ECM Daily Briefs | Page 40 of 161

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

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 and Hyundai Motor India IPO: The Bear Case. In this note, we examine RHP.
The RHP shows that the positives (recovering lost market share, top-quartile operating and FCF margin profile) more than offset the negatives (bottom-quartile growth).

Mouri Tech Pre-IPO Tearsheet

By Rosita Fernandes

Mouri Tech Limited (MT IN) is planning to raise about US$179m through its upcoming IPO in India. The bookrunners for the deal are Nuvama Wealth, ICICI Securities, and JM Financial.
Mouri Tech Limited (MTL) is a global IT solutions provider focused on intelligent enterprise resource planning (iERP) and digital transformation services.
The company operates across four key areas: iERP, digital transformation, infrastructure services, and program management. MTL leverages advanced technologies.

Varindera Constructions Pre-IPO Tearsheet

Varindera Constructions Ltd (1606813D IN) is looking to raise about US$143m in its upcoming India IPO. The deal will be run by ICICI, Equirus and IIFL.
Varindera Constructions Limited (VCL) is an integrated engineering, procurement and construction (EPC) company undertaking construction projects with a focus on building constructions.
According to the CRISIL Report, it was one of the fastest growing construction companies in terms of revenue from operations, compared to major listed construction companies, over FY19-24.

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Oct 11

Daily Brief ECM: Hyundai Motor India IPO – RHP Updates and more

In today’s briefing:

Hyundai Motor India IPO – RHP Updates, Valuation Getting Tricky
Akeso Placement – Opportunistic Raise, past Deal Record Has Been Mixed but Relative Size Is Small
Swiggy Pre-IPO – The Negtives – Neither Food nor Quick Commerce Was the Largest Revenue Driver
Zhou Liu Fu Pre-IPO – Capturing the Gold Rush
Jiangsu Guofu Pre-IPO Tearsheet
Sung Woo IPO Valuation Analysis
Aditya Infotech Pre-IPO Tearsheet
Ouch! nets US$1.2M to expand market share, drive insurance innovation | e27
Wavemaker infuses US$1.6M into NZ’s pre-employment screening startup Checkmate | e27

Hyundai Motor India IPO – RHP Updates, Valuation Getting Tricky

Hyundai Motor (005387 KS) is looking to raise around US$3.3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
In our previous notes, we looked at the company’s past performance. In this note, we will talk about its RHP updates and valuations.

Akeso Placement – Opportunistic Raise, past Deal Record Has Been Mixed but Relative Size Is Small

Akeso Biopharma Inc (9926 HK) is looking to raise around US$200m from its primary placement. Proceeds from the placement will be used for R&D.
Past deals in the name haven’t done well recently but the shares have been doing well and the deal size remains small.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

Swiggy Pre-IPO – The Negtives – Neither Food nor Quick Commerce Was the Largest Revenue Driver

Swiggy is planning to raise around US$1.25bn through its upcoming India IPO.
Swiggy Limited (Swiggy) is a business to commerce (B2C) marketplace company offering users a platform for ordering grocery and household items (Instamart) and food delivery, through its on-demand delivery network.
In this note, we talk about the not-so-positive aspects of the deal.

Zhou Liu Fu Pre-IPO – Capturing the Gold Rush

Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise $US200m in its upcoming Hong Kong IPO.
It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
In this note, we look at the firm’s past performance.

Jiangsu Guofu Pre-IPO Tearsheet

Jiangsu Guofu (1628452D CH) is looking to raise about US$500m in its upcoming Hong Kong IPO. The deal will be run by Haitong International, CLSA, CCB International and China Securities.
Jiangsu Guofu is a leading hydrogen energy storage and transport equipment manufacturer in China.
It develops and manufactures hydrogen energy core equipment used in the entire industrial value chain of hydrogen energy, consisting of production, storage, transportation, refueling and use.

