ECM Daily Briefs | Page 2 of 106

In today’s briefing:

ICTK IPO Preview
Trial to Become 5th Biggest Supermarket Post-IPO

ICTK IPO Preview

By Douglas Kim

ICTK is getting ready to complete its IPO in KOSDAQ in May. The IPO price range is from 13,000 won to 16,000 won.
According to the bankers’ valuation, the expected market cap of the company after the listing is 171 billion won to 210 billion won.
ICTK is a security company specializing in Internet of Things (IoT) based on physical copy prevention technology.

Trial to Become 5th Biggest Supermarket Post-IPO

By Michael Causton

Trial, the discount FMCG and retail technology company, completed its IPO last month, achieving an initial market capitalisation higher than most of its rivals in the supermarket sector.
If forecasts for FY2023 are achieved, it will become the 5th largest chain in the country and its proprietary technology should give it an important advantage in the medium term.
But its position at the centre of the fast-growing discount sector will drive the real growth, and the Kyushu-based firm will emerge as challenger to leading retailers.

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Apr 10

Daily Brief ECM: HD Hyundai Marine Solution IPO Valuation Analysis and more

In today’s briefing:

HD Hyundai Marine Solution IPO Valuation Analysis
WT Micro Placement – Another Well-Flagged Taiwan GDR Offering, This One Is Easier to Digest
ZEEKR IPO: Latest Updates as the IPO Process Restarts
OceanaGold Philippines IPO – Small yet Asking for a Lot
Afcons Infrastructure Limited Pre-IPO Tearsheet
Kayou Pre-IPO – The Negatives – Unexplained 9M23 Slump

HD Hyundai Marine Solution IPO Valuation Analysis

By Douglas Kim

Our base case valuation of HD Hyundai Marine Solution is target price of 98,254 won per share, representing an 18% upside from the high end of the IPO price range.
The company’s ROE averaged 67% in 2022 and 2023. In comparison, the comps’ ROE averaged 10.6% in the same period. [HD Hyundai Marine Solution > Comps]
Our base case valuation is based on 24.7x P/E (comps’ average) using our estimated net profit of 178.7 billion won for the company in 2024.

WT Micro Placement – Another Well-Flagged Taiwan GDR Offering, This One Is Easier to Digest

WT Microelectronics (3036 TT) is looking to raise US$341m in its GDR offering. The proceeds will be used to purchase raw materials overseas.
The deal is a very well flagged one, and will be a relatively small one to digest at just 4.8 days of the stock’s three month ADV.
In this note, we run the deal through our ECM framework and comment on the deal dynamics.

ZEEKR IPO: Latest Updates as the IPO Process Restarts

ZEEKR (ZK US), a premium Chinese BEV manufacturer and a subsidiary of Geely Auto (175 HK), has restarted its IPO process to raise US$500 million by listing on the NYSE.
We previously discussed the IPO in ZEEKR IPO: The Bull Case and ZEEKR IPO: The Bear Case.
The latest SEC filings reinforce the bear case due to weak industry sentiment, rapidly slowing growth, ongoing operating losses and volatile FCF.

OceanaGold Philippines IPO – Small yet Asking for a Lot

OceanaGold Philippines (OGCP000D PM) is looking to raise up to US$140m in its Philippines IPO.
OceanaGold Philippines (OGPI) is a producer of gold and copper in the Philippines, and a subsidiary of OceanaGold Corporation, a Toronto Stock Exchange (TSX) listed gold mining and exploration company.
In this note, we talk about the company’s historical performance and share our quick thoughts on valuation.

Afcons Infrastructure Limited Pre-IPO Tearsheet

Afcons Infrastructure Limited (6595396Z IN) is looking to raise US$840m in its upcoming India IPO. The bookrunners are Jefferies, Nomura, ICICI Securities, SBI Capital, DAM Capital, and Nuvama Wealth.
Afcons Infrastructure Limited (Afcons) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group.
As per the Fitch report, the firm was one of India’s largest international infrastructure companies as per the 2023 ENR top international contractors ranking, based on FY23 international revenue.

