Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

<ul>
<li>Bloks Group, a founder-led toy maker and owner of trusted brand “Blokees”, will price its IPO this week. Shares are set to begin trading on January 10, 2025.</li>
<li>I would expect strong first trading-day return as HK public offering was already 5,000+ times oversubscribed at high end of marketed price range.</li>
<li>I believe investors are rationally optimistic about the company. Bloks Group IPO attracted a surge of retail investors, and the stock may skyrocket above IPO price on first trading-day.</li>
</ul>


Bloks Group, a founder-led toy maker and owner of trusted brand “Blokees”, will price its IPO this week. Shares are set to begin trading on January 10, 2025.
I would expect strong first trading-day return as HK public offering was already 5,000+ times oversubscribed at high end of marketed price range.
I believe investors are rationally optimistic about the company. Bloks Group IPO attracted a surge of retail investors, and the stock may skyrocket above IPO price on first trading-day.


Bloks Group Likely To Price IPO at High End of Range: What To Expect From First Trading-Day?

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bloks-group" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (1850960D CH)</a> is looking to raise US$187m in its Hong Kong IPO.</li>
<li>Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character and brick-based toys.</li>
<li>In our previous notes, we looked at the firm’s past performance. In this note, we undertake a peer comparison and discuss our thoughts on valuation.</li>
</ul>



Bloks Group (1850960D CH) is looking to raise US$187m in its Hong Kong IPO.
Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character and brick-based toys.
In our previous notes, we looked at the firm’s past performance. In this note, we undertake a peer comparison and discuss our thoughts on valuation.


Bloks Group IPO - Outgrowing Its Peers, Decent Valuation

<ul>
<li>Shanghai-Based Bloks Group, a leader of assembly character toys in China, has announced the initial price range for its IPO in Hong Kong.</li>
<li>The offering is expected to be between HK$55.65 and HK$60.35, implying a market cap of ~HK$14B or ~$1.8B at the midpoint of the price range. </li>
<li>Assuming IPO offer price of HK$58.00, UBS AM Singapore, Greenwoods AM and Fullgoal Investors have agreed to invest ~HK$388M or ~$50M in the offering.</li>
</ul>


Shanghai-Based Bloks Group, a leader of assembly character toys in China, has announced the initial price range for its IPO in Hong Kong.
The offering is expected to be between HK$55.65 and HK$60.35, implying a market cap of ~HK$14B or ~$1.8B at the midpoint of the price range. 
Assuming IPO offer price of HK$58.00, UBS AM Singapore, Greenwoods AM and Fullgoal Investors have agreed to invest ~HK$388M or ~$50M in the offering.


Bloks Group IPO (0325.HK): Global Offering, The Initial Price Range Is Seen As Attractively Valued

<ul>
<li>Bloks Group, a fast-growing toy company in China, will disclose the proposed size and the initial price range for the share sale soon.</li>
<li>In my insight, I discuss IPO valuation, update relative valuation table and set a target valuation for Bloks Group ahead of an IPO.</li>
<li>Bloks Group enjoys higher relative growth profile and superior gross profit margins. The company has over RMB600M in cash and equivalents and no debt.  </li>
</ul>


Bloks Group, a fast-growing toy company in China, will disclose the proposed size and the initial price range for the share sale soon.
In my insight, I discuss IPO valuation, update relative valuation table and set a target valuation for Bloks Group ahead of an IPO.
Bloks Group enjoys higher relative growth profile and superior gross profit margins. The company has over RMB600M in cash and equivalents and no debt.  


Bloks Group IPO Valuation Analysis: Is The Offering Worth Buying?

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

International Games System / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/international-games-system-co-ltd" target="_blank" data-smartkarma-citation="entities:3486:1" rel="noopener">International Games System (3293 TT)</a> could be added to a global index at the end of November and there will be a lot of buying in the stock.</li>
<li>The big rally in the stock has led to <a href="https://www.smartkarma.com/entities/international-games-system-co-ltd" target="_blank" data-smartkarma-citation="entities:3486:1" rel="noopener">International Games System (3293 TT)</a> trading expensive to its regional peers.</li>
<li>There has been an increase in cumulative excess volume over the last month. But there could still be more to go over the next week.</li>
</ul>



International Games System (3293 TT) could be added to a global index at the end of November and there will be a lot of buying in the stock.
The big rally in the stock has led to International Games System (3293 TT) trading expensive to its regional peers.
There has been an increase in cumulative excess volume over the last month. But there could still be more to go over the next week.


International Games System (3293 TT): Positioning & Potential Passive Buying

Japan

Bandai Namco Holdings Inc is a holding company established through merger of Bandai and Namco.  The Group manufactures toys, stuffed animals, character goods, video games, commercial- and home-use game equipment and software. Namco Bandai also operates video game arcades and theme parks.

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Bandai Namco Holdings (7832 JP)

Bloks Group Likely To Price IPO at High End of Range: What To Expect From First Trading-Day?

Bloks Group will go public this week. In my insight, I discuss expectations from first trading-day and how far Bloks Group stock may go up in a...

Andrei Zakharov

Bloks Group IPO - Outgrowing Its Peers, Decent Valuation

Bloks Group (1850960D CH) is looking to raise US$187m in its Hong Kong IPO. In this note, we undertake a peer comparison and discuss our thoughts...

Clarence Chu

Bloks Group IPO (0325.HK): Global Offering, The Initial Price Range Is Seen As Attractively Valued

Bloks Group has announced the initial price range for its IPO. Given strong demand for upcoming offering and revenue hyper-growth, the toy maker is...

Andrei Zakharov

Bloks Group IPO Valuation Analysis: Is The Offering Worth Buying?

Bloks Group plans to raise up to $300M in Hong Kong IPO. Goldman Sachs (Asia) and Huatai International are leading the offering. In my insight, I...

Andrei Zakharov

International Games System (3293 TT): Positioning & Potential Passive Buying

The increased market cap could lead to IGS being added to passive portfolios at the end of Nov. There is a fair bit of positioning, but the stock...

Brian Freitas

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