ECM Daily Briefs | Page 16 of 160

In today’s briefing:

NTT DC REIT IPO: The Investment Case
Alibaba Health Placement – Delta Placement for EB, but Track Record Isn’t Great
Geekplus Technology IPO (2590 HK): Valuation Insights
Leads Biolabs (维立志生物) Pre-IPO: Valuation
Anjoy Foods Group A/H Trading – Cheap Price but Sluggish Demand
Boxihe Outdoor Sports Pre-IPO – Scaling Fast in China’s Outdoor Boom
Wakefit Innovations Ltd Pre-IPO Tearsheet
Eacon Group Co., Ltd Pre-IPO Tearsheet
Anjoy Foods: Joyless HK Issue-Priced Below Target. Value Play. Valuations Update.

NTT DC REIT IPO: The Investment Case

NTT DC REIT (NTTDCR SP) is the exclusive S-REIT vehicle sponsored by NTT Group. It has launched an SGX IPO to raise proceeds up to US$864 million.
The IPO portfolio comprises six data centres – three located in California, one in Virginia, one in Vienna, and one in Singapore.
NTT DC REIT offers an attractive value proposition, comprising a blue-chip tenant base, a staggered lease expiry profile, a robust growth pipeline, and sizable debt headroom.

Alibaba Health Placement – Delta Placement for EB, but Track Record Isn’t Great

Banks are offering US$500m of Alibaba Health Information Tec (241 HK) stock in order to allow Exchangeable Bond investors to hedge their exposure.
Alibaba Health (AH) stock has been heading in the wrong direction for the past few years and it remains unclear if the EB offering was well flagged.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Geekplus Technology IPO (2590 HK): Valuation Insights

Geekplus Technology (2590 HK) is a leader in the global autonomous mobile robot (AMR) market. It is seeking to raise US$300 million.
I discussed the investment case in Geekplus Technology IPO (2590 HK): The Investment Case.
In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is unattractive.

Leads Biolabs (维立志生物) Pre-IPO: Valuation

Leads Biolabs, a China-based clinical-stage biotech, is looking to raise at least USD 100 million via a Hong Kong listing. The joint book runners are MS and CITIC.
In our previous insight, we looked at the company’s core products and its management team, as well as investor backing, as well as PHIP updates.
In this note we will provide an rNPV-based valuation for the company.

Anjoy Foods Group A/H Trading – Cheap Price but Sluggish Demand

Anjoy Foods Group (2648 HK), a quick-frozen food company in China, raised around US$350m in its H-share listing.
AFG was the largest quick-frozen food company in China in terms of revenue in 2023, with a market share of 6.2%, according to the Frost & Sullivan report.
We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.

Boxihe Outdoor Sports Pre-IPO – Scaling Fast in China’s Outdoor Boom

By Troy Wong

Boxihe Outdoor Sports (BOS) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
BOS has delivered impressive growth, with a 122% revenue CAGR (FY22–24) led by its core Pelliot brand.
Its shift from a pure online DTC model to include offline and distributor channels has broadened reach, while improving gross margins reflect strong pricing and cost control.

Wakefit Innovations Ltd Pre-IPO Tearsheet

By Rosita Fernandes

Wakefit Innovations (1684049D IN) (WIL) is looking to raise about US$231m in its upcoming India IPO. The bookrunners for the deal are Axis, IIFL, Nomura.
Wakefit Innovations is direct‑to‑consumer and sleep and home‑solutions company, founded in 2016.
According to the Redseer Report, the company was the largest D2C home and furnishings company in India by revenue in FY24.

Eacon Group Co., Ltd Pre-IPO Tearsheet

By Troy Wong

Eacon Group Co., Ltd (EG) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by Haitong.
EG ranks first among all L4 autonomous driving companies globally by revenue in 2024, as per Frost & Sullivan.
EG had 11 end-customer groups. Its technology has been deployed across 24 mining sites of leading mining groups like CHN Energy, SPIC, TBEA, Zijin Mining, Shougang Group, and Baowu Group.

Anjoy Foods: Joyless HK Issue-Priced Below Target. Value Play. Valuations Update.

By Devi Subhakesan

Anjoy Foods (2648 HK) has priced its HK offer at HKD 60/share—10% below the previously indicated HKD66, and a 30% discount to A share price, raising a HKD2.4 billion (USD305 million)
Anjoy’s muted investor response—just 5.85x coverage on the international tranche—triggered a clawback, increasing the Hong Kong public allocation from 10% to 30%.
Foshan Haitian(3288 HK) ’s disappointing post-listing performance has probably made investors more cautious, likely contributing to the subdued appetite for Anjoy’s HK offer despite inexpensive valuations.

