ECM Daily Briefs | Page 18 of 158

In today’s briefing:

China Healthcare Weekly (May 25) – Pfizer-3SBio’s Record-Breaking Deal, RemeGen’s HK$796Mn Placing

China Healthcare Weekly (May 25) – Pfizer-3SBio’s Record-Breaking Deal, RemeGen’s HK$796Mn Placing

The 11th batch of national VBP rules is expected to include optimizations aimed at balancing bidding prices with drug quality
The US$6 billion deal between Pfizer and 3SBio has energized the innovative drug industry. While 3SBio’s valuation may continue to rise, Akeso’s valuation could face downward revisions.
RemeGen has shown positive momentum, with its valuation reflecting RC18’s successful out-licensing already. Its recent HK$796 million placement indicates a clear intent to raise funds at a premium.

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May 24

Daily Brief ECM: Dowoo Insys IPO Preview and more

In today’s briefing:

Dowoo Insys IPO Preview
MNTN, Inc. IPO: Blockbuster NYSE Debut, The Stock Has Skyrocketed ~65% on the First Trading Day

Dowoo Insys IPO Preview

By Douglas Kim

Dowoo Insys is getting ready to complete its IPO in Korea. Dowoo Insys is one of the first companies in Korea to commercialize ultra thin glass (UTG) for foldable displays.
The IPO price range is 29,000 won to 32,000 won. At the high end of the IPO price range, the expected market cap of the company is 351 billion won.
The bankers used five companies including Synopex, Duksan Neolux, and Innox Advanced Materials as comparable companies. The bankers used these companies’ average EV/EBITDA multiple of 15x to value Dowoo Insys.

MNTN, Inc. IPO: Blockbuster NYSE Debut, The Stock Has Skyrocketed ~65% on the First Trading Day

By Andrei Zakharov

MNTN, Inc., a high-growth provider of CTV performance marketing platform, priced its IPO at $16.00 per share, high end of range.
The offering was ~14x times oversubscribed, according to Mark Douglas, Founder & CEO of MNTN. The IPO opened at $21.00 and closed at $26.36 per share, up ~65%.
I think the stock was attractively priced vs. peers, given 30%+ growth rates, FCF positive business and top-tier backers.

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May 23

Daily Brief ECM: GMO Internet (4784) – Squeeze-Able So Squeezing and more

In today’s briefing:

GMO Internet (4784) – Squeeze-Able So Squeezing, Offering Likely Gets Pulled – AVOID LIKE THE PLAGUE
Jiangsu Hengrui Pharma H Share Listing (1276 HK): Trading Debut
HD Hyundai Marine Placement – Very Well Flagged, Overhang Easing but Last Deal Didn’t Do Well
Schloss Bangalore IPO – Growth Has Softened; Corporate Structure Reorganised
Jiangsu Hengrui Pharma A/H Trading – Strong Demand for Quality Asset, but Is Pricey
Paradigm REIT IPO – Stable Retail Base Facing Near-Term Lease Risks
Eco-Shop IPO Trading: Tepid Retail Demand but at a Discount to 99 Speedmart
Mirxes IPO Trading Update
MNTN Inc. (MNTN) – Marketing IPO Meets Investor Eye; Jumps 65% on Day One
Hinge Health (HNGE): VC Backed Virtual Therapy Provider IPO Pops 22% at Opening Print

GMO Internet (4784) – Squeeze-Able So Squeezing, Offering Likely Gets Pulled – AVOID LIKE THE PLAGUE

By Travis Lundy

GMO Internet (4784 JP) was created by the reverse takeover of a listed cad/media company by its parent company’s “internet infrastructure” business. GMO Internet Group ended up with ~98%.
In the process, the stock rose 500%. Now, as part of its promise to the TSE allowing TSE Prime membership for the extraordinarily low-float target, the parent is offering shares.
The squeeze has it at 180x Dec25e EPS, 111x EBIT, 70x book. The offering likely gets pulled and the stock isn’t shortable… so what next? Pain, and an ECLWO.

