In today’s briefing:
- CPMC Holdings (906 HK): On the Cusp of Being Declared Unconditional
- Tencent/Netease: Game Approval Trending up but Only One Approval for Netease
- 2024 Greater China Logistics & Transport ECM Review & A Look at Potential 2025 Deals
- InnoScience Technology (2577 HK): Low IPO Free Float Delays Global Index Inclusion
CPMC Holdings (906 HK): On the Cusp of Being Declared Unconditional
- CPMC Holdings (906 HK)’s offer from ORG Technology Co., Ltd. A (002701 CH) is HK$7.21 with a 50% minimum acceptance condition. The first closing date is 10 January.
- CCASS data shows that Mr Wei has tendered (22.01% of outstanding shares). Including acceptances, ORG’s shareholding was 46.63% of outstanding shares as of 24 December.
- The Board supports the offer, and it is close to being declared unconditional. At the last close and 25 January payment, the gross/annualized spread was 0.8%/10.9%.
Tencent/Netease: Game Approval Trending up but Only One Approval for Netease
- China announced game approval for the December batch. The number of games approved remained at a higher level than 2023.
- The pace of China game approval appears to have accelerated to the same level as pre-tightening. There have been 47% more games approved in 2024 compared to 2023.
- Of the companies that we are monitoring, Netease got one approval.
2024 Greater China Logistics & Transport ECM Review & A Look at Potential 2025 Deals
- 2024 ECM offerings in the Greater China logistics & transport segment included TS Lines (in Hong Kong), SF Holding(Hong Kong), and BingEx (US)
- Generally, recent share offerings in the segment have not performed well at all
- Looking to 2025, we see several deals, including SHEIN and a possible Didi return
InnoScience Technology (2577 HK): Low IPO Free Float Delays Global Index Inclusion
- InnoScience Suzhou Technology (2577 HK) is anticipated to debut at the HKEX on 30 December 2024 with a valuation between $3.5bn – $3.9bn.
- InnoScience Suzhou Technology (2577 HK) is forecasted to fail the fcap threshold in the first place for both global indices due to small size offering and lock-ups.
- The security is expected to be added in China all-world or small-cap at the September 2025 review following the 6-month lock-up expiry.
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