ECM Daily Briefs | Page 39 of 161

In today’s briefing:

ECM Weekly (21st Oct 2024) – Tokyo Metro, China Resources, Horizon Robotics, Hyundai India, Waaree
Pre-IPO China Resources Beverage – Due to the Pain Points, High Valuation Is Not Justified

ECM Weekly (21st Oct 2024) – Tokyo Metro, China Resources, Horizon Robotics, Hyundai India, Waaree

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 live IPOs front, the coming week will see a whole lot of listings across the region.
On the placements front, there were mainly deals in Australia this week.

Pre-IPO China Resources Beverage – Due to the Pain Points, High Valuation Is Not Justified

By Xinyao (Criss) Wang

The whole industry has entered a medium to low-speed growth stage, and the industry’s future growth rate will remain single-digit growth. So, CR Beverage’s future performance decline is inevitable.
Due to serious homogenization/competition of packaged drinking water market, there’s not much room for innovation/iteration. CR Beverage’s sales-driven model is hard to bring “new story” to break through the dilemma.
CR Beverage is clearly inferior to Nongfu Spring. Its valuation should be lower than Nongfu Spring. We think reasonable valuation of CR Beverage is about US$4 billion (or lower).

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Oct 20

Daily Brief ECM: Horizon Robotics (9660 HK) IPO: The Bear Case and more

In today’s briefing:

Horizon Robotics (9660 HK) IPO: The Bear Case

Horizon Robotics (9660 HK) IPO: The Bear Case

Horizon Robotics (9660 HK), a provider of autonomous driving products and services, is seeking to raise up to US$696 million through a HKEx IPO.
In Horizon Robotics (9660 HK) 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 high related parties’ revenue, customer concentration risk, pricing pressure, uncertain path to profitability, high cash conversion cycle and FCF burn.

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Oct 19

Daily Brief ECM: K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback and more

In today’s briefing:

K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback

K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback

By Sanghyun Park

The institutional demand forecasts were much worse than expected, leading to the company’s blunt admission in the latest filing that the book-building flopped, prompting them to cancel the IPO.
Bankers NH and KB suggested an offering price below 8,500 KRW, but pre-IPO backers like Bain Capital and MBK strongly opposed, unhappy with shrinking proceeds, pushing for cancellation.
K-Bank plans to regroup and adjust the heavy 50% secondary share portion to retry the IPO in six months before their prelim review window expires.

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Oct 18

Daily Brief ECM: K Bank IPO Bookbuilding: To Price Lower than Low IPO Price Range or Even Potential Cancellation and more

In today’s briefing:

K Bank IPO Bookbuilding: To Price Lower than Low IPO Price Range or Even Potential Cancellation
Horizon Robotics (9660 HK) IPO: The Bull Case
CR Beverage IPO: Forecasts and Valuation
APA Group Placement – While the Overhang Remains, Selldown Appears Well Flagged
Intermestic IPO Trading – Drew a Strong Institutional Demand
Horizon Robotics IPO (9660.HK): Global Offering and Valuation Update
CK Solution IPO Preview
Waaree Energies IPO Trading – Will Ride on Premier Energies IPO Wave

K Bank IPO Bookbuilding: To Price Lower than Low IPO Price Range or Even Potential Cancellation

By Douglas Kim

Chosun Business Daily mentioned that K Bank IPO book building results among institutional investors have been very poor so far.
As a result, the bankers and K Bank are currently considering on potentially reducing the IPO price to about 8,500 won or even cancelling the IPO altogether.
Our base case valuation of K Bank is target price of 9,151 won per share. Even if the IPO is priced at 8,500 won, we would pass on this IPO.

Horizon Robotics (9660 HK) IPO: The Bull Case

By Shifara Samsudeen, ACMA, CGMA

Horizon Robotics (9660 HK), a provider of autonomous driving products and services, is seeking to raise up to US$696 million through a HKEx IPO.
Horizon ranked fourth among all global ADAS and AD solution providers in China by solution installation volume in 2023 and 1H24, with a market share of 9.3% and 15.4%, respectively.
The bull case rests on a large TAM, a blue-chip customer base, a robust backlog, a core business in good health, a high gross margin, and a strong balance sheet.

CR Beverage IPO: Forecasts and Valuation

China Resources Beverage (2460 HK) plans to raise US$650m at the upper end of the indicative IPO price range at a market capitalisation and EV of HK$34bn and HK$27bn respectively.
Though the company has a strong business model and fundamentals, the packaged drinking water market is intensely competitive creating a price war and dragging down growth rates.
CR Beverage is less diversified and has inferior margins compared to Nongfu Spring (9633 HK) , hence priced at a deep discount to its peer, making the IPO pricing attractive.