Jiangsu Hengrui Pharma H Share Listing (1276 HK): Trading Debut

Jiangsu Hengrui Pharmaceuticals (1276 HK) priced its H Share at HK$44.05 to raise HK$9,890.1 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.
The timing of the H Share listing is fortuitous, as the peers have materially re-rated since the prospectus was released on 15 May.
Hengrui had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.

HD Hyundai Marine Placement – Very Well Flagged, Overhang Easing but Last Deal Didn’t Do Well

KKR is looking to raise around US$410m via selling some of its stake in HD Hyundai Marine Solution (443060 KS).
KKR had come out of its IPO linked lockup in Nov 2024 and had tried to launch a deal in Dec 2024 and finally undertook a deal in Feb 2025.
In this note, we will talk about the placement and run the deal through our ECM framework

Schloss Bangalore IPO – Growth Has Softened; Corporate Structure Reorganised

Schloss Bangalore Ltd (SCHBL IN) is looking to raise about US$409m in its India IPO. The deal has been downsized from an earlier size of around US$600m.
It is a luxury hospitality company which owns, operates, manages and develops luxury hotels and resorts under ‘The Leela’ brand, through direct ownership and hotel management agreements with third-party owners.
We have looked at the company’s past performance in our previous notes. In this note, we talk about the RHP updates.

Jiangsu Hengrui Pharma A/H Trading – Strong Demand for Quality Asset, but Is Pricey

Jiangsu Hengrui Pharmaceuticals (1276 HK) (JHP, 600276 CH ), a China-based pharmaceutical company, raised around US$1.5bn in its H-share listing.
JHP Has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
We have looked at the company’s past performance and other deal dynamics in our previous note. In this note, we talk about trading dynamics.

Paradigm REIT IPO – Stable Retail Base Facing Near-Term Lease Risks

By Troy Wong

Paradigm REIT (PR) is looking to raise about US$131m in its upcoming Malaysia IPO. The deal will be run by Maybank, AmInvestment Bank, and CGS International.
PR offers stable exposure to well-located retail assets with high occupancy and steady rental growth.
While lease expiry risks and tenant concentration are concerns, current valuation at 17.4x FY25E P/E and 5.7% yield appears fair, given its higher occupancy and lower gearing than peers.

Eco-Shop IPO Trading: Tepid Retail Demand but at a Discount to 99 Speedmart

Eco-Shop Marketing (ECO MY) raised around US$227m in its Malaysia IPO, after pricing the deal at the bottom of the range at M$1.13/share.
It is the largest dollar chain in Malaysia, as per the number of stores it operates, as of 31 October 2024.
In our previous notes, we talked about the company’s historical performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we talk about the trading dynamics.

Mirxes IPO Trading Update

Mirxes raised HKD 1086m (USD 140m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, May 23rd.
In our previous note, we looked at the company’s core gastric cancer early detection products and brief analysis of its valuation.
In this note, we provide an update for the IPO before trading debut. The free float shares are highly concentrated.

MNTN Inc. (MNTN) – Marketing IPO Meets Investor Eye; Jumps 65% on Day One

MNTN priced a full-size deal of 11.7mm shares at the high-end of the range, $16.00, and opened at $21.00 for a gain of 31.3% at first trade.
The fireworks continued as the stock traded to a high of $26.88 before closing its opening session at $26.36 for a first day return of 65%.
The deal was considered multiple-times oversubscribed and our sources stated that the final deal finished north of 12-times oversubscribed.

Hinge Health (HNGE): VC Backed Virtual Therapy Provider IPO Pops 22% at Opening Print

Hinge Health priced a full-size deal of 13.666mm shares at the high-end of the range, $32.00 and opened for trading at $39.25 for a gain of 21.9% at first trade.
According to our sources, the deal finished north of 15-times oversubscribed. We are told that the deal was made more “exclusive” with one-third of the book being completely shut-out.
Another virtual healthcare provider, Omada Health, recently filed for its IPO. If the valuation of Omada Health is more aggressive, it could provide a boost to Hinge Health’s price.

