ECM Daily Briefs | Page 30 of 161

In today’s briefing:

Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support
JX Advance Metals Pre-IPO – The Positives – Transforming
Pre-IPO MIXUE Group Update – The Snow King Is Facing Headwinds
Hi-Think Technology Pre-IPO Tearsheet

Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support

By Travis Lundy

SRE Holdings Corp (2980 JP) does a business in AI Cloud&Consulting for the real estate, finance, and Life & Healthcare business. Sony Corp (6758 JP) is selling a stake.
The offering is for about US$50mm assuming a 10% discount today’s close. It is not clear how much this was expected but there is a decent-sized short position.
The stock has its ups and downs, and recently decided it liked Q3 earnings and guidance. That bodes well for the offering.

JX Advance Metals Pre-IPO – The Positives – Transforming

JX Advance Metal’s (JXAM) parent, ENEOS Holdings (5020 JP), is looking to raise around US$2.6bn 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.
In this note, we talk about the positive aspects of the deal.

Pre-IPO MIXUE Group Update – The Snow King Is Facing Headwinds

MIXUE invited experts to conduct calculations based on population data. The result is a maximum of 45,000 stores can be opened. So, MIXUE has reached the growth ceiling in China.
The pain point is since MIXUE’s growth depends significantly on its ability to expand store network, once the growth of franchised stores slows down, a performance decline would be inevitable.
Due to larger scale effect/stronger supply chains/higher net profit margin, MIXUE’s valuation should be higher than peers. Higher valuation depends on whether MIXUE is able to make breakthrough in internationalization.

Hi-Think Technology Pre-IPO Tearsheet

Hi-Think Technology International Ltd (2224226D HK) is looking to raise at least US$150m in its upcoming Hong Kong IPO.
It is a leading Chinese provider of digital intelligence software technology services and solutions serving the international market.
It was the largest Chinese provider of software technology services and solutions to the Japanese market.

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Feb 17

Daily Brief ECM: MIXUE Group IPO: The Leading Player that Justifies a Premium and more

In today’s briefing:

MIXUE Group IPO: The Leading Player that Justifies a Premium
ECM Weekly (17th Feb 2025) – CATL, Hengrui, Mixue, Guming, Hexaware, Ajax, Aegis, Daiichi, Takasago

MIXUE Group IPO: The Leading Player that Justifies a Premium

By Osbert Tang, CFA

Mixue Group (MIX HK) has a whopping market share of 32.7% in 2023, based on number of cups sold. It also has the highest profit in the sector.
With a strong profit record and net cash, it is a leader that captures industry growth. Its extensive network targets low-tier cities’ potential and the franchise model drives expansion.
It justifies trading on a premium to sector average PER of 19.6x for FY25. If aligning P/B with ROE on the best-fit line, it should be priced at 5.1x pre-money.

ECM Weekly (17th Feb 2025) – CATL, Hengrui, Mixue, Guming, Hexaware, Ajax, Aegis, Daiichi, Takasago

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, while Guming Holdings (1364 HK) added to the list of disaapointing tea chain, MIXUE is said to be gearing up for a launch soon.
On the placements front, there were two smallish deals in Japan.

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Feb 16

Daily Brief ECM: CATL Launches Hong Kong Secondary Listing to Fund European Expansion and more

In today’s briefing:

CATL Launches Hong Kong Secondary Listing to Fund European Expansion
CATL IPO (Hong Kong) Valuation Analysis
CATL H Share Listing: The Investment Case

CATL Launches Hong Kong Secondary Listing to Fund European Expansion

By Caixin Global

Chinese battery giant Contemporary Amperex Technology Co. Ltd. (CATL) has launched its secondary listing in Hong Kong, aiming to raise funds primarily for the construction of its Hungary factory, according to its prospectus disclosed by the Hong Kong Stock Exchange Tuesday.
The move could become one of Hong Kong’s largest listings in recent years, with Bloomberg reporting a potential fundraising target exceeding $5 billion.
Shenzhen-listed CATL’s stock closed Tuesday at 251.8 yuan ($34.47), down 2.57% from the previous day, with a total market capitalization of 1.1 trillion yuan. The company’s valuation peaked at 1.6 trillion yuan in December 2021.

