Category

ECM

Jan 08
0

Daily Brief ECM: Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life and more

By | Daily Briefs, ECM

In today’s briefing:

  • Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life
  • Aye Finance Ltd Pre-IPO Tearsheet

Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

By Sumeet Singh

  • 2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. In 2024, IPO volumes were mainly driven by India, even as Hong Kong showed signs of turning a corner.
  • We ended 2024 with an accuracy rate of 79.4% across 68 IPOs that we covered and 68.8% across 109 placements.
  • For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.

Aye Finance Ltd Pre-IPO Tearsheet

By Rosita Fernandes

  • Aye FInance Ltd (1239156D IN) (AFL) is looking to raise about US$171m in its upcoming India IPO. The bookrunners for the deal are Axis, IIFL, JM Fin, Nuvama.
  • AFL is a non-banking financial company – middle layer (NBFC-ML) that focuses on providing loans to micro, small, and medium enterprises (MSMEs) across India.
  • According to CRISIL Report, AFL is recognized as the fastest-growing NBFC in India among its peers with YoY AUM growth between FY24 and FY23, achieving a growth rate of 64%.

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Jan 07
0

Daily Brief ECM: Bloks Group Likely To Price IPO at High End of Range: What To Expect From First Trading-Day? and more

By | Daily Briefs, ECM

In today’s briefing:

  • Bloks Group Likely To Price IPO at High End of Range: What To Expect From First Trading-Day?
  • CaoCao Pre-IPO: Scaling up but a Cash Infusion Is Required

Bloks Group Likely To Price IPO at High End of Range: What To Expect From First Trading-Day?

By Andrei Zakharov

  • Bloks Group, a founder-led toy maker and owner of trusted brand “Blokees”, will price its IPO this week. Shares are set to begin trading on January 10, 2025.
  • I would expect strong first trading-day return as HK public offering was already 5,000+ times oversubscribed at high end of marketed price range.
  • I believe investors are rationally optimistic about the company. Bloks Group IPO attracted a surge of retail investors, and the stock may skyrocket above IPO price on first trading-day.

CaoCao Pre-IPO: Scaling up but a Cash Infusion Is Required

By Nicholas Tan

  • CaoCao Inc (1646553D CH) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
  • It is a ride hailing platform in China originally incubated by Geely Group connecting passengers and drivers to deliver consistent and high-quality ride experiences.
  • In this note, we look at the firm’s past performance.

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Jan 06
0

Daily Brief ECM: LG CNS IPO: Valuation Insights and more

By | Daily Briefs, ECM

In today’s briefing:

  • LG CNS IPO: Valuation Insights
  • Bloks Group IPO – Outgrowing Its Peers, Decent Valuation

LG CNS IPO: Valuation Insights

By Arun George

Bloks Group IPO – Outgrowing Its Peers, Decent Valuation

By Clarence Chu

  • Bloks Group (1850960D CH) is looking to raise US$187m in its Hong Kong IPO.
  • Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character and brick-based toys.
  • In our previous notes, we looked at the firm’s past performance. In this note, we undertake a peer comparison and discuss our thoughts on valuation.

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Jan 05
0

Daily Brief ECM: Anthem Biosciences Pre-IPO: High Visibility Powered by Differentiated Capabilities and more

By | Daily Briefs, ECM

In today’s briefing:

  • Anthem Biosciences Pre-IPO: High Visibility Powered by Differentiated Capabilities
  • Initial Thoughts on the DN Solutions IPO

Anthem Biosciences Pre-IPO: High Visibility Powered by Differentiated Capabilities

By Tina Banerjee

  • Anthem Biosciences (1234D IN), a Contract Research, Development, and Manufacturing Organization, has filed DRHP for INR34B IPO. The proposed IPO will be only offer for sale, with no fresh issue.
  • Anthem Biosciences is one of three CRDMOs that possess technological capabilities in India across ADCs, RNAi, peptides, and oligonucleotides, which are among the fastest growing in the pharmaceutical industry.
  • Differentiated technological capabilities, large clientele, and exposure to commercialized molecules enhance our conviction on the sustainable growth prospect of the company. Industry backdrop is also favorable.

