ECM

• Bain and GIC looking to raise US$130m by selling their remaining stake in Judo Capital (JDO AU).
• The deal will be a large one to digest at 30.8 days of the stock’s three month ADV, representing 9.2% of its shares outstanding.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Anthem Biosciences (1234D IN) is looking to raise up to US$400m in its upcoming India IPO.
• Anthem Biosciences (ABS) is a contract research, development and manufacturing organisation (CRDMO) with fully integrated operations spanning drug discovery, development, and manufacturing.
• In this note, we talk about the not-so-positive aspects of the deal.

• DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
• DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
• In this note, we talk about the not-so-positive aspects of the deal.

• JX Advanced Metals (5016 JP) priced its IPO at JPY820 per share to raise gross proceeds of US$2.5 billion. The shares will start trading on 19 March.
• Relevant notes: JX Advanced Metals (5016 JP) IPO: The Bull Case, JX Advanced Metals (5016 JP) IPO: The Bear Case, JX Advanced Metals (5016 JP) IPO: Price Range Is Fair.
• Since the price range was announced, the peers have modestly re-rated. My SoTP valuation of JPY859 is slightly above the IPO price, suggesting the price is fair.

• JX Advanced Metals raised 438.6 billion yen (US$3 billion) on its IPO offering after pricing the IPO at 820 yen per share, valuing the company at 761.3 billion yen. 
• Our base case valuation of JX Advanced Metals is price per share of 863 yen, based on P/E of 9.9x using our estimated net profit of 81 billion yen (2026E).
• Therefore, we would sell into strength if the share price of JX Advanced Metals rises to the 863 yen to 1,044 yen per share.

• Nanshan Aluminium International Holdings (NAI HK)  is looking to raise up to US$358m in its upcoming Hong Kong IPO.
• NA is a leading high-quality alumina manufacturer in Southeast Asia.  The firm sources bauxite domestically in Indonesia and utilizes low-temperature Bayer process.
• 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.

• Fujiyama Power Systems Ltd (1742651D IN) (FPSL) is planning to raise about US$138m through its upcoming India IPO. The lead bookrunners for the deal are Motilal, SBI.
• FPSL was established in 1996. The company specializes in solar panel and inverter manufacturing, covering on-grid, hybrid, and off-grid solutions, along with lead acid and lithium-ion battery production. 
• As per CARE Report, it was the 1st Indian company to develop an SMT-based inverter with a single card in 2000. 

• Our base case valuation of DN Solutions suggests target price of 90,167 won per share, which is 1% higher than the high end of the IPO price range. 
• Our base case valuation is based on 17.9x P/E using our estimated net profit of 317.9 billion won for DN Solutions in 2025. 
• Given the lack of upside, we have a Negative View of this IPO. DN Solutions has higher operating margin and ROE but lower revenue growth than its comps. 

• Huge Dental (HD) is looking to raise about US$100mn in its upcoming Hong Kong IPO. The deal will be run by CICC and DBS.
• As a leading dental material company among domestic players in China, HD offers dental clinical products, dental laboratory products and dental digital products in various application scenarios.
• HD primarily sells across 6 continents, with China, Europe, U.S., and SEA being the primary markets.

• Their total revenue was $1.90 billion, $2.28 billion, and $2.81 billion and their net profit (loss) was ($1.04 billion), ($244 million), and $21 million in 2022, 2023, and 2024, respectively.
• The company was once valued at $46 billion in a SoftBank-led funding round. Klarna saw its valuation slashed by 85% in 2022 to $6.7 billion in its most recent fundraising.
• The company made headlines when CNBC reported that Klarna will be the exclusive provider of buy now, pay later loans for Walmart (WMT US).

• The competition intensity of the industry in which Soft International’s main business operates is expected to remain high in the future. The growth rate of major markets will maintain low.
• Soft International’s performance has shown a downward trend as it enters 2024.This is not good news for capital markets that prioritize performance sustainability.P/E of 10x is a suitable valuation level
• Our forecast is that Soft International’s revenue could reach RMB750-800 million in 2025 and RMB850-950 million in 2026, with CAGR of 10%-15%.Net profit margin may remain low at single digit.