APA Group Placement – While the Overhang Remains, Selldown Appears Well Flagged

Unisuper is looking to raise A$500m (US$333m) via trimming a portion of its stake in APA Group (APA AU).
The deal will be a large one to digest at 24 days of the stock’s three month ADV.
In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

Intermestic IPO Trading – Drew a Strong Institutional Demand

Intermestic (262A JP) raised around US$120m in its Japan IPO.
Intermestic is an eyewear manufacturer of eyeglasses and eyeglass accessories in Japan.
We have looked at the company’s past performance in our previous notes. In this note, we talk about the trading dynamics.

Horizon Robotics IPO (9660.HK): Global Offering and Valuation Update

By Andrei Zakharov

Horizon Robotics, a Beijing-based fast-growing provider of integrated ADAS and AD solutions for passenger vehicles, plans to raise ~$700M at the high end of the range at HK$3.99/share.
The IPO is expected to be between HK$3.73 and HK$3.99. However, the offer price may be, but is not expected to be, lower than the lower end of the range.
I believe that at the high end of the range, the company’s valuation is full, and I would await a share pull-back before becoming more positive on the stock.

CK Solution IPO Preview

By Douglas Kim

CK Solution is getting ready to complete its IPO in KOSPI in November. Its IPO price range is from 15,700 won to 18,000 won.
The IPO offering amount ranges from 49.4 billion won to 56.6 billion won. The book building for the institutional investors lasts from 4 to 8 November.
CK Solution specializes in dry room system for the rechargeable batteries manufacturing process. Rechargeable battery sector accounted for 92.9% of total sales in 1H 2024 followed by semiconductor (3.1%).

Waaree Energies IPO Trading – Will Ride on Premier Energies IPO Wave

Waaree Energies is looking to raise up to US$514m in its India IPO.
Waaree Energies is a solar PV module manufacturer in India with an aggregate installed capacity of 12 GW, as of Jun 2024.
We have looked at the company’s past performance in our earlier note. In this note, we talk about the RHP updates and valuations.

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Oct 17

Daily Brief ECM: Wa Inc (7683 JP) – Equity Offering and more

In today’s briefing:

Wa Inc (7683 JP) – Equity Offering, and TOPIX Inclusion But Very Lopsided Register
BenQ BM Pre-IPO – Core Operations Are Steady but Has Been Losing Market Share
JD Industrials Pre-IPO – Refiling Updates – Few Hits, Few Misses
AUB Group Placement – Well Flagged Selldown Will Clear the Overhang
Horizon Robotics IPO – Peers Are Down a Lot, Its Valuation Isn’t
NTPC Green Pre-IPO – The Negatives – Competitive Marketspace and Some Risks to Watch

Wa Inc (7683 JP) – Equity Offering, and TOPIX Inclusion But Very Lopsided Register

By Travis Lundy

Yesterday WA Inc (7683 JP) announced that on the five year anniversary of its listing in 2019, the stock would move to TSE Prime on 1 November 2024
They also announced a secondary offering of 2.86mm shares including greenshoe. That’s 15% of shares out but the offering will double total float. This is almost a re-IPO.
This will lead to a TOPIX inclusion on 27 December which will be smaller than the offering. This will be all retail.

BenQ BM Pre-IPO – Core Operations Are Steady but Has Been Losing Market Share

By Nicholas Tan

BenQ BM Holding Cayman Corp. (BBHC HK) is looking to raise at least $US100m in its upcoming Hong Kong IPO.
It is a leading private for-profit general hospital group in mainland China, operating two general hospitals – Nanjing BenQ Hospital and Suzhou BenQ Hospital.
In this note, we look at the firm’s past performance.

JD Industrials Pre-IPO – Refiling Updates – Few Hits, Few Misses

JD Industrial Technology is looking to raise about US$1bn in its upcoming HK IPO.
JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
We have looked at the company background and provided our initial thoughts on valuations in our previous notes. In this note, we will talk about the refiling updates.

