ECM Daily Briefs | Page 25 of 161

In today’s briefing:

Hanwha Aerospace – Lowers Rights Offering Capital Raise Amount To 2.3 Trillion Won
Duality Biotherapeutics (映恩生物) IPO: Valuation Upside at Risk
LG Electronics India Pre-IPO – Peer Comparison – Largest but One of the Slowest
Chagee IPO: Peer Comp and Thoughts on Valuation
Jiangsu Zenergy Battery Tech IPO: Forecasts and Valuation
Beijing Yunji Technology Ltd Pre-IPO Tearsheet
LG Electronics India Pre-IPO – Thoughts on Valuation
Park Medi World Pre-IPO Tearsheet

Hanwha Aerospace – Lowers Rights Offering Capital Raise Amount To 2.3 Trillion Won

On 8 April, Hanwha Aerospace (012450 KS) announced that it plans to lower its rights offering capital raise amount from 3.6 trillion won to 2.3 trillion won (US$1.6 billion).
The remaining 1.3 trillion won will be secured through a third-party allocation paid-in capital increase targeting three companies, including Hanwha Energy, Hanwha Impact Partners, and Hanwha Energy Singapore.
Hanwha Aerospace disclosed today that it expects sales of 30 trillion won (58% higher than consensus) and operating profit of 3 trillion won (20% higher than consensus) in 2025.

Duality Biotherapeutics (映恩生物) IPO: Valuation Upside at Risk

By Ke Yan, CFA, FRM

Duality, a China-based clinical-stage biotechnology company, launched its IPO to raise up to US$200m via a Hong Kong listing.
We look at the deal dynamics and latest developments in the biotech sector.
The deal initially presented upside for investors but there’s a portion of its valuation now at risk due to the latest development.

LG Electronics India Pre-IPO – Peer Comparison – Largest but One of the Slowest

By Shifara Samsudeen, FCMA, CGMA

LG Electronics (066570 KS) is looking to raise US$1.5bn+ via part-selling its stake in LG Electronics India.
LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume in 1Q25, as per Redseer Report.
We have looked at the company’s past performance in our previous note. In this note, we undertake a peer comparison.

Chagee IPO: Peer Comp and Thoughts on Valuation

By Nicholas Tan

Chagee Holdings (CHA US) is planning to raise up to US$500m through its upcoming US IPO.
It is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks.
We have looked at the company’s past performance in our earlier notes. In this note, we discuss latest industry dynamics, conduct a quick peer comparison and discuss the company’s valuation.

Jiangsu Zenergy Battery Tech IPO: Forecasts and Valuation

Jiangsu Zenergy Battery Technologies (JSZENERGY CH) has announced the terms for its IPO. The company plans to issue 121.5m shares at HK$8.27 per share, raising HK$1.0bn (US$130m).
The company’s earnings have seen strong growth during the last 3-4 years driven by its LFP battery products and fall in lithium carbonate prices have helped turn around profitability.
However, our analysis on the company’s valuation shows that JZBT’s IPO is expensive and with the ongoing geopolitical tensions, we would remain on the sidelines.

Beijing Yunji Technology Ltd Pre-IPO Tearsheet

By Rosita Fernandes

Beijing Yunji Technology Ltd (1860671D CH) (BYTL) is planning to raise about US$100m through its upcoming Hong Kong IPO. The lead bookrunners for the deal are Citic, CBB International.
BYTL provides hospitality robotic AI agents, using advanced robotics and AI to enhance customer experiences. Its solutions include physical-interaction robots and AI-driven digitalization systems for streamlined decision-making and operational efficiency.
According to the F&S Report, BYTL ranked first globally in 2024 among robotic AI agent companies with multi-layer adaptable robots, leading in concurrent robot operations and total consumers served.

LG Electronics India Pre-IPO – Thoughts on Valuation

LG Electronics (066570 KS) is looking to raise US$1.5bn+ via part-selling its stake in LG Electronics India.
LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume in 1Q25, as per Redseer Report.
We have looked at the company’s past performance and undertaken a peer comparison in our previous note. In this note, we talk about valuations.

