ECM Daily Briefs | Page 65 of 161

In today’s briefing:

2024 IPOs Pipeline Worldwide (Top 100 Companies)
Midea (000333 CH): Positive Read-Through From Gree’s Profit Alert
UBTech Robotics IPO – Quick Thoughts on Valuation – Too Hefty a Premium for Slowing Growth
Emcure Pharmaceuticals Pre-IPO: IPO Size Trimmed; Domestic Revenue Growth Decelerated

2024 IPOs Pipeline Worldwide (Top 100 Companies)

By Douglas Kim

This is our 5th annual edition of the IPOs Pipeline Worldwide (Top 100 Companies) report.
After weak global IPO markets in 2022 and 2023, the near term trend for global IPOs continues to remain lackluster.
For those investors that closely monitor the global IPO opportunities, this is a good reference insight to check out the largest potential IPOs that could get completed next year.

Midea (000333 CH): Positive Read-Through From Gree’s Profit Alert

By Steve Zhou, CFA

Gree Electric Appliances (000651 CH) announced a profit alert for FY22 yesterday. Net profit is expected to increase 10.2% – 19.6% yoy for the whole year.
The resilient result of Gree should alleviate concerns of the market that Midea is too correlated with China’s new home sales.
The stock is trading at 10x 2024E earnings compared to an average of 13x over the last 10 years, with earnings likely growing at a high-single-digit pace.

UBTech Robotics IPO – Quick Thoughts on Valuation – Too Hefty a Premium for Slowing Growth

UBTech Robotics (9880 HK) is looking to raise about US$168m in its upcoming HK IPO, after downsizing from an earlier reported float of up to US$700m.
UBTech Robotics is engaged in artificial intelligence (AI)-empowered robotics in China, dedicated to the innovation of humanoid robots and development and sales of smart service robotic solutions.
In our previous note, we looked at the company’s performance and its PHIP updates. In this note, we share our quick thoughts on valuation.

Emcure Pharmaceuticals Pre-IPO: IPO Size Trimmed; Domestic Revenue Growth Decelerated

By Tina Banerjee

Emcure Pharmaceuticals has re-submitted DRHP to the SEBI for the second time. The IPO consists of a fresh issue of INR8 billion and an offer-for-sale of up to ~14M shares.
In the re-submitted DRHP, the company has trimmed the sizes of both the fresh issue and OFS. Emcure originally planned to launch IPO its in 2022.
Emcure has added latest financial performances in re-filed DRHP. During H1FY24, revenue from India increased only 3% YoY to INR16.4M, due to lower sales of anti-viral HIV products.

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Dec 21

Daily Brief ECM: Embassy Office Parks REIT Block – Likely Well Flagged and Overhang Will Be Removed and more

In today’s briefing:

Embassy Office Parks REIT Block – Likely Well Flagged and Overhang Will Be Removed
Inox India IPO Trading – Hot Demand for Cryogenics

Embassy Office Parks REIT Block – Likely Well Flagged and Overhang Will Be Removed

Blackstone (BX US) is looking to raise around US$834m through a secondary block deal. This will be a clean-up as Blackstone fully exits from Embassy Office Parks REIT (EMBASSY IN).
The deal is a large one to digest, at approximately 397.2 days of three month ADV and 20.7% of current mcap.
In this note, we will talk about the selldown and run the deal through our ECM framework.

Inox India IPO Trading – Hot Demand for Cryogenics

INOX India Limited (INOX IN) raised around US$175m in its Indian IPO, after pricing the deal at INR660/share. It will begin trading tomorrow on 21st Dec 2023.
Inox India is a manufacturer of cryogenic equipment. As per CRISIL, the firm was the largest Indian exporter of cryogenic tanks in terms of FY23 sales.
We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.