Sung Woo IPO Valuation Analysis

Our base case valuation of Sung Woo is target price of 27,981 won per share, which is within the IPO price range of 25,000 won to 29,000 won per share.
Given the lack of upside relative to the IPO price range, we have a Negative view of this IPO.
Our base case valuation of 27,981 won per share is based on a P/E of 16.9x based on net profit of 24.9 billion won in FY23.

Aditya Infotech Pre-IPO Tearsheet

Aditya Infotech Ltd (6596564Z IN) is looking to raise about US$155m in its upcoming India IPO. The deal will be run by ICICI and IIFL.
It is a CCTV/video surveillance provider company offering a range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under its CP PLUS brand.
According to the F&S report, it was the largest Indian-owned company offering video security and surveillance products, solutions and services, in terms of revenues in FY24.

Ouch! nets US$1.2M to expand market share, drive insurance innovation | e27

By e27

Ouch!, a Malaysia-based next-gen, tech-enabled insurance platform, has raised RM5 million (US$1.2 million) in strategic funding from PPB Ventures.
The startup will invest the money to expand its market share, enhance technology infrastructure, and drive product innovation.
Separately, Ouch! has received an additional one-year extension to operate under Bank Negara Malaysia’s (BNM) Regulatory Sandbox. It is now working to secure a DITO licence from BNM, which would enable it to close critical protection gaps for Malaysians, especially young families.

Wavemaker infuses US$1.6M into NZ’s pre-employment screening startup Checkmate | e27

By e27

Checkmate, a provider of pre-employment screening solutions in New Zealand, has completed its US$1.6 million seed funding round from Wavemaker Partners.
The capital will fuel Checkmate’s expansion into existing and new markets, including Australia, the US, and Southeast Asia, specifically the Philippines.
The funds will also support improvements in the company’s technological capabilities and user experience as more organisations seek reliable and efficient pre-employment screening.

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Oct 10

Daily Brief ECM: Rigaku Holdings IPO – Upside Remains Attractive and more

In today’s briefing:

Rigaku Holdings IPO – Upside Remains Attractive
Hyundai Motor India IPO: Analysis of Latest Financials Signal Challenging Year Ahead
Swiggy Pre-IPO – The Positives -Fast and Diversified Growth
Sanathan Textiles IPO- Forensic Analysis
Shiva Pharmachem Pre-IPO – High Borrowings Along with Expansion Plans Leading to Liquidity Concerns
Qarbotech secures US$1.5M funding to boost farm yields by 60% | e27
Indonesia’s Broom bags US$25M funding to accelerate market expansion | e27
TeamSolve nets US$2.5M for AI-powered copilot for industrial operators | e27

Rigaku Holdings IPO – Upside Remains Attractive

Rigaku Holdings (268A JP) is looking to raise up to US$756m in its Japan IPO.
Rigaku engages in developing, manufacturing, sales and servicing scientific instruments specializing in X-ray technologies.
In our earlier notes, we looked at the firm’s past performance and discussed our thoughts on valuation. In this note, we look at Rigaku’s valuation at the final indicative range.

Hyundai Motor India IPO: Analysis of Latest Financials Signal Challenging Year Ahead

By Devi Subhakesan

After 3 years of strong revenue and profits growth, Hyundai Motor India is likely to face a challenging year ahead based on the analysis of 1QFY2025 financials provided in RHP.
Hyundai Motor India (1342Z IN)‘s strong exports growth in FY2025 will not offset the weakness in domestic sales. This could result in low single-digit revenue growth for the year.
Increased royalty costs starting in FY2025, coupled with impact of lower cash reserves after special dividend paid out to parent will likely compress profit margins compared to the previous year.

Swiggy Pre-IPO – The Positives -Fast and Diversified Growth

Swiggy Limited is planning to raise around US$1.25bn through its upcoming India IPO.
Swiggy Limited (Swiggy) is a business to commerce (B2C) marketplace company offering users a platform for ordering grocery and household items (Instamart) and food delivery, through its on-demand delivery network.
In this note, we talk about the positive aspects of the deal.

