In today’s briefing:
- Anycolor (5032) Overseas Offering – Pre-IPO VCs Selling This High Growth Name
- Aequitas HK IPOs Sponsor + GC Performance (2019-2022)
- Anycolor Placement – First Placement Since Listing but Should Do Fine
- IQiyi Follow-On Offer: Shifting Focus to Profits No Longer Sustainable
- Nickel Industries Placement – Deepening Ties, Rising Short Interest Likely to Support Deal Price
- IQIYI (IQ US) Placement: Fair Price for a Potential but Risky Recovery Play
Anycolor (5032) Overseas Offering – Pre-IPO VCs Selling This High Growth Name
- In late December, I wrote 2023 High Conviction – Anycolor (5032) Aiming at TSE Prime and TOPIX – And How!. Shares closed at ¥6,470 that day. Then went to ¥5,500.
- They have since rebounded some, and now 3 pre-IPO VC investors have announced an overseas offering. This was NOT unexpected. They need more shares to get their TSE Prime listing.
- The Offering is 3.27mm shares which is 5-6 days of volume. This lifts the TSE Prime inclusion amount, eventually, but the story is still about growth and model.
Aequitas HK IPOs Sponsor + GC Performance (2019-2022)
- In this note, we will take a look at broker performance for HK IPOs from 2019-2022.
- The following dataset includes all HK IPOs above US$100m for the period of Calendar Years 2019-2022, which amounted to a total of 173 deals.
- The deals you see in this note are based on our historical IPO tracker. Feel free to drop us a message for additional information on any of these IPOs.
Anycolor Placement – First Placement Since Listing but Should Do Fine
- Some shareholders of Anycolor (5032 JP) are looking to raise US$151.5m via an International Only Follow-on offering.
- The deal is a relatively small one to digest in terms of ADV, representing only 4 days of three-month ADV. Although, it is still 10% of current mcap.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
IQiyi Follow-On Offer: Shifting Focus to Profits No Longer Sustainable
- IQiyi announced a follow-on equity offering of 76.5m ADS priced at $5.90 per ADS (at a 11% discount to previous close) and will raise approx. $442.3m through the issuance.
- Each ADS represents seven Class A ordinary shares and the new equity offering of 76.5m ADS will account for approx. 8.5% of iQiyi’s extended share capital post offering.
- Following the announcement, the company’s shares fell 16.4% and we think the upside is limited here.
Nickel Industries Placement – Deepening Ties, Rising Short Interest Likely to Support Deal Price
- Nickel Industries Ltd (NIC AU) is looking to raise US$185m with the majority of proceeds used to acquire 10% interests in nickel producing assets within the Indonesia Morowali Industrial Park.
- The Indonesia Morowali Industrial Park is part of its ongoing collaboration with Tsinghan Group, a private Chinese nickel and stainless steel producer.
- In this note, we will talk about the firm’s track record and run the deal through our ECM framework.
IQIYI (IQ US) Placement: Fair Price for a Potential but Risky Recovery Play
- IQIYI Inc (IQ US) aims to raise net proceeds of US$442.3 million through the placement of 76.5 million ADS at US$5.90 per ADS.
- The net proceeds will be used for working capital purposes, including serving its existing debt obligations. The placement closes on 19 January.
- The placement price is fair vs peers and is an opportunity to play iQiyi’s expected topline recovery which is supported by ongoing margin improvement and declining cash burn.
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