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Jul 03

Daily Brief ECM: NTT DC REIT IPO – Decent Yield and more

In today’s briefing:

NTT DC REIT IPO – Decent Yield, Strong Local Backing, a Few Issues
Geekplus Technology IPO (2590 HK): The Investment Case
NH Foods Placement: Clean up by Norinchukin Bank; Unrelated Buyback May Buffer Deal
Geek+ IPO (2590.HK): Long-Term, Warehouse Automation Story, But IPO Valuation Is Not Cheap
BlissBio Pre-IPO: Selling Point Still Valid Despite BD Termination
Pine Labs Pre-IPO Tearsheet
Jiaxin International Resources Investment Pre-IPO – Tungsten Powerhouse Anchored by State Capital
Nykaa Block – US$140m Selldown by Banga Family
Ntt Dc Reit Ipo – Thoughts on Valuation
IFBH (6603 HK) – Debut Is the Peak, and Then It Wanes?

NTT DC REIT IPO – Decent Yield, Strong Local Backing, a Few Issues

Ntt Dc Reit (NTTDCR SP) (NDC), a data center REIT, aims to raise up to US$810m in its Singapore IPO.
The IPO portfolio comprises six mainly freehold data centres in the U.S., Austria and Singapore with an aggregate appraised valuation of US$1.6bn.
In this note, we look at the company’s portfolio and its performance.

Geekplus Technology IPO (2590 HK): The Investment Case

Geekplus Technology (2590 HK) is a leader in the global autonomous mobile robot (AMR) market. It is seeking to raise US$300 million.
Geekplus has been the world’s largest warehouse fulfilment AMR solution provider in terms of revenue for the last six consecutive years.
The investment case is bearish due to declining growth, lower contract liabilities, hints of window dressing relating to reducing losses and ongoing cash burn.

NH Foods Placement: Clean up by Norinchukin Bank; Unrelated Buyback May Buffer Deal

A group of shareholders are looking to raise US$333m from selling their respective stakes in Nh Foods Ltd (2282 JP) .
While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
In this note, we will talk about the placement and run the deal through our ECM framework.

Geek+ IPO (2590.HK): Long-Term, Warehouse Automation Story, But IPO Valuation Is Not Cheap

Geek+, global technology company and provider of scalable and flexible highly efficient solutions for warehouses, aims to raise ~$300M in Hong Kong IPO.
The company is expected to IPO next week and offer price of HK$16.80 implies a market cap of HK$22B (~$2.8B). Geek+ is set to start trading on July 9, 2025.
I believe that Geek+ has a large runway for growth in the global AMR solution market, but valuation keeps me from being positive on the name.

BlissBio Pre-IPO: Selling Point Still Valid Despite BD Termination

BlissBio, a China biotech company with a focus on next-generation ADC, is seeking to raise at least USD100m via a Hong Kong listing. Sponsors are GS, Huatai, CCBI.
In this note, we look at the company’s core product BB-1701, and briefly other three key products. We think it does have a good selling point.
We also look at the company’s management and pre-IPO investors. We think the deal is worth following.

Pine Labs Pre-IPO Tearsheet

Pine Labs (0568874D IN) is looking to raise up to US$1bn in its upcoming India IPO. The deal will be run by Axis, Citi, MS, JPM and Jefferies.
Pine Labs (PL) is a fintech firm focused on digitizing commerce through digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions.
According to a Redseer Report, PL was the largest player in issuances of closed and semi-closed loop gift cards by transaction value in India in FY24.

Jiaxin International Resources Investment Pre-IPO – Tungsten Powerhouse Anchored by State Capital

By Troy Wong

Jiaxin International Resources Investment Limited (JIRI) is looking to raise about US$140m in its upcoming Hong Kong IPO.
Jiaxin International owns exclusive rights to a globally significant tungsten asset, supported by Jiangxi Copper. Commercial production is scheduled to begin in 2Q25, with full ramp-up by 2027.
Falling unit costs, rising ASPs, and front-loaded CAPEX point to improving free cash flow. Belt and Road alignment enhances access to funding and policy support.

Nykaa Block – US$140m Selldown by Banga Family

Harindarpal Singh Banga, one of Nykaa’s early investors, aims to raise around US$140m via selling a 2% stake in FSN E-Commerce Ventures (NYKAA IN).
He has been gradually reducing his holding, currently owns about 4.97% of Nykaa. Prior to Nykaa’s IPO in Nov 2021, he held a stake of 8.7% in the company.
In this note, we run the deal through our ECM framework and comment on deal dynamics.