Park Medi World Pre-IPO Tearsheet

By Nicholas Tan

Park Medi World (1605334D IN) is looking to raise at least US$147m in its upcoming India IPO. The deal will be run by Nuvama, CLSA, DAM Capital and Intensive FS.
It is the second largest private hospital chain in North India, with an aggregate bed capacity of 3,000 beds.
It the largest private hospital chain in terms of bed capacity in Haryana with 1,600 beds located in the state as of 1H25.

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Apr 08

Daily Brief ECM: Suzuki Motor Placement – Not the Best Time for a US$1.15bn Deal. It Will Be a Long Week. and more

In today’s briefing:

Suzuki Motor Placement – Not the Best Time for a US$1.15bn Deal. It Will Be a Long Week.
Suzuki Motor (7269 JP): A US$1.1 Billion Secondary Offering
Klarna IPO Preview: The Dominant BNPL Player in Europe, Trump’s Tariffs Are a Headwind
Hengrui (恒瑞医药) A/H Listing: An Updated Comparison with Hansoh
Jiangsu Zenergy Battery Technologies IPO – PHIP Updates & Quick Thoughts on Peer Comp and Valuation
Key Takeaways from the Updated Filing on Hanwha Aero’s Rights Offering

Suzuki Motor Placement – Not the Best Time for a US$1.15bn Deal. It Will Be a Long Week.

Tokio Marine Holdings (8766 JP) and Sompo Holdings (8630 JP) aim to raise around US1.15bn (including over-allotment) via selling around 5% of Suzuki Motor (7269 JP).
While Suzuki doesn’t have much direct exposure to the US markets, its shares have still corrected in line with other auto players.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Suzuki Motor (7269 JP): A US$1.1 Billion Secondary Offering

By Arun George

Suzuki Motor (7269 JP) has announced a secondary offering of up to 95.7 million shares (110.1 million including overallotment), worth around US$1.1 billion (US$1.3 billion including overallotment).
Suzuki’s goal with the secondary offering is (i) to reduce cross-shareholdings and (ii) to expand and diversify the shareholder base, which should further enhance liquidity.
Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 21 and 23 April (likely 21 April).

Klarna IPO Preview: The Dominant BNPL Player in Europe, Trump’s Tariffs Are a Headwind

By Andrei Zakharov

Klarna Group, a Swedish fintech company and BNPL provider, filed for an IPO and submitted a registration statement F-1 form with the SEC.
The company believes that AI and product diversification will boost profitability in the coming years coupled with aggressive cost-cutting and better underwriting process.
However, Klarna delayed its planned IPO due to extreme volatility and Trump’s tariffs, which are a headwind for BNPL players, including Affirm and Klarna.

Hengrui (恒瑞医药) A/H Listing: An Updated Comparison with Hansoh

By Ke Yan, CFA, FRM

Jiangsu Hengrui Medicine (600276 CH) a China-based pharmaceutical company, aims to raise around US$2bn in its H-share listing.
Given its similarity to Hong Kong-listed Hansoh Pharma, had done a comparison between the two.
In this note, we looked at the latest results releases from both companies and highlighted granular differences. It is also interesting to compare the relative valuation from a historical perspective.

Jiangsu Zenergy Battery Technologies IPO – PHIP Updates & Quick Thoughts on Peer Comp and Valuation

By Akshat Shah

Jiangsu Zenergy Battery Technologies (JSZENERGY CH) is looking to raise US$130m in its Hong Kong IPO.
Zenergy is an EV and energy storage system battery manufacturer providing integrated battery solutions, encompassing battery cells, modules, packs and battery management systems dedicated to large-scale applications of electrochemical products.
In our previous note, we looked at the firm’s past performance. In this note, we talk about the IPO valuations.