Initial Thoughts on the DN Solutions IPO

By Douglas Kim

  • DN Solutions is planning to complete its IPO in Korea in 2025. The expected value of DN Solutions is estimated to be about 5 trillion won to 6 trillion won.
  • DN Solutions’ revenue and operating profit increased at CAGR of 19.9% and 62.2%, respectively from 2020 to 2023.
  • Currently, the largest shareholder of DN Solutions is GMT Holdings which has a 90.32% stake. DN Automotive (007340 KS) owns a 100% stake in GMT Holdings.

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Jan 04
0

Daily Brief ECM: LG CNS: Updated IPO Valuation Analysis and more

By | Daily Briefs, ECM

In today’s briefing:

  • LG CNS: Updated IPO Valuation Analysis
  • Orum Therapeutics Lowers IPO Price Range

LG CNS: Updated IPO Valuation Analysis

By Douglas Kim

  • According to our updated valuation analysis of LG CNS, it suggests a base case implied market cap of 7.4 trillion won, representing target price of 76,383 won per share. 
  • Our base case valuation target price of 76,383 won is 23% higher than the high end of the IPO price range. 
  • We lowered our target price by 6%, mainly due to greater political risks arising from the recent cancelled martial law and ongoing impeachment of President Yoon.

Orum Therapeutics Lowers IPO Price Range

By Douglas Kim

  • Orum Therapeutics (475830 KS) has lowered its IPO price range to 24,000 won to 30,000 won.
  • The IPO offering amount will be between 60 billion won to 75 billion won. The expected market cap of the IPO is between 531 billion won to 664 billion won. 
  • Our updated valuation of Orum Therapeutics suggests implied target price of 24,939 won per share, which is 8% lower than the mid-point of the revised down IPO price range. 

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Jan 03
0

Daily Brief ECM: Bloks Group IPO (0325.HK): Global Offering and more

By | Daily Briefs, ECM

In today’s briefing:

  • Bloks Group IPO (0325.HK): Global Offering, The Initial Price Range Is Seen As Attractively Valued
  • Bloks Group IPO – PHIP Updates – Momentum Remains Strong, Although Some Lingering Doubts Persist
  • LG CNS IPO: The Bear Case
  • Pre-IPO Ascentage Pharma – The US Stock Listing Will Stimulate Future Growth Potential

Bloks Group IPO (0325.HK): Global Offering, The Initial Price Range Is Seen As Attractively Valued

By Andrei Zakharov

  • Shanghai-Based Bloks Group, a leader of assembly character toys in China, has announced the initial price range for its IPO in Hong Kong.
  • The offering is expected to be between HK$55.65 and HK$60.35, implying a market cap of ~HK$14B or ~$1.8B at the midpoint of the price range. 
  • Assuming IPO offer price of HK$58.00, UBS AM Singapore, Greenwoods AM and Fullgoal Investors have agreed to invest ~HK$388M or ~$50M in the offering.

Bloks Group IPO – PHIP Updates – Momentum Remains Strong, Although Some Lingering Doubts Persist

By Clarence Chu

  • Bloks Group (1850960D CH) is looking to raise US$188m in its Hong Kong IPO.
  • Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character and brick-based toys.
  • In our previous note, we looked at the firm’s past performance. In this note, we discuss the latest PHIP updates.

LG CNS IPO: The Bear Case

By Arun George

  • LG CNS (LGCNSZ KS), the IT service unit of LG Corp (003550 KS), seeks to raise up to US$837 million through a primary/secondary offering.
  • In LG CNS 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 fading growth momentum, mid-tier revenue growth, weak non-AI growth, high contract assets, bottom-tier FCF margin and large share overhang. 

Pre-IPO Ascentage Pharma – The US Stock Listing Will Stimulate Future Growth Potential

By Xinyao (Criss) Wang

  • Ascentage has filed with the SEC to raise up to US$100 million in a US IPO. We think its future market value is expected to surpass that of Hutchmed.
  • The outlook of olverembatinib is clear. Takeda can give more possibilities to olverembatinib. 2025 Sales of olverembatinib is expected to reach RMB500 million.Market value contribution from olverembatinib is US$1-1.5 billion. 
  • Investors have higher expectations on APG-2575 to be out-licensed to MNCs. We think the peak sales of APG-2575 is expected to surpass that of olverembatinib in overseas markets. 