AUB Group Placement – Well Flagged Selldown Will Clear the Overhang

Odyssey is looking to raise A$277m (US$186m) from selling its entire stake in AUB Group Limited (AUB AU).
The PE has been invested since May 2022 with its stake subjected to a two-year escrow period. There have been media reports surrounding the selldown over the past few months.
In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

Horizon Robotics IPO – Peers Are Down a Lot, Its Valuation Isn’t

Horizon Robotics is looking to raise up to US$696m in its Hong Kong IPO.
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.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

NTPC Green Pre-IPO – The Negatives – Competitive Marketspace and Some Risks to Watch

NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU).
In this note, we will talk about the not so positive aspects of the deal.

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Oct 16

Daily Brief ECM: China Resources Beverage IPO – Volatility Makes Pricing a Bit Tricky and more

In today’s briefing:

China Resources Beverage IPO – Volatility Makes Pricing a Bit Tricky
CR Beverage (2460 HK) IPO: Valuation Insights
CR Beverage IPO Preview and Valuation Analysis: Strong Profitability Growth, IPO Valuation Is Cheap
Rigaku IPO: Forecasts and Valuation
Rubicon Research Pre-IPO – Robust Product Development Pipeline Driving Revenue Growth
Vikran Engineering Limited Pre-IPO Tearsheet
NTPC Green Pre-IPO – The Positives – Backed by India’s Largest Power Company

China Resources Beverage IPO – Volatility Makes Pricing a Bit Tricky

China Resources Beverage (CRB HK) is looking to raise up to US$650m in its Hong Kong IPO.
China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

CR Beverage (2460 HK) IPO: Valuation Insights

By Shifara Samsudeen, ACMA, CGMA

China Resources Beverage (CRB HK), China’s largest purified drinking water company, has launched its HKEx IPO to raise up to US$650 million.
We previously discussed the IPO in CR Beverage IPO: The Bull Case, CR Beverage IPO: The Bear Case and CR Beverage IPO: The Investment Case.
Our valuation analysis suggests that CR Beverage is attractively valued at the IPO price range. Therefore, we would participate in the IPO.

CR Beverage IPO Preview and Valuation Analysis: Strong Profitability Growth, IPO Valuation Is Cheap

By Andrei Zakharov

CR Beverage, a pioneer in China’s packaged drinking water industry with a forty years history, sets terms for upcoming IPO in Hong Kong.
The IPO is expected to be between HK$13.50 and HK$14.50. At the midpoint of the range, CR Beverage would command a market value of ~HK$33B or ~$4.2B.
I view IPO valuation as attractive vs. domestic peers as profitability and gross profit margins improved. UBS, BOCI, CITIC Securities and Bank of America are leading the offering.

Rigaku IPO: Forecasts and Valuation

Rigaku Holdings (268A JP) has opened its books for the IPO, and the IPO will raise $753m purely through the sale of shares by the existing shareholders.
Unlike its competitors, Rigaku has a very specialized product portfolio that is entirely focused on X-ray technology which makes the company unique among its competitors.
Our analysis reveals that Rigaku’s IPO is attractively priced compared to its competitors and there is more than 15-20% upside to the indicative IPO price range.

Rubicon Research Pre-IPO – Robust Product Development Pipeline Driving Revenue Growth

By Akshat Shah

Rubicon Research Limited (1453591D IN) is looking to raise about US$130m in its India IPO.
It is a pharmaceutical formulations company with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly, the United States.
In this note, we talk about the company’s historical performance.

Vikran Engineering Limited Pre-IPO Tearsheet

By Rosita Fernandes

Vikran Engineering Limited (1635154D IN) is planning to raise about US$119m through its upcoming IPO in India. The lead bookrunners for the deal are Pantomath Limited, Systematix Group.
Vikran Engineering Limited (VEL) based in Mumbai, operates as an Engineering, Procurement & Construction (EPC) firm, focusing on power, water, and railway infrastructure projects.
VEL plans to allocate its funds towards financing the company’s working capital needs and general corporate purposes.

NTPC Green Pre-IPO – The Positives – Backed by India’s Largest Power Company

NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU).
In this note, we will talk about the positive aspects of the deal.

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Oct 15

Daily Brief ECM: FCP Capital Sends a Proposal to KT&G to Buy Korea Ginseng Corp for 1.9 Trillion Won and more

In today’s briefing:

FCP Capital Sends a Proposal to KT&G to Buy Korea Ginseng Corp for 1.9 Trillion Won
Hyundai Motor India IPO: The Good, The Bad and The Valuation. Not for Quick Gain Seekers
Horizon Robotics Pre-IPO – PHIP Updates – More of the Same, Lots to Watch Out For

FCP Capital Sends a Proposal to KT&G to Buy Korea Ginseng Corp for 1.9 Trillion Won

By Douglas Kim

On 14 October, FCP Capital sent a proposal to KT&G to purchase Korea Ginseng Corp for 1.9 trillion won.
Although KT&G stated that it has no intentions to sell Korea Ginseng Corp, this proposal highlights the ongoing pressure by FCP Capital to improve further value in KT&G.
The 1.9 trillion won in proposed purchase price is higher than the 1.2 trillion won to 1.3 trillion won that KT&G revealed as the intrinsic value of Korea Ginseng Corp.