Key Takeaways from the Updated Filing on Hanwha Aero’s Rights Offering

By Sanghyun Park

Hanwha shot down any merger talks between Hanwha Corp and Hanwha Energy, saying they’re just going to funnel Energy’s cash straight into Hanwha Aero via a third-party allotment.
These confirm no price manipulation for Hanwha Corp; Hanwha Energy will inject cash into Aero at market value, likely driving bullish short-term price action for both Hanwha Corp and Aero.
Despite tighter arb opportunities, doubts remain whether Hanwha Aero can raise the remaining KRW 1.6 trillion given a volatile market and the tight timeline.

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Apr 07

Daily Brief ECM: Chagee Holdings (CHA US) IPO: The Bear Case and more

By Shifara Samsudeen, ACMA, CGMA

In today’s briefing:

Chagee Holdings (CHA US) IPO: The Bear Case
Jiangsu Zenergy Battery Tech IPO: Growth Fueled By Volume
ECM Weekly (7 Apr 2025) – CATL, Maynilad, Chagee, Lotte Logistics, Sigenergy, Duality, Wuxi XDC

Chagee Holdings (CHA US) IPO: The Bear Case

By Arun George

Chagee Holdings (CHA US), a leading premium tea drinks brand, is seeking to raise US$400-500 million through a Nasdaq IPO.
In Chagee Holdings (CHA US) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on unsustainable growth rates, pressure on KPIs, signs of margin pressure, increasing S&M expenses and weakening forward growth indicators.

Jiangsu Zenergy Battery Tech IPO: Growth Fueled By Volume

Jiangsu Zenergy Battery Technologies (JSZENERGY CH) (JZBT) is a lithium-ion battery manufacturer in China who is focused on developing a diverse portfolio of market-driven and technology-fueled battery products.
The company has filed for an IPO on the HKEx and plans to raise proceeds of around US$130m through the issue of 121m shares.
The company’s earnings have seen strong growth over the years driven by its LFP battery products and fall in lithium carbonate prices have helped turn around profitability.

ECM Weekly (7 Apr 2025) – CATL, Maynilad, Chagee, Lotte Logistics, Sigenergy, Duality, Wuxi XDC

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, we looked at the possible A/H premium for Contemporary Amperex Technology (CATL) (300750 CH).
On the placements front, WuXi AppTec (2359 HK) was back agai with a sale of WuXi XDC Cayman (2268 HK).

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Apr 05

Daily Brief ECM: Pace Digitek Ltd Pre-IPO Tearsheet and more

In today’s briefing:

Pace Digitek Ltd Pre-IPO Tearsheet

Pace Digitek Ltd Pre-IPO Tearsheet

By Rosita Fernandes

Pace Digitek Ltd (0180382D IN) (PDL) is planning to raise about US$105m through its upcoming India IPO. The lead bookrunner for the deal is Unistone.
PDL provides multi-disciplinary solutions in telecom passive infrastructure, offering turnkey services across India, Myanmar, and Africa. Initially manufacturing passive equipment, it expanded into products, projects, O&M, and service solutions.
PDL transitioned from manufacturing passive telecom equipment to providing multi-disciplinary solutions, including telecom, energy, and ICT products, services, and turnkey projects, with a focus on O&M, renewables, and infrastructure development.

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Apr 04

Daily Brief ECM: Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure and more

In today’s briefing:

Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure
Duality Biotherapeutics (映恩生物) Pre-IPO: Valuation and the Trap
Chagee Holdings IPO Preview
Xiamen Hithium Energy Storage Technology Pre-IPO Tearsheet
Lotte Logistics Pre-IPO – Sluggish Revenues, High Dependence on Group Affiliates
Lotte Global Logistics IPO Valuation Analysis

Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure

By Sanghyun Park

Samsung SDI’s rights offering is locked in and even accelerated. Hanwha Aerospace awaits FSS approval, but a pullback is unlikely, with no major red flags seen by regulators.
With a four-week gap, supply pressure eases, reducing overhang concerns. This shift in dynamics impacts stock rights pricing and is key for any arb setup.
The wider schedule gap between deals boosts lenders’ flexibility, increasing the likelihood of a stronger share recall. This makes for a solid trade setup, targeting recall-driven price action.