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Dec 20

Daily Brief ECM: India Shelter Finance IPO Trading – Subscription Pulled by Strong Insti Demand and more

In today’s briefing:

India Shelter Finance IPO Trading – Subscription Pulled by Strong Insti Demand
Credo Brands Marketing IPO- Forensic Analysis

India Shelter Finance IPO Trading – Subscription Pulled by Strong Insti Demand

By Clarence Chu

India Shelter Finance (0570670D IN) raised around US$144m from its India IPO.
India Shelter Finance (ISF) is a retail-focused HFC targeting the self-employed customer with a focus on first time home loan takers in the low and middle income group.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

Credo Brands Marketing IPO- Forensic Analysis

By Nitin Mangal

Credo Brands (Mufti) (CREDO IN) IPO opens as a full OFS worth INR 5.5 bn.
The company operates ‘Mufti’ which is one of the renowned brands in Indian Men Casual Fashion category.
CMBL faces several questions including employee pay vs KMP, accounting for unsold inventory, delay in important payments, conflict of interest with BoD/SMPs etc.

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Dec 19

Daily Brief ECM: Muthoot Microfin IPO – RHP Updates and more

In today’s briefing:

Muthoot Microfin IPO – RHP Updates, Quick Peer Comparison and Thoughts on Valuation

Muthoot Microfin IPO – RHP Updates, Quick Peer Comparison and Thoughts on Valuation

Muthoot Microfin (1363943D IN) is looking to raise up to US$116m in its Indian IPO, after downsizing from an earlier reported float of US$163m.
Muthoot Microfin (MMF) is a microfinance institution providing micro-loans to women customers with a focus on the rural regions of India.
In our previous note, we looked at the company’s performance. In this note, we talk about the company’s RHP updates and share our quick thoughts on peer comp and valuation.

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Dec 18

Daily Brief ECM: Could US Lawmakers Actually Stop SHEIN’s US IPO? No and more

In today’s briefing:

Could US Lawmakers Actually Stop SHEIN’s US IPO? No, But They Sure Could Make Things Difficult
REPT BATTERO Energy IPO Trading – Needs to Correct by 20-30%, at Least
Octillion Energy Holdings Pre-IPO Tearsheet

Could US Lawmakers Actually Stop SHEIN’s US IPO? No, But They Sure Could Make Things Difficult

By Daniel Hellberg

Since SEC operates in US executive branch, Congress lacks power to stop IPOs
But by passing new laws, Congress could potentially undermine SHEIN’s IPO
Given current political climate in the US, SHEIN IPO faces real political risks

REPT BATTERO Energy IPO Trading – Needs to Correct by 20-30%, at Least

REPT BATTERO Energy (REPT) raised around US$270m in its Hong Kong IPO.
REPT is a lithium-ion battery manufacturer in China, focusing on R&D, production, and sales of EV/ESS lithium-ion battery products such as battery cells, modules and packs.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

Octillion Energy Holdings Pre-IPO Tearsheet

By Clarence Chu

Octillion Energy Holdings (OE HK) is looking to raise US$400m in its upcoming Hong Kong IPO.
Octillion Energy Holdings (OE) primarily designs, manufactures and markets tailor-made battery systems for electric vehicles (EVs), and to a lesser extent, electric storage systems (ESS) and battery management systems (BMS).
As per F&S, OE had a 9.6% market share and was ranked the third largest EV battery system provider for passenger battery EVs (BEVs) in China by FY22 shipment units.

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Dec 17

Daily Brief ECM: ECM Weekly (17th Dec 2023) – Toyota and more

In today’s briefing:

ECM Weekly (17th Dec 2023) – Toyota, Denso, Mankind, Axis, Merdeka, DOMS, India Shelter, Inox

ECM Weekly (17th Dec 2023) – Toyota, Denso, Mankind, Axis, Merdeka, DOMS, India Shelter, Inox

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
A few large placements in India, along with Denso Corp (6902 JP) pricing, kept the market ticking this week.
In the IPO space, India saw a flurry of launches, as companies and banker try to cash-in on the market frenzy.