CATL IPO (Hong Kong) Valuation Analysis

By Douglas Kim

Our valuation analysis suggests that CATL is undervalued. Our base case valuation suggests implied market cap of 1.5 trillion CNY, which represents 33% higher than current levels.
Our valuation sensitivity analysis suggests a market cap valuation range of 1.2 trillion CNY to 1.8 trillion CNY.
We estimate CATL to generate revenue of 431.7 billion RMB (up 16.8% YoY) and net profit of 61.4 billion RMB (up 10.5% YoY) in 2025.

CATL H Share Listing: The Investment Case

Contemporary Amperex Technology (CATL) (300750 CH), the world’s largest supplier of EV and ESS batteries, has filed for an H Share listing to raise US$5 billion.
CATL’s global EV battery market share, measured in GWh, rose from 27.6% in 2019 to 36.8% in November 2024.
The investment case rests on a leading market position, forecasted return to growth, peer-leading profitability, cash generation, peer-leading FCF margin and an attractive valuation.

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Feb 15

Daily Brief ECM: Aardvark Therapeutics (AARD): Obesity Biotech Busts; IPO Trades Deeply in the Red and more

In today’s briefing:

Aardvark Therapeutics (AARD): Obesity Biotech Busts; IPO Trades Deeply in the Red
Karman Holdings Inc.(KRMN): Space and Defense IPO Blasts Off, High Hit Rate in Roadshow
Ajax Engineering IPO Trading – Decent Insti Coverage but Subdued Retail Demand
SailPoint IPO (SAIL.US): Pricing and First Trading-Day, No IPO Pop In $1B+ Nasdaq Debut

Aardvark Therapeutics (AARD): Obesity Biotech Busts; IPO Trades Deeply in the Red

Aardvark Therapeutics priced a full size deal of 5.88mm shares at the low end of the range, $16.00, and opened at $15.18 for a loss of 5.1% at first trade.
The volume on day one was just 1.7 million shares or less than 30% of the float.
As the company progresses through its trials and more readouts and data becomes available, this biotech may find a better footing.

Karman Holdings Inc.(KRMN): Space and Defense IPO Blasts Off, High Hit Rate in Roadshow

The Trive Capital (private equity) backed company priced 23.0mm shares (upsized from 21.05mm) at $22.00 ($2 Above Range) and opened at $30.00 for a 36.3% gain at first trade.
The deal finished roughly 17-times oversubscribed with the top ten percent of the deal receiving 50% of the offerings and top 25% of the transaction receiving 75% of the allocations.
Given the success of the IPO on day one, we will be upwardly-revising our 30-day forecast on this IPO.

Ajax Engineering IPO Trading – Decent Insti Coverage but Subdued Retail Demand

By Akshat Shah

Ajax Engineering Limited (0896529D IN) raised around US$145m in its India IPO.
Ajax Engineering Limited (AEL) is one of the leading concrete equipment manufacturers with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain.
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.

SailPoint IPO (SAIL.US): Pricing and First Trading-Day, No IPO Pop In $1B+ Nasdaq Debut

By Andrei Zakharov

SailPoint, a Thoma Bravo-backed provider of identity security for the modern enterprise, priced its IPO at $23.00/share and raised $1B+.
The offering was 20+ times oversubscribed, according to Bloomberg. However, shares fell as much as ~4% on the first day of trading.
I think the stock was fairly valued vs. peers given 20%+ growth rates at scale. Surprisingly, the company boosted its initial price range and priced IPO at top of range.

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Feb 14

Daily Brief ECM: Daiichi Sankyo Placement – Momentum Is Weak but the Deal Is Small and more

In today’s briefing:

Daiichi Sankyo Placement – Momentum Is Weak but the Deal Is Small
Takasago Thermal Engineering Offering (1969) – Small Start to Larger Unwind
CATL IPO Listing in Hong Kong Preview
Takasago Thermal Engineering Placement – Share Buyback Should Aid Deal Performance
Hengrui (恒瑞医药) A/H Listing: A Worthy Comparison with Hansoh Pharma
SailPoint Inc (SAIL): Upwardly-Revised, Upsized IPO Falls Flat on Day One
Kestra Medical Technologies, Ltd (KMTS): Peeking at the Prospectus of the Next Medical Device IPO
Aegis Vopak Pre-IPO: Expanding Rapidly but Lots of Debt
Veeda Clinical Research Ltd Pre-IPO Tearsheet

Daiichi Sankyo Placement – Momentum Is Weak but the Deal Is Small

By Akshat Shah

Mizuho Bank is looking to raise US$151m from selling some of its stake in Daiichi Sankyo (4568 JP).
While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
In this note, we will talk about the placement and run the deal through our ECM framework.