Duality Biotherapeutics (映恩生物) Pre-IPO: Valuation and the Trap

By Ke Yan, CFA, FRM

Duality Biotherapeutics, a China-based clinical-stage biotechnology company, plans to raise up to US$250m via a Hong Kong listing.
We look at the company’s valuation based on its core products, namely DB-1303, DB-1311, and DB-1305.
We highlight key differences between our valuation and the broker valuation guidance.

Chagee Holdings IPO Preview

Chagee Holdings (CHA US) is getting ready to complete its IPO on NASDAQ in the next several weeks. Chagee is one of the largest premium tea chains in China.
The company’s sales and profits have been exploding higher in the past three years. Its sales jumped from 0.5 billion RMB in 2022 to 12.4 billion RMB in 2024.
Chagee could raise more than $500 million in this IPO. However, this is subject to change.

Xiamen Hithium Energy Storage Technology Pre-IPO Tearsheet

By Troy Wong

Xiamen Hithium Energy Storage Technology (XH) is looking to raise up to US$500m in its upcoming Hong Kong IPO. The deal will be run by Huatai, Citic, ABC, and BOC.
XH is a leading pure-play global energy storage company, it’s ranked third in the global energy storage market in 2024, in terms of lithium-ion ESS battery shipments, as per CIC.
With its integrated value chain and mainly in-house manufacturing, XH offers end-to-end energy storage solutions across various application scenarios, mainly collaborate with third-party system integrators in their main market, China.

Lotte Logistics Pre-IPO – Sluggish Revenues, High Dependence on Group Affiliates

By Akshat Shah

Lotte Global Logistics (LGG KS) aims to raise around US$140m in its Korea IPO via selling a mix of primary and secondary shares.
Lotte Global Logistics is a logistics and shipping company engaged in a comprehensive logistics service business including courier service, land transportation, 3PL, port loading and unloading, and international logistics.
In this note, we talk about the company’s historical performance.

Lotte Global Logistics IPO Valuation Analysis

Our base case valuation of Lotte Global Logistics is implied market cap of 560 billion won, which represents target price of 13,454 won per share.
We have a negative view of this IPO as our target price does not provide a meaningful upside to the IPO price range.
Four major factors we are negative on this IPO include lack of sales growth, excessive competition (Coupang and CJ Logistics), mystery of put option clause, and highly geared balance sheet.

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Apr 03

Daily Brief ECM: CATL A/H Listing – Thoughts on A/H Premium and more

In today’s briefing:

CATL A/H Listing – Thoughts on A/H Premium
Chagee Holdings (CHA US) IPO: The Bull Case
Chagee Pre-IPO – Market Leading Growth but Showing Signs of Fatigue
Pre-IPO Chagee Holdings – The Business Model, the Concerns Behind and Valuation Outlook
SmartStop Self Storage (SMA): Upside Surprise, IPO Pops 8% at Open and Trades Higher

CATL A/H Listing – Thoughts on A/H Premium

Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, aims to raise at least US$5bn in its H-share listing.
CATL 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 in our earlier notes. In this note, we talk about its recent updates and provide our thoughts on valuations.

Chagee Holdings (CHA US) IPO: The Bull Case

By Arun George

Chagee Holdings (CHA US), a leading premium tea drinks brand, is seeking to raise US$400-500 million through a Nasdaq IPO.
According to iResearch, as of December 31, 2024, Chagee was the largest premium freshly made tea drink brand in China by the number of stores.
The bull case rests on a strong brand, leading market share, peer-leading revenue growth, top-tier profitability and cash generation.