Hyundai Motor India IPO: The Good, The Bad and The Valuation. Not for Quick Gain Seekers

By Devi Subhakesan

Hyundai Motor India (HMIL) ‘s USD 3 billion+ IPO opens today, 15th October, at 10:00 am IST. The bidding will remain open until 4:30 pm IST on 17th October.
Near-Term Outlook: Limited Short-Term Gain Potential. While Hyundai is likely to outperform Maruti Suzuki given the valuation discount, it may underperform the broader sector in the near term.
Long-Term Opportunity: For investors with a longer-term horizon, Hyundai presents a relatively low-risk opportunity. Its established brand and world-class manufacturing facilities offer the potential for steady, long-term growth.

Horizon Robotics Pre-IPO – PHIP Updates – More of the Same, Lots to Watch Out For

Horizon Robotics is looking to raise US$500m in its upcoming Hong Kong IPO.
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.
In this note, we talk about the recent updates from its filings.

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Oct 14

Daily Brief ECM: Akeso Biopharma Placement – The Placing Price Is Not Cheap Despite Positive Business Progress and more

In today’s briefing:

Akeso Biopharma Placement – The Placing Price Is Not Cheap Despite Positive Business Progress
ECM Weekly (14th Oct 2024) – Tokyo Metro, Rigaku, Hyundai, China Res, Swiggy, USS, Akeso, Shiyue
Hyundai Motor India IPO: Valuation Insights

Akeso Biopharma Placement – The Placing Price Is Not Cheap Despite Positive Business Progress

By Xinyao (Criss) Wang

HARMONi-2 results are impressive and the overall data is solid and reliable. The NMPA has approved NDA of ebronucimab and sNDA of cadonilimab. Akeso’s fundamentals have indeed undergone positive changes.
Akeso’s current market capitalization already partially reflects the positive expectation about the future successful FDA approval of AK112. In our view, the Placing Price is not cheap.
When the market value falls back to below RMB45 billion is a more comfortable valuation to buy Akeso, and below RMB35 billion market value provides a golden opportunity.

ECM Weekly (14th Oct 2024) – Tokyo Metro, Rigaku, Hyundai, China Res, Swiggy, USS, Akeso, Shiyue

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 live IPOs front, the two Japanese IPOs, Tokyo Metro (9023 JP) and Rigaku Holdings (268A JP) appeared attractively priced. The same couldn’t be said about Hyundai Motor India.
On the placements front, there were deals in Hong Kong, Japan and India.

Hyundai Motor India IPO: Valuation Insights

Hyundai Motor India (1342Z IN), a subsidiary of Hyundai Motor (005385 KS), aims to raise up to US$3.3 billion at a valuation of US$19 billion.
We previously discussed the IPO in Hyundai Motor India IPO: The Bull Case, Hyundai Motor India IPO: The Bear Case and Hyundai Motor India IPO: The Investment Case.
Our valuation analysis suggests that the IPO price range of Rs1,865-1,960 per share is attractive. Therefore, we would participate in the IPO.

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Oct 13

Daily Brief ECM: Oman firm leads US$50M financing round of Singapore’s digital asset exchange SDAX | e27 and more

In today’s briefing:

Oman firm leads US$50M financing round of Singapore’s digital asset exchange SDAX | e27

Oman firm leads US$50M financing round of Singapore’s digital asset exchange SDAX | e27

By e27

Singapore-headquartered digital asset exchange SDAX has closed its US$50 million Series B2 funding round led by Oman-based Muscat Precious Metals Refining Company.
This follows a US$18 million Series B round in 2021 led by PSA International, Straits Trading Company, and New Horizon Global.
The new funds will be used for client acquisition and adding new business lines, such as wealth and fund management.

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Oct 12

Daily Brief ECM: Hyundai Motor India IPO: The Investment Case and more

In today’s briefing:

Hyundai Motor India IPO: The Investment Case
Mouri Tech Pre-IPO Tearsheet
Varindera Constructions Pre-IPO Tearsheet

Hyundai Motor India IPO: The Investment Case