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May 22

Daily Brief ECM: Hanwha Aerospace: Higher Rights Offering Price and Amount and more

In today’s briefing:

Hanwha Aerospace: Higher Rights Offering Price and Amount
Chery IPO Preview: More Than A Local Hero, Chery’s Road To IPO Glory
Xiamen Hithium Pre-IPO: Potential Data Center Play
Karamtara Engineering Ltd Pre-IPO – Robust Revenue Growth Amid Cash Flow Pressures
Pre-IPO Ab&B Bio-Tech: Commercialization May Be Lower than Expected, Thereby Dragging Down Valuation

Hanwha Aerospace: Higher Rights Offering Price and Amount

By Douglas Kim

On 21 May, Hanwha Aerospace (012450 KS) announced that the rights offering price increased to 684,000 won (up 26.9% from 539,000 won previously) due to recent increase in price.
Due to the higher rights offering price, the scale of the capital raise has increased from 2.3 trillion won previously to 2.9 trillion won (US$2.1 billion).
Issue price is determined by applying a 15% discount rate to the one-month weighted arithmetic average price, one-week weighted arithmetic average price, and the closing price on the base date.

Chery IPO Preview: More Than A Local Hero, Chery’s Road To IPO Glory

By Andrei Zakharov

Chery Auto, one of China’s oldest state-owned carmakers and #2 domestic passenger vehicle brand, plans to raise more than $1B in its upcoming IPO in Hong Kong.
The company has been China’s top vehicle exporter for 22 consecutive years since 2003. The automaker was founded in 1997 Mr. Yin Tongyue, Chairman & President of Chery Auto.
Chery Auto is an extremely ambitious company with strong overseas presence. The biggest revenue growth driver will be higher NEV sales in the coming years, in my view.

Xiamen Hithium Pre-IPO: Potential Data Center Play

Xiamen Hithium (2190977D CH) is looking to raise at least US$500m in its upcoming HK IPO.
It is a leading global new energy technology company providing all-round energy storage solutions centred around energy storage batteries and systems.
In this note, we look at the firm’s past performance.

Karamtara Engineering Ltd Pre-IPO – Robust Revenue Growth Amid Cash Flow Pressures

By Rosita Fernandes

Karamtara Engineering Ltd (6589452Z IN) (KEL) is planning to raise about US$200m in its upcoming India IPO.
KEL is a backward integrated manufacturer of products for renewable energy and transmission lines sectors.
As per F&S report, KEL was a leading manufacturer of solar mounting structures and tracker components in India and the largest in terms of installed capacity in FY24 and 1H25.

Pre-IPO Ab&B Bio-Tech: Commercialization May Be Lower than Expected, Thereby Dragging Down Valuation

The investment logic of vaccine companies is different from that of biotech. Generally speaking, vaccine companies cannot develop to large scale without successfully betting on blockbuster vaccine varieties.
Commercialization of Ab&B’s vaccines could face uncertainties due to fierce competition/price war/slower R&D progress. Some Class II vaccines could be converted to Class I vaccines. Breakthrough point lies in internationalization.
After Series B financing, post-money valuation reached RMB4.2 billion. Since CanSino’s pipelines are either global innovative, or potential best-in-class or first-in-class in China, Ab&B’s valuation should be lower than CanSino.

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May 21

Daily Brief ECM: Belrise Industries IPO – RHP Updates & Thoughts on Peer Comp and Valuation and more

In today’s briefing:

Belrise Industries IPO – RHP Updates & Thoughts on Peer Comp and Valuation
Eastroc Beverage A/H Listing – Energized – Fast Growth, Better Margins
Pre-IPO Shouhui Tech (PHIP Updates) – Some Points Worth the Attention

Belrise Industries IPO – RHP Updates & Thoughts on Peer Comp and Valuation

Belrise Industries (9156339Z IN) is looking to raise about US$255m in its upcoming India IPO.
Belrise Industries is an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial and agri-vehicles.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

Eastroc Beverage A/H Listing – Energized – Fast Growth, Better Margins

Eastroc Beverage Group (605499 CH) (EB), a China-based functional beverage company, aims to raise around US$1bn in its H-share listing.
According to Frost & Sullivan (F&S), EB has been the largest functional beverage company in China in terms of sales volume for four consecutive years since 2021.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

Pre-IPO Shouhui Tech (PHIP Updates) – Some Points Worth the Attention

Shouhui’s business model does not have high barriers, with weak ability to resist risks.For investors, this is a bet on the industry’s prospects and a test of the management’s ability.
The “unified reporting and underwriting” policy has become the turning point in this industry. If financial performance continues to deteriorate, Shouhui may undergo business restructuring or seek M&As.
Due to increasing competition, decreasing commissions, disintermediation trend, tightening policy environment, we are not optimistic about the outlook of Shouhui. The valuation of Shouhui would be lower than peers.

