In today’s briefing:
- Ligent (纳真科技) IPO: Analysis of Deal Terms and Valuation
- Something Is Seriously Amiss As Shares In KFM Kingdom Are Now Suspended
- MiniMax Vs Zhipu: Same Upside, Different Entry. Buy MiniMax’s Reload, Not Zhipu’s Re-Rating
- Aequitas: Kanzhun Placement – Second Selldown in the Year by Tencent, Previous One Did Not Go Well
- Aequitas: Delton IPO Lockup – >US$300m of Lockup Expiry Coming
- Aequitas: Ligent IPO Pricing – Cheapest of Its Peers but AI Sentiment Not Holding Up
- Quiddity Leaderboard CSI 1000 Dec26: US$1.4bn One-Way; 88% Reference Period Complete
- Quiddity Leaderboard CSI 300/500 Dec26: Combined One-Way Flow >US$9bn
- Quiddity Leaderboard ChiNext & ChiNext 50 Dec26: One Change to Expectations; More Changes Possible
- Ligent Technologies IPO: Growth Optics and Valuation Seems Just About Right
Ligent (纳真科技) IPO: Analysis of Deal Terms and Valuation
- Ligent, a China-based maker of optical transceivers and optical network terminals, launched its Hong Kong IPO to raise USD 723m. Citi and CITIC are the joint sponsors.
- In this note, we look at the deal terms and provide our thoughts on valuation for the company.
- We analyze cornerstone and sponsor performance and assess the risk-reward of the deal.
Something Is Seriously Amiss As Shares In KFM Kingdom Are Now Suspended
- Last week, Lotus Horizon (6063 HK) followed in fellow-contractors WK Group (2535 HK) and Superland Group Holdings (368 HK)‘s footsteps, whereby the controlling family exited, triggering an unconditional (massive) takeunder.
- Now contractor KFM Kingdom (3816 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~700% since January.
- Controlling shareholders exiting given protracted headwinds for Hong Kong’s private residential and commercial property markets makes sense. Less clear are these irrational price movements before a deal is struck.
MiniMax Vs Zhipu: Same Upside, Different Entry. Buy MiniMax’s Reload, Not Zhipu’s Re-Rating
- Same 26–27% upside, different entry: MiniMax sits at its July placing price with an MSCI bid in 11 weeks; Z.AI is 11% above Friday’s placing with a Sep-27 CB binary.
- MiniMax’s 17.9% 1H26 gross margin is printed and priced; Z.AI’s decisive number — the 2H26 margin that separates near-breakeven from a RMB4.5bn profit — is six months away.
- BULLISH MiniMax (FV HK$340), NEUTRAL Z.AI (FV HK$1,000), 56% and 40% below the street. Prefer MiniMax; hedge funds should own Z.AI’s convertible, not its equity.
Aequitas: Kanzhun Placement – Second Selldown in the Year by Tencent, Previous One Did Not Go Well
- Tencent (700 HK) (via Image Frame Investment) aims to raise around US$287m via selling a part of its stake in Kanzhun (2076 HK).
- Kanzhun is a Nasdaq and Hong Kong-listed Chinese job listing portal. Kanzhun runs BOSS Zhipin APP.
- In this note we talk about the deal dynamics and run the deal through our ECM framework.
Aequitas: Delton IPO Lockup – >US$300m of Lockup Expiry Coming
- Delton Technology (1989 HK) raised US$$423m in its March 2026 Hong Kong IPO, with the IPO being offered at a fixed price of HKD 71.88/share.
- It is a leading manufacturer of customized printed circuit boards (PCBs) for high performance servers and other computing applications.
- In this note, we will talk about the lockup dynamics and possible placement.
Aequitas: Ligent IPO Pricing – Cheapest of Its Peers but AI Sentiment Not Holding Up
- Ligent Technologies (9856 HK) is looking to raise about US$723m in its upcoming Hong Kong IPO.
- It develops, manufactures and sells optical transceivers, optical chips and optical network terminals.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
Quiddity Leaderboard CSI 1000 Dec26: US$1.4bn One-Way; 88% Reference Period Complete
- CSI 1000 represents the next 1000 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges after CSI 800.
- In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2026.
- Currently, we continue to see 100 ADDs/DELs for the CSI 1000 index.
Quiddity Leaderboard CSI 300/500 Dec26: Combined One-Way Flow >US$9bn
- CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
- In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2026.
- Currently, we see 30 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index. These are the maximum number of changes allowed per review.
Quiddity Leaderboard ChiNext & ChiNext 50 Dec26: One Change to Expectations; More Changes Possible
- ChiNext and ChiNext 50, respectively, represent the top 100 and top 50 A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
- We expect 7 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the December 2026 index rebal event.
- The ChiNext and ChiNext 50 index rebal events could trigger US$417mn and US$263mn in one-way flows respectively.
Ligent Technologies IPO: Growth Optics and Valuation Seems Just About Right
- Ligent Technologies launched Hongkong IPO to raise HK$ 5.7B. They are global optical communication, connectivity product provider that develops, manufactures and sells optical transceivers, optical chips and optical network terminals.
- Ligent Technologies intends to use the proceeds for research and development, expanding production capacity, business promotion, strategic investments and/or acquisition and for general corporate purpose.
- Ligent’s operational capabilities, technological prowess, reasonably strong product portfolio and global market presence, coupled with a more stable demand outlook does make this issue fundamentally worth for investors.
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