Sanathan Textiles IPO- Forensic Analysis

By Nitin Mangal

Sanathan Textiles (0907479D IN) plans to re-appear for its IPO. The company is into yarn manufacturing and has a presence in all three, Polyester, Cotton and Technical Textiles segments.
Revenue growth did light up in FY22, however topline growth has pretty much been stale since then. Moreover, margins have also been on a sliding trajectory.
Key forensic takeaways include capitalising of expenses on the back of falling margins, acquisition of a non-operating subsidiary from promoters, secondary income sources driving profits, etc.

Shiva Pharmachem Pre-IPO – High Borrowings Along with Expansion Plans Leading to Liquidity Concerns

Shiva Pharmachem Limited (9155347Z IN) is looking to raise around US$110m in its India IPO.
It is a manufacturer in the Indian specialty chemicals business and was the largest manufacturer of acid and alkyl chlorides by volume in CY22 in India, as per Frost&Sullivan .
In this note, we talk about the company’s historical performance.

Qarbotech secures US$1.5M funding to boost farm yields by 60% | e27

By e27

Qarbotech, a Malaysian startup that enhances photosynthesis via advanced carbon quantum dots material, has raised US$1.5 million in funding from 500 Global, Better Bite Ventures, ID Capital, EQT Foundation, and Epic Angels Limited.
The seed extension round will enable Qarbotech to scale its operations in Malaysia, Indonesia, Thailand, and Vietnam, where demand for advanced agritech solutions is surging.
“This investment will allow us to ramp up production and bring our patented solutions to more farmers across the region, empowering them to produce more with less environmental impact,” said Amirul Merican, COO of Qarbotech.

Indonesia’s Broom bags US$25M funding to accelerate market expansion | e27

By e27

Broom, a tech startup empowering Indonesia’s used car showroom ecosystem, has closed a US$25 million Series A extension investment round led by Openspace Ventures.
AC Ventures, Quona Capital, MUFG Innovation Partners, and PKSHA Capital also participated.
Additionally, Broom has secured credit facilities from various institutions, including Komunal, Funding Societies Capital, Modalku Finansial Indonesia, Alami, Koinworks, Helicap, and DBS Indonesia, as well as support from several high-net-worth individual investors.

TeamSolve nets US$2.5M for AI-powered copilot for industrial operators | e27

By e27

TeamSolve, a Singapore-based startup developing AI solutions for the industrial and utilities sectors, has completed a US$2.5 million seed financing round anchored by SGInnovate and the US-based early-stage fund for water entrepreneurs Burnt Island Ventures.
Founded in 2022 by Mudasser Iqbal (CEO), Michael Allen, Ami Preis, and Robin Wong, TeamSolve has developed a generative AI-powered copilot designed for industrial operators. The copilot is a knowledge twin that provides an “accurate”, real-time view of asset health.
It can also support managers by improving planning for asset renewals and crew dispatch.

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Oct 09

Daily Brief ECM: Hyundai Motor India Sets IPO Price Range and more

In today’s briefing:

Hyundai Motor India Sets IPO Price Range
Hyundai Motor India IPO: Upsized Valuation Driven by Strong Investor Interest
CR Beverage IPO: Valuation First-Look
Orum Therapeutics IPO Preview
Dr Agarwal’s Health Care Pre-IPO Tearsheet
Cerebras IPO Valuation Analysis: A Sky-High Valuation Will Not Last For Long
TNB Aura joins US$8M Series A round of EV charging operator Charge+ | e27
TailorTech bags funding for its off-grid power management solution | e27

Hyundai Motor India Sets IPO Price Range

Hyundai Motor India (1342Z IN) has set an IPO price range of 1,865 to 1,960 rupees per share, aiming for a valuation as high as US$19 billion.
Hyundai Motor (005380 KS) is selling a 17.5% stake in Hyundai Motor India in this public offering. Hyundai Motor India IPO is scheduled to trade starting 22 October.
Our updated base case valuation of Hyundai Motor India is market cap of US$19.7 billion based on P/E of 25.9x our estimated net profit of 64.1 billion INR.