Ntt Dc Reit Ipo – Thoughts on Valuation

NTT DC REIT (NTTDCR SP) (NDC), a data center REIT, aims to raise up to US$810m in its Singapore IPO.
The IPO portfolio comprises six mainly freehold data centres in the U.S., Austria and Singapore with an aggregate appraised valuation of US$1.6bn
We have looked at the company’s past performance in our previous note. In this note, we will talk about valuations.

IFBH (6603 HK) – Debut Is the Peak, and Then It Wanes?

IFBH’s IPO debut is outstanding. Capital/investors are actually voting for “light-asset + high-efficiency” business model, as they see the possibility of achieving great results with small investment in if coconut water.
When coconut water consumption boom subsides, real competition lies in whether IFBH can turn the opportunity of “riding the wave” into high moat amid supply chain crisis/price wars/single product line.
The ultimate outcome of this capital frenzy remains an unknown. We updated our forecast. IFBH is overvalued. Reasonable valuation should be lower than Nongfu Spring/MIXUE who has supply chain barriers.

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Jul 02

Daily Brief ECM: HDB Financial Services IPO Trading – Strong Demand and more

In today’s briefing:

HDB Financial Services IPO Trading – Strong Demand, Driven by Instis
Lens Technology H Share Listing (6613 HK): Valuation Insights
Lens Technology H-Share Listing: Thoughts on Valuation
Foshan Haitian Flavouring & Food Company (3288 HK) – The Dull Post-IPO Share Price and the Outlook
Daehan Shipbuilding Pre-IPO: PE Cashing Cheques on the Shipping Boom
Kalpataru IPO Trading – Decent Anchor; Muted Overall Demand
Fortior Tech A/H Listing – Fast but Volatile Growth and Margins

HDB Financial Services IPO Trading – Strong Demand, Driven by Instis

HDB Financial Services (HDBFS) raised around US$1.4bn in its India IPO.
HDBFS is a leading retail-focused non-banking financial company (NBFC) in India, in terms of total gross loan book size, according to the CRISIL Report.
We have looked at the past performance and pricing in our previous note. In this note, we talk about the trading dynamics.

Lens Technology H Share Listing (6613 HK): Valuation Insights

By Shifara Samsudeen, FCMA, CGMA

Lens Technology (6613 HK), an industry-leading integrated one-stop precision manufacturing solution provider, has launched an H Share listing to raise US$600 million.
I discussed the H Share listing in Lens Technology H Share Listing (6613 HK): The Investment Case.
The proposed AH discount of 24.8% to 28.1% (based on the 27 June A Share price) is attractive, and I would participate in the H Share listing.

Lens Technology H-Share Listing: Thoughts on Valuation

Chinese iPhone glass supplier Lens Technology (6613 HK) has announced the terms for its H-share listing, and plans to raise around US$600m through issuing 262.3m shares.
The company’s listing is priced at HK$17.38-18.18 per share, at a 25-28% discount to the last close price of the A-shares as of 27th June.
Our valuation analysis suggests that the company’s H-share offering is priced reasonably compared to domestic and international peers.

Foshan Haitian Flavouring & Food Company (3288 HK) – The Dull Post-IPO Share Price and the Outlook

Recent positive sentiment towards A/H listings fails to drive Haitian’s post-IPO stock price performance, as the market still has doubts about whether Haitian can effectively break through the growth bottleneck.
The core contradiction of Haitian lies in the mismatch between high valuation and slow growth. Haitian’s fundamentals are difficult to support high valuation – 20-30x P/E is a reasonable range.
The intensification of geopolitical tensions has brought considerable uncertainty to the market, which has reduced investors’ risk appetite and made them more willing to avoid investment targets with potential risks.

Daehan Shipbuilding Pre-IPO: PE Cashing Cheques on the Shipping Boom

Daehan Shipbuilding (439260 KS) is looking to raise up to US$350m in its upcoming Korean IPO.
It specializes in the design and construction of medium-sized (Aframax) and semi-large sized (Suezmax) vessels for crude oil and petroleum product transportation.
In this note, we provide updates on the firm’s past performance.

