ECM Daily Briefs | Page 17 of 160

In today’s briefing:

IFBH Ltd IPO: Heavy on Coconut and Light on Asset Makes the IPO Juicy
Virgin Australia IPO Trading – Flying into Oil and Recent Air Crash Headwinds
HDB Financial IPO: The Investment Case
IFBH IPO – Leading Position in a High Growth F&B Segment Driving Valuations
Jefferson Capital Inc (JCAP):Valuation Attractive, Sector-Dedicated Investors to Dominate the Book
Pre-IPO FWD Group Holdings (PHIP Updates) – The Pain Points and the Outlook
Cloudbreak (拨康视云) Pre-IPO: PHIP Updates
Beijing Geekplus Pre-IPO: PHIP Updates – Losses Continue to Narrow but Growth Decelerating
HDB Financial Services IPO – Parent Brand and Easing Macros Should See It Through

IFBH Ltd IPO: Heavy on Coconut and Light on Asset Makes the IPO Juicy

IFBH Ltd launched its Hongkong IPO aiming to raise up to HK$1,160 million. The company plans to sell 41.7 million shares at HK$25.3–27.8 per share.
IFBH is a ready-to-consume beverage and food company based in Thailand. It enjoys market leader position in the ready to drink coconut water segment in Mainland China.
The growth momentum is expected to continue in the near term. IFBH’s leadership position would help garner volume strength. We would recommend the investors to subscribe to the issue.

Virgin Australia IPO Trading – Flying into Oil and Recent Air Crash Headwinds

Bain Capital raised around US$440m via selling some of its stake in Virgin Australia Holdings (VAH AU).
Virgin Australia is the second largest airline group operating in the Australian aviation market, with an average 32% domestic RPT capacity market share in CY24.
We have looked at the company’s past performance and provided our thoughts on valuations in our previous note. In this note, we talk about the trading dynamics.

HDB Financial IPO: The Investment Case

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).
The proposed IPO comprises a primary raise of Rs25 billion (US$388 million) and a secondary raise of Rs100 billion (US$1.2 billion) by the parent.
The fundamentals are average at best, as HDB does not outperform its NBFC peers on key performance indicators.

IFBH IPO – Leading Position in a High Growth F&B Segment Driving Valuations

IFBH (IFBH HK) is looking to raise 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.
In our previous note, we looked at the firm’s past performance. In this note, we talk about the IPO valuations.

Jefferson Capital Inc (JCAP):Valuation Attractive, Sector-Dedicated Investors to Dominate the Book

For the three months ended March 31, 2025, they had net income of $64.2 million, compared to $32.9 million for the three months ended March 31, 2024.
The company is coming at an attractive valuation but our sources say traditional IPO investors “may” be staying on the sidelines for this deal.
This company is private equity backed by J.C. Flowers & Co and they will own 68.9% of the voting power following this IPO.

Pre-IPO FWD Group Holdings (PHIP Updates) – The Pain Points and the Outlook

Turning losses around in 2024 relied on capital market recovery and adjustment of accounting standards. If investment returns fluctuate or premium growth slows down, profits may again come under pressure.
The excessive goodwill of insurance companies is essentially “overdrawing the current valuation with future expectations”.Whether goodwill can be transformed into actual synergy effects is the key to determining long-term value.
The market usually gives lower valuation to companies with high goodwill. FWD relies on debt to provide funding for working capital/acquisition financing. Valuation of FWD should be lower than peers.

Cloudbreak (拨康视云) Pre-IPO: PHIP Updates

By Ke Yan, CFA, FRM

Cloudbreak re-filed for a Hong Kong listing to raise at least USD 100 million.
In this note, we look at updates to the prospectus. We noted delays in its products and downward revisions of prospects.
We checked peer performance and have a negative readthrough for the company.

Beijing Geekplus Pre-IPO: PHIP Updates – Losses Continue to Narrow but Growth Decelerating

Geek+ (1678559D CH) is looking to raise up to US$200m in its upcoming Hong Kong IPO.
It is the leader in the global autonomous mobile robots (AMR) market.
In this note, we provide updates on the firm’s past performance.

HDB Financial Services IPO – Parent Brand and Easing Macros Should See It Through

HDB Financial Services is looking to raise around US$1.5bn in its upcoming 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 in our previous note. In this note, we talk about the IPO pricing.