Chagee Pre-IPO – Market Leading Growth but Showing Signs of Fatigue

By Nicholas Tan

Chagee Holdings (CHA US) is planning to raise up to US$500m through its upcoming US IPO.
Chagee is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks.
In this note, we look at the firm’s past performance.

Pre-IPO Chagee Holdings – The Business Model, the Concerns Behind and Valuation Outlook

By Xinyao (Criss) Wang

Chagee adopts the “1+1+9+N” business model, which ensures the successful replication of the single store model. However, we saw performance decline in 2024, and future performance growth sustainability is uncertain.
In terms of valuation, comparable companies include Starbucks and MIXUE. We think valuation of Chagee should be lower than MIXUE and Starbucks as both have proved themselves in the industry.
Future growth would inevitably slow down. Investors may need more ‘safety margins’ on valuation because despite short-term strong demand, investors need to be alert to the performance validation after IPO.

SmartStop Self Storage (SMA): Upside Surprise, IPO Pops 8% at Open and Trades Higher

SmartStop priced a full-size deal of 27.0mm shares at $30.00 and opened for trading at $32.40 for a gain of 8% at first trade.
The offering finished five-times oversubscribed with the underwriter stating that the deal had sizable participation from long-only and REIT-dedicated accounts.
A low-risk storage unit company which pays a monthly dividend, like SmartStop, attracted the right buyer for this deal to work given the current economic environment.

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Apr 02

Daily Brief ECM: Wuxi XDC Placement – Following Biologics Playbook and more

In today’s briefing:

Wuxi XDC Placement – Following Biologics Playbook, past Deals Have Been Mixed
SmartStop Self Storage (SMA): IPO for Yield Chasers, Traditional Players on the Sidelines
Sigenergy Technology Pre-IPO – Achieved Market Leadership Within Two Years in a Nascent Industry
Maynilad Water Services Pre-IPO – The Negatives – Growth Hasn’t Always Been as Strong

Wuxi XDC Placement – Following Biologics Playbook, past Deals Have Been Mixed

WuXi AppTec (2359 HK) aims to raise around US$250m via selling around 3.5% stake in WuXi XDC Cayman (2268 HK).
WuXi XDC Cayman (WXDC) is a contract research, development, and manufacturing organization (CRDMO) focused on the global antibody drug conjugates (ADC) and broader bioconjugate market providing integrated and end-to-end services.
In this note, we will talk about the placement and run the deal through our ECM framework.

SmartStop Self Storage (SMA): IPO for Yield Chasers, Traditional Players on the Sidelines

According to our sources, the deal is multiple-times oversubscribed — our sources stated around 5x.
Self-Storage was Monday’s second best performing sub-sector (+1.8%) as the overall REIT sector (+0.7%) slightly outperformed the broader market.
While the “typical” IPO investor may not be “enthused”, the timing for this type of deal “may” be ideal for yield-chasers.

Sigenergy Technology Pre-IPO – Achieved Market Leadership Within Two Years in a Nascent Industry

By Troy Wong

Sigenergy Technology (Sigenergy) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
Sigenergy is a market leader in the stackable all-in-one DESS solutions market. Since inception, its sales grew exponentially as it expands its distribution network, causing net loss to narrow significantly.
There are various areas of risks regarding its high customer and supplier concentration, high raw material sensitivity, high related party transactions, and having a short operating history.

Maynilad Water Services Pre-IPO – The Negatives – Growth Hasn’t Always Been as Strong

Maynilad Water Services (MYNLD PH) (MWS) is looking to raise at least US$633m in its upcoming Philippines IPO.
MWS is a leading global water utility player operating the largest concession by population served within a single concession area in the Philippines and Southeast Asia (SEA), as per GlobalData.
In this note, we talk about the not-so-positive aspects of the deal.

