In today’s briefing:
- ARM Holdings IPO Trading – Sold Hope, Now for Some Reality
- ARM Holdings IPO Trading: Structurally Set up for a First-Day Pop, but Then What?
- Tuhu Car IPO – Peers Have Corrected, Little to No Upside Left on the Table
- TUHU Car IPO: Valuation Insights
- Tuhu Car IPO: Keep the Drive
- Instacart IPO Valuation Analysis
- INOX India Pre-IPO Tearsheet
- IMotion Automotive Technology Pre-IPO – PHIP Updates – Concentration Risk Even More Apparent Now
ARM Holdings IPO Trading – Sold Hope, Now for Some Reality
- Softbank Group (9984 JP) raised around US$4.9bn via selling some of its stake in ARM Holdings (ARM US)‘ US IPO.
- ARM develops and licences high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
- In our previous notes, we looked at the company’s past performance and valuation. In this note, we talk about the trading dynamics.
ARM Holdings IPO Trading: Structurally Set up for a First-Day Pop, but Then What?
- ARM Holdings (ARM US) has priced its IPO at US$51.00 per ADS, at the top end of the price range. Softbank Group (9984 JP) will raise gross proceeds of US$4.9bn.
- We previously discussed the IPO in ARM Holdings IPO: The Bull Case, ARM Holdings IPO: The Bear Case and ARM Holdings IPO: Unattractive Price Range.
- The ARM IPO is structurally set up for a first-day pop. Beyond the first-day euphoria, ARM will face the daunting task of delivering bullish estimates to justify the IPO price.
Tuhu Car IPO – Peers Have Corrected, Little to No Upside Left on the Table
- Tuhu Car (2007986D HK) is looking to raise around US$160m in its Hong Kong IPO. Tuhu is an integrated online and offline platform for automotive services in China.
- In earlier notes, we had looked at the firm’s past performance, discussed our earnings assumptions and our thoughts on Tuhu’s valuation.
- In this note, we discuss valuations at the final price range.
TUHU Car IPO: Valuation Insights
- Tuhu Car (2007986D HK), a leading integrated online and offline platform for automotive service in China, has launched its HKEx IPO at a price range of HK$28.00-31.00 per share.
- In TUHU Car IPO: The Investment Case, we highlighted the key elements of the investment case. In this note, we present our forecasts and discuss valuation.
- Our valuation analysis suggests that Tuhu is reasonably priced at the IPO price range. We would participate in the IPO.
Tuhu Car IPO: Keep the Drive
- Chinese automotive maintenance services platform Tuhu Car (2007986D HK) is planning to raise around US$160m in its upcoming HKEx IPO.
- The company’s franchised business model seems to have worked well, while its focus on high margin products/services have helped improve profitability.
- In this insight, we take a look at Tuhu Car’s business model, business segments and financials and we will discuss the company’s valuation in a follow-up insight.
Instacart IPO Valuation Analysis
- Our base case valuation of Instacart is target price of $33.7 per share, which represents a 20% upside from the high end of the IPO price range ($28 per share).
- We estimate the company’s operating margin to improve from 2.4% in 2022 to 13.2% in 2023 and 14.6% in 2024.
- Although overall sales growth rate from 2020 to 2024 is lower for Instacart as compared to Uber and DoorDash, Instacart is having stronger growth in operating margins than its peers.
INOX India Pre-IPO Tearsheet
- INOX India Limited (INOX IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by Axis Capital, and ICICI Securities.
- INOX India (INOX) is a manufacturer of cryogenic equipment, with over 30 years of experience in designing, engineering, manufacturing and installation of equipment and systems for cryogenic conditions.
- As per CRISIL, the firm was the largest exporter of cryogenic tanks from India in terms of FY22 sales.
IMotion Automotive Technology Pre-IPO – PHIP Updates – Concentration Risk Even More Apparent Now
- IMotion Automotive Technology (1812706D CH) is looking to raise about US$100m in its upcoming HK IPO, after downsizing from an earlier reported float of US$300m.
- The company possesses advanced full-stack R&D capabilities including self-developed algorithms and hardware-software co-design capabilities. It provides two AD domain controller product lines, and the self-designed iDC series.
- We had covered the company’s performance in our earlier notes. In this note, we talk about its PHIP updates.
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