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Jun 23

Daily Brief ECM: Sanhua Intelligent Controls H Share Listing (2050 HK): Trading Debut and more

In today’s briefing:

Sanhua Intelligent Controls H Share Listing (2050 HK): Trading Debut
Zhejiang Sanhua Intelligent Controls A/H Trading – Strong Demand, Weakening Sentiment
Geek+ IPO Valuation Update: Growth Cratered, High U.S. Revenue Exposure
ECM Weekly (23 June 2025) – Foshan Haitian, Sanhua, Anjoy, Sany, CaoCao, Eternal, Zhou Liu, HDB Fin
Pre-IPO IFBH Pte. Ltd. (PHIP Updates) – The Hidden Risks Behind the Strong Growth and High Margins
Chandra Dayua Pre-IPO: Very Expensive, Avoid

Sanhua Intelligent Controls H Share Listing (2050 HK): Trading Debut

Zhejiang Sanhua Intelligent Controls (2050 HK) priced its H Share at HK$22.53 to raise HK$9,336 million (US$1.2 billion) in gross proceeds. The H Share will be listed tomorrow.
I discussed the H Share listing in Sanhua Intelligent Controls H Share Listing: The Investment Case.
Sanhua had the highest international oversubscription rates among recent large AH listings. Despite the weak price momentum, the AH discount is attractive.

Zhejiang Sanhua Intelligent Controls A/H Trading – Strong Demand, Weakening Sentiment

Zhejiang Sanhua Intellignt Controls (002050 CH) (ZSIC), a manufacturer of refrigeration and air-conditioning control components, raised around US$1.4bn in its H-share listing.
ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
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.

Geek+ IPO Valuation Update: Growth Cratered, High U.S. Revenue Exposure

By Andrei Zakharov

Geek+, AI & robotics warehouse automation provider, has updated its filings and reported weak revenue growth in 2024.
Beijing based AMR solution unicorn’s revenue grew to RMB2,409m in 2024, up ~12% YoY. However, gross margins improved, operating losses narrowed, and cash burn rate decreased.
My IPO valuation analysis coalesces around initial valuation range between $2.3B and $2.7B for Geek+ upcoming offering.

ECM Weekly (23 June 2025) – Foshan Haitian, Sanhua, Anjoy, Sany, CaoCao, Eternal, Zhou Liu, HDB Fin

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, Foshan Haitian (3288 HK) failed to perform at listing marking a turnaround for recent A/H listing. Sanhua Intelligent (2050 HK) will be next in line.
On the placements front, deals continued to flow across the region, with blocks in India showing no signs of abating.

Pre-IPO IFBH Pte. Ltd. (PHIP Updates) – The Hidden Risks Behind the Strong Growth and High Margins

IFBH’s revenue showed high growth in 2024. Due to asset-light business model, IFBH has good profit margin performance. Net profit is expected to have 20+% growth in next three years.
IFBH is facing significant pressure from intensified market competition and price wars. In recent years, a large number of brands have flooded the coconut water market, with serious product homogenization.
Considering the high risk of single product layout, concentration of customers/suppliers, and the far from perfect supply chain, there’s uncertainty in future prospects. Valuation could be lower than industry average

Chandra Dayua Pre-IPO: Very Expensive, Avoid

Chandra Dayua Investasi (2556380D IJ) is looking to raise up to $145m in its upcoming Hong Kong IPO.
It is the infrastructure arm of Chandra Asri Pacific (TPIA), backed by Indonesian billionaire Prajogo Pangestu.
In this note, we examine the IPO dynamics, and look at the firm’s valuation.

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Jun 22

Daily Brief ECM: China Healthcare Weekly (Jun.22) – CNPGC to Acquire Shuanglin and more

In today’s briefing:

China Healthcare Weekly (Jun.22) – CNPGC to Acquire Shuanglin, Thoughts on Zhou Liu Fu’s IPO Pricing
FWD Group IPO: The Investment Case

China Healthcare Weekly (Jun.22) – CNPGC to Acquire Shuanglin, Thoughts on Zhou Liu Fu’s IPO Pricing

The 2024 China Hospital Medication Market Pattern Report has been released, and we have found some interesting points worth the attention.
CNPGC plans to acquire 21.03% of Pacific Shuanglin’s shares at a premium of over 30% and become the actual controller. Due to horizontal competition issue, there’s potential M&A/privatization opportunities here.
The IPO of Zhou Liu Fu is fairly priced. But fundamentals would not improve due to high gold prices and would deteriorate instead. Share price upside potential could be lower-than-expected.