Takasago Thermal Engineering Offering (1969) – Small Start to Larger Unwind

By Travis Lundy

Takasago Thermal Engineering (1969 JP) reported Q3 earnings today. Revs up tiny yoy over 9m. OP +13%, Net +18.2%. Progression a bit behind guidance for full-year (but guidance unchanged)
Orders received and carried forward a record high. Margins up. DX/etc investments up. Crossholdings down but still HUGE outbound/in-bound. Goal is to shrink from 20% of net assets to 15%.
Today the company announced some crossholders would sell ~5% of shares out, and the company would launch a buyback for half that. Meh…

CATL IPO Listing in Hong Kong Preview

By Douglas Kim

Contemporary Amperex Technology (CATL) is getting ready to complete its IPO on the Hong Kong exchange. CATL is expected to raise at least US$5 billion.
CATL maintained its 36.8% share in the global EV battery market in 2023 and January to November 2024. CATL has excellent fundamentals and improving profit margins.
Major risk factors include additional tariffs by the US, recent addition to Pentagon’s blacklist, declining sales in 2024, and lower government subsidies for EVs globally.

Takasago Thermal Engineering Placement – Share Buyback Should Aid Deal Performance

A group of shareholders are looking to raise US$118m from selling their respective stakes in Takasago Thermal Engineering (1969 JP) .
While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
In this note, we will talk about the placement and run the deal through our ECM framework.

Hengrui (恒瑞医药) A/H Listing: A Worthy Comparison with Hansoh Pharma

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, we think it is worth a comparison between the two.
Both companies are decent biopharma players and are trading at a premium to other pharmaceutical company peers. Upon comparison, we think Hengrui’s H should be at a premium to Hansoh.

SailPoint Inc (SAIL): Upwardly-Revised, Upsized IPO Falls Flat on Day One

SailPoint traded below the issue price for the majority of its first trading session and hit a low of $20.77 before rebounding to a $22.00 print at the close
The deal was more than 20-times oversubscribed and upsized its price range while on the road prior to pricing which makes the underperformance even more bizarre.
Given the overhang of the underperforming IPO, we will be downgrading our 30-day forecast.

Kestra Medical Technologies, Ltd (KMTS): Peeking at the Prospectus of the Next Medical Device IPO

They are a commercial-stage, wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease.
As of January 31, 2025, the ASSURE WCD is actively being prescribed by more than 550 hospitals and has been worn by over 17,000 patients.
We anticipate this company to set terms (share size, price range) and debut in the last week of February or the first week of March.

Aegis Vopak Pre-IPO: Expanding Rapidly but Lots of Debt

Aegis Vopak Terminals Ltd (1902844D IN) is looking to raise about US$415m in its upcoming India IPO.
Aegis Vopak (AV) is the largest Indian third-party owner and operator (in terms of storage capacity) of tank storage terminals for liquified petroleum gas (LPG) and liquid products.
In this note, we look at the firm’s past performance.

Veeda Clinical Research Ltd Pre-IPO Tearsheet

By Rosita Fernandes

Veeda Clinical Research Ltd (3340714Z IN) (VCRL) is looking to raise about US$115m in its upcoming India IPO. The bookrunners for the deal are Axis, CLSA, IIFL, SBI.
VCRL is a global contract research organization offering comprehensive drug development services, including non-clinical, pre-clinical, clinical trials, and studies across diverse drug types like generics, biosimilars, and medical devices.
The company operates in key global markets, including North America, Europe, and Asia, with a presence in India.