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May 20

Daily Brief ECM: CATL A/H Trading – Strong Demand and more

In today’s briefing:

CATL A/H Trading – Strong Demand, Upsized, Included in Short-Sell List
CATL H Share Listing (3750 HK) IPO: Trading Debut
PegBio 派格生物 IPO: A Hardsell but Mostly Done Deal
Hinge Health (HNGE): Growth Surging into IPO, Valuation at Major Discount to 2021 Peak
MNTN Inc. (MNTN) – “Netflix of Marketing” IPO; Solid Deal Dynamics in a Highly Competitive Industry
Pre-IPO Zhou Liu Fu Jewellery – It Is Hard to Capitalise on the Soaring Gold Price

CATL A/H Trading – Strong Demand, Upsized, Included in Short-Sell List

Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, raised around US$5.2bn in its H-share listing.
Contemporary Amperex Technology (3750 HK) is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about the trading dynamics.

CATL H Share Listing (3750 HK) IPO: Trading Debut

Contemporary Amperex Technology (3750 HK) priced its H Share at HK$263 to raise HK$35,657.2 million (US$4.6 billion) in gross proceeds. The H Share will be listed tomorrow.
The H Share listing price implies an AH discount of 6.6% at the A Share price of RMB63.51. This compares to Midea Group (300 HK)‘s AH discount of 4.7%.
CATL had the highest oversubscription rates among recent large AH listings. Our valuation analysis suggests that the H Share listing price is attractive.

PegBio 派格生物 IPO: A Hardsell but Mostly Done Deal

PegBio, a China-based near commercial stage biotech company, launched its IPO to raise up to US$39m via a Hong Kong listing.
We have previously covered the company’s fundamentals and valuation. We highlight issues of the company.
In this note, we look at the deal term. We think the valuation is demanding, but the company managed to get support from local government facilitate its listing.

Hinge Health (HNGE): Growth Surging into IPO, Valuation at Major Discount to 2021 Peak

The venture-capital backed company set terms for its IPO and will be seeking a valuation cut of more than 50% from its 2021 peak.
Their revenue was $123.8 million and $82.7 million for the three months ended March 31, 2025 and 2024, respectively, representing a year-over-year growth rate of 50%.
This IPO has gained a substantial amount of orders as the underwriters are classifying the books as multiple-times oversubscribed.

MNTN Inc. (MNTN) – “Netflix of Marketing” IPO; Solid Deal Dynamics in a Highly Competitive Industry

Their self-serve software platform enables marketers to precisely target audiences through their MNTN Matched technology and then directly attribute each view to a purchase or other action.
Detractors of this IPO may point to the lack of profitability of a company founded in 2009 as well as the immense competition in the space.
The company does have a grand vision and a solid core of backers with a manageable deal size. Furthermore, 19 of the last 25 quarters have produced positive adjusted EBITDA.

Pre-IPO Zhou Liu Fu Jewellery – It Is Hard to Capitalise on the Soaring Gold Price

Zhou Liu Fu’s fundamentals would not significantly improve due to the surge in gold prices, but would deteriorate instead due to rising raw material costs and reduced customer demand.
The franchise model and declining profit margins have always been the issues. Zhou Liu Fu also has faced dual competition from traditional jewelry companies and emerging jewelry brands.
We are not optimistic about Zhou Liu Fu’s performance outlook. Valuation of Zhou Liu Fu could be lower than peers and the industry average.

