ECM Daily Briefs | Page 46 of 161

In today’s briefing:

ECM Weekly (12th Aug 2024) – Ola Electric, Brainbees, WeRide, Akum, CR Beverages, Eternal Beauty

ECM Weekly (12th Aug 2024) – Ola Electric, Brainbees, WeRide, Akum, CR Beverages, Eternal Beauty

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 prior week witnessed a number of listings with divergent results.
Given the market volatility, there was only one large placements in the prior week.

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Aug 10

Daily Brief ECM: Rubicon Research Pre-IPO Tearsheet and more

In today’s briefing:

Rubicon Research Pre-IPO Tearsheet

Rubicon Research Pre-IPO Tearsheet

By Akshat Shah

Rubicon Research Limited (1453591D IN) is looking to raise about US$130m in its upcoming India IPO. The deal will be run by Axis, IIFL, JM Fin and SBI Caps.
Rubicon Research is a pharmaceutical formulations company with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly, the United States.
It was ranked among the top 10 Indian companies, in terms of total Abbreviated New Drug Application (ANDA) approvals, as per Frost & Sullivan (F&S).

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Aug 09

Daily Brief ECM: Ola Electric IPO Trading – Decent Anchor and more

In today’s briefing:

Ola Electric IPO Trading – Decent Anchor, Tepid Overall Demand
Paras Healthcare Pre-IPO Tearsheet
Suraksha Diagnostic Pre-IPO Tearsheet
WeRide (WRD US) IPO: The Bull Case

Ola Electric IPO Trading – Decent Anchor, Tepid Overall Demand

Ola Electric managed to raise around US$734m in its India IPO.
Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells
In our previous notes, we looked at the company’s past performance and valuations. In this note, we talk about the trading dynamics.

Paras Healthcare Pre-IPO Tearsheet

By Akshat Shah

Paras Healthcare Limited (0490145D IN) is looking to raise about US$180m in its upcoming India IPO. The deal will be run by ICICI, IIFL and Motilal Oswal.
Paras Healthcare is the fifth largest healthcare provider, in terms of bed capacity in North India, Bihar and Jharkhand, with an aggregate of 2,135 beds, as of March 31, 2024.
The company offers several clinical specialties across its hospitals including cardiac sciences, oncology, neuro sciences, gastro sciences and orthopedics and joint replacement.

Suraksha Diagnostic Pre-IPO Tearsheet

Suraksha Diagnostic (1481262D IN) is looking to raise up to US$230m in its upcoming India IPO. The deal will be run by ICICI Securities, Nuvama Wealth and SBI Capital.
Suraksha Diagnostic is a full-service and integrated diagnostic chain. It offers a one-stop integrated solution for pathology and radiology testing, and medical consultation services to its customers.
It has flagship central reference laboratory, eight satellite laboratories and 194 customer touchpoints, and 146 sample collection centres (primarily franchised) as of FY24, across certain states of India.

WeRide (WRD US) IPO: The Bull Case

WeRide (WRD US), a provider of autonomous driving products and services, seeks to raise between US$200 to US$300 million through a Nasdaq IPO.
WeRide is the most commercially successful L4 autonomous driving company globally, measured by commercialization revenue in 2021, 2022 and 2023.
The bull case rests on a large TAM, strong product capabilities, near-term mass commercialization, articulation of a path to profitability, improving earnings quality and presence of blue-chip investors.

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Aug 08

Daily Brief ECM: Brainbees Solutions (FirstCry) IPO: Key Facts and more

In today’s briefing:

Brainbees Solutions (FirstCry) IPO: Key Facts, Financials and Valuations
Initial Thoughts on the K Bank IPO
Black Sesame IPO Trading – Lackluster Demand, Combined with Bad Timing
BrainBees Solutions IPO: Five Facts Why FirstCry Is Not a First Class Company
Innoscience Pre-IPO Tearsheet

Brainbees Solutions (FirstCry) IPO: Key Facts, Financials and Valuations

By Devi Subhakesan

BrainBees Solutions (0172540D IN) that operates FirstCry, India’s leading Online Mom and Child vertical, has launched a USD500 mn IPO that closes on August 8th.
The IPO pricing suggest a post-money equity valuation of around USD 2.8 billion and an EV/Revenue multiple in the range of 3.5X-3.7X.
Brainbees operates in an attractive online vertical noted for its high frequency purchases and long term customer relationship. However it has not built significant competitive advantages versus leading horizontal platforms.