• Anthem Biosciences (1234D IN) is looking to raise up to US$400m in its upcoming India IPO.
• Anthem Biosciences (ABS) is a contract research, development and manufacturing organisation (CRDMO) with fully integrated operations spanning drug discovery, development, and manufacturing.
• In this note, we talk about the positive aspects of the deal.

• DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
• DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
• In this note, we talk about the company’s past performance.

• JX Advanced Metals (5016 JP)’s parent, ENEOS Holdings (5020 JP), raised around US$2.5bn via selling more than half of its stake in JXAM in its Japan IPO.
• JXAM engages in business activities primarily focused on the development, manufacture and sale of materials made from copper and rare metals, which are used in the semiconductor and ICT fields.
• We have covered various aspects of the deal in our previous notes. In this note, we will talk about the trading dynamics.

• Wild card here is the FSS—they’re eyeing a shadow listing risk for DN Automotive (007340 KS). If they push for a revision, a 2-week delay busts the 135-day limit.
• 14x PE looks cheap, but comps are shaky—LS Electric’s AI play, Fanuc’s scale advantage, and DMG MORI’s automation pivot all make direct comparisons a stretch.
• DN Solutions is a pure-play machine tool name, making comps shaky. This IPO’s shaping up like an LG CNS rerun—solid numbers, fair valuation, but a weak growth story.

• Analyst and writer based in New York discusses the evolution of financial markets and reflects on personal experiences with Apollo
• Apollo is known for its hard work and talent in protecting their capital, with a focus on complexity and balance sheet analysis
• Apollo is a global alternative asset manager with around 750 billion in total AUM, divided into yield, hybrid, and equity strategies, making it one of the top players in the industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Klarna is seeking to raise more than $1 billion in the IPO and targeting more than $15 billion in the listing.
• Klarna’s operating margin improved from -51.5% in 2022 to -14.2% in 2023, and -4.3% in 2024.
• Klarna generated revenue of US$2.8 billion (up 23.5% YoY) and operating loss of US$121 million in 2024 (versus operating loss of US$323 million in 2023).

• They have designed their platform to address a broad spectrum of Musculoskeletal system (MSK) care—from acute injury, to chronic pain, to post-surgical rehabilitation.
• As of December 31, 2024, they had over 532,000 members and more than 2,250 clients, compared to approximately 371,000 members and approximately 1,650 clients as of December 31, 2023.
• Their revenue was $390.4 million and $292.7 million for the years ended December 31, 2024 and 2023, respectively, representing a year-over-year growth rate of 33%.

• Visen Pharmaceuticals is looking at raising up to USD 100m to list in Hong Kong.
• In an apparently downsized deal, the company is trying to sell at a blue sky valuation.
• We disagree with its valuation and noted that tones have turned bearish in its offering documents.

• From the characteristics of quick-frozen food industry, companies usually have low pricing power. Since barriers to entry and exit are low, in the long run, the profits will be meager.
• Anjoy’s core business model is to develop the sinking market through distributors who have been operating for many years. Revenue growth shows an upward trend, but growth momentum is decreasing.
• Anjoy is facing performance growth pressure in China market, as well as uncertainties in terms of internationalization. High valuation becomes sustainable only when Anjoy successfully enters international markets.

• 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 had a look at a few of the upcoming listings in Hong Kong.
• On the placements front, Japan Post Bank (7182 JP) managed to do better than its last deal while Austal Ltd (ASB AU) didn’t do too well.

• On 14 March, Samsung SDI (006400 KS) announced a 2 trillion won (US$1.4 billion) rights offering capital raise plan.
• Samsung SDI’s 2 trillion won capital raise is likely to have a near-term negative impact on the company’s share price.
• We are negative on Samsung SDI’s rights offering capital raise mainly due to shares dilution. We also remain concerned that weak demand for EVs globally could last longer. 

