In today’s briefing:
- CATL A/H Listing – High Quality, Large Size Make It Unavoidable but Needs a Discount
- CATL H Share Listing (3750 HK): Valuation Insights
- PayTM Block – US$242m Secondary Block Deal a Small One to Digest
- EToro Group Ltd (ETOR): IPO Window Opening Up; Buyers Pour in for Trading Platform
- CATL A/H Listing – More like ADR Secondary Listing than an A/H Listing – Performance & Subscription
- ESR Kendall REIT’s 150 Billion Won Capital Raise and Continued Outperformance of Korean REITs
- Belrise Industries Pre-IPO – Expansion Plans and Related Party Risks
- Chagee Holdings – Debut Is the Peak, and Then It Wanes?
CATL A/H Listing – High Quality, Large Size Make It Unavoidable but Needs a Discount
- Contemporary Amperex Technology (CATL) (300750 CH) , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
- CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
- We have looked at the company’s past performance in our earlier notes. In this note, we talk about the IPO pricing.
CATL H Share Listing (3750 HK): Valuation Insights
- Contemporary Amperex Technology (CATL) (300750 CH) has launched its H Share listing at a maximum price of HK$263. Pricing will be on 19 May, and the listing on 20 May.
- I discussed the H Share listing in CATL H Share Listing: The Investment Case, CATL H Share Listing: AH Discount Views, CATL H Share Listing: PHIP Reinforces the Investment Case.
- Our valuation analysis suggests that the low AH discount can be justified. We would participate in the listing.
PayTM Block – US$242m Secondary Block Deal a Small One to Digest
- Antfin (Netherlands) Holding B.V. (Antfin) is looking to raise up to US$242m via selling a 4% stake in Paytm (PAYTM IN).
- Antfin has been selling off its stake since it pared around 12% in its Nov’21 IPO. As of date of writing, it had a 9.85% stake remaining in the firm.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
EToro Group Ltd (ETOR): IPO Window Opening Up; Buyers Pour in for Trading Platform
- An early channel check of this deal revealed that the offering is multiple-times oversubscribed with continued 1-on-1 conversions. The books close Monday at 4pm.
- The company is targeting the “next generation” of investor with encouraging growth and has the metrics to show they are meaningfully headed in the right direction.
- Our sources state that want to be involved with the name and we believe an explosive debut could be on tap for this IPO.
CATL A/H Listing – More like ADR Secondary Listing than an A/H Listing – Performance & Subscription
- Contemporary Amperex Technology (CATL) (300750 CH) , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
- CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
- In this note, we talk about the IPO pricing and how it compares to some of the past listings.
ESR Kendall REIT’s 150 Billion Won Capital Raise and Continued Outperformance of Korean REITs
- On 9 May, ESR Kendall Square REIT (365550 KS) announced that it plans to conduct a rights offering capital increase of approximately 150 billion won.
- The Korean REIT sector started to bottom out in 2023, after big underperformance in the previous three years.
- The interest rate gap on the company’s expected dividend yield (5.7%) is now nearly 3% higher than the 10 year South Korean government bond yield (2.7%) which is meaningful.
Belrise Industries Pre-IPO – Expansion Plans and Related Party Risks
- Belrise Industries (9156339Z IN) is looking to raise about US$255m in its upcoming India IPO.
- Belrise Industries is an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial and agri-vehicles.
- In this note, we talk about the company’s historical performance.
Chagee Holdings – Debut Is the Peak, and Then It Wanes?
- The core reason for the success of Chagee lies in the Company finding an effective “shortcut” of business model – “minimalism”, but this model does not imply a high moat.
- A likely situation is Chagee’s future growth in domestic market would be limited, and the overseas expansion could be unsatisfactory.So, we recommend investors to be cautious about the valuation prospects.
- If domestic competition intensifies or overseas expansion falls short of expectations, it is highly likely that the stock price will fall back to the range of US$25-30/share or even lower.
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