Hyundai Motor India IPO: Upsized Valuation Driven by Strong Investor Interest

By Devi Subhakesan

Hyundai Motor India (1342Z IN) ’s IPO, launching next week, is expected to be priced between Rs1,865 and Rs1,960, valuing the company at USD 18-19 billion.
At this valuation, Hyundai’s India unit will account for over 40% of its parent company’s market cap, potentially unlocking significant value for Hyundai Motor (005380 KS).
Despite a weak growth in India’s passenger vehicle sales ytd, investor interest in the IPO is reportedly strong thanks to India’s booming equity market and robust fund inflows.

CR Beverage IPO: Valuation First-Look

China Resources Beverage (CRB HK), China’s largest purified drinking water company, is premarketing an HKEx to raise US$0.5-1 billion.
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.
In this note, we present our forecasts and examine CR Beverage’s potential valuation range for the first time.

Orum Therapeutics IPO Preview

Orum Therapeutics is getting ready to complete its IPO in KOSDAQ in November 2024. The IPO price range is from 30,000 won to 36,000 won.
The expected market cap after IPO is from 648 billion won to 778 billion won. The book building for the institutional investors starts on 24 October.
Orum Therapeutics’ main pipelines include ‘ORM-6151’, a new drug candidate for acute myeloid leukemia, ‘ORM-5029’, a HER2-targeting breast cancer treatment candidate, and ‘ORM-1023’, a small cell carcinoma tumor candidate.

Dr Agarwal’s Health Care Pre-IPO Tearsheet

Dr Agarwal’s Health Care Ltd (8140044Z IN) is looking to raise about US$480m in its upcoming India IPO. The deal will be run by Jefferies, Kotak, MS and Motilal.
Dr Agarwal’s Health Care is a healthcare/hospital chain in India providing eyecare services, including surgeries; consultations, diagnoses, non-surgical treatments; and sells opticals, contact lens, accessories and eyecare related pharmaceutical products.
According to the CRISIL MI&A report, it had a ~25% market share of the total eye care service chain market in India in FY24.

Cerebras IPO Valuation Analysis: A Sky-High Valuation Will Not Last For Long

By Andrei Zakharov

Cerebras Systems, a fast-growing maker of wafer-scale AI chips, which power the world’s largest supercomputers, will reveal IPO terms soon.
Given the company’s hyper-growth trajectory, $1B+ deal with UAE’s G42 and unique architecture, I expect Cerebras Systems is likely to get a premium valuation.
The AI company plans to raise up to $1B while selling stockholders will offer additional Class A shares in this IPO.

TNB Aura joins US$8M Series A round of EV charging operator Charge+ | e27

By e27

Singapore-based electric vehicle (EV) charging operator Charge+ has received an undisclosed sum from TNB Aura to complete its US$8 million Series A round.
The startup, which operates over 2,000 EV charging points across Southeast Asia, will use the funds to expand its charging infrastructure.
The startup received an undisclosed sum in a Series A round led by TRIVE Venture Capital in October 2023.

TailorTech bags funding for its off-grid power management solution | e27

By e27

TailorTech, a Malaysian startup focused on transforming power management for off-grid locations, has raised US$110,000 from Antler.
Founded by brothers Ts. Dr. Indera Shaiful and Ts. Indera Shafiq, TailorTech aims to tackle problems faced by industries that are reliant on generator sets in remote and off-grid locations, including inefficiencies, high costs, frequent maintenance, and the environmental impact associated with conventional generator sets.
TailorTech has developed the Power Enhancer System (PES), an integrated smart power management solution designed to optimise the use of generator sets.