Kalpataru IPO Trading – Decent Anchor; Muted Overall Demand

Kalpataru Limited (KTARU IN) raised about US$184m in its India IPO.
Kalpataru (KL) is an integrated real estate developer involved in identification and acquisition of land, planning, designing, execution, sales, and marketing of its projects.
We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

Fortior Tech A/H Listing – Fast but Volatile Growth and Margins

Fortior Technology (Shenzhen) (688279 CH), a BLDC motor IC design company, aims to raise around US$250m in its H-share listing.
Fortior Tech is an IC design company dedicated to the design and R&D of BLDC motor control ICs.
In this note, we look at the past performance and likely A/H premium.

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Jul 01

Daily Brief ECM: Lens Technology A/H Listing – Pricing Looks Decent and more

In today’s briefing:

Lens Technology A/H Listing – Pricing Looks Decent
Lens Technology H Share Listing (6613 HK): The Investment Case
Beijing Geekplus Pre-IPO: Expensive Valuation and Mark up from Previous Round
Wuhan Dazhong Dental Medical IPO: Shine Revival Will Take a Few Sessions
Pre-IPO Genuine Biotech – The Current Pipeline Hardly Supports High Valuation

Lens Technology A/H Listing – Pricing Looks Decent

Lens Technology (300433 CH), a precision manufacturing solution provider, aims to raise around US$600m in its H-share listing.
Lens Technology (LT) is one of the leading players in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicles interaction systems.
We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

Lens Technology H Share Listing (6613 HK): The Investment Case

Lens Technology (6613 HK), an industry-leading integrated one-stop precision manufacturing solution provider, has launched an H Share listing to raise US$600 million.
In terms of revenue in 2024, Lens is a global leader in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicle interaction systems.
The investment case is based on a well-performing core business, limited tariff impact, reduced reliance on Apple, strong margins, and robust cash generation.

Beijing Geekplus Pre-IPO: Expensive Valuation and Mark up from Previous Round

Geek+ (1678559D CH) is looking to raise up to $300m in its upcoming Hong Kong IPO.
It is a leader in the global autonomous mobile robots (AMR) market.
In this note, we examine the IPO dynamics, and look at the firm’s valuation.

Wuhan Dazhong Dental Medical IPO: Shine Revival Will Take a Few Sessions

By Tina Banerjee

Wuhan Dazhong Dental Medical launched IPO aiming to raise up to HK$232 million (US$30 million). The company plans to sell 10.8 million shares at HK$20–HK$21.4 per share.
Wuhan Dazhong Dental Medical is a private dental services provider in Central China providing dental services under the direct chain model.
The IPO price is set at a premium (23%) to the price realized during Series B funding. Valuation looks attractive. But there are a few concerns to take into account.

Pre-IPO Genuine Biotech – The Current Pipeline Hardly Supports High Valuation

Essentially, Genuine‘s pipeline and commercialization strategy are centered around azvudine. However, the commercialization would still rely on the indications of HIV infection and COVID-19 in the short term.
The COVID-19 has passed, so future revenue contribution of this indication will gradually shrink. Considering the unsustainability of its future performance, we suggest excluding COVID-19 projects when considering long-term valuation.
The post-investment valuation after Series B financing was RMB3.56 billion. However, we are conservative about Genuine’s outlook, and we think reasonable valuation could be below RMB2 billion.

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Jun 30

Daily Brief ECM: Saint Bella IPO (2508.HK): Pricing and Post-IPO Performance and more

In today’s briefing:

Saint Bella IPO (2508.HK): Pricing and Post-IPO Performance, Wild Price Swings Could Be Short-Lived
Anjoy Foods Group HK Offer: Value Stock or Value Trap? Key Facts, Financials and Valuation
Medtide (泰德医药) IPO Trading Update
IFBH IPO Trading – Strong Overall Demand, Clawback Triggered
Lens Technology A/H Listing – PHIP Updates and Thoughts on A/H Premium
Pre-IPO China Medical System (867 HK) – About the IPO in Singapore and Concerns on Valuation Outlook
Kanzhun HK Secondary Listing – Re-IPO but Needs to Correct or Offer a Wider Discount
ECM Weekly (30 June 2025) – FWD, Anjoy, IFBH, HDB Financials, Virgin, Xero, Shinhan, Innovent

Saint Bella IPO (2508.HK): Pricing and Post-IPO Performance, Wild Price Swings Could Be Short-Lived

Saint Bella, a leading postpartum care and recovery group in China, priced its upsized IPO at fixed offer price of HK$6.58 per share.
The offer size adjustment option has been fully exercised. The company issued and allotted 14,313,000 additional offer shares.
Saint Bella sold 109,733,000 shares and raised net proceeds of ~HK$630M or ~$80M. The stock jumped ~49% on first day as a public company and peaked at HK$11.00 per share.

