Daily BriefsECM

Daily Brief ECM: AMTD Digital: Irrational Frenzy 2.0 and more

In today’s briefing:

  • AMTD Digital: Irrational Frenzy 2.0
  • Zomato Placement – Opportunistic Selldown, Momentum Hasn’t Been the Greatest
  • Chongqing Hongjiu Fruit Pre-IPO – PHIP Updates
  • Giant Biogene Pre-IPO – The Positives – Fast Growth and Juicy Margins

AMTD Digital: Irrational Frenzy 2.0

By Arun George

  • AMTD Digital (HKD US) shares are up 230x since its listing at US$7.80 per ADS on 15 July. Its market cap is a staggering US$334 billion.
  • AMTD Idea Group (AMTD US) accounts for 99.4% of the voting power. In January 2022, it increased its AMTD Digital shareholding to 97.1% of outstanding shares at US$1.2 billion valuation.
  • AMTD Digital’s financials are uninspiring and cannot justify the share price ramp. No sane valuation methodology can support the share price.    

Zomato Placement – Opportunistic Selldown, Momentum Hasn’t Been the Greatest

By Clarence Chu

  • Uber (UBER US) is looking to raise US$420m in its share sale in Zomato (ZOMATO IN). The selldown will be a clean-up sale.
  • Uber had earlier inherited its stake in Zomato in 2020 when it sold UberEats India to the latter. 
  • We had earlier flagged the possibility of a selldown given that most of Zomato’s investors would come off their respective one-year lockups. 

Chongqing Hongjiu Fruit Pre-IPO – PHIP Updates

By Ethan Aw

  • Chongqing Hongjiu Fruit (CHF HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
  • Chongqing Hongjiu Fruit (CHJF) is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. They have 1.0% market share as China’s second largest fruit distributor.
  • It appears that CHJF had benefited from a slight increase in margins of certain core fruit products. However, we continue to remain doubtful of its long-term prospects. 

Giant Biogene Pre-IPO – The Positives – Fast Growth and Juicy Margins

By Sumeet Singh

  • Giant Biogene (GB) aims to raise around US$500m in its Hong Kong IPO.
  • GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
  • In this note, we talk about the positive aspects of the deal.

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