In today’s briefing:
- CATL A/H Trading – Strong Demand, Upsized, Included in Short-Sell List
- CATL H Share Listing (3750 HK) IPO: Trading Debut
- PegBio 派格生物 IPO: A Hardsell but Mostly Done Deal
- Hinge Health (HNGE): Growth Surging into IPO, Valuation at Major Discount to 2021 Peak
- MNTN Inc. (MNTN) – “Netflix of Marketing” IPO; Solid Deal Dynamics in a Highly Competitive Industry
- Pre-IPO Zhou Liu Fu Jewellery – It Is Hard to Capitalise on the Soaring Gold Price
CATL A/H Trading – Strong Demand, Upsized, Included in Short-Sell List
- Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, raised around US$5.2bn in its H-share listing.
- Contemporary Amperex Technology (3750 HK) 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 and valuations in our earlier notes. In this note, we talk about the trading dynamics.
CATL H Share Listing (3750 HK) IPO: Trading Debut
- Contemporary Amperex Technology (3750 HK) priced its H Share at HK$263 to raise HK$35,657.2 million (US$4.6 billion) in gross proceeds. The H Share will be listed tomorrow.
- The H Share listing price implies an AH discount of 6.6% at the A Share price of RMB63.51. This compares to Midea Group (300 HK)‘s AH discount of 4.7%.
- CATL had the highest oversubscription rates among recent large AH listings. Our valuation analysis suggests that the H Share listing price is attractive.
PegBio 派格生物 IPO: A Hardsell but Mostly Done Deal
- PegBio, a China-based near commercial stage biotech company, launched its IPO to raise up to US$39m via a Hong Kong listing.
- We have previously covered the company’s fundamentals and valuation. We highlight issues of the company.
- In this note, we look at the deal term. We think the valuation is demanding, but the company managed to get support from local government facilitate its listing.
Hinge Health (HNGE): Growth Surging into IPO, Valuation at Major Discount to 2021 Peak
- The venture-capital backed company set terms for its IPO and will be seeking a valuation cut of more than 50% from its 2021 peak.
- Their revenue was $123.8 million and $82.7 million for the three months ended March 31, 2025 and 2024, respectively, representing a year-over-year growth rate of 50%.
- This IPO has gained a substantial amount of orders as the underwriters are classifying the books as multiple-times oversubscribed.
MNTN Inc. (MNTN) – “Netflix of Marketing” IPO; Solid Deal Dynamics in a Highly Competitive Industry
- Their self-serve software platform enables marketers to precisely target audiences through their MNTN Matched technology and then directly attribute each view to a purchase or other action.
- Detractors of this IPO may point to the lack of profitability of a company founded in 2009 as well as the immense competition in the space.
- The company does have a grand vision and a solid core of backers with a manageable deal size. Furthermore, 19 of the last 25 quarters have produced positive adjusted EBITDA.
Pre-IPO Zhou Liu Fu Jewellery – It Is Hard to Capitalise on the Soaring Gold Price
- Zhou Liu Fu’s fundamentals would not significantly improve due to the surge in gold prices, but would deteriorate instead due to rising raw material costs and reduced customer demand.
- The franchise model and declining profit margins have always been the issues. Zhou Liu Fu also has faced dual competition from traditional jewelry companies and emerging jewelry brands.
- We are not optimistic about Zhou Liu Fu’s performance outlook. Valuation of Zhou Liu Fu could be lower than peers and the industry average.
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