FWD Group IPO: The Investment Case

FWD Group Holdings (FWD HK) is a pan-Asia insurer that has filed its PHIP to raise around US$500 million.
FWD initially aimed for an NYSE IPO in 2021 to raise US$2-3 billion at a US$13-15 billion valuation. An HKEx listing in 2022 was shelved due to market conditions.
This note outlines the investment case. My analysis suggests that the fundamentals are mixed as FWD is rapidly growing its new business, but at the expense of its margin.

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Jun 21

Daily Brief ECM: Medtide (泰德医药) IPO: Aggressive Valuation and more

In today’s briefing:

Medtide (泰德医药) IPO: Aggressive Valuation
Orkla India Ltd. Pre-IPO Tearsheet
Oswal Pumps IPO Trading – Decent Anchor; Strong Overall Demand
Lalithaa Jewellery Mart Ltd Pre-IPO Tearsheet

Medtide (泰德医药) IPO: Aggressive Valuation

By Ke Yan, CFA, FRM

Medtide, a Chinese headquartered CDMO company, launched its IPO to raise up to US$66m via a Hong Kong listing.
We have previously covered the company’s fundamentals. We highlighted potential corporate governance issues despite its superior financials compared to peers.
In this note, we look at the deal term. We think the valuation and broker guidance is aggressive.

Orkla India Ltd. Pre-IPO Tearsheet

By Troy Wong

Orkla India Ltd. (OI) is looking to raise about US$300mn in its upcoming India IPO. The deal will be run by ICICI, Citi, JPM, and Kotak.
It’s a multi-category Indian food company offering a diverse range of products that cater to every meal occasion, from breakfast and lunch to dinner, snacks and beverages and desserts.
OI was one of the top four companies in terms of revenue from operations among select leading species and convenience foods peers in FY24, as per Technopak Report.

Oswal Pumps IPO Trading – Decent Anchor; Strong Overall Demand

Oswal Pumps (1019841D IN) raised about US$162m in its India IPO.
Oswal Pumps Ltd (OPL) specializes in the manufacturing of solar-powered and conventional pumps, electric motors, and related components for agricultural, residential, and industrial applications.
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.

Lalithaa Jewellery Mart Ltd Pre-IPO Tearsheet

By Rosita Fernandes

Lalithaa Jewellery Mart Ltd (1607844D IN) (LJML) is looking to raise about US$200m in its upcoming India IPO. The bookrunners for the deal are AnandRathi and Equirius.
LJML is a jewellery retailer operating under the brand name “Lalithaa”, offering a range of gold, silver, and diamond jewellery tailored to regional preferences in southern India.
As per the CRISIL Report, the company recorded the highest operating revenue per store among key organised jewellery players in India during FY22-9M25.

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Jun 20

Daily Brief ECM: Aug 5 LG CNS Lockup Comes Off: Street Heating Up on Macquarie Exit Odds Surging and more

In today’s briefing:

Aug 5 LG CNS Lockup Comes Off: Street Heating Up on Macquarie Exit Odds Surging
Nippon Building Fund Placement – Small Deal but Lacks Accretion
Saint Bella IPO (2508.HK): Cornerstone Investors Have Agreed To Take ~52% of the Offer Shares
Samyang Comtech IPO Preview
Knowledge Realty Trust Pre-IPO – The Negatives – Not All Assets Have Been Doing Well

Aug 5 LG CNS Lockup Comes Off: Street Heating Up on Macquarie Exit Odds Surging

By Sanghyun Park

Macquarie might fast-track its 21.5% LG CNS stake sale, shifting from patience to action — weighing staggered sell-down vs. OTC block to limit price impact.
Macquarie’s well in the money — even with a deal discount, they can offload the stake, cover remaining debt, and still lock in solid upside.
LG CNS is flying on AI hype, but Macquarie’s post-August 5 exit risk could flip the tape fast — overhang setup worth watching vs. other local AI plays.