Anjoy Foods Group HK Offer: Value Stock or Value Trap? Key Facts, Financials and Valuation

By Devi Subhakesan

Anjoy Foods Group (2648 HK), already listed in Shanghai, is offering 40 million shares in Hong Kong to raise up to HKD2.6 billion (USD335 million); Offer closes today, June 30th.
HK offer is priced at a decent discount to A share price and at valuation multiples that are aligned with its peer group and business fundamentals.
With limited organic growth and little evidence of a strategic pivot to higher-value offerings, Anjoy Foods lacks a compelling long term investment case.

Medtide (泰德医药) IPO Trading Update

Medtide raised HKD 514m (USD 65.5m) from its global offering and will list on the Hong Kong Stock Exchange on Monday, June 30th.
In our previous note, we looked at the company’s operation, management track records and discussed the IPO valuation.
In this note, we provide an update for the IPO before trading debut.

IFBH IPO Trading – Strong Overall Demand, Clawback Triggered

IFBH (6603 HK) raised about US$148m in its HK IPO.
IFBH specializes in ready-to-consume beverages and food, with a focus on coconut water and plant-based products.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

Lens Technology A/H Listing – PHIP Updates and Thoughts on A/H Premium

Lens Technology (300433 CH), a precision manufacturing solution provider, aims to raise around US$1bn in its H-share listing.
Lens Technology (LT) is one of the leading players in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicles interaction systems.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

Pre-IPO China Medical System (867 HK) – About the IPO in Singapore and Concerns on Valuation Outlook

CMS announced proposed secondary listing on the SGX-ST. The Company is undergoing pipeline adjustments and strategic transformation. Its growth logic is shifting from “dependence on generic drugs” to “innovation-driven drugs”.
However, the valuation logic has changed. The capital market will give high valuations to companies that achieve overseas licensing-out deals, rather than the attractive DCF model based on traditional business.
After 2023/2024 performance downturn, revenue growth is expected to return to positive in 2025. But in essence, CMS’s current business model is license-in, which will affect the future valuation performance.

Kanzhun HK Secondary Listing – Re-IPO but Needs to Correct or Offer a Wider Discount

Kanzhun (BZ US) plans to raise around US$300m via a public offering for its H-shares.
We have covered the company since its listing, links to our prior notes are below.
In this note, we’ll talk about the deal dynamics and structure.

ECM Weekly (30 June 2025) – FWD, Anjoy, IFBH, HDB Financials, Virgin, Xero, Shinhan, Innovent

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, in a busy listing week, the results from listing were mixed.
On the placements front, there were a number of large deals across the region.

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Jun 29

Daily Brief ECM: DH Shipbuilding IPO Valuation Analysis and more

In today’s briefing:

DH Shipbuilding IPO Valuation Analysis
China Healthcare Weekly (Jun.29) – Biotech Valuation Bubble Is About to Burst, Innovent’s Placement
Weekly Deals Digest (29 Jun) – FWD, HDB, Santos, PointsBet, New World, Dickson, HKBN, OneConnect

DH Shipbuilding IPO Valuation Analysis

By Douglas Kim

Our base case valuation of DH Shipbuilding IPO is target price of 67,576 won per share, which represents a 35% upside to the high end of the IPO price range.
Given the solid upside, we have a Positive view of this IPO. Our valuation sensitivity analysis suggests a market cap range of 2.3 trillion won to 2.9 trillion won.
Our target valuation multiple of 5.7x is 20% premium to the comps’ P/B valuation multiple which is justified due to the company’s higher ROE, operating margins and stronger balance sheet.

China Healthcare Weekly (Jun.29) – Biotech Valuation Bubble Is About to Burst, Innovent’s Placement

The valuation bubble of innovative drug companies is about to burst as some founders/shareholders have started to reduce their holdings and cash out. We recommend investors to be rational.
Domestic innovative drugs market size would be about RMB600 billion by 2035. It is estimated the whole innovative drug industry’s CAGR would be about 15% for the next decade.
Innovent announced Placement with the Placing price of HK$78.36/share. However, valuation is clearly at a high level. A more suitable option is to take profits rather than buy.

Weekly Deals Digest (29 Jun) – FWD, HDB, Santos, PointsBet, New World, Dickson, HKBN, OneConnect

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: FWD Group Holdings (1828 HK) and HDB Financial Services Ltd (0117739D IN) IPOs.
Event-Driven developments: Santos Ltd (STO AU), Humm Group (HUM AU), PointsBet Holdings (PBH AU), New World Resources (NWC AU), Dickson Concepts Intl (113 HK), HKBN Ltd (1310 HK), OneConnect.