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Feb 13

Daily Brief ECM: Japan Eyewear (5889) – “Second IPO” Equity Offering Creates TOPIX Inclusion and more

In today’s briefing:

Japan Eyewear (5889) – “Second IPO” Equity Offering Creates TOPIX Inclusion
Jiangsu Hengrui Pharma A/H Listing – Innovation and Overseas Expansion Driving Earnings Rebound
Guming Holdings (1364 HK): Potential Valuation Upside with Upcoming Mixue IPO
CATL A/H Listing – IPO Filing Updates
WeWork India Management Ltd Pre-IPO Tearsheet
Pre-IPO Sunshine Lake Pharma – “Outdated” Pipeline Is Difficult to Obtain Decent Valuation

Japan Eyewear (5889) – “Second IPO” Equity Offering Creates TOPIX Inclusion

By Travis Lundy

Janaghan Jeyakumar, CFA has had Japan Eyewear Holdings (5889 JP) on his watchlist. He wrote on 6 Feb 2025 in his TOPIX Who Is Ready piece he expected Q1 inclusion.
He also noted that an equity offering might be required. Monday, we got a forecast revision (upward) for the year ended 31 January, an equity offering, and TOPIX inclusion.
The equity offering proposed is large enough one could consider it a “Second IPO”. This matters in terms of absorption and in thinking about the TOPIX Inclusion event.

Jiangsu Hengrui Pharma A/H Listing – Innovation and Overseas Expansion Driving Earnings Rebound

Jiangsu Hengrui Medicine (600276 CH) a China-based pharmaceutical company, aims to raise around US$2bn 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.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

Guming Holdings (1364 HK): Potential Valuation Upside with Upcoming Mixue IPO

By Devi Subhakesan

Guming Holdings (1364 HK) ‘s shares closed 7% below issue price by end of yesterday’s trading.
Institutional investors may be cautious, with many likely waiting for the upcoming IPO of Mixue Group (MIX HK), widely viewed as a more attractive and bigger opportunity in tea space.
The upcoming Mixue IPO—aiming to raise about USD500 million—could spark broader investor interest in the sector and may boost valuations for Guming given its relative operational strengths.

CATL A/H Listing – IPO Filing Updates

Contemporary Amperex Technology (CATL), 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 updates from its most recent filings.

WeWork India Management Ltd Pre-IPO Tearsheet

By Rosita Fernandes

WeWork India Management Ltd (1690124D IN) (WIML) is looking to raise about US$450m in its upcoming India IPO. The bookrunners for the deal are JMFin, ICICI, Jefferies, Kotak, 360 One.
WIML was established in 2016 under the name, “Halosaur Bengaluru Private Limited” and is backed by Embassy Group. It is one of the leading premium flexible workspace operators.
WIML has been the largest operator by total revenue in the past three Fiscals, according to the CBRE Report.

Pre-IPO Sunshine Lake Pharma – “Outdated” Pipeline Is Difficult to Obtain Decent Valuation

Most revenue was contributed by Kewei, but kewei has been included in VBP.Together with increasing competition, the outlook is gloomy if Sunshine Lake Pharma continues to mainly rely on Kewei.
There’s a significant gap in Sunshine Lake Pharma’s R&D progress/clinical data compared to the products of peers.The pipeline has been “disconnected” from the level of domestic biotech in recent years
Sunshine Lake Pharma is inferior to other pharmaceutical companies in China.Even if CJ Pharma will be merged into Sunshine Lake Pharma, its market value should be lower than leading Biotech.

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Feb 12

Daily Brief ECM: Hexaware Technologies IPO – Not Cheap on Its Own and more

In today’s briefing:

Hexaware Technologies IPO – Not Cheap on Its Own, but Peers Are Trading a Lot Higher
Guming (1364 HK): Upsized at Top-Price. Strong Retail Demand
Guming Holdings IPO Trading – Strong Retail Demand, with Decent Coverage on the Insti Tranche
PegBio (派格生物) IPO: Thoughts on Valuation
SailPoint, Inc. (SAIL) — IPO Price Range Increased; Software Order Book Demand Is Fever Pitch
Aardvark Therapeutics (AARD): Caution Needed Ahead of Small-Cap Obesity Biotech IPO

Hexaware Technologies IPO – Not Cheap on Its Own, but Peers Are Trading a Lot Higher

By Clarence Chu

Hexaware Technologies (HEXW IN) is looking to raise US$1bn from its India IPO.
Hexaware is a global digital and technology services company with AI at its core, delivering innovative solutions that help customers in their digital transformation journey and subsequent operations.
In this note, we discuss its RHP updates, undertake a peer comparison and share our thoughts on valuation.