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Dec 15

Daily Brief ECM: Zozo-Owned Yutori IPO This Month and more

In today’s briefing:

Zozo-Owned Yutori IPO This Month
Inox India IPO – Offering Access to a Niche Sector

Zozo-Owned Yutori IPO This Month

By Michael Causton

Zozo may lead in online fashion malls but its customer base, while young, is getting older.
In 2020, it acquired a majority stake in Yutori, a fledgling fashion mall targeting the young, which will now list this month.
Yutori has grown sales to ¥2.47 billion since launching five years ago. As well as Japan, it sees a major opportunity across Asia given Japanese street fashion popularity there.

Inox India IPO – Offering Access to a Niche Sector

INOX India Limited (INOX IN) is looking to raise up to US$175m in its Indian IPO.
Inox India is a manufacturer of cryogenic equipment. As per CRISIL, the firm was the largest Indian exporter of cryogenic tanks in terms of FY23 sales.
In our previous note, we looked at the company’s background. In this note, we talk about the company’s performance and share our quick thoughts on valuation.

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Dec 14

Daily Brief ECM: GoTo: Thoughts on the New Tokopedia/TikTok Partnership and more

By Shifara Samsudeen, ACMA, CGMA

In today’s briefing:

GoTo: Thoughts on the New Tokopedia/TikTok Partnership
DS Dansuk IPO Bookbuilding Results Analysis
India Shelter Finance IPO – Strong Track Record Could Justify a Premium Valuation
Indian Shelter Finance IPO- Forensic Analysis
Pre-IPO HighTide Therapeutics (PHIP Updates) – Some Shareholders Have Chosen to Quit in Advance

GoTo: Thoughts on the New Tokopedia/TikTok Partnership

GoTo Gojek Tokopedia Tbk PT (GOTO IJ) announced on Monday a partnership with TikTok which would combine former’s e-commerce biz Tokopedia with TikTok Shop Indonesia.
TikTok was forced to close its e-commerce services in Indonesia following regulations banning online shopping on social media platforms in September citing protection of smaller merchants and data privacy.
It seems TikTok will certainly be a winner if the deal is approved but surprised at GoTo’s move to retain a minority stake given e-commerce business is nearing profits.

DS Dansuk IPO Bookbuilding Results Analysis

By Douglas Kim

DS Dansuk reported solid bookbuilding results. DS Dansuk IPO price has been determined at 100,000 won per share, which is 12.4% higher than high end of the IPO price range.
A total of 1,843 institutional investors participated in this IPO book building. The demand ratio was 342 to 1. DS Dansuk IPO will start trading on 22 December.
Given the strong IPO bookbuilding results, we believe shares of DS Dansuk are likely to trade above the high end of the IPO sensitivity analysis (137,877 won).

India Shelter Finance IPO – Strong Track Record Could Justify a Premium Valuation

By Clarence Chu

India Shelter Finance (0570670D IN) is looking to raise US$144m from its India IPO.
India Shelter Finance (ISF) is a retail-focused HFC targeting the self-employed customer with a focus on first time home loan takers in the low and middle income group.
In this note, we will look at past performance, and share our thoughts on valuation.

Indian Shelter Finance IPO- Forensic Analysis

By Nitin Mangal

India Shelter Finance (0570670D IN) (ISFC) IPO worth INR 12 bn opens for subscription this week. The issue comprises INR 8 bn fresh issue and INR 4 bn OFS.
ISFC has been generating high growth in AUM and disbursements in the last few years. The company has also improved its NPAs and stability.
However, there are few cautions regarding employee productivity and on the opex side. Also, slippages have increased in H1F24.

Pre-IPO HighTide Therapeutics (PHIP Updates) – Some Shareholders Have Chosen to Quit in Advance

By Xinyao (Criss) Wang

Diseases with complex mechanisms like NASH are unlikely to be solved by drugs with a single target, but compared with THR-β and GLP-1s, our view on HTD1801’s prospects is negative.
HTD1801 faces high R&D failure risk and challenges in obtaining the final approval for NASH indication. For T2DM indication, the current intense competitive landscape has dimmed its future commercialization prospects.
Several original shareholders have already cashed out in advance, indicating that they are not optimistic about the prospects of HighTide. The valuation premium space after IPO could be lower-than-expected.