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May 19

Daily Brief ECM: Weekly Deals Digest (18 May) – CATL and more

In today’s briefing:

Weekly Deals Digest (18 May) – CATL, Hengrui, ESR, OneConnect, Mayne, Nissin, Nippon Road, TechnoPro
ECM Weekly (19 May 2025) – CATL, Hengrui, Green Tea, SMPP, Unisound, Renesas, Genda, GMO, PayTM
GMO Internet Placement: Extremely Overvalued at the Moment
Pre-IPO Mirxes Holding (PHIP Updates) – Some Points Worth the Attention

Weekly Deals Digest (18 May) – CATL, Hengrui, ESR, OneConnect, Mayne, Nissin, Nippon Road, TechnoPro

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: Contemporary Amperex Technology (3750 HK) and Jiangsu Hengrui Pharmaceuticals (1276 HK) launch H Share listings.
Event-Driven developments: ESR Group (1821 HK), Oneconnect Financial Technology (6638 HK), Mayne Pharma (MYX AU), Nissin Corp (9066 JP), Nippon Road (1884 JP), Technopro Holdings (6028 JP).

ECM Weekly (19 May 2025) – CATL, Hengrui, Green Tea, SMPP, Unisound, Renesas, Genda, GMO, PayTM

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, Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Medicine (600276 CH) will remain in the spotlight in the coming week as well.
On the placements front, Japan deals appear to be picking up again.

GMO Internet Placement: Extremely Overvalued at the Moment

GMO Internet Group (9449 JP) is looking to sell its 33.4% stake in its subsidiary GMO Internet (4784 JP) to meet free-float requirements.
Shares are very overvalued at the moment and should be worth a mere fraction of its current trading value.
We have looked at the company’s deal dynamics in our earlier notes. In this note, we discuss the firm’s outlook as well as valuation.

Pre-IPO Mirxes Holding (PHIP Updates) – Some Points Worth the Attention

GASTROClear’s clinical application may be limited by doctors’ lack of sufficient trust/recognition. GASTROClear could mainly be commercialized in the non-clinical market in China first. However, the competition is more intense.
The dual pressure of lack of medical insurance reimbursement and higher pricing may lead to lower-than-expected market penetration.It’s not easy for Mirxes’ revenue to return to the level of 2021.
Short-Term valuation depends on market sentiment, but in long term, it still depends on the commercialization performance and the improvement of cash flow. The IPO pricing is expensive.

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May 18

Daily Brief ECM: China Healthcare Weekly (May.18) – Trump to Lower US Drug Prices and more

In today’s briefing:

China Healthcare Weekly (May.18) – Trump to Lower US Drug Prices, Thoughts on Hengrui’s IPO Pricing

China Healthcare Weekly (May.18) – Trump to Lower US Drug Prices, Thoughts on Hengrui’s IPO Pricing

Trump signed an executive order aimed at lowering prescription drug prices in the US, but the specific implementation may encounter obstacles. This is good news for China’s innovative drug assets.
Under tariff/trade war, as long as the US does not issue any bill proposing to suspend the technology exchange, licensing-out business model of China biotech will not be substantially affected.
Hengrui’s IPO in Hong Kong is not attractive from a fundamental perspective. However, the recent strong performance of Hengrui’s A-share has lifted investors’ sentiment, making them “interested” in this IPO.

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May 16

Daily Brief ECM: Jiangsu Hengrui Pharma A/H Listing – Low-End Is Probably Close to Fair Value and more

In today’s briefing:

Jiangsu Hengrui Pharma A/H Listing – Low-End Is Probably Close to Fair Value
Jiangsu Hengrui Pharma H Share Listing (1276 HK): Valuation Insights
CATL (3750 HK): Powered by the PetroDollar. HK Offer Overview and Valuations.
Bharti Airtel Block – Another Singtel Selldown Worth US$1bn
Zinka Logistics IPO Lockup – US$530m Lockup Release; PE Investors Might Look to Book Gains
Green Tea Group IPO Trading – Decent Institutional Coverage, Likely to Trade Well
Mirxes IPO: Valuation Without Sensible Fundamentals
MNTN, Inc. IPO Valuation Analysis: Growth Accelerated in 1Q’25, Attractive Valuation Vs. Peers

Jiangsu Hengrui Pharma A/H Listing – Low-End Is Probably Close to Fair Value

Jiangsu Hengrui Medicine (600276 CH), a China-based pharmaceutical company, aims to raise around US$1.3bn in its H-share listing.
JHP Has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
We have looked at the company’s past performance and other deal dynamics in our previous note. In this note, we talk about the IPO pricing.

