ECM Daily Briefs | Smartkarma

In today’s briefing:

IndiQube Spaces Ltd Pre-IPO Tearsheet
Pre-IPO Jiangsu Hengrui Medicine – High Valuation Cannot Be Justified

IndiQube Spaces Ltd Pre-IPO Tearsheet

IndiQube Spaces Ltd (1628202D IN) (ISL) is looking to raise about US$100m in its upcoming India IPO. The bookrunners for the deal are ICICI and JM fin.
IndiQube Spaces Limited (ISL) is a managed workplace solutions provider offering technological workplace solutions.
According to CBRE Report, ISL is among the leading operators in Bengaluru as of Jun 24.

Pre-IPO Jiangsu Hengrui Medicine – High Valuation Cannot Be Justified

Hengrui plans to IPO in Hong Kong, but it hasn’t yet completed the business transformation from generic drugs to innovative drugs, and is still facing the negative impact of VBP.
The key point is whether the innovative drug business has sustained high enough growth rate to offset the decline in generic drug business so as to support the high valuation.
Hengrui is overvalued in A-Share. We think Hengrui’s valuation should be lower than that of BeiGene (6160 HK) and Hansoh Pharmaceutical Group (3692 HK) in Hong Kong stock market.

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Jan 14

Daily Brief ECM: Aequitas 2025 Asia IPO Pipeline – Japan and South Korea and more

In today’s briefing:

Aequitas 2025 Asia IPO Pipeline – Japan and South Korea
Anthem Biosciences Limited Pre-IPO Tearsheet
Dongbang Medical IPO Preview
Freetech Zhejiang Intelligent Technology Pre-IPO

Aequitas 2025 Asia IPO Pipeline – Japan and South Korea

In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, with a look at Japan & Korea after having looked at HK & India.
This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

Anthem Biosciences Limited Pre-IPO Tearsheet

Anthem Biosciences (1234D IN) is looking to raise up to US$397m in its upcoming India IPO. The deal will be run by JMF, Citi, JP Morgan and Nomura.
It is a Contract Research, Development, and Manufacturing Organization (CRDMO) with fully integrated operations spanning drug discovery, development, and manufacturing.
As a one-stop service provider, ABS serves a range of customers, including innovator-focused emerging biotech companies and large pharmaceutical organizations globally.

Dongbang Medical IPO Preview

By Douglas Kim

Dongbang Medical is getting ready to complete its IPO in Korea in February 2025. The IPO price range is from 9,000 won to 10,500 won.
According to the bankers’ valuation, the expected market cap of the comps ranges from 191 billion won to 223 billion won.
Dongbang Medical specializes in the manufacturing and distribution of acupuncture needles, various cosmetic devices, and other medical devices.

Freetech Zhejiang Intelligent Technology Pre-IPO

Freetech Intelligent Systems (1901036D CH) is looking to raise up to US$200m in its upcoming Hong Kong IPO.
The firm is a leading intelligent driving solutions provider, covering advanced assistance system (ADAS) and autonomous driving system (ADS) technologies.
In this note, we look at the firm’s past performance.

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Jan 13

Daily Brief ECM: Poor Performance Before UK Lawmakers Is SHEIN’s Latest Stumble on Journey To London (Or HK?) IPO and more

In today’s briefing:

Poor Performance Before UK Lawmakers Is SHEIN’s Latest Stumble on Journey To London (Or HK?) IPO
ECM Weekly (13th Jan 2025) – LG CNS, Bloks, Guming, Crizac, Shift Up, Adani, Wuxi
HUTCHMED to Divest 45% Stake in Non-Core Joint Venture with Shanghai Pharma

Poor Performance Before UK Lawmakers Is SHEIN’s Latest Stumble on Journey To London (Or HK?) IPO

By Daniel Hellberg

SHEIN’s general counsel frustrated UK lawmakers by refusing to answer certain questions
It’s the latest in a series of potential obstacles that could derail a planned London IPO
Add growing concerns over cotton supply chain & new threat from Amazon to existing risks

ECM Weekly (13th Jan 2025) – LG CNS, Bloks, Guming, Crizac, Shift Up, Adani, Wuxi

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Bloks Group picked up where Mao Geping Cosmetics had left off.
On the placements front, there were selldowns in Adani Wilmar (AWLTD IN) and WuXi XDC Cayman (2268 HK). We also looked at Shift Up (462870 KS) lockup release.