Initial Thoughts on the K Bank IPO

By Douglas Kim

In this insight, we provide an update on the K Bank IPO, which is more likely in 1H 2025. K Bank is one of the largest Internet-only banks in Korea.
A successful IPO of K Bank could have a positive impact on KT Corp (030200 KS) which is the indirectly the largest shareholder of K Bank.
K Bank had total operating income of 51.5 billion won (up 328% YoY) in 1Q 2024. Operating margin improved materially from 5.7% in 1Q 2023 to 19.5% in 1Q 2024.

Black Sesame IPO Trading – Lackluster Demand, Combined with Bad Timing

Black Sesame Technologies (BLACKSES HK) raised around US$133m in its Hong Kong IPO, after pricing its IPO at the low-end.
Black Sesame International Holdings (BSIH) is an automotive-grade computing SoC and SoC-based intelligent vehicle solution provider.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

BrainBees Solutions IPO: Five Facts Why FirstCry Is Not a First Class Company

By Devi Subhakesan

We highlight several red flags with regard to BrainBees Solutions (0172540D IN) operations, business strategy and governance for investors’ careful consideration.
At the announced IPO price band of Rs440 – Rs465, Brainbees implied EV/Revenues (FY24) works out to 3.5X – 3.7X – a significant discount to India listed online retail verticals.
Despite seemingly inexpensive relative valuations, we do not see a compelling reason to invest in the company, specially given the several red flags discussed below.

Innoscience Pre-IPO Tearsheet

Innoscience (1992276D CH) is looking to raise up to US$300m in its upcoming HK IPO. The deal will be run by CICC, and CMB International.
Innoscience is a Chinese-based manufacturer of Gallium Nitride (GaN) semiconductor products. It offers various types of GaN products, including GaN wafers, GaN discrete chips, GaN ICs and GaN modules.
It tailors its solutions to customers in various industries such as consumer electronics, renewable energy and industrial applications, automotive electronics and data centers.

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Aug 07

Daily Brief ECM: Horizon Robotics IPO: High Valuation Is At Risk As NEV Production Forecasts Have Weakened and more

In today’s briefing:

Horizon Robotics IPO: High Valuation Is At Risk As NEV Production Forecasts Have Weakened
WeRide Pre-IPO – Peer Comparison – Boasting Partnerships, but Peers Aren’t Too Far Behind
Eternal Beauty Pre-IPO Tearsheet
China Resources Beverage Pre-IPO – Peer Comparison – Middling

Horizon Robotics IPO: High Valuation Is At Risk As NEV Production Forecasts Have Weakened

By Andrei Zakharov

Horizon Robotics, a leading provider of ADAS and AD solutions for passenger vehicles, plans to raise up to $500M in Hong Kong IPO.
I expect Horizon Robotics will price its IPO below last round valuation of ~$8.7B as revenue growth will slow below 50% y/y in 2024, down from 71% y/y in 2023.
The company’s key competitors, including Mobileye and Microchip Technology, revised their revenue guidance downwards for the second half of 2024.

WeRide Pre-IPO – Peer Comparison – Boasting Partnerships, but Peers Aren’t Too Far Behind

WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
We had looked at the firm’s past performance in an earlier note. In this note, we will undertake a peer comparison.

Eternal Beauty Pre-IPO Tearsheet

By Akshat Shah

Eternal Beauty Holdings Limited (EBHL12 HK) is looking to raise about US$200m in its upcoming Hong Kong IPO. The deal will be run by BNP Paribas, Citic, CMBI and DBS.
Eternal Beauty is the largest brand management company of perfumes in the combined markets of Mainland China, Hong Kong and Macau, in terms of retail sales in 2023.
The company has a diverse portfolio of iconic brands of not only perfumes, but also color cosmetics, skincare products, personal care products, eyewear and home fragrances under management.