Jiangsu Hengrui Pharma H Share Listing (1276 HK): Valuation Insights

Jiangsu Hengrui Pharmaceuticals (1276 HK) has launched its H Share listing at HK$41.45 to HK$44.05 per H Share. Pricing will be on 21 May.
I discussed the H Share listing in Jiangsu Hengrui Pharma H Share Listing: The Investment Case.
The proposed AH discount can be argued as either light or attractive. I lean toward the latter and would participate in the H Share listing.

CATL (3750 HK): Powered by the PetroDollar. HK Offer Overview and Valuations.

By Devi Subhakesan

Contemporary Amperex Technology (CATL) (300750 CH) has offered118 million shares in Hong Kong, priced at HKD263 per share, a modest discount to its A share price.
More than half of the USD4 Billion Hong Kong share offering has already been subscribed by cornerstone investors.
Middle Eastern sovereign wealth funds are amongst CATL’s key corner stone investors while the deal excluded US onshore investors given the mounting geopolitical tensions.

Bharti Airtel Block – Another Singtel Selldown Worth US$1bn

Pastel Ltd, a subsidiary of Singapore Telecommunications (Singtel) is looking to raise up to US$1bn via selling a 0.8% stake in Bharti Airtel Limited.
Singtel had sold a 0.8% stake (US$950m then) to GQG Partners in Mar 2024. Singtel had a total stake of around 29.3% in the firm, as of the last close.
In this note, we run the deal through our ECM framework and comment on deal dynamics.

Zinka Logistics IPO Lockup – US$530m Lockup Release; PE Investors Might Look to Book Gains

Blackbuck (1355652D IN) raised around US$130m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of users), with 27.52% of India’s truck operators transacting on its platform in FY24, as per Redseer.
In this note, we will talk about the lockup dynamics and possible placement.

Green Tea Group IPO Trading – Decent Institutional Coverage, Likely to Trade Well

By Troy Wong

Green Tea Group (GTG) raised around US$ 110m in its Hong Kong IPO in its Hong Kong IPO.
Green Tea is the fourth largest Casual Chinese Cuisine player in Mainland China, it has been gaining market share historically and is likely to continue doing so.
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.

Mirxes IPO: Valuation Without Sensible Fundamentals

Mirxes, a Singapore-based clinical-stage biotechnology company, launched its IPO to raise up to US$139m via a Hong Kong listing.
We look at the deal dynamics and latest developments in the early cancer screening sector in China.
We are of the view that there’s little fundamentals supporting that valuation. Precision oncology companies have not done well in China.

MNTN, Inc. IPO Valuation Analysis: Growth Accelerated in 1Q’25, Attractive Valuation Vs. Peers

By Andrei Zakharov

MNTN, Inc., a fast-growing advertising software company, has announced the initial price range for its upcoming US IPO.
The offering is expected to be between $14.00 and $16.00 per share, implying a market cap of ~$1.4B on a fully-diluted basis at the midpoint of price range.
BlackRock has indicated a non-binding interest in purchasing up to $30M worth of MNTN shares at the IPO price. The price range is seen as attractively valued, in my view.

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May 15

Daily Brief ECM: GMO Internet (4784) Offering – This Is a GINORMOUS Re-IPO – AVOID LIKE THE PLAGUE and more

In today’s briefing:

GMO Internet (4784) Offering – This Is a GINORMOUS Re-IPO – AVOID LIKE THE PLAGUE
GMO Internet Placement: Secondary Sell-Down (Quasi IPO) To Meet Prime Listing Requirements
GMO Internet (4784 JP): A Huge US$1.9 Billion Secondary Offering
Mirxes Pre-IPO: Challenges for Mass Adoption Become Clearer
Hinge Health (HNGE): VC Backed Virtual Therapist Company Seeking $2.6b Valuation
SMPP Ltd Pre-IPO – In the Right Space (Defence), at the Right Time but Growth Has Been Inconsistent
MNTN, Inc. (MNTN) -Performance Marketing Platform Sets Terms for IPO; Seeking $1.2b Valuation
EToro Group Ltd (ETOR): Strong IPO Pricing Outcome Yields Explosive Debut
Omada Health (OMDA): Virtual Healthcare Provider for Chronic Conditions Filed for IPO
Ravi Infrabuild Projects Ltd Pre-IPO Tearsheet