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Jun 28

Daily Brief ECM: Anjoy Food Group IPO: Buy It Now Frozen and more

In today’s briefing:

Anjoy Food Group IPO: Buy It Now Frozen, Savor, and Anjoy It Later
Unisound AI IPO (9678.HK): Pricing and Hong Kong Debut, Low Float and High Valuation

Anjoy Food Group IPO: Buy It Now Frozen, Savor, and Anjoy It Later

By Tina Banerjee

Anjoy Food Group launched its Hong Kong IPO aiming to raise up to HK$2,639 million (US$336 million). The company plans to sell 39.9 million shares at HK$66 per share.
Anjoy is the largest quick-frozen food company in China, with a market share of 6.6% and 39 signature products, each generating revenue exceeding RMB 100 million.
Pricing pressure due to intense market competition is the concern that seems will persist in the near term. However, the company has long-term growth opportunities.

Unisound AI IPO (9678.HK): Pricing and Hong Kong Debut, Low Float and High Valuation

Unisound AI Technology, Chinese AI startup with focus on intelligent voice and speech processing technologies, priced its IPO at HK$205.00 per share, top of a range.
Beijing based AI company raised ~HK$320M in this offering, of which cornerstone investors acquired ~HK$95M worth of shares or ~30% of the total offer H shares.
The claw-back was triggered due to strong retail demand. The HK offering was ~92 times oversubscribed, and the allocation was increased to 624,400 H shares.

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Jun 27

Daily Brief ECM: EB Event Trade Setup: HD KSOE Lining up a New Deal with HD Hyundai Heavy as the Underlying and more

In today’s briefing:

EB Event Trade Setup: HD KSOE Lining up a New Deal with HD Hyundai Heavy as the Underlying
FWD IPO – Valuation Down but Its Difficult to Get Excited About It
FWD Group (1828 HK) IPO: Valuation Insights
FWD IPO Valuation: Intangible Assets Is the Key (Vs. Peers)
Kalpataru Ltd IPO – Cemented by Debt Repayment
Jefferson Capital Inc (JCAP): Value Investors Bid Up Insolvency Account Manager IPO

EB Event Trade Setup: HD KSOE Lining up a New Deal with HD Hyundai Heavy as the Underlying

By Sanghyun Park

HD KSOE plans a second EB similar to earlier this year: a zero-coupon, 2% HD Hyundai Heavy stake with 13–15% premium, aiming to raise around ₩850 billion.
With Korea’s Commercial Act revision expected by July 4, EB deals risk director liability; HD KSOE aims to raise cash now before stricter rules limit easy board-approved EB issuance.
Targeting a short in HD Hyundai Heavy triggered by HD KSOE’s board approval before July 4; consider hedging with a long position in HD KSOE due to ongoing sector catalysts.

FWD IPO – Valuation Down but Its Difficult to Get Excited About It

FWD Group, a pan-Asian life insurer founded by Richard Li, aims to raise around US$442m in its HK IPO.
FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia.
We looked at the company’s past performance in our previous notes. In this note we talk about the IPO pricing.

FWD Group (1828 HK) IPO: Valuation Insights

FWD Group Holdings (1828 HK) has launched its IPO to raise US$442 million at HK$38.00 per share. The shares will be listed on 7 July.
I previously discussed the IPO in FWD Group IPO: The Investment Case.
The IPO price implies a discount to peers’ multiples. A discount is warranted as FWD is smaller than its peers. FWD is fairly valued at the IPO price.

FWD IPO Valuation: Intangible Assets Is the Key (Vs. Peers)

By Alec Tseung

Based on HKD 38 offer price per share, FWD has a market capitalization of USD 6.1 billion, assuming the overallotment option is not exercised.
FWD’s P/FY’24 pro forma BV represents a significant discount to peers’ trading P/FY’24 BV since it has higher-than-peers intangible assets.
P/EV might be a fairer approach as it excludes intangible assets. On this basis, FWD valuation almost has no discount.

Kalpataru Ltd IPO – Cemented by Debt Repayment

Kalpataru Limited (KTARU IN) is looking to raise about US$184m in its upcoming India IPO.
Kalpataru (KL) is an integrated real estate developer involved in identification and acquisition of land, planning, designing, execution, sales, and marketing of its projects.
In this note, we take a quick look at the company’s past performance and the IPO valuations.