Kayou Pre-IPO – The Negatives – Unexplained 9M23 Slump

Kayou is looking to raise up to US$500m in its upcoming HK IPO.
Kayou is a Chinese pan-entertainment product retailer of toys, with trading cards in particular as its core product.
In this note, we talk about the not-so-positive aspects of the deal.

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Apr 09

Daily Brief ECM: Samsung Electronics Placement – Better Timing This Time Around and more

In today’s briefing:

Samsung Electronics Placement – Better Timing This Time Around
Ansell Placement – Undertaking a Large Acquisition as Sector Headwinds Remain
P N Gadgil Jewellers Pre-IPO Tearsheet
Kayou Pre-IPO – The Positives – Strong FY22 Growth
BenQ BM Holding Cayman Corp Pre-IPO Tearsheet

Samsung Electronics Placement – Better Timing This Time Around

KEB Hana Bank, on behalf of Lee Boo-Jin, is looking to raise up to US$325m via selling 0.1% of Samsung Electronics (005930 KS).
The deal appears to be somewhat well flagged and the company recently reported better operating numbers for 1Q24.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

Ansell Placement – Undertaking a Large Acquisition as Sector Headwinds Remain

Ansell Ltd (ANN AU) is looking to raise US$262m in its primary follow-on to partially fund its acquisition of KCPPE.
Despite the firm having been on an acquisition spree, it remains uncertain to us if the market has been factoring in such a large one.
The deal would be a large one to digest, representing 52.5 days of the stock’s three month ADV.

P N Gadgil Jewellers Pre-IPO Tearsheet

P N Gadgil Jewellers (1742652D IN) is looking to raise up to US$132m in its upcoming India IPO. The deal will be run by Motilal Oswal, Nuvama and BOB Capital.
P N Gadgil Jewellers (PNGJ from hereon) is an Indian organized jewellery player. According to Technopak, it is the second largest among prominent organized jewellery players in Maharashtra.
Its product offerings include traditional jewellery for special occasions such as weddings, engagements and festivities and modern and jewellery designs for everyday wear purpose, in gold, diamond, silver and platinum.

Kayou Pre-IPO – The Positives – Strong FY22 Growth

Kayou is looking to raise up to US$500m in its upcoming HK IPO.
Kayou is a Chinese pan-entertainment product retailer of toys, with trading cards in particular as its core product.
In this note, we talk about the positive aspects of the deal.

BenQ BM Holding Cayman Corp Pre-IPO Tearsheet

BenQ BM Holding Cayman Corp (2228515D KY) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The bookrunners on the deal are CICC and Citigroup.
BenQ BM Holding Cayman Corp (BenQ BM) is a general hospital operator.
As of Dec 2023, BenQ BM owned and operated two hospitals, with a total combined GFA of approximately 380,000 sqm and 1,850 registered beds.

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Apr 08

Daily Brief ECM: J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry and more

In today’s briefing:

J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry
ECM Weekly (8th Apr 2024) – Hyundai Marine, Waaree Energies, Horizon Robotics, Bharti Hexacom

J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry

J&T Global Express (1519 HK)’s 180-day IPO lock-up period for 88% of outstanding shares expires on 24 April. The shares exiting the lock-up period are worth US$9.9 billion.
The likely sellers will be the Series pre-A1, pre-A2, A and B investors as are they are materially in the money at the last close price.
J&T has returned to organic growth with a shift to profits and declining cash burn. While the last close is 17% below the IPO price, the shares are fairly valued.

ECM Weekly (8th Apr 2024) – Hyundai Marine, Waaree Energies, Horizon Robotics, Bharti Hexacom

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, the focus remained on HD Hyundai Marine Solution (443060 KS) and Bharti Hexacom (6597372Z IN).
On the placement front, India remained at the forefront with JSW Energy Ltd (JSW IN) and the potential share sale of Vodafone Idea (IDEA IN).