GMO Internet (4784) Offering – This Is a GINORMOUS Re-IPO – AVOID LIKE THE PLAGUE

By Travis Lundy

Last year, GMO injected its internet business into GMO Internet (4784 JP) and took shares as consideration. Somehow, GMO Internet got a TOPIX inclusion earlier this year.
The company has 1.24% float of 3.4mm shares. GMO Internet Group – the parent – will now offload 91.7mm shares in an equity offering to meet TSE Continued Listing Requirements.
That is about ¥279bn at current price against float of ¥10bn. Full market cap is ¥850bn. That’s 170x Dec25e Net Income. I expect the price will fall. You were warned.

GMO Internet Placement: Secondary Sell-Down (Quasi IPO) To Meet Prime Listing Requirements

GMO Internet Group (9449 JP) is looking to sell its 33.4% stake in its subsidiary GMO Internet (4784 JP) to meet free-float requirements.
As the current free-float is tiny, the deal is more like a quasi-IPO rather than a placement, in our view.
In this note, we will talk about the deal dynamics as well as updates on the company’s financial performance.

GMO Internet (4784 JP): A Huge US$1.9 Billion Secondary Offering

GMO Internet (4784 JP) has announced a secondary offering of 91.7 million shares, worth around US$1.9 billion.
The selling shareholder is GMO Internet Group (9449 JP). The secondary offering aims to increase the tradable share ratio to satisfy the TSE Prime Market’s continued listing criteria.
The offering represents 239.4 days of the 1-year ADV, the highest compared to the recent large Japanese placements. Pricing is likely to be on 5 June.

Mirxes Pre-IPO: Challenges for Mass Adoption Become Clearer

After an IPO attempt two years ago, Mirxes filed an updated prospectus in an attempt to raise at least US$100m via a Hong Kong listing.
In our previous note, we analyzed its product pipelines and highlighted signs of commercialization challenges.
In this note, we note that the company expanded its clinical trial plans. Yet, more data shows that blockbuster-level uptakes are unlikely given the profile of its clinical data.

Hinge Health (HNGE): VC Backed Virtual Therapist Company Seeking $2.6b Valuation

The venture-capital backed company set terms for its IPO on Tuesday. The company will be offering 13.666 million shares at a $28-$32 range equating to a valuation of $2.3b-$2.6b.
Their revenue was $123.8 million and $82.7 million for the three months ended March 31, 2025 and 2024, respectively, representing a year-over-year growth rate of 50%.
This IPO is checking the boxes in terms of growth and the valuation comes at a significant discount to a previous funding round making the deal attractive for new investors.

SMPP Ltd Pre-IPO – In the Right Space (Defence), at the Right Time but Growth Has Been Inconsistent

SMPP Ltd is planning to raise about US$476m through its upcoming IPO in India.
SMPP Ltd. designs and manufactures defence equipment, specialising in ammunition components and personal protection products for the Indian armed forces, police, and security agencies.
In this note, we look at the company’s past performance.

MNTN, Inc. (MNTN) -Performance Marketing Platform Sets Terms for IPO; Seeking $1.2b Valuation

MNTN set terms for its IPO by offering 11.7mm shares at $14-$16 and will debut on Thursday (5/22).
BlackRock is indicating for up to $30 million in this offering as a cornerstone investor and there is a directed share program locking down another 5% of the deal.
Their revenue grew by 47.3% to $64.5 million for the three months ended March 31, 2025, from $43.8 million for the three months ended March 31, 2024.

EToro Group Ltd (ETOR): Strong IPO Pricing Outcome Yields Explosive Debut

The company priced 11.9mm shares (upsized from 10.0mm) at $52.00 and opened at $69.69 for a gain of 34.0% at first trade.
Our sources stated that the deal finished north of 20-times oversubscribed with the bottom-third of the book being completely shut-out.
We believe the company was well-received due to an attractive valuation versus comps and by the performance of the comps in the sessions leading up to this debut.

Omada Health (OMDA): Virtual Healthcare Provider for Chronic Conditions Filed for IPO