Guming (1364 HK): Upsized at Top-Price. Strong Retail Demand

By Devi Subhakesan

Guming Holdings, the leading mid-priced milk tea player in China, has priced its IPO at the top-end and upsized it to 182.6 mn shares, raising a total of HKD1.8 Bn.
With strong HK retail investor demand, International investors bidding for Guming stock in the IPO had their allocations scaled back to 56.5% from 90% earlier.
Guming will list at the HK stock exchange today and could likely see a good uptick upon listing given robust investor demand.

Guming Holdings IPO Trading – Strong Retail Demand, with Decent Coverage on the Insti Tranche

By Clarence Chu

Guming Holdings (1364 HK) raised US$233m in its Hong Kong IPO. Guming Holdings (Guming) sells freshly-made beverages in China.
Guming Holdings (Guming) sells freshly-made beverages in China. Guming focuses on the mid-priced freshly-made tea beverage market with product prices typically ranging between RMB10-18.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

PegBio (派格生物) IPO: Thoughts on Valuation

By Ke Yan, CFA, FRM

PegBio, a China-based biotech company, plans to raise up to USD 150 million via a Hong Kong listing.
In our previous note, we examined the company’s core product namely PB-119.
In this note, we will provide a valuation for the company’s key products.

SailPoint, Inc. (SAIL) — IPO Price Range Increased; Software Order Book Demand Is Fever Pitch

The underwriters amended the terms of this offering with a S-1/A. The price range has been upwardly revised from $19.00-$21.00 to $21.00-$23.00.
Cornerstone investor Dragoneer has a strong track record with IPOs that have participated in.
The upwardly-revised price adjustment is a very bullish sign for the IPO and we have adjusted our early expectations on this deal.

Aardvark Therapeutics (AARD): Caution Needed Ahead of Small-Cap Obesity Biotech IPO

We believe exercising caution based upon the small market cap of the company and the existing backers is the prudent play at this time.
Aardvark Therapeutics develops novel, small-molecule therapeutics to activate innate homeostatic pathways for the treatment of metabolic diseases.
Their lead product candidate is an oral gut-restricted small-molecule agonist of certain TAS2Rs expressed in the gut lumen and have initiated a Phase 3 trial for hyperphagia associated with PWS.

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Feb 11

Daily Brief ECM: Pre-IPO Hanx Biopharmaceuticals – The Risk of Pipeline Development Failure Is High and more

In today’s briefing:

Pre-IPO Hanx Biopharmaceuticals – The Risk of Pipeline Development Failure Is High
MIXUE Pre-IPO – Refiling Updates – Slower Growth but Better Margins
Hexaware Technologies IPO: Valuation Insights
Ajax Engineering IPO – Robust Growth Driven by a Comprehensive Dealer Network

Pre-IPO Hanx Biopharmaceuticals – The Risk of Pipeline Development Failure Is High

CD47 has been considered “problematic” by the industry, so in order to prove its druggability, it usually requires very good clinical data, and cannot rely on “conjectures” such as BsAb.
There’s no compelling evidence to prove that the toxicity issue of CD47 can be resolved. There’re concerns on the safety profile and efficacy of HX009/HX044, with high R&D failure risks.
After Series B+ of financing in June 2024, post-investment valuation of Hanx reached about RMB1.6 billion. Due to slower R&D progress. we think Hanx’s valuation should be lower than ImmuneOnco.

MIXUE Pre-IPO – Refiling Updates – Slower Growth but Better Margins

Mixue Group is looking to raise about US$1bn in its upcoming Hong Kong IPO.
MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
In our earlier notes, we have looked at the past performance, undertaken a peer comparison and spoken about valuations. In this note, we talk about updates from its recent filings.

Hexaware Technologies IPO: Valuation Insights

Hexaware Technologies (HEXW IN), an Indian mid-sized global IT services company, aims to raise up to US$1.0 billion.
We previously discussed the IPO in Hexaware Technologies IPO: The Bull Case and Hexaware Technologies IPO: The Bear Case.
Our valuation analysis suggests that the IPO price range of Rs674-708 per share is attractive. Therefore, we would participate in the IPO.

Ajax Engineering IPO – Robust Growth Driven by a Comprehensive Dealer Network

By Akshat Shah

Ajax Engineering Limited (0896529D IN) is looking to raise about US$145m in its upcoming India IPO.
Ajax Engineering Limited (AEL) is one of the leading concrete equipment manufacturers with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain.
In this note, we take a quick look at the company’s past performance and the IPO valuations.