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Apr 07

Daily Brief ECM: Weekly Deals Digest (07 Apr) – Kokusai Electric and more

In today’s briefing:

Weekly Deals Digest (07 Apr) – Kokusai Electric, HD Hyundai Marine, Langham, Jastec, JSR, Best World
Rubrik IPO Preview and Valuation Analysis: 2024’s Hottest SaaS Investment Opportunity

Weekly Deals Digest (07 Apr) – Kokusai Electric, HD Hyundai Marine, Langham, Jastec, JSR, Best World

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: Kokusai Electric (6525 JP) lock-up expiry and HD Hyundai Marine Solution (443060 KS), Bharti Hexacom (6597372Z IN) IPOs.
Event-Driven developments: Langham Hospitality Inv Ss (1270 HK), IntelliCentrics Global Holding (6819 HK) Jastec Co Ltd (9717 JP), JSR Corp (4185 JP), Best World International (BEST SP), Isetan Singapore (ISET SP).

Rubrik IPO Preview and Valuation Analysis: 2024’s Hottest SaaS Investment Opportunity

By Andrei Zakharov

Rubrik, a leading VC-backed security software company, filed for a long-awaited IPO in the United States, with Goldman Sachs, Citigroup, Barclays and Wells Fargo leading the offering.
The technology company is focused on data protection and helps organizations to protect their data and recover it in case of cyberattacks.
Rubrik was founded by Bipul Sinha, Arvind Nithrakashyap, Arvind Jain and Soham Mazumdar, and backed by VC investors, including Lightspeed Venture Partners, Greylock Partners and Khosla Ventures.

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Apr 05

Daily Brief ECM: HD Hyundai Marine Solution IPO – Thoughts on Valuation and more

In today’s briefing:

HD Hyundai Marine Solution IPO – Thoughts on Valuation
Crizac Pre-IPO Tearsheet
Zongmu Technology Pre-IPO Tearsheet

HD Hyundai Marine Solution IPO – Thoughts on Valuation

HD Hyundai Marine Solution (443060 KS) is looking to raise up to US$551m in its Korean IPO.
HD Hyundai Marine Solution (HMS from hereon) is a ship aftermarket service provider that provides necessary services throughout a ship’s life cycle after the delivery of a new ship.
In our previous notes, we talked about the company’s historical performance and undertook a peer comparison. In this note, we share our thoughts on valuation.

Crizac Pre-IPO Tearsheet

Crizac is looking to raise US$120m in its upcoming India IPO. The bookrunners on the deal are Equirus and Anand Rathi.
Crizac is an education platform offering international student recruitment solutions to global institutions of higher education in the United Kingdom, Canada, Republic of Ireland, Australia and New Zealand (ANZ).
Crizac is one of the largest student recruitment solutions providers from India to the UK with a market share of 13.0%, in terms of the number of students in 2023.

Zongmu Technology Pre-IPO Tearsheet

Zongmu Technology (1491595D CH) is looking to raise up to US$150m in its upcoming HK IPO. The deal will be run by Huatai and BNP Paribas.
Zongmu Technology is a Chinese advanced driver assistance system (ADAS) solutions provider, offering solutions with comprehensive autonomous driving functions.
As a Tier 1 supplier, it undertakes software design, hardware design, system design and the integration of these components to develop solutions for mass deployment.

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Apr 04

Daily Brief ECM: Kokusai Electric (6525 JP): The US$4.8 Billion Lock up Expiry and more

In today’s briefing:

Kokusai Electric (6525 JP): The US$4.8 Billion Lock up Expiry
HD Hyundai Marine Solution IPO – Peer Comparison – Not Particularly Exciting
Pre-IPO Beijing Biostar Pharmaceuticals- Core Product Has Obvious Defects; Outlook Is Not Optimistic

Kokusai Electric (6525 JP): The US$4.8 Billion Lock up Expiry

Kokusai Electric (6525 JP)’s 180-day IPO lock-up period for 71% of outstanding shares expires on 22 April. The shares exiting the lock-up period are worth US$4.8 billion.
The likely seller will be KKR & (KKR US) as it was the sole selling shareholder in the IPO. The shares are currently trading at 2.4x the IPO price.
Kokusai anticipates a return to growth and margin improvement in FY24. However, Kokusai trades at a material premium to peer multiples and is fully priced.

