solar-post-deal-call-with-management-where-the-industry-and-the-company-are-heading" target="_blank">here</a>, where we highlight that the solar industry will continue to receive strong supports from Chinese government and PV glass segment is one of our preferred segment with 1) demand outpace supply growth and 2) less fragmentation where investor should not expect the volatility of boom and burst as other segment in the solar industry value chain. </li><li>In our IPO Preview, which you can find <a href="http://www.smartkarma.com/insights/flat-glass-ipo-preview-the-tale-of-top-two-pv-glass-players" target="_blank">here</a>, we compared the business segments and growth prospects of Flat Glass and its key competitor Xinyi Solar, in greater granularity and discussed how these might affect the fair value of Flat Glass. </li><li>In this insights, we ran the deal through our Smartkarma IPO framework, which rates the deal at the borderline for participation. </li><li>Taking into account some potential corporate governance issues we highlight in this insight, we would be inclined to bid towards the lower end, while provides a 30-45% discount versus Xinyi Solar and hence, provides a good margin.</li></ul>More fold below...

Flat Glass plans to raise US$122-155m in its IPO. We have covered this deal through a series of earlier insights.In the first one we looked at the latest color of the broad solar industry and the PV glass segment, you can find it here, where we highlight that the solar industry will continue to receive strong supports from Chinese government and PV glass segment is one of our preferred segment with 1) demand outpace supply growth and 2) less fragmentation where investor should not expect the volatility of boom and burst as other segment in the solar industry value chain. In our IPO Preview, which you can find here, we compared the business segments and growth prospects of Flat Glass and its key competitor Xinyi Solar, in greater granularity and discussed how these might affect the fair value of Flat Glass. In this insights, we ran the deal through our Smartkarma IPO framework, which rates the deal at the borderline for participation. Taking into account some potential corporate governance issues we highlight in this insight, we would be inclined to bid towards the lower end, while provides a 30-45% discount versus Xinyi Solar and hence, provides a good margin.More fold below... 

Flat Glass IPO: Low End Appears Cheap Enough to Overcome Some CG Concerns