Jefferson Capital Inc (JCAP): Value Investors Bid Up Insolvency Account Manager IPO

By IPO Boutique

Jefferson Capital priced a full-size deal of 10.0mm shares at $15.00 (low-end of the range) and opened at $19.00 for a gain of 26.7% at open.
The IPO was marketed at just 5x 2026 earnings projections, which is extraordinarily cheap to current public competitors.
We feel that the “interest” in this IPO may tail off and the stock’s price will be performance driven based upon subsequent earnings reports.

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Jun 26

Daily Brief ECM: Xero US1.2bn Placement – Trying to Jump Start US and more

In today’s briefing:

Xero US1.2bn Placement – Trying to Jump Start US, Again. Might Not Be a Game Changer.
Innovent Biologics Placement – Second for the Month, Stock Has Doubled but Momentum Is Strong
Anjoy Foods Group A/H Listing – Isn’t Great but Can’t Ask for It to Cheaper
FWD Pre-IPO – PHIP Updates – Growth Slowing, Metrics Evolution Continues
Eternal Beauty IPO Trading – Weak Demand, Close to Fair Value
Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed
Anjoy Foods Group (2648 HK) IPO: Reasonably Attractive
Pre-IPO Nanjing Leads Biolabs (PHIP Updates) – Thoughts on the Valuation and the Outlook

Xero US1.2bn Placement – Trying to Jump Start US, Again. Might Not Be a Game Changer.

Xero Ltd (XRO AU) plans to raise around US$1.2bn via an institutional placement to partly fund the US$2.5bn acquisition for Melio.
The US market has been a growth dampener for Xero for a while. The acquisition is large but might not be a game changer.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Innovent Biologics Placement – Second for the Month, Stock Has Doubled but Momentum Is Strong

Innovent Biologics Inc (1801 HK) aims to raise around US$500m for R&D and marketing.
The company has undertaken a number of deals in the past, with the overall results being mixed but recent deals have done well.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Anjoy Foods Group A/H Listing – Isn’t Great but Can’t Ask for It to Cheaper

Anjoy Foods Group (603345 CH), a quick-frozen food company in China, aims to raise around US$336m in its H-share listing.
AFG was the largest quick-frozen food company in China in terms of revenue in 2023, with a market share of 6.2%, according to the Frost & Sullivan report.
We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

FWD Pre-IPO – PHIP Updates – Growth Slowing, Metrics Evolution Continues

FWD Group Holdings (FWD HK), a pan-Asian life insurer founded by Richard Li, now aims to raise around US$500m in its HK IPO.
FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia.
We looked at the company’s 2018-21 performance in our past notes. In this note, we will talk about the updates since then.

Eternal Beauty IPO Trading – Weak Demand, Close to Fair Value

Eternal Beauty Holdings raised around US$125m in its Hong Kong IPO.
Eternal Beauty is the largest brand management company of perfumes in the combined markets of Mainland China, Hong Kong and Macau, in terms of retail sales in 2023.
We have looked at the company’s past performance in our previous note. In this note we talk about the trading dynamics.

Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed

Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise up to $143m in its upcoming Hong Kong IPO
It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

Anjoy Foods Group (2648 HK) IPO: Reasonably Attractive

By Osbert Tang, CFA

Anjoy Foods Group (2648 HK)‘s H-share IPO at a maximum price of HK$66.00 appears reasonably attractive, as this equals a 33-34% discount to peer average FY25F PER.
It is well-positioned to capture quick-frozen food demand growth, will gain from geographical and market share expansion, and has solid product, marketing and production capability.
We value the stock at HK$72.66, 12.7x FY25F PER, or a 25% discount to the sector PER. It will also be on a 13.9% discount to its A-share.

Pre-IPO Nanjing Leads Biolabs (PHIP Updates) – Thoughts on the Valuation and the Outlook

Even if the first indication of LBL-024 is approved, it wouldn’t bring significant performance growth due to small market size for EP-NEC. Commercialization prospects of LBL-007 are also not optimistic.
Leads Biolabs’ CD3 pipelines would have higher hope to be successful. However, early-stage investors transferred their equity at a discount before IPO, which may reflect their concerns about the prospects.
Comfortable valuation is RMB3-4bn, which provides investors with a greater margin of safety.Especially in the context of current bull market of innovative drugs, biotech valuation has been full of bubble

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Jun 25

Daily Brief ECM: Shinhan Financial Group Placement – Clean-Up Trade but Stock Is at All Time-Highs and more

In today’s briefing:

