In today’s briefing:
- Chery Automobile IPO (9973 HK): Valuation Insights
- Chery Auto IPO – Probably Around Fair Value, Cash and Peer Momentum Might Save the Day
- Myungin Pharmaceutical IPO Bookbuilding Analysis
- Dongfang Electric Placement: Second Primary Raise of the Year
- StubHub Holdings (STUB): Strong Open, Quick Retreat as Debt and Flipping Pressure Loom
- Physicswallah Ltd Pre-IPO Tearsheet
- Yusys Technologies A/H Listing: Market Share Loss but Profit Margins