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Oct 08

Daily Brief ECM: USS (4732 JP) – Small Offering on ‘Growth Darling’ – Buyback Offsets 50% and more

In today’s briefing:

USS (4732 JP) – Small Offering on ‘Growth Darling’ – Buyback Offsets 50%
Tokyo Metro IPO Valuation Analysis
Tokyo Metro IPO – Will Price at the Top, but Isn’t Particularly Cheap
MDL Wholesale Pre-IPO – IPO Redux
Rigaku Holdings (268A JP) IPO: Valuation Insights
USS Placement – Buyback and Decent Momentum Will Aid Dynamics

USS (4732 JP) – Small Offering on ‘Growth Darling’ – Buyback Offsets 50%

By Travis Lundy

Ubiquitous used car auction house USS Co Ltd (4732 JP) today announced MUFJ Bank’s Retirement Benefit Trust account would sell its 3.5% stake in an offering.
Given how much cash the company has and how little cross-holding there is, this seems a bit odd, but they are doing a buyback for half the offer.
Small offer. Low ADV count. Well-liked by numerous foreign active holders. This should get taken easily.

Tokyo Metro IPO Valuation Analysis

Tokyo Metro set the IPO price range at 1,100 to 1,200 Yen per share. At the top end of the range, Tokyo Metro would raise 349 billion yen ($2.35 billion).
Our base case valuation of Tokyo Metro is implied target price of 1,178 yen per share. This is within the top end of the IPO price range (1,200 yen).
Given the lack of upside relative to the IPO price range, we have a Negative view of this IPO.

Tokyo Metro IPO – Will Price at the Top, but Isn’t Particularly Cheap

Tokyo Metro (9023 JP)‘s shareholders aim to raise up to US$2.4bn in its Japan IPO.
Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

MDL Wholesale Pre-IPO – IPO Redux

MDL Wholesale Limited is looking to raise about US$100m in its upcoming Hong Kong IPO.
MDL is a leading food and FMCG distribution solution provider in China.
In this note, we look at the firm’s past performance.

Rigaku Holdings (268A JP) IPO: Valuation Insights

Rigaku Holdings (268A JP) is Japan’s leading manufacturer of X-ray analysis, measurement, and testing instruments. It is seeking to raise up to US$737 million.
We previously discussed the IPO in Rigaku Holdings (268A JP) IPO: The Bull Case and Rigaku Holdings (268A JP) IPO: The Bear Case.
In this note, we discuss valuation. Our analysis suggests that Rigaku is attractively valued at the IPO price compared to peer multiples.

USS Placement – Buyback and Decent Momentum Will Aid Dynamics

Nomura Trust (the retirement benefit trust account for MUFG) is looking to raise US$132m via selling some shares in USS Co Ltd (4732 JP).
While the deal appears somewhat well flagged, given that its part of 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.

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Oct 07

Daily Brief ECM: Tokyo Metro IPO: Steady Tracks with Potential for OP Growth Through Fixed Cost Savings and more

In today’s briefing:

Tokyo Metro IPO: Steady Tracks with Potential for OP Growth Through Fixed Cost Savings
Cerebras IPO Preview: Does The Size Matter? Top-Tier VC Investors and $1B+ Deal With UAE’s G42
ECM Weekly (7th Oct 2024) – Tokyo Metro, Rigaku, China Resources, K Bank, JD Ind, Swiggy, Lalatech
Rigaku IPO Thoughts on Valuation – Decent Upside from the Indicative Range

Tokyo Metro IPO: Steady Tracks with Potential for OP Growth Through Fixed Cost Savings

By Oshadhi Kumarasiri

Tokyo Metro (9023 JP) operates 9 out of the 14 subway lines that provides essential public transportation services within the Greater Tokyo area.
Many are unaware of Tokyo Metro’s cost savings, and we believe it could reach ¥110bn OP, exceeding the ¥100bn OP that most currently expect.
Even without factoring in the cost savings, the indicative IPO price appears reasonably cheap, as it’s priced near the lower end of peer multiples.

Cerebras IPO Preview: Does The Size Matter? Top-Tier VC Investors and $1B+ Deal With UAE’s G42

By Andrei Zakharov

Cerebras Systems, a high-growth Ai chip maker and hardware company that builds AI supercomputers with scalable architecture, has filed for an IPO on the Nasdaq.
The AI company plans to raise up to $1B in upcoming IPO. Citigroup and Barclays are the lead bankers on the offering.
Cerebras Systems may become the biggest disruptor since NVIDIA. The company’s growth is exceptionally high for any AI chip maker.