Nippon Building Fund Placement – Small Deal but Lacks Accretion

Nippon Building Fund (8951 JP) is looking to raise around US$122m in its Primary Offering, to fund the acquisition of Frontier Musashikosugi N Building and S Building.
Unusually for Japan, the acquisition was announced at the end of last month, while the raising has only been announced today.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

Saint Bella IPO (2508.HK): Cornerstone Investors Have Agreed To Take ~52% of the Offer Shares

By Andrei Zakharov

Saint Bella, a luxury maternity and baby care brand, has announced the fixed offer price of HK$6.58 per share for its IPO in Hong Kong.
The company is expected to IPO next week and initial fixed offer price implies a market cap of ~HK$3.9B. Saint Bella is set to start trading on June 26, 2025.
Cornerstone investors have agreed to invest ~$42M in this offering. China Asset Management, JKKB and SS Morgan are among the cornerstone investors.

Samyang Comtech IPO Preview

By Douglas Kim

Samyang Comtec (a mid-sized defense company) is getting ready to complete its IPO in KOSDAQ in July. It is one of the leaders in the bulletproof and protective materials sector.
The IPO price range is from 6,600 won to 7,700 won per share. The IPO offering amount range is from 95.7 billion won to 111.7 billion won.
The company has experienced a surging growth in exports in the past several years. Exports which accounted for only 6.3% of total sales in 2022, increased to 41% in 2024.

Knowledge Realty Trust Pre-IPO – The Negatives – Not All Assets Have Been Doing Well

Knowledge Realty Trust (258259D IN) is planning to raise about US$558m through its upcoming India IPO. The deal has been downsized from an earlier estimated deal size of about US$712m.
Knowledge Realty Trust (KRT) owns and manages a high-quality office portfolio in India covering 87% of India’s office supply and gross absorption between FY16-9M24, as per the CBRE report.
In this note, we talk about the not-so-positive aspects of the deal.

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Jun 19

Daily Brief ECM: Eternal Beauty IPO – Not Expensive but Its Not Enticing Either and more

In today’s briefing:

Eternal Beauty IPO – Not Expensive but Its Not Enticing Either
Foshan Haitian Flavouring A/H Trading – Very Strong Demand, Weak Price Momentum
Foshan Haitian Flavouring H Share Listing (3288 HK): Trading Debut
Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong
Kilcoy Global Foods (KGF): China Based Protein Provider Readying for July IPO
CaoCao IPO: Forecasts and Valuation
Knowledge Realty Trust Pre-IPO – The Positives – Premium Market Positioning, Healthy Forecasts
FS.COM Limited Pre-IPO – Positioned to Capture Structural Demand in Networking
Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea
Caris Life Sciences, Inc. (CAI): AI Cancer TechBio Company Surges Six Points at Open

Eternal Beauty IPO – Not Expensive but Its Not Enticing Either

Eternal Beauty Holdings Limited is looking to raise around US$144m 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 valuations.

Foshan Haitian Flavouring A/H Trading – Very Strong Demand, Weak Price Momentum

Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, raised around US$1.5bn (including over-allocation) in its H-share listing.
FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
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.

Foshan Haitian Flavouring H Share Listing (3288 HK): Trading Debut

Foshan Haitian Flavouring & Food Company (3288 HK) priced its H Share at HK$36.30 to raise HK$10,128.9 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.
I discussed the H Share listing in Foshan Haitian Flavouring H Share Listing: The Investment Case.
Haitian had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.

Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong

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.
In this note, we examine the IPO dynamics, and look at the firm’s valuation.

Kilcoy Global Foods (KGF): China Based Protein Provider Readying for July IPO

By Shifara Samsudeen, FCMA, CGMA

They provide tasty, fresh, natural, healthy and convenient food products to customers across over 40 countries worldwide.
For the year ended December 31, 2024, they recorded a total revenue of US$2,195.0 million, increasing by 17.3% from US$1,870.7 million for the year ended December 31, 2023.
The area in which this company operates in is one that is not traditionally attractive to IPO investors as the margins are low and the competition is high.

CaoCao IPO: Forecasts and Valuation

Chinese ride-hailing platform CaoCao plans to issue 44.2m shares at the HKEx IPO at an indicative price of HK$41.9/share, and raise net proceeds of US$219m at a valuation of HK$28.9bn.
CaoCao’s earnings have seen strong growth during the last 2-3 years, however, much of this growth is driven through debt financing which has resulted in a highly geared balance sheet.
Our valuation analysis suggests that CaoCao (2643 HK) ‘s IPO is overvalued at the indicative IPO price and we would recommend staying on the sidelines.