HUTCHMED to Divest 45% Stake in Non-Core Joint Venture with Shanghai Pharma

HUTCHMED announced the disposal of 45% equity interest in SHPL for US$608 million, including selling 35% equity interest to GP Health Service Capital and 10% equity interest to Shanghai Pharma.
There’re synergies between SHPL and Shanghai Pharma regarding TCM business. It’s necessary for HUTCHMED to sell non-core JV to reserve cash flow in advance to focus on innovative drug business.
The entire valuation of SHPL reaches RMB10 billion, or about 15x P/E. If HUTCHMED’s innovative drug business can bear fruit, its valuation has more room to grow in the future.

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Jan 12

Daily Brief ECM: China Healthcare Weekly (Jan.12) – Haier Biomedical and RAAS Terminated Their Merger and more

In today’s briefing:

China Healthcare Weekly (Jan.12) – Haier Biomedical and RAAS Terminated Their Merger

China Healthcare Weekly (Jan.12) – Haier Biomedical and RAAS Terminated Their Merger

Since the room for China’s medical insurance fund to continue to increase reimbursement for high quality innovative drugs is still large, we are optimistic about 2025 NRDL negotiation.
Although it’s inevitable trend for commercial insurance to cover innovative drugs, it won’t truly improve the payment end until the contribution of commercial insurance to hospital revenue increase to 10-15%.
Due to the complexity of the transaction, Haier Biomedical and RAAS terminated their merger. We think disagreements would easily emerge regarding the core issue in this transaction (i.e. the price).

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Jan 11

Daily Brief ECM: Wuxi XDC Placement – A Repeat of Biologics Placement Saga and more

In today’s briefing:

Wuxi XDC Placement – A Repeat of Biologics Placement Saga, Last Deal Did Well
LXJ International Holdings Pre-IPO Tearsheet

Wuxi XDC Placement – A Repeat of Biologics Placement Saga, Last Deal Did Well

WuXi AppTec (2359 HK) aims to raise around US$150m via selling around 3% stake in WuXi XDC Cayman (2268 HK).
WuXi XDC Cayman (WXDC) is a contract research, development, and manufacturing organization (CRDMO) focused on the global antibody drug conjugates (ADC) and broader bioconjugate market providing integrated and end-to-end services.
In this note, we will talk about the placement and run the deal through our ECM framework.

LXJ International Holdings Pre-IPO Tearsheet

By Akshat Shah

LXJ International Holdings (LXJ HK) is looking to raise atleast US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC and Haitong.
LXJ International Holdings Limited (LXJIH) is a Chinese-style QSR brand having a chain of fast food restaurants in China.
It was ranked first in the Chinese-style QSR industry in China by GMV in 2023, according to CIC, making it the largest Chinese-style QSR brand in China.

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Jan 10

Daily Brief ECM: Aequitas 2025 Asia IPO Pipeline – India and more

In today’s briefing:

Aequitas 2025 Asia IPO Pipeline – India
Guming Holdings (Goodme) Pre-IPO – Refiling Updates – Showing Some Recent Weakness in Margins
Greaves Electric Mobility Ltd Pre-IPO Tearsheet
LXJ International IPO Preview
Crizac Pre-IPO – Expanding Network and Service Portfolio to Drive Growth
Bloks Group IPO Trading – Strongest HK IPO Demand in Recent Years

Aequitas 2025 Asia IPO Pipeline – India

In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, following up with a look at India after having looked at Hong Kong earlier.
This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

Guming Holdings (Goodme) Pre-IPO – Refiling Updates – Showing Some Recent Weakness in Margins

By Clarence Chu

Guming Holdings (GUM HK) is looking to raise US$300m in its upcoming Hong Kong IPO.
Guming Holdings (Guming) sells freshly-made beverages in China. Guming focuses on the mid-priced freshly-made tea beverage market with product prices typically ranging between RMB10-18.
In our earlier notes, we had looked at the firm’s past performance. In this note, we discuss its refiling updates.

Greaves Electric Mobility Ltd Pre-IPO Tearsheet

Greaves Electric Mobility Ltd (GEML) (1295040D IN) is looking to raise about US$120m in its upcoming India IPO. The bookrunners for the deal are Motilal Oswal, IIFL, JM fin.
GEML is a manufacturer of electric vehicles in India, specializing in electric two-wheelers and three-wheelers.
The company is recognized as one of the pioneers in India’s electric vehicle (EV) market, playing a significant role in driving EV adoption in the country, as per CRISIL Report.

LXJ International IPO Preview

By Douglas Kim

LXJ International Holdings (LXJ HK) (knowns as Lao Xiang Ji or Home Original Chicken) is getting ready to complete its IPO in Hong Kong in 1H 2025.
Founded in 1982 by Shu Congxuan, LXJ International specializes in traditional Chinese style chicken dishes. The company is one of the major local players in China’s fast food industry.
LXJ’s solid growth in sales and profits in the past several years despite weak Chinese economy is a strong reflection of the company’s loyal customers in China.