ECM Weekly (7th Oct 2024) – Tokyo Metro, Rigaku, China Resources, K Bank, JD Ind, Swiggy, Lalatech

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, the roaring China/HK market led to some refilings, in what is likely to be the start of a tsunami of refilings, if the market momentum sustains.
On the placements front, given the China/HK holidays there weren’t any deals. We instead looked at Bharti Hexacom upcoming lockup expiry.

Rigaku IPO Thoughts on Valuation – Decent Upside from the Indicative Range

Rigaku Holdings (268A JP) is looking to raise US$762m in its Japan IPO.
Rigaku engages in developing, manufacturing, sales and servicing scientific instruments specializing in X-ray technologies.
In our earlier notes, we looked at the firm’s past performance and peers. In this note, we discuss our thoughts on valuation.

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Oct 06

Daily Brief ECM: Weekly Deals Digest (06 Oct) – Tokyo Metro and more

In today’s briefing:

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia
Lalatech IPO | Review of H124 Financials & Operating Stats | Strike While the Iron Is Hot-Ish?

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), K Bank (279570 KS) and China Resources Beverage (CRB HK) IPOs.
Event-Driven developments: ASM Pacific Technology (522 HK), Greatview Aseptic Packaging (468 HK), Samson Holding (531 HK), Descente Ltd (8114 JP), T Gaia Corp (3738 JP).

Lalatech IPO | Review of H124 Financials & Operating Stats | Strike While the Iron Is Hot-Ish?

By Daniel Hellberg

In a new filing with HKEX, we can see Lalatech’s revenue growth slow
The company’s grip on CoR loosened, but OpEx growth in H1 was minimal
Given improving market conditions, we believe Lalatech may finally sell shares

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Oct 05

Daily Brief ECM: Schloss Bangalore Pre-IPO Tearsheet and more

In today’s briefing:

Schloss Bangalore Pre-IPO Tearsheet

Schloss Bangalore Pre-IPO Tearsheet

Schloss Bangalore Ltd (SCHBL IN) plans to raise about US$600m in its India IPO. The deal will be run by BofA, MS, JPM, Kotak, Axis, Citi, IIFL,ICICI, JMF,Motilal and SBICaps.
It is a luxury hospitality company which owns, operates, manages and develops luxury hotels and resorts under ‘The Leela’ brand, through direct ownership and hotel management agreements with third-party owners.
According to the HVS Report, SBL is the only institutionally owned and managed pure-play luxury hospitality company in India. Its portfolio comprises 3,382 keys across 12 operational hotels.

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Oct 04

Daily Brief ECM: Rigaku Holdings (268A JP) IPO: The Bear Case and more

In today’s briefing:

Rigaku Holdings (268A JP) IPO: The Bear Case
Nanshan Aluminium International Pre-IPO Tearsheet
Rigaku IPO – Peer Comparison – Compensating for Smaller Scale with Better Growth and Margins
CR Beverage IPO: The Investment Case
Chongqing Terminus Pre IPO Tearsheet
Pre-IPO Sichuan Biokin Pharmaceutical – Would Investors Be Willing to Take a Gamble?

Rigaku Holdings (268A JP) IPO: The Bear Case

Rigaku Holdings (268A JP) is Japan’s leading manufacturer of X-ray analysis, measurement and testing instruments. It is seeking to raise up to US$760 million.
In Rigaku Holdings (268A JP) 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 weakening forward growth indicators, China revenue risk, rising cash conversion cycles, mid-tier FCF margin and large post-IPO share overhang.

Nanshan Aluminium International Pre-IPO Tearsheet

Nanshan Aluminium International Holdings (NAI HK) is looking to raise about US$500m in its upcoming Hong Kong IPO. The deal will be run by Huatai International.
Nanshan Aluminium International is a leading alumina manufacturer in Southeast Asia.
The firm’s primary focus has been tapping into Indonesia’s abundant bauxite and coal reserves, utilizing the low-temperature Bayer process to produce metallurgical-grade alumina in sand form.