China Resources Beverage Pre-IPO – Peer Comparison – Middling

China Resources Beverage is looking to raise 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 note, we talked about the company’s past performance. In this note, we will undertake a peer comparison.

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Aug 06

Daily Brief ECM: Ola Electric IPO: Forecasts and Valuation and more

By Shifara Samsudeen, ACMA, CGMA

In today’s briefing:

Ola Electric IPO: Forecasts and Valuation
Akums Drugs and Pharmaceuticals IPO Trading – Strong Demand and a Decent Margin of Safety
MDL Wholesale Pre-IPO Tearsheet
Saint Bella IPO: Growth Story Intact, A First-Mover Advantage in Postpartum Care Market in China

Ola Electric IPO: Forecasts and Valuation

Ola Electric (1700674D IN) plans to raise INR55bn through fresh issue of shares while existing shareholders will offer 84.9m shares at an indicative IPO price band of INR72-76 per share.
We expect the company’s revenues to continue to expand and grow at much higher rates during the next few years compared to competitors in the Indian two-wheeler market.
Our valuation analysis suggests that Ola Electric’s IPO is attractively priced compared to peers and we would suggest subscribing for the company’s IPO.

Akums Drugs and Pharmaceuticals IPO Trading – Strong Demand and a Decent Margin of Safety

Akums Drugs and Pharmaceuticals (0200361D IN) raised around US$222m in its India IPO, after pricing the deal at the top end of the range at INR679/share.
Akums Drugs and Pharmaceuticals (ADP) is a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas.
We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.

MDL Wholesale Pre-IPO Tearsheet

MDL Wholesale (WMHGCZ CH) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by UBS, CMS, CMBI, Deutsche Bank, BOCI, and China Galaxy.
MDL Wholesale is a leading food and FMCG distribution solution provider in China, providing a broad range of customers and retailers with high-quality merchandise and convenient solutions
Its solutions mainly include (i) food service and distribution, (ii) welfare and gifting, (iii) retailer distribution (comprising product sales to retailers and supply chain services) and (iv) merchandise wholesale.

Saint Bella IPO: Growth Story Intact, A First-Mover Advantage in Postpartum Care Market in China

By Andrei Zakharov

Saint Bella, a premium postpartum care service provider, filed to go public in Hong Kong. UBS and CITIC Securities are leading the offering.
Saint Bella operates ultra-premium postpartum centers in Asia, which are located at luxury hotels and detached villas. The company opened its first postpartum center in Hangzhou in 2017.
With strong multi-brand strategy and asset-light business model, Saint Bella is uniquely positioned in premium segment under Saint Bella, Bella Isla and Baby Bella brands.

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Aug 05

Daily Brief ECM: Black Sesame IPO – Paying Up-Front for Its Monetization Potential and more

In today’s briefing:

Black Sesame IPO – Paying Up-Front for Its Monetization Potential
ECM Weekly (5th Aug 2024) – Ola Electric, Brainbees, WeRide, Sanil, CR Beverages, Carote, Fortescue
Brainbees Solutions (FirstCry) IPO: Valuation Insights

Black Sesame IPO – Paying Up-Front for Its Monetization Potential

Black Sesame Technologies (BLACKSES HK) is looking to raise US$143m in its Hong Kong IPO.
Black Sesame International Holdings (BSIH) is an automotive-grade computing SoC and SoC-based intelligent vehicle solution provider.
In our earlier notes, we looked at the past performance of the deal. In this note, we discuss peers and share our thoughts on valuation.

ECM Weekly (5th Aug 2024) – Ola Electric, Brainbees, WeRide, Sanil, CR Beverages, Carote, Fortescue

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 coming week will see see the listing of Akums Drugs while books will be open for Ola Electric, BrainBees Solutions and Black Sesame Technologies.
On the placement front, there were two large deals in Fortescue Metals (FMG AU) and Adani Transmission (ADANIT IN).

Brainbees Solutions (FirstCry) IPO: Valuation Insights

BrainBees Solutions (0172540D IN), India’s largest multi-channel retailing platform for mothers’, babies’ and kids’ products, will launch an IPO to raise up to US$500 million.
We previously discussed the IPO in Brainbees Solutions (FirstCry) IPO: The Bull Case, Brainbees Solutions (FirstCry) IPO: The Bear Case and Brainbees Solutions (FirstCry) IPO: The Investment Case.
Our valuation analysis suggests that the IPO price range of Rs440-465 per share is attractive. Therefore, we would participate in the IPO.