HD Hyundai Marine Solution IPO – Peer Comparison – Not Particularly Exciting

HD Hyundai Marine Solution (443060 KS) is looking to raise up to US$555m in its Korean IPO.
HD Hyundai Marine Solution (HMS from hereon) is a ship aftermarket service provider that provides necessary services throughout a ship’s life cycle after the delivery of a new ship.
In our previous note, we talked about the company’s historical performance. In this note, we talk about peer comparison.

Pre-IPO Beijing Biostar Pharmaceuticals- Core Product Has Obvious Defects; Outlook Is Not Optimistic

By Xinyao (Criss) Wang

Besides the core product Utidelone Injection, the rest pipelines are mostly related to the indications expansion/new formulations R&D for Utidelone Injection. Excessive dependence on single product is hard to improve.
We’re not optimistic about the future sales growth of Utidelone Injection due to fierce competition/inconvenient administration methods/expired patent protection. Biostar is facing survival risks if new financing cannot be obtained.
Biostar’s post-investment valuation is already RMB4.49 billion. Given the gloomy sentiment and the concerns about the pipeline/prospects, we think it could fall below this valuation level after IPO in HKEX.

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Apr 03

Daily Brief ECM: HD Hyundai Marine Solutions IPO: Valuation Insights and more

In today’s briefing:

HD Hyundai Marine Solutions IPO: Valuation Insights
Horizon Robotics Pre-IPO Tearsheet

HD Hyundai Marine Solutions IPO: Valuation Insights

HD Hyundai Marine Solution (443060 KS), the ship after-service subsidiary of HD Hyundai (267250 KS), aims to raise up to US$550 million.
We previously discussed the IPO in HD Hyundai Marine Solutions IPO: The Investment Case.
We examine the syndicate’s valuation methodology. Our analysis suggests that the HMS is, at best, fairly valued at the IPO price range. We would pass on the IPO.

Horizon Robotics Pre-IPO Tearsheet

Horizon Robotics is looking to raise US$500m in its upcoming Hong Kong IPO. The bookrunners on the deal are GS, MS and China Securities International.
Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
HR was the first and the largest Chinese company providing integrated ADAS and AD solutions in terms of annual installation volume since 2021, according to CIC.

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Apr 02

Daily Brief ECM: ECM Weekly (1st Apr 2024) – Shinhan and more

In today’s briefing:

ECM Weekly (1st Apr 2024) – Shinhan, GlobalWafers, Mankind, Hyundai Marine, Bharti Hexacom, ChaPanda
Ibotta IPO Valuation Analysis
Waaree Energies Pre-IPO – Riding the Anti-China US Wave

ECM Weekly (1st Apr 2024) – Shinhan, GlobalWafers, Mankind, Hyundai Marine, Bharti Hexacom, ChaPanda

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, HD Hyundai Marine Solution (443060 KS) and Bharti Hexacom were in the market trying to raise over US$500m each.
Placements flow continued unabated this week as well, India, Taiwan and South Korea seeing large blocks.

Ibotta IPO Valuation Analysis

By Andrei Zakharov

In my insight, I discuss valuation framework for comparable company analysis and outline revenue growth scenario under my base case.
Considering Ibotta achieved profitability in 2023 driven by strong growth in the segment of third-party publishers, I view EV/Revenue as the most appropriate methodology to value Ibotta.
I have a positive view of the upcoming Ibotta IPO. The company’s efficient B2B2C business model, success-based marketing approach and scale provide Ibotta with a long runway of growth.

Waaree Energies Pre-IPO – Riding the Anti-China US Wave

Waaree Energies is looking to raise up to US$400m in its upcoming India IPO.
Waaree Energies is a solar PV module manufacturer in India with an aggregate installed capacity of 12 GW, as of Jun 2023.
In this note, we talk about the company’s past performance.

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Apr 01

Daily Brief ECM: HD Hyundai Marine Solutions IPO: The Investment Case and more

In today’s briefing:

HD Hyundai Marine Solutions IPO: The Investment Case

HD Hyundai Marine Solutions IPO: The Investment Case