• Bama Tea (BT) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
• BT mainly grew through franchising. Its broad portfolio boosts market reach. A shift to online sales and stable tea prices may improve gross margins.
• BT needs capital for expansion but faces challenges: a fragmented, slow-growing industry, declining franchise earnings, weak 9M24 tea-leaf sales, supplier/customer concentration, and this being BT’s fourth attempt at going public.

• Bluestone Jewellery and Lifestyle Ltd Ltd (BJL) (0124165D IN)(BJL) is planning to raise about US$118m in its upcoming India IPO. 
• BJL offers contemporary lifestyle diamond, gold, platinum, and studded jewellery under its flagship brand.
• It is a digital-first direct-to-consumer (DTC) brand and is the second largest digital-first omni-channel jewellery brand in India in terms of revenue for FY24, as per RedSeer Report.

• DN Solutions is getting ready to complete its IPO in Korea in May 2025. The IPO price range is from 65,000 won to 89,700 won.
• The book building for the institutional investors will last from 22 to 28 April. The expected IPO offering amount is from 1.14 trillion won to 1.57 trillion won.
• The IPO price range is based on DN Solutions’ net profit of 317.4 billion won, P/E of 25.2x, and IPO discount rates of 29.1% to 48.6%.

• Duality Biotherapeutics, a China-based clinical-stage biotechnology company, plans to raise up to US$300m via a Hong Kong listing.
• The company has passed the hearing for the listing and filed a new version of the prospectus.
• We look at the difference between previous filing and current filing.

• An undisclosed seller is looking to raise around US$520m via selling 0.5% of its stake in Recruit Holdings (6098 JP) .
• We have covered a number of placements in the stock over the past few years, most of which have ended up doing well.
• In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

• Seoul Guarantee Insurance (031210 KS) raised around US$125m in its Korean IPO. 
• Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.
• We have looked at the firm’s past performance and discussed our thoughts on valuation. In this note, we talk about the trading dynamics.

• The discount’s tight, but this near-2-trillion-won raise is a rare mega-deal in Korea, despite the issuance ratio below 20%.
• Samsung Electronics is in for 150 billion won, but plenty of supply remains. A smooth clearance? Unlikely. This could drive stock rights costs lower as price discovery unfolds.
• The optimal approach is to wait for a decline in rights prices and assess hedge costs through single stock futures (or TRS, if doable), given the shorting restrictions.

• Knowledge Realty Trust (258259D IN)  looks to raise about US$712m through its upcoming India IPO. The lead bookrunners for the deal are Kotak, Axis, BoFA, ICICI, IIFL, JMFin, MS, SBI.
• Knowledge Realty Trust (KRT) owns and manages a high-quality office portfolio in India. KRT covered 87% of India’s office supply and gross absorption between FY16-9M24, as per CBRE report.
• The portfolio includes 6 city-center offices and 24 business parks/centers.  These assets are spread across 6 cities — Hyderabad, Mumbai, Bengaluru, Chennai, Gurugram, and GIFT City.

• KJ017 is the first and only recombinant human hyaluronidase to reach NDA stage in China. Bao needs to combine SC Formulations with antibodies. KJ103 may not be a blockbuster variety.
• Considering multiple mature FSH products have been on the market for many years and also been recognized by patients, Bao needs to invest in educating the market/patients to accept SJ02. 
• After Series C+ Financing, Post-money valuation reached RMB4.87 billion. However, we think there could be some uncertainties in terms of future commercialization performance of Bao’s three core products. 

• Softcare (SOFT HK)  is looking to raise at least US$300m in its upcoming Hong Kong IPO.
• Softcare (SC) is an international hygiene product corporation engaged in the development, manufacturing and sales of baby and feminine hygiene products.
• In this note, we look at the firm’s past performance.