Shinhan Financial Group Placement – Clean-Up Trade but Stock Is at All Time-Highs
Kitazato IPO Trading – Demand Was Strong
HDB Financial IPO: Valuation Insights
DH Shipbuilding IPO Preview
Cao Cao IPO Trading: Weak Institutional Demand; Clawback Triggered
Samyang Comtech IPO Valuation Analysis
Kent R O Systems Ltd IPO- Purity at a Price
Unisound AI IPO (9678.HK): Premium Multiple Is Not Justified, Small Scale and High Cash Burn
Leads Biolabs (维立志生物) Pre-IPO: PHIP Updates and Negative Read Through
Pre-IPO Cloudbreak Pharma (PHIP Updates) – Some Points Worth the Attention

Shinhan Financial Group Placement – Clean-Up Trade but Stock Is at All Time-Highs

Affinity Equity Partners is looking to raise around US$425m via selling 1.9% of its stake in Shinhan Financial (055550 KS).
Affinity had sold half of its stake earlier in 2024, when the company witnessed a number of selldowns in 1H24.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Kitazato IPO Trading – Demand Was Strong

Kitazato (368A JP) manufactures and sells medical devices and products for fertility treatment. It raised around US$130m in its Japan IPO.
Kitazato specializes in artificial insemination, in vitro fertilization, cell cryopreservation and reproductive engineering technologies in regenerative medicine
In our previous note, we looked at its past performance and the deal dynamics. In this note, look at the trading dynamics.

HDB Financial IPO: Valuation Insights

HDB Financial Services Ltd (0117739D IN) is India’s seventh-largest non-banking financial company (NBFC). It is seeking to raise Rs125 billion (US$1.4 billion).
I discussed the fundamentals in HDB Financial IPO: The Investment Case. The shares will be listed on 2 July.
My valuation analysis suggests the HDB is fully priced at the IPO price range of Rs 700- 740 per share. I would avoid the IPO.

DH Shipbuilding IPO Preview

By Douglas Kim

DH Shipbuilding is getting ready to complete its IPO in KOSPI in August. DH Shipbuilding would be the second largest IPO in Korea after LG CNS so far this year.
The IPO price range is 42,000 won to 50,000 won per share. At the high end of the IPO price range, it could raise as much as 500 billion won.
The bankers used four companies including HD Hyundai Heavy Industries, Hanwha Ocean, Samsung Heavy Industries, and HD Hyundai Mipo as comps for DH Shipbuilding.

Cao Cao IPO Trading: Weak Institutional Demand; Clawback Triggered

Cao Cao is a ride hailing platform in China that raised US$236m in its Hong Kong IPO.
As of 2024, it held a 5.4% market share as per Frost & Sullivan.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

Samyang Comtech IPO Valuation Analysis

By Douglas Kim

Our comparable companies valuation analysis suggests implied market cap of 557 billion won or target price of 13,187 won per share.
This represents a 71% upside from the high end of the IPO price range (7,700 won per share). Given the excellent upside, we have a Positive view of this IPO.
One could argue that valuation discount on Samyang Comtech may be too conservative mainly due to higher sales growth, ROE, and operating margins of Samyang Comtech relative to the comps.

Kent R O Systems Ltd IPO- Purity at a Price

By Nitin Mangal

Kent R O Systems (6592700Z IN) Kent R O Systems Ltd plans to come up with its IPO
The company is the second largest player in the Indian water purifier market with a market share of about 20%, behind Eureka Forbes.
We are concerned with the related party transactions of the company, especially with the promoters. The lease rental policy, coupled with some impairments, and trademark infringement matter also attracts attention.

Unisound AI IPO (9678.HK): Premium Multiple Is Not Justified, Small Scale and High Cash Burn

Unisound AI Technology, a Beijing-based AI solution provider with focus on conversational AI products, healthcare and daily life related application scenarios, is expected to IPO next week.
The offering is expected to be between HK$165.00 and HK$205.00, implying a market cap of ~HK$13B or ~$1.7B at the midpoint of price range.
Unisound AI Technology IPO valuation implies a premium relative to SenseTime, iFlytek and 4Paradigm. I would consider becoming more constructive on the name if its valuation came down.

Leads Biolabs (维立志生物) Pre-IPO: PHIP Updates and Negative Read Through

Leads Biolabs, a China-based clinical-stage biotech, is looking to raise at least USD 100 million via a Hong Kong listing. The joint book runners are MS and CITIC.
In our previous insight, we looked at the company’s core products and its management team, as well as investor backing.
In this insight, we look at the updates of the prospectus spanning six months’ time. We have also read through from the competing products’ disclosures.

Pre-IPO Cloudbreak Pharma (PHIP Updates) – Some Points Worth the Attention