In today’s briefing:
- BYD US$5.2bn Placement – Large Only in Absolute Size, past Deals Have Done Well
- JX Advance Metals IPO – Digestable, but Not Really Attractive
- JX Advanced Metals (5016 JP) IPO: Price Range Is Fair
- JX Advanced Metals IPO Valuation Analysis
- Chery Automobile IPO Preview
- Pre-IPO We Doctor Holdings – The Good Story of AI May Not Turn Things Around
- Goertek Pre-IPO: Too Reliant on Apple
- PegBio 派格生物 IPO: PHIP Updates Don’t Look Good
BYD US$5.2bn Placement – Large Only in Absolute Size, past Deals Have Done Well
- BYD (1211 HK) is looking to raise around US$5.2bn via selling 4% additional shares.
- The company has undertaken a few deals before and they have ended up performing well.
- In this note, we will talk about the placement and run the deal through our ECM framework.
JX Advance Metals IPO – Digestable, but Not Really Attractive
- JX Advanced Metals (5016 JP)’s parent, ENEOS Holdings (5020 JP), is looking to raise around US$2.5bn via selling more than half of its stake in JXAM in its Japan IPO.
- JXAM engages in business activities primarily focused on the development, manufacture and sale of materials made from copper and rare metals, which are used in the semiconductor and ICT fields.
- We have covered various aspects of the deal in our previous notes. In this note, we will talk about the IPO pricing.
JX Advanced Metals (5016 JP) IPO: Price Range Is Fair
- JX Advanced Metals (5016 JP) has announced an IPO price range of JPY810-820 per share, which is 6.0%-4.9% below the IPO reference price range of JPY862.
- Relevant notes – JX Advanced Metals (5016 JP) IPO: The Bull Case, JX Advanced Metals (5016 JP) IPO: The Bear Case and JX Advanced Metals (5016 JP) IPO: Valuation Insights.
- My SoTP valuation of JPY860 is modestly above the IPO price range, suggesting that the price range is fair.
JX Advanced Metals IPO Valuation Analysis
- On 3 March, JX Advanced Metals (5016 JP) announced that the IPO will be offered at ¥810 to ¥820 per share (down from the initial indicative price of ¥862 per share).
- Our base case valuation per share is ¥863 which is 5.8% higher than the mid-point of the expected IPO price range of ¥810 to ¥820 per share.
- Given the lack of upside, we have a Negative view of this JX Advanced Metal IPO.
Chery Automobile IPO Preview
- Chery Automobile is getting ready to complete an IPO in Hong Kong in the coming months. The company could raise up to US$1 billion in this IPO.
- Chery Auto is the second largest automaker in China and the 11th largest auto company globally. The valuation of Chery Auto could be more than 100 billion yuan (US$14 billion).
- Chery Auto has one of the best records among all the major auto companies globally in the past three years in terms of sales and net profit growth.
Pre-IPO We Doctor Holdings – The Good Story of AI May Not Turn Things Around
- We Doctor’s business structure has undergone significant changes. Its positioning has become the AI-enabled healthcare solutions provider. The current business model of We Doctor is To G (To Government) model.
- Whether We Doctor can replicate Tianjin model in other cities is uncertain because it may not have deep connections/resources in new cities/regions. Profit model of AI+ healthcare isn’t yet clear.
- We Doctor’s Pre-IPO valuation has reached US$6.7 billion, which is too expensive. Reasonable valuation could be just US$1-2 billion, and should be lower than Ping An Good Doctor.
Goertek Pre-IPO: Too Reliant on Apple
- Goertek Microelectronics (1961589D CH) is looking to raise up to US$400m in its upcoming Hong Kong IPO.
- It is a subsidiary of Goertek Inc A (002241 CH) , and is a world-leading provider of smart sensing interaction solutions.
- In this note, we look at the firm’s past performance
PegBio 派格生物 IPO: PHIP Updates Don’t Look Good
- PegBio is looking at raising up to USD 100m to list in Hong Kong.
- We have previously covered the company’s fundamentals and a brief valuation.
- We look at the difference between previous filing and current PHIP filing. We see massive delays which don’t position the company well for the listing.
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