• Seoul Guarantee Insurance (031210 KS) raised around US$125m in its Korean IPO. 
• Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.
• We have looked at the firm’s past performance and discussed our thoughts on valuation. In this note, we talk about the trading dynamics.

• Hanwha Energy, which is 100% owned by the Hanwha Group owner family members, has started the process of going public. Hanwha Energy could complete its IPO in 2025/2026. 
• One of the scenarios involving Hanwa Energy is that once it completes its IPO, it could merge with Hanwha Corporation (000880 KS). 
• Hanwha Energy generated revenue of 4.7 trillion won (up 20% YoY) and operating profit of 215 billion won (up 306.5% YoY). 

• Austal Ltd (ASB AU)  is looking to raise US$157m, with US$125m from a primary placement and the remainder, a secondary placement contingent on the primary being fully subscribed.
• The deal will be a large one to digest at 58 days of the stock’s three month ADV, representing 15.3% of its shares outstanding.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Bank Of Baroda (BOB IN) is looking to raise about INR 85bn (US$980m) in its upcoming qualified institutional placement (QIP).
• In an announcement released on Feb 13, 2025, BOB mentioned its board’s approval to raise upto INR85bn via various modes including a QIP. Since then, the shares have corrected 1.2%.
• The deal would be a relatively large one to digest at 39 days of three month ADV. The company’s last fundraise did not do well.

• AvePoint (AVPT US) , a global provider of data security, governance, and resilience, aims to raise around US$300m in its Singapore secondary listing.
• As of FY24, AP had over 25,000 customers who rely on its Confidence Platform to prepare, secure, and optimize their critical data across environments.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Since HUGE ranks in the first tier among domestic brands, the import substitution would be the main logic to continue driving the performance growth based on its strong cost effectiveness.
• If HUGE wants to achieve success in non-advantageous areas in the future, reducing price to compete for more market share could be an essential means. VBP is also a challenge.
• Comparable companies include Sinocera Functional Material, Yantai Zhenghai Bio-Tech, Angelalign, Modern Dental Group, Topchoice Medical. We think valuation of HUGE could be higher than peers due to higher profitability.

• Anjoy Foods Group (603345 CH), a quick-frozen food company in China, aims to raise around US$300m in its H-share listing.
• AFG was the largest quick-frozen food company in China in terms of revenue in 2023, with a market share of 6.2%, according to the Frost & Sullivan report. 
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• MIXUE’s IPO debut was stellar. the IPO pricing of HK$202.5/share was indeed conservative. MIXUE is able to obtain more valuation premium space after IPO from a relatively low IPO pricing.
• However, concerns on future performance growth remains. Investors need to pay attention to the performance verification. Market sentiment is becoming “overheated”, and the pressure for short-term stock price corrections increases.
• We updated our forecast for 2025-2027. If based on P/E of 20-25x, market value is HK$109.4-136.8 billion, HK$122.5-153.2 billion, HK$134.8-168.5 billion based on 2025, 2026 and 2027 net profit, respectively.  

• British Land is an office and retail landlord in UK.  Around 60% of its assets are campus/offices, with all assets located in UK
• We think the underling retail and office market are showing solid recovery, which will support British Land key operating business
• British Land also sees capital recycling as an important pillar, including dividend, balance sheet management, and M&As to drive shareholders’ returns

• Chifeng Jilong Gold Mining (600988 CH) , a gold mining company in China, raised around US$363m in its H-share listing in Hong Kong.
• It operates six gold mines in Asia and Africa and has been listed on the Shenzhen Stock Exchange since 2004.
• We have covered the company and deal background in our previous notes. In this note, we talk about the trading dynamics.

• 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, Mixue Group (2097 HK) provided some much needed relief to the HK tea chains, Seoul Guarantee Insurance (031210 KS) might not do the same this week.
• On the placements front, BYD (1211 HK)‘s jumbo offering has been doing well, while Japan Post Bank (7182 JP) hasn’t been correcting much.