Rigaku IPO – Peer Comparison – Compensating for Smaller Scale with Better Growth and Margins

Rigaku Holdings (268A JP) is looking to raise US$762m in its Japan IPO.
Rigaku engages in developing, manufacturing, sales and servicing scientific instruments specializing in X-ray technologies.
In our earlier notes, we looked at the firm’s past performance. In this note, we undertake a peer comparison.

CR Beverage IPO: The Investment Case

China Resources Beverage (CRB HK), China’s largest purified drinking water company, is premarketing an HKEx to raise US$0.5-1 billion.
We previously discussed the IPO in CR Beverage IPO: The Bull Case and CR Beverage IPO: The Bear Case. In this note, we examine the latest updates in the PHIP.
The investment case rests on core business offsetting slowing growth with margin improvement, beverage’s fast-paced growth, narrowing the margin gap with Nongfu Spring (9633 HK), and return to FCF generation.

Chongqing Terminus Pre IPO Tearsheet

Chongqing Terminus (2471080D CH) is looking to raise about US$300m in its upcoming Hong Kong IPO. The deal will be run by CITIC Securities and Haitong.
Chongqing Terminus is a leader and pioneer in China’s public realm AIoT (Artificial Intelligence of Things) industry.
It leverages its innovative AIoT operating system, TacOS, to provide enterprises, public administrators and public realm participants with full stack AIoT products i.e. software, hardware and services. .

Pre-IPO Sichuan Biokin Pharmaceutical – Would Investors Be Willing to Take a Gamble?

By Xinyao (Criss) Wang

Biokin’s traditional chemical drug and TCM businesses would continue to shrink and their valuation contribution can be negligible. The collaboration agreement for BL-B01D1 with BMS changes the outlook of Biokin.
The clinical data of BL-B01D1 look good so far, but the R&D failure risk of BL-B01D1 is not low. It is uncertain if BL-B01D1 would finally be druggable.
Biokin is overvalued and there is big bubble in valuation. If BL-B01D1 fails in R&D or its clinical data fail to meet high expectation, Biokin’s market value will plummet.

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Oct 03

Daily Brief ECM: China Resources Beverage Pre-IPO – PHIP Updates – Revenue Slowing and more

In today’s briefing:

China Resources Beverage Pre-IPO – PHIP Updates – Revenue Slowing, Margins Growing
Intermestic IPO: Forecasts and Valuation
The Cerebras IPO Stucture Sucks
China Resources Beverage Pre-IPO – Updated Thoughts on Valuation
Pre-IPO China Resources Beverage (PHIP Updates) – Some Points Worth the Attention

China Resources Beverage Pre-IPO – PHIP Updates – Revenue Slowing, Margins Growing

By Shifara Samsudeen, ACMA, CGMA

China Resources Beverage (CRB HK) is looking to raise up to US$1bn in its upcoming Hong Kong IPO.
China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
In our earlier notes, we talked about the company’s past performance and provided our thoughts on valuations. In this note, we will look at updates from its most recent filings.

Intermestic IPO: Forecasts and Valuation

The Japanese eyewear company Intermestic (262A JP) has set the terms for its Tokyo IPO and plans to raise US$121m through the IPO.
Our analysis shows that the company’s IPO is valued attractively compared to JINS Inc (3046 JP) , who offers eyewear at a similar price range to Intermestic.
Japanese eyewear makers who have aggressively expanded into overseas markets seems to be suffering from falling sales and margins, particularly in China due to economic slowdown.

The Cerebras IPO Stucture Sucks

By Douglas O’Laughlin

I’m not going to write about the technical side at all, as I expect Dylan Patel’s team at SemiAnalysis to do a much better job than I can do alone.
However, I want to note some of the funniest aspects because landmines are everywhere for this IPO. Of course, it’s driven by G42, but it’s much worse than you think. Here’s the prelim S-1.
G42 is pretty much the only customer.

China Resources Beverage Pre-IPO – Updated Thoughts on Valuation