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Jan 02
0

Daily Brief ECM: Didi Global Q324 Results & Two Key Reasons Company May Consider A New Listing in 2025 and more

By | Daily Briefs, ECM

In today’s briefing:

  • Didi Global Q324 Results & Two Key Reasons Company May Consider A New Listing in 2025
  • S.F. Holding (6936 HK) – Here’s Why Post-IPO Share Price Performance Is So “Boring”

Didi Global Q324 Results & Two Key Reasons Company May Consider A New Listing in 2025

By Daniel Hellberg

  • In Q324, Didi grew slowly, but core margin improved significantly on higher “take rate”
  • Q324 liquidity position sound, but pace of 2024 investment difficult to sustain
  • Two important reasons Didi could list shares in ’25, even if cash needs aren’t urgent

S.F. Holding (6936 HK) – Here’s Why Post-IPO Share Price Performance Is So “Boring”

By Xinyao (Criss) Wang

  • The Time-definite express services are actually a double-edged sword for S.F.- Although it helps S.F. establish core competitiveness, such strategy limits the Company’s market share and growth ceiling in China.
  • The issue here is that S.F. has encountered growth bottlenecks, but due to its heavy asset model, the only truly suitable solution is internationalization, which however is full of uncertainties.
  • S.F. is facing many challenges. The IPO final offer price of HK$34.3 is expensive, which might explain why S.F.’s share price has been a bit “boring” since its listing.

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Dec 30
0

Daily Brief ECM: Pre-IPO Bloks Group (PHIP Updates) – Some Points Worth the Attention and more

By | Daily Briefs, ECM

In today’s briefing:

  • Pre-IPO Bloks Group (PHIP Updates) – Some Points Worth the Attention

Pre-IPO Bloks Group (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

  • The assembly character toy segment market size is not big and Bloks is already China’s largest player. So, there will be a day when the growth ceiling is reached.
  • Bloks’ business model is more similar to Pop Mart, rather than LEGO, but Bloks’ profitability is lagging behind both of them. The current high revenue growth may not be sustainable.
  • Pre-IPO valuation of Bloks reached RMB7.2 billion. Valuation of Bloks should be lower than Pop Mart. If Bloks’ valuation could reach the industry average after IPO, it is already good.

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Dec 29
0

Daily Brief ECM: China Healthcare Weekly (Dec.29) – Haier Biomedical Plans to Merge with and Absorb Shanghai RAAS and more

By | Daily Briefs, ECM

In today’s briefing:

  • China Healthcare Weekly (Dec.29) – Haier Biomedical Plans to Merge with and Absorb Shanghai RAAS

China Healthcare Weekly (Dec.29) – Haier Biomedical Plans to Merge with and Absorb Shanghai RAAS

By Xinyao (Criss) Wang

  • Haier Biomedical plans to merge with and absorb Shanghai RAAS through the issuance of shares, and both parties have signed a letter of intent for the potential merger.
  • Haier’s acquisition of RAAS helps connect the software and hardware of the blood industry and strengthen the company’s dominant position in the entire industry chain in the blood products industry.
  • The market value/financial performance of these two are far apart. If the acquisition is completed, it will help Haier improve financial performance, which is obviously more beneficial for Haier. 

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Dec 28
0

Daily Brief ECM: Calendar Effects Trading Strategy: Combining TOY and Santa Rally Effects for Enhanced Returns and more

By | Daily Briefs, ECM

In today’s briefing:

  • Calendar Effects Trading Strategy: Combining TOY and Santa Rally Effects for Enhanced Returns

Calendar Effects Trading Strategy: Combining TOY and Santa Rally Effects for Enhanced Returns

By William Mann

  • Calendar effects in equity markets have persisted despite widespread knowledge of their existence. 
  • Combine the Turn-of-Year (TOY) effect with the Santa Rally phenomenon systematically 
  • The trading approach historically generates 1.4-2.0% returns over a 7-day period, with a win rate of 75% since 2000.

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