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Aug 04

Daily Brief ECM: Weekly Deals Digest (04 Aug) – Ola and more

In today’s briefing:

Weekly Deals Digest (04 Aug) – Ola, Brainbees, A8, Asia Cement, CPMC, Fancl, Sun Corp, Heiwa

Weekly Deals Digest (04 Aug) – Ola, Brainbees, A8, Asia Cement, CPMC, Fancl, Sun Corp, Heiwa

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: Ola Electric (1700674D IN) and BrainBees Solutions (0172540D IN) IPOs.
Event-Driven developments: A8 New Media (800 HK), Asia Cement China (743 HK), CPMC Holdings (906 HK), Fancl Corp (4921 JP), Sun Corp (6736 JP), Pacific Metals (5541 JP).

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Aug 03

Daily Brief ECM: Brainbees Solutions (FirstCry) IPO – Not Very Attractive but It Is Relatively Cheap and more

In today’s briefing:

Brainbees Solutions (FirstCry) IPO – Not Very Attractive but It Is Relatively Cheap
Ola Electric IPO- Forensic Analysis

Brainbees Solutions (FirstCry) IPO – Not Very Attractive but It Is Relatively Cheap

BrainBees Solutions is looking to raise up to US$500m in its upcoming India IPO.
FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products in terms of GMV, for the year ending Dec 2022 (9M23), according to RedSeer.
In our previous notes, we looked at the company’s past performance. In this note, we will talk about valuations.

Ola Electric IPO- Forensic Analysis

By Nitin Mangal

Ola Electric (1700674D IN) is launching its IPO, consisting of fresh issue worth INR 5.5 bn and offer for sale upto 84.9 mn shares.
The company delivered its first electric scooter in December 2021, and since then it has grown immensely to become a market leader with a share of 35%.
As far as forensics go, one should look out for related party transactions with promoters, some accounting policies, constant losses, need for capex, trend of expenses, etc.

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Aug 02

Daily Brief ECM: WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon and more

In today’s briefing:

WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon
Brainbees Solutions (FirstCry) IPO – RHP Updates – Growing but Slowing
Ola Electric IPO: Valuation Analysis. A High-Voltage EV Play
Brainbees Solutions (FirstCry) IPO: The Investment Case
WeRide Pre-IPO – The Negatives – Losses Have Widened, Still in the Early Stages of Commercialization

WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon

WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
In this note, we will talk about the positive aspects of the deal.

Brainbees Solutions (FirstCry) IPO – RHP Updates – Growing but Slowing

BrainBees Solutions is looking to raise up to US$500m in its upcoming India IPO.
FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products in terms of GMV, for the year ending Dec 2022 (9M23), according to RedSeer.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about its updated financials in the RHP.

Ola Electric IPO: Valuation Analysis. A High-Voltage EV Play

By Devi Subhakesan

Ola Electric (1700674D IN) ‘s IPO appears attractive versus peers based on valuation analysis, supported by detailed sales and revenue projections.
Expect strong near-term revenue growth driven by its dominant market presence, e-mobility expansion, and potential entry into the e-motorcycle segment.
With a significant head start in the rapidly growing e2W sector, Ola’s robust product lineup, competitive pricing, and strong brand make it a compelling EV play.

Brainbees Solutions (FirstCry) IPO: The Investment Case

BrainBees Solutions (0172540D IN), India’s largest multi-channel retailing platform for mothers’, babies’ and kids’ products, will launch an IPO to raise up to US$500 million.
We previously discussed the IPO in Brainbees Solutions (FirstCry) IPO: The Bull Case and Brainbees Solutions (FirstCry) IPO: The Bear Case. In this note, we examine the RHP update.
The RHP shows that positives (KPIs heading in the right direction, margin improvement, lower cash burn) offset the negatives (declining organic growth and deteriorating balance sheet).

WeRide Pre-IPO – The Negatives – Losses Have Widened, Still in the Early Stages of Commercialization