In today’s briefing:
- Alibaba Potential IPOs – Part 3 – An Early Look at Cloud, Easy US$10bn+
- Vedant Fashion OFS – Well Flagged and Recent Earnings Momentum Has Been Decent
- Nexus Select Trust IPO Trading – Decent but Mostly Domestic Demand
- DXN Holdings IPO Trading – Lukewarm Subscription Rates, Peers Have Corrected Since Last Note
- PhilEnergy IPO Preview
- AUB Group Placement – Came as a Surprise but Strong Track Record Makes up for It
- Cognizant Technology Solutions: Launch of Cognizant Neuro AI Platform & Other Drivers
- Incyte Corporation: New Approvals for Opzelura and Zynyz & Other Drivers
- Marriott International Inc.: City Express & Digital Networks Driving Growth – Key Drivers
- Full-Year Results for Alibaba’s CaiNiao: Reduced Losses, Slower Growth, and A (Likely) 2024 IPO
Alibaba Potential IPOs – Part 3 – An Early Look at Cloud, Easy US$10bn+
- On 28th Mar 2023, Alibaba Group (9988 HK) announced that it would adopt a new organizational and governance structure, splitting into six major business groups and other investments.
- Alibaba also stated that each of the business groups would be set up as an independent entity with its own board and the groups will eventually seek to list.
- In our previous note, we highlighted which division could list. In this note, we will look at the Cloud segement.
Vedant Fashion OFS – Well Flagged and Recent Earnings Momentum Has Been Decent
- Vedant Fashions (MANYAVAR IN)‘ Promoter is looking to raise US$239m via trimming a 7% stake in the firm.
- The selldown here is to meet the minimum public shareholding requirement of 25% set by SEBI.
- The deal would be a large one to process with the base deal alone representing 187 days of the firm’s three month ADV.
Nexus Select Trust IPO Trading – Decent but Mostly Domestic Demand
- Nexus Select Trust (NST IN) raised around US$391m in its India IPO. The market value of its assets stood at INR234bn (US$2.9bn), of which INR211bn (US$2.6bn) was from its retail assets.
- NST is a REIT with a portfolio of 17 Grade A urban consumption centers. It is backed by Blackstone.
- We have looked at various aspects of the deal in our previous note, in this note, we talk about the demand and trading dynamics.
DXN Holdings IPO Trading – Lukewarm Subscription Rates, Peers Have Corrected Since Last Note
- DXN Holdings (2080694D MK) raised around US$147m in its Malaysian IPO.
- DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.
- In this note, we will talk about the trading dynamics.
PhilEnergy IPO Preview
- PhilEnergy is offering 2.8 million shares in the IPO and expected market cap range of the IPO is from 279 billion won to 318 billion won.
- The IPO price range is from 26,300 won to 30,000 won and the total offering amount is 74 billion to 84.4 billion won.
- The company’s core products include stacking and laser notching equipment used in the rechargeable batteries manufacturing process.
AUB Group Placement – Came as a Surprise but Strong Track Record Makes up for It
- AUB Group Limited (AUB AU) is looking to raise up to AUD150m (US$100m) in its primary placement. The proceeds will be used to strengthen its balance sheet.
- The deal would be a large one to digest at 24 days of three month ADV and dilution of 6.2%.
- In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.
Cognizant Technology Solutions: Launch of Cognizant Neuro AI Platform & Other Drivers
- It was a successful first quarter for Cognizant Technology Solutions.
- The adjusted operating margin for the first quarter was 14.6%, and the company had quarterly solid bookings growth of 28% YoY.
- We give Cognizant Technology Solutions Corporation a ‘Hold’ rating with a revised target price.
Incyte Corporation: New Approvals for Opzelura and Zynyz & Other Drivers
- Incyte had a terribly disappointing first quarter and failed to meet the revenue expectations as well as earnings expectations of Wall Street.
- The company’s product revenue increased 14% year over year as Jakafi was in high demand among patients across all indications.
- In hematology and oncology, the ongoing launches of Pemazyre and Minjuvi ex-U.S. were the primary factors in the 17% rise year over year.
Marriott International Inc.: City Express & Digital Networks Driving Growth – Key Drivers
- Marriott International delivered a solid quarterly result that was an all-around beat resulting from strong demand growth globally, with a decent performance across all geographies and hotel levels.
- U.S. and Canadian RevPAR increased by 26% year over year while occupancy increased by 8% to 66%.
- Global card acquisitions climbed by 35% year on year, while global card expenditure increased by 16%.
Full-Year Results for Alibaba’s CaiNiao: Reduced Losses, Slower Growth, and A (Likely) 2024 IPO
- Cainiao Smart Logistics (1437124D HK) ‘s March 2023 quarterly and full-year results can be found within Alibaba’s full-year earnings report, which was released on Thursday May 18
- In both the March quarter and its fiscal year, CaiNiao showed improved Adjusted EBITDA results, though in both periods the tech-centric logistics network still reported losses
- Revenue growth slowed to 18% Y/Y in the March quarter, and parent Alibaba (ADR) (BABA US) indicated CaiNiao will target an IPO in 2024, a bit later than some expected
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