Knowledge Realty Trust Pre-IPO – The Positives – Premium Market Positioning, Healthy Forecasts

Knowledge Realty Trust (258259D IN) is planning to raise about US$558m through its upcoming India IPO. The deal has been downsized from an earlier estimated deal size of about US$712m.
Knowledge Realty Trust (KRT) owns and manages a high-quality office portfolio in India covering 87% of India’s office supply and gross absorption between FY16-9M24, as per the CBRE report.
In this note, we talk about the firm’s historical performance.

FS.COM Limited Pre-IPO – Positioned to Capture Structural Demand in Networking

By Troy Wong

FS.COM Limited (FS) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
FS presents a compelling growth story rooted in structural demand for enterprise-grade networking and a differentiated DTC model that delivers both scale and customer proximity.
Its dominant SKU breadth, global Fortune 500 penetration, and aggressive shift toward high-performance solutions support sustained revenue expansion.

Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea

By Osbert Tang, CFA

Zhou Liu Fu Jewelery Co., Ltd. (6168 HK)‘s IPO does not appeal to us, given deteriorating profitability, smaller size, and inferior financials.
Its IPO price of HK$24.0 appears to be fair relative to the peers’ valuation, leaving limited upside and downside in the secondary market.
We value the stock at HK$22.5-25.7, based on 20-30% discount to Chow Tai Fook Jewellery (1929 HK). It is not another Laopu Gold (6181 HK).

Caris Life Sciences, Inc. (CAI): AI Cancer TechBio Company Surges Six Points at Open

The next-generation AI TechBio company priced a full size deal of 23.5mm shares at $21.00 and opened at $27.00 for a gain of 28.6% at first trade.
It was easy for IPO investors to wrap their heads around this company. Caris generates billions of data points and uses AI to customize immunotherapy for individuals.
Looking ahead, it is our opinion that this “could” be a company that investors tuck away in their portfolio for a long time.

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Jun 18

Daily Brief ECM: Cao Cao Pre-IPO: Grossly Overvalued and more

In today’s briefing:

Cao Cao Pre-IPO: Grossly Overvalued
CaoCao IPO (2643 HK): Valuation Insights
MakeMyTrip Placement – Basically a Selldown by Trip.com
Foshan Haitian: Upsized at Top Price. Near Term Upside, Long Term Value Play.
Foshan Haitian Flavouring & Food Company Hong Kong IPO Valuation Analysis
CaoCao IPO: Improving Financials but In Need of Cash
Loob Berhad Pre-IPO Tearsheet
Pre-IPO Anjoy Foods Group (PHIP Updates) – Thoughts on Performance Forecast and IPO Valuation
Sany Heavy Industries A/H Listing – Has Suffered Recently, Showing Signs of Stabilizing

Cao Cao Pre-IPO: Grossly Overvalued

CaoCao (2643 HK) is looking to raise up to $236m 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 examine the IPO dynamics, and look at the firm’s valuation.

CaoCao IPO (2643 HK): Valuation Insights

CaoCao (2643 HK) has launched its IPO to raise US$236 million at HK$41.94 per share. The shares will be listed on 25 June.
I previously discussed the IPO in CaoCao IPO: The Bull Case and CaoCao IPO: The Bear Case.
In this note, I present my forecasts and discuss valuation. My analysis suggests that CaoCao is at best fairly valued at the offer price. Therefore, avoid the IPO.

MakeMyTrip Placement – Basically a Selldown by Trip.com

By Shifara Samsudeen, FCMA, CGMA

Makemytrip Ltd (MMYT US) is looking to raise upto US$2.66bn via an equity combo of a 14m share selldown, which could raise around US$1.41bn and US$1.25bn five-year put-three convertible bonds.
The company plans to use the proceeds to buy back Class B shares from Trip.com to lower Trip.com’s voting power in MakeMyTrip to 19.99%.
In this note, we run the deal through our ECM framework and comment on deal dynamics.

Foshan Haitian: Upsized at Top Price. Near Term Upside, Long Term Value Play.

By Devi Subhakesan

Foshan Haitian has priced its Hong Kong offer at the top end (HKD36.3/share) and upsized it to 279 million shares, raising a strong HKD10.1 billion (USD1.3 billion).
With a massive 696x oversubscription and nearly half the deal secured by cornerstone investors, the stock could see a lively debut when it lists on June 19th.
We believe Foshan Haitian Flavouring (3288 HK) lacks a clear catalyst for growth and hence the growth expectations built into its Hong Kong pricing may prove difficult to materialise.