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Dec 13

Daily Brief ECM: Denso (6902 JP): The Current Playbook and more

In today’s briefing:

Denso (6902 JP): The Current Playbook
REPT BATTERO IPO Preview and Valuation Analysis: Burning Cash and Rising Debt Ahead of the IPO

Denso (6902 JP): The Current Playbook

By Arun George

Since the US$4.0 billion secondary placement announcement, Denso Corp (6902 JP)’s shares are down 4.3% from the undisturbed price of JPY2,298 per share (28 November).
Looking at recent large Japanese placements is instructive to understand the potential trading pattern. So far, Denso’s shares have followed the pattern of previous large placements.
The offering will likely be priced on 13 December. Investors participating in previous large Japanese placements tend to secure positive returns.

REPT BATTERO IPO Preview and Valuation Analysis: Burning Cash and Rising Debt Ahead of the IPO

By Andrei Zakharov

REPT BATTERO, a Chinese Li-ion battery manufacturer, announced terms for its IPO in Hong Kong. The initial public offering price is expected to be between HK$18.20 and HK$20.60 per share.
The company plans to raise ~HK$2.1B of net proceeds at HK$19.40/share. REPT BATTERO will begin trading on the Hong Kong Stock Exchange under the stock code 0666 on December 18.
I have a negative view of the upcoming REPT BATTERO IPO and expect the stock will underperform during the first trading day as a publicly listed company.

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Dec 12

Daily Brief ECM: Rept Battero IPO: Valuation Insights and more

In today’s briefing:

Rept Battero IPO: Valuation Insights
DOMS Industries Ltd IPO- Forensic Analysis
Mankind Pharma Placement – Its Expensive, but at Least It’s High Quality
DOMS Industries IPO – Thoughts on Valuation – Isn’t Cheap, Neither Are Its Peers Cheap
IMotion Automotive Pre-IPO – Refiled PHIP Updates – Lack of Competitive Edge Starting to Show

Rept Battero IPO: Valuation Insights

By Arun George

REPT BATTERO Energy (1998104D CH), a leading EV battery manufacturer, has launched an HKEx IPO to raise up to US$306 million. Pricing is on 14 December.
We previously discussed the IPO in Rept Battero IPO: The Bull Case and Rept Battero IPO: The Bear Case.
There are no cornerstone investors. Our valuation analysis suggests that the IPO price range is unattractive. Therefore, we would pass on the IPO.

DOMS Industries Ltd IPO- Forensic Analysis

By Nitin Mangal

Doms (DOMS IN) IPO opens for subscription soon. The INR 12 bn IPO includes INR 3.5 bn fresh issue and the remaining as offer for sale.
The company is a prominent player in the Indian stationary market and has one of the most diverse product portfolio with a market share of 12% in F23.
DOMS ticks right in majority of the boxes when it comes to operations and B/S health. One must still be cautious regarding dependence on FILA group, and faster depreciating rates.

Mankind Pharma Placement – Its Expensive, but at Least It’s High Quality

A group of shareholders is looking to raise around US$600m via selling a 6.9% stake in Mankind Pharma.
MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
We have looked at the IPO and lock-up release earlier. In this note, we talk about the other deal dynamics.

DOMS Industries IPO – Thoughts on Valuation – Isn’t Cheap, Neither Are Its Peers Cheap

Doms (DOMS IN) is looking to raise around US$140m in its India IPO.
DOMS is a leading player and brand in India’s stationery and art products market. It designs, manufactures, and sells a wide range of products, primarily under its flagship brand ‘DOMS’.
We have looked at the company’s past performance in our earlier note. In this note, we talk about valuations.

IMotion Automotive Pre-IPO – Refiled PHIP Updates – Lack of Competitive Edge Starting to Show