Crizac Pre-IPO – Expanding Network and Service Portfolio to Drive Growth

By Akshat Shah

Crizac (CRIZAC IN) is looking to raise US$120m in its upcoming India IPO.
Crizac is an education platform offering international student recruitment solutions to global institutions of higher education in the United Kingdom, Canada, Republic of Ireland, Australia and New Zealand (ANZ).
In this note, we talk about the company’s historical performance.

Bloks Group IPO Trading – Strongest HK IPO Demand in Recent Years

By Clarence Chu

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.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

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Jan 09

Daily Brief ECM: Aequitas 2025 Asia IPO Pipeline – Hong Kong and more

In today’s briefing:

Aequitas 2025 Asia IPO Pipeline – Hong Kong
Brigade Hotel Ventures Ltd Pre-IPO – Strong Rebound from Covid but with High Concentration
Pre IPO X.J. Electrics (Hu Bei) – ODM/OEM Model Is Hard to Deliver High Margins and Growth Prospects
Beijing Geekplus Technology Pre-IPO Tearsheet

Aequitas 2025 Asia IPO Pipeline – Hong Kong

In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, starting with Hong Kong.
This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

Brigade Hotel Ventures Ltd Pre-IPO – Strong Rebound from Covid but with High Concentration

Brigade Hotel Ventures Ltd (BHV IN) is an owner and developer of hotels in India, focusing primarily on South India, plans to raise about US$107m through its upcoming India IPO.
It has a current portfolio of 9 operating hotels, of which, 4, 3 and 2 are operated under Accor, InterContinental, Marriott brands.
BHVL intends to use the IPO proceeds primarily to repay debt of INR 4.8bn and to purchase land from the promoter for further expansion.

Pre IPO X.J. Electrics (Hu Bei) – ODM/OEM Model Is Hard to Deliver High Margins and Growth Prospects

X.J. ELECTRICS not only relies on export revenue, but also on ODM/OEM models, with a relatively low proportion of independent brands. Such business model would not bring high profit margin.
X.J. ELECTRICS’ equity is concentrated in PAN YUN/GUANGSHE PAN, but they have plans to reduce holdings.This makes us feel that actual controllers are more inclined to cash out through IPO.
Valuation of X.J. ELECTRICS should be lower than Carote, as Carote has established branded business and its revenue proportion in different regions is also “healthier” than that of X.J. ELECTRICS.

Beijing Geekplus Technology Pre-IPO Tearsheet

Geek+ (1678559D CH) is looking to raise up to US$200m in its upcoming Hong Kong IPO. The deal will be run by CICC, Morgan Stanley, CMBI and Deutsche Bank.
It is a leader in the global AMR market and offers a series of AMR solutions to empower warehouse fulfillment and industrial material transport.
It was the world’s largest warehouse fulfillment AMR solution provider in terms of revenue in 2023.

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Jan 08

Daily Brief ECM: Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life and more

In today’s briefing:

Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life
Aye Finance Ltd Pre-IPO Tearsheet

Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. In 2024, IPO volumes were mainly driven by India, even as Hong Kong showed signs of turning a corner.
We ended 2024 with an accuracy rate of 79.4% across 68 IPOs that we covered and 68.8% across 109 placements.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.

Aye Finance Ltd Pre-IPO Tearsheet

Aye FInance Ltd (1239156D IN) (AFL) is looking to raise about US$171m in its upcoming India IPO. The bookrunners for the deal are Axis, IIFL, JM Fin, Nuvama.
AFL is a non-banking financial company – middle layer (NBFC-ML) that focuses on providing loans to micro, small, and medium enterprises (MSMEs) across India.
According to CRISIL Report, AFL is recognized as the fastest-growing NBFC in India among its peers with YoY AUM growth between FY24 and FY23, achieving a growth rate of 64%.

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Jan 07

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

In today’s briefing:

Bloks Group Likely To Price IPO at High End of Range: What To Expect From First Trading-Day?
CaoCao Pre-IPO: Scaling up but a Cash Infusion Is Required

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

By Andrei Zakharov

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.

CaoCao Pre-IPO: Scaling up but a Cash Infusion Is Required

CaoCao Inc (1646553D CH) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
It is a ride hailing platform in China originally incubated by Geely Group connecting passengers and drivers to deliver consistent and high-quality ride experiences.
In this note, we look at the firm’s past performance.

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Jan 06

Daily Brief ECM: LG CNS IPO: Valuation Insights and more