Foshan Haitian Flavouring & Food Company Hong Kong IPO Valuation Analysis

By Douglas Kim

On 17 June, Bloomberg reported that Foshan Haitian Flavouring & Food Company has raised HK$10.1 billion after a strong remand for its shares to be listed in Hong Kong.
We estimate the company to generate revenue of 29.4 billion RMB (up 9.2% YoY) and net profit of 6.8 billion RMB (up 7.1% YoY) in 2025.
Our valuation analysis suggests that Foshan Haitian is undervalued. Our base case valuation suggests implied market cap of 286 billion CNY, which represents 25% higher than current levels.

CaoCao IPO: Improving Financials but In Need of Cash

Backed by Geely Auto (175 HK) , CaoCao (2643 HK) is a ride-hailing platform operating in China and has filed for an IPO on the HKEx to raise around US$237m.
The company’s revenues have seen significant growth with expanding into new cities, while it has managed to generated gross margins and reduce operating losses.
However, CaoCao’s balance sheet is highly leveraged with borrowings accounting for 1.77x of total assets and in dire need of cash to grow its business and repay debt.

Loob Berhad Pre-IPO Tearsheet

By Troy Wong

Loob Berhad (LB) is looking to raise about US$150m in its upcoming Malaysia IPO. The deal will be run by Maybank and AmInvestment bank.
It’s the largest brand owner by number of stores in the F&B industry in Malaysia, as per the IMR Report. LB has two core brands, namely Tealive and Bask Bear.
Mainly operates directly-owned stores, with 979 Tealive stores (547 corporate stores, 400 franchised stores, and 5 licensed stores) and 135 Bask Bear stores (129 corporate stores and 6 licensed stores).

Pre-IPO Anjoy Foods Group (PHIP Updates) – Thoughts on Performance Forecast and IPO Valuation

With the outbreak of the Middle East war, Anjoy would face rising costs due to hyperinflation. Together with the sluggish consumption, 2025 performance growth of Anjoy would be under pressure.
The price war caused by overcapacity and increasing competition in the industry has forced companies to increase their promotional efforts, resulting in downward pressure on profit margin.
We shared our forecast for next three years. Valuation of Anjoy could be lower than Yihai (1579 HK) and Qianweiyangchu Food (001215 CH), but could be higher than the industry average.

Sany Heavy Industries A/H Listing – Has Suffered Recently, Showing Signs of Stabilizing

Sany Heavy Industry (600031 CH), aims to raise around US$1.5bn in its H-share listing.
Sany Heavy Industry was the world’s third largest and China’s largest construction machinery company in terms of construction machinery’s cumulative revenue from 2020 to 2024, according to Frost & Sullivan.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

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Jun 17

Daily Brief ECM: Foshan Haitian Flavouring & Food Company Hong Kong IPO Preview and more

In today’s briefing:

Foshan Haitian Flavouring & Food Company Hong Kong IPO Preview
Challenger Limited Placement: TAL Dai-Ichi Bidding Higher, Apollo Overhang Gone
Foshan Haitian HK Offer: Pantry Staples at Pricey Valuations. Key Facts, Financials & More
FWD IPO: What Are We Buying?
Biocon Ltd QIP – Well Flagged US$522m QIP; Largely Towards Clearing Debt
Bayzed Health Group IPO: Shows Flare; Still a Tough Road Ahead; Can Avoid The Issue
Pre-IPO Eternal Beauty Holdings (PHIP Updates) – The Outlook Has Changed
Slide Holdings Insurance, Inc.(SLDE): Florida Based Insurer Looking to Ride the Tailwinds of Sector
TransThera Sciences (Nanjing) IPO: Uniqueness of Lead Candidate Provides Comfort for Long-Term
Caris Life Sciences, Inc. (CAI): Price Bumped Higher, Intersection of Cancer and AI in High Demand

Foshan Haitian Flavouring & Food Company Hong Kong IPO Preview

By Douglas Kim

Foshan Haitian Flavouring & Food Company is the largest listed condiments producer in mainland China which is seeking to raise up to HK$9.56 billion (US$1.22 billion) in Hong Kong listing.
It is offering 263.2 million shares at HK$35 to HK$36.30 each. The final offer price is expected to be announced on 17 June.
Foshan Haitian Flavouring & Food is the largest condiments company in China with strong brand power with loyal customers.