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Feb 10

Daily Brief ECM: Hexaware Technologies IPO: The Bear Case and more

In today’s briefing:

Hexaware Technologies IPO: The Bear Case
ECM Weekly (10th Feb 2025) – Haitian, Guming, LG CNS, Dr Agarwal, Ola, Brainbees, Kaynes, Whirlpool
Pre-IPO Guming Holdings – Thoughts on Valuation
Softcare Pre-IPO Tearsheet

Hexaware Technologies IPO: The Bear Case

Hexaware Technologies (HEXW IN), an Indian mid-sized global IT services company, aims to raise up to US$1.0 billion.
In Hexaware Technologies 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 mid-tier revenue growth, bottom-tier margins, low offshore mix, rising unbilled receivables/contract assets and a large post-IPO share overhang.

ECM Weekly (10th Feb 2025) – Haitian, Guming, LG CNS, Dr Agarwal, Ola, Brainbees, Kaynes, Whirlpool

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, neither of the two listings performed last week, while more are lining up to list across the region.
On the placements front, given the ongoing earnings season there weren’t any deals. We did look at lockups and other possible upcoming deals.

Pre-IPO Guming Holdings – Thoughts on Valuation

If based on the market value of HK$20.246 billion to HK$23.185 billion in this IPO, a single store market value is about HK$2-2.4 million, higher than that of Baicha Baidao.
Our forecast of 2024 net profit is RMB1.4 billion. Based on IPO price range of HK$8.68-9.94 per share, P/E is about 13.5-15.5x. There is still some upside room for valuation.
Investors may need more “safety margins” on valuation due to the pressure of performance growth after IPO.The higher the IPO price, the greater the risk of future valuation downward revisions.

Softcare Pre-IPO Tearsheet

Softcare (SOFT HK) is looking to raise at least US$300m in its upcoming Hong Kong IPO. The deal will be run by CICC, CITIC and GF Securities.
SC is principally engaged in the development, manufacturing and sales of baby and feminine hygiene products, focusing on the fast-growing emerging markets, including Africa, Latin America and Central Asia.
As of September 30, 2024, SC had 18 sales branches in 12 countries, and an extensive sales network across over 2,500 wholesalers, distributors, supermarkets, and other retailers in total.

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Feb 09

Daily Brief ECM: Guming Holding IPO Valuation Analysis and more

In today’s briefing:

Guming Holding IPO Valuation Analysis
Sionna Therapeutics Inc. (SION): RA Capital Backed Biotech IPO Booms in Debut
Titan America (TTAM): Spin-Off Successful as US Infrastructure Play Finds a Bid in IPO Aftermarket
Weekly Deals Digest (09 Feb) – Guming, Hexaware, Shibaura, Fuji Soft, Proto, Tohto, Pentamaster

Guming Holding IPO Valuation Analysis

By Douglas Kim

Our base case valuation of Guming Holding is implied target price of HKD 13.70, which is 38% higher than the high end of the IPO valuation range.
Given the solid upside, we have a Positive view of this IPO. Our valuation sensitivity analysis suggests a range of HKD 11.09 to HKD 16.57 per share.
Our base case valuation is based on 2025E P/S multiple of 3x, which is a 30% premium to the two closest comps (Sichuan Baicha Baidao Industrial and Helens International Holdings).

Sionna Therapeutics Inc. (SION): RA Capital Backed Biotech IPO Booms in Debut

Biopharmaceutical company on a mission to revolutionize the current treatment paradigm for cystic fibrosis opened its IPO 39% above issue.
The transaction was upsized from 8.8mm shares to 10.6mm shares and priced at the high-end of the range.
The IPOs that are more apt to see “follow-through” in the aftermarket are those with product candidates in later stage. This IPO does not meet that criteria.

Titan America (TTAM): Spin-Off Successful as US Infrastructure Play Finds a Bid in IPO Aftermarket

After the deal’s order book finished multiple-times oversubscribed, the company priced at the lower-half of the range and opened for a minimal gain.
Buyers stepped in and rebounded the stock past its opening price and as high as $17.27 for a gain of 8% at its top-tick.
Value investors found favor in the secular tailwinds of US infrastructure and the positives this company will be able to extract as a newly-formed company.

Weekly Deals Digest (09 Feb) – Guming, Hexaware, Shibaura, Fuji Soft, Proto, Tohto, Pentamaster