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Apr 01

Daily Brief ECM: Chagee Holdings Limited (CHA): Peeking at the IPO Prospectus of China’s Premium Tea Brand and more

In today’s briefing:

Chagee Holdings Limited (CHA): Peeking at the IPO Prospectus of China’s Premium Tea Brand
QingSong Health Corporation – Pain Points of the Business Model and the Outlook
Maynilad Water Services Pre-IPO – The Positives – Key Infrastructure Provider

Chagee Holdings Limited (CHA): Peeking at the IPO Prospectus of China’s Premium Tea Brand

As of December 31, 2024, their network comprised 6,440 teahouses, including 6,284 located in China.
Their net revenues increased by 844% to RMB4,640.2 million in 2023 from RMB491.7 million in 2022.
We anticipate this company to set terms (share size, price range) and debut in the second half of April.

QingSong Health Corporation – Pain Points of the Business Model and the Outlook

By Xinyao (Criss) Wang

The business model of QingSong is a platform offering comprehensive healthcare services and tailored financial resources. By connecting different stakeholders, QingSong can monetize its user base, creating a virtuous cycle.
Qingsong’s revenue structure has undergone significant changes. However, if Qingsong’s future business focus is on Qingsong Healthcare services, it may be difficult to generate large-scale profits in the end.
Listed insurance intermediary platforms have been in the shadow of a decline in stock prices. So, there is concerns that future share price performance of QingSong may not be optimistic.

Maynilad Water Services Pre-IPO – The Positives – Key Infrastructure Provider

Maynilad Water Services (MYNLD PH) (MWS) is looking to raise at least US$633m in its upcoming Philippines IPO.
MWS is a leading global water utility player operating the largest concession by population served within a single concession area in the Philippines and Southeast Asia (SEA), as per GlobalData.
In this note, we talk about the positive aspects of the deal.

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Mar 31

Daily Brief ECM: ECM Weekly (31st Mar 2025) – Xiaomi and more

In today’s briefing:

ECM Weekly (31st Mar 2025) – Xiaomi, NIO, FCT, Gigabyte, DN Sol, Nanshan Al, Zenergy, LXJ, Veeda

ECM Weekly (31st Mar 2025) – Xiaomi, NIO, FCT, Gigabyte, DN Sol, Nanshan Al, Zenergy, LXJ, Veeda

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, DN Solutions (298440 KS)‘s range looks a little pricey, while Eco-Shop Marketing (ECO MY) could trade ahead of its listed peers, in our view.
On the placements front, Xiaomi Corp (1810 HK) matched BYD (1211 HK) in size, but couldn’t do so in returns.

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Mar 29

Daily Brief ECM: Bukwang Pharm Announces A Capital Raise of 100 Billion Won and more

In today’s briefing:

Bukwang Pharm Announces A Capital Raise of 100 Billion Won
CoreWeave Inc (CRWV): IPO Opens Below Issue, Closes Flat in Debut Session
SmartStop Self Storage (SMA): CEO Confident in Bottoming Self-Storage Market Ahead of IPO

Bukwang Pharm Announces A Capital Raise of 100 Billion Won

On 28 March, Bukwang Pharmaceutical (003000 KS) announced a capital raise of 100 billion won. Its share price fell by 13.3% today.
The company plans to issue 30.2 million new shares (44% of outstanding shares). Expected rights offering price is 3,310 won (15.1% lower than current price).
We are negative on Bukwang Pharm mainly due to excessive shareholding dilution from this rights offering as well as lack of valuation merits.

CoreWeave Inc (CRWV): IPO Opens Below Issue, Closes Flat in Debut Session

CoreWeave priced a down-sized transaction of 37.5mm shares at $40.00 ($7 Below the Original $47-$55 range) and opened at $39.00 for a loss of 2.5% at first trade
According to our underwriter sources, the deal finished multiple-times oversubscribed with the top three accounts getting 50% of the deal and the top 15 accounts taking down 90% of the transaction.
This IPO in particular was a difficult deal to value for IPO investors based upon being a “first mover” in the AI space.

SmartStop Self Storage (SMA): CEO Confident in Bottoming Self-Storage Market Ahead of IPO