Challenger Limited Placement: TAL Dai-Ichi Bidding Higher, Apollo Overhang Gone

AP Liberty (Apollo) is looking to raise US$170m from selling out its stake in Challenger Ltd (CGF AU) .
This selldown comes on the heels of a previous selldown in September 2024 ; Apollo is conducting a clean-up sale now.
In this note, we run the deal through our ECM framework and comment on deal dynamics.

Foshan Haitian HK Offer: Pantry Staples at Pricey Valuations. Key Facts, Financials & More

By Devi Subhakesan

Foshan Haitian, already listed in Shanghai, is offering 263.2 million shares in Hong Kong to raise up to HKD9.56 billion (USD1.22 billion); Final offer price will be set by today.
HK offer price is pitched at an appealing 19%–22% discount to its A-share close, however valuations are pricing in growth expectations that may not align with the underlying business dynamics.
Foshan Haitian operates in the condiments and sauces segment—a mature, saturated and competitive market with limited room for meaningful margin or volume expansion.

FWD IPO: What Are We Buying?

By Alec Tseung

While FWD has achieved strong growth in certain key markets, its overall new business growth rate didn’t differ significantly from the peers, AIA and Prudential.
Compared to the peers, it offers more exposure to Thailand/Cambodia, in terms of APE and VNB mix. But, the peers still have better scale in these markets.
We struggle to develop the thesis unless FWD’s valuation is really attractive. It’s also not expecting to pay any dividends in the near future while both peers do.

Biocon Ltd QIP – Well Flagged US$522m QIP; Largely Towards Clearing Debt

Biocon Ltd (BIOS IN) Biocon Ltd is looking to raise up to US$522m in its qualified institutional placement (QIP).
The deal is well flagged, having gone through rounds of board/shareholder approvals. The QIP has also been covered by domestic media reports.
In this note, we run the deal through our ECM framework and comment on deal dynamics.

Bayzed Health Group IPO: Shows Flare; Still a Tough Road Ahead; Can Avoid The Issue

Bayzed Health Group (BHG HK) launched its Hongkong IPO aiming to raise up to HK$ 900 million. The company plans to sell 133 million shares at HK$4.22–6.75 per share.
The company plans to utilize the IPO proceeds to continuously strengthening the full-cycle oncology healthcare services primarily through purchasing medical equipment and recruiting medical professionals.
Bayzed Health is an oncology healthcare group which posted revenue of RMB 1,189 million in 2024, up by 11% YoY. Gross margins improve; net losses narrow too.

Pre-IPO Eternal Beauty Holdings (PHIP Updates) – The Outlook Has Changed

Given that leading luxury groups are inclined to abandon agency and “get involved directly” in the beauty/fragrance category, such trend implies the risk of losing key suppliers in the future
Although there’re “reusable aspects” in management, expenses spent on brand channel are big, which makes it impossible for profits to benefit from “scale effect”.So, low profit margin is the norm.
Considering the risk of economic recession/sluggish consumption, Eternal Beauty’s net profit may experience negative growth in FY2025. It would gradually recover in FY2026-2027. Valuation could be lower than peers.

Slide Holdings Insurance, Inc.(SLDE): Florida Based Insurer Looking to Ride the Tailwinds of Sector

According to our sources, the deal is well-oversubscribed with good diversification from long-only accounts.
Looking at the financial metrics of this company, they wrote premiums of $1.33b in 2024 which was a 52.5% increase from 2023.
The success of the insurance sector as a whole including the strong performance of Ategrity Specialty Holdings (ASIC US) last week will only further enhance the optics of this IPO.

TransThera Sciences (Nanjing) IPO: Uniqueness of Lead Candidate Provides Comfort for Long-Term

TransThera Sciences, a clinical-stage biopharma, filed to list on HK. The company aims to raise HK$200M by offering 15M shares. The offer price is set at HK$13.15 ($1.7) per share.
The IPO opened on June 13 and closes on June 18. Allocations are expected on June 20, while trading is anticipated to commence on June 23.
The company intends to use the IPO proceeds to fund the research and development of core product candidate, Tinengotinib for various types of solid tumors.

Caris Life Sciences, Inc. (CAI): Price Bumped Higher, Intersection of Cancer and AI in High Demand

Caris Life Sciences increased the price range on its IPO on Monday ahead of a Wednesday scheduled debut.
According to our sources, the deal is multiple-times oversubscribed with a mix of new and existing investors. There are multiple mutual-fund anchor orders in the book.
Given how important this company’s technology is to the cancer arena and the revenue growth that is “ramping” into the IPO, we like the risk-reward profile of this deal.

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Jun 16

Daily Brief ECM: CaoCao IPO: The Bear Case and more

In today’s briefing:

CaoCao IPO: The Bear Case
ECM Weekly (16 June 2025) – Haitian, Sanhua, Kitazato, Primo, Kioxia, Xtalpi, Horizon, Keymed, Wuxi
Shanghai Junshi Bioscience (1877 HK): Placement Good, A Long Term Bet for Sure
Pre-IPO Bayzed Health Group (PHIP Updates) – Some Points Worth the Attention
Inventurus IPO Lockup: US$2.4bn Lockup Release; Pre-IPO Investors May Monetize

CaoCao IPO: The Bear Case

CaoCao Inc (1646553D CH) is the second-largest ride-hailing player in China. It has filed its PHIP to raise US$200-300 million.
In CaoCao IPO: The Bull Case, I highlighted the key elements of the bull case. In this note, I outline the bear case.
The bear case rests on low net take rates, unfavourable trends of key cost items, expected losses in the current year and a stretched balance sheet.

ECM Weekly (16 June 2025) – Haitian, Sanhua, Kitazato, Primo, Kioxia, Xtalpi, Horizon, Keymed, 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, Foshan Haitian Flavouring & Food (603288 CH) launched its IPO, while Zhejiang Sanhua Intellignt Controls Co., Ltd. (002050 CH) has been pre-marketing.
On the placements front, there were a number of large deals acros the region, along with some large lockup expiries.

Shanghai Junshi Bioscience (1877 HK): Placement Good, A Long Term Bet for Sure

Shanghai Junshi Biosciences (1877 HK) is placing 41M H shares for subscription at HK$25.35 per H Share.
Shanghai Junshi intends to use 70% of the net proceeds from the placement for innovative drug development and balance 30% for general corporate purposes such as replenishment of working capital.
Early green shoots in the form of lower R&D expenses and narrowing losses. Junshi offers for a good long-term bet as the company turning profitable will take some time.

Pre-IPO Bayzed Health Group (PHIP Updates) – Some Points Worth the Attention

The positioning of Bayzed is just “a supplement to public hospitals system”, with limited scale and competitiveness, which is a point that investors may need to be aware of.
A big problem in the operation of Bayzed is the loss status/weak profitability. At current gross margin level, it would be difficult for Bayzed to deliver good returns for investors.
Valuation of Bayzed should be lower than Inkon Life Technology and Hygeia. The Pre-IPO valuation is not cheap, and the valuation upside potential may be limited considering weak profitability.

Inventurus IPO Lockup: US$2.4bn Lockup Release; Pre-IPO Investors May Monetize

Inventurus Knowledge Solutions (IKSINCD IN) raised around US$295m in its India IPO in Dec 2024. The lockup on its pre-IPO investors is set to expire soon.
It is a technology-enabled healthcare solutions provider, assisting physician enterprises in US, Canada and Australia, with a core focus in the US.
In this note, we will talk about the lockup dynamics and possible placement.

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Jun 15

Daily Brief ECM: Weekly Deals Digest (15 Jun) – Haitian and more

In today’s briefing:

Weekly Deals Digest (15 Jun) – Haitian, Sanhua, Toyota Industries, Tryt, Fengxiang, HKBN, Mayne
China Healthcare Weekly (Jun.15) – Outlook of GLP-1 Market, WuXi Bio’s Placement, Keymed’s Placement

Weekly Deals Digest (15 Jun) – Haitian, Sanhua, Toyota Industries, Tryt, Fengxiang, HKBN, Mayne

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: Foshan Haitian Flavouring & Food Company (3288 HK) and Zhejiang Sanhua Intelligent Controls (2050 HK) H share listings and CaoCao Inc (1646553D CH) IPO.
Event-Driven developments: Toyota Industries (6201 JP), TRYT (9164 JP), With Us Corp (9696 JP), Shandong Fengxiang (9977 HK), HKBN Ltd (1310 HK), Mayne Pharma (MYX AU).

China Healthcare Weekly (Jun.15) – Outlook of GLP-1 Market, WuXi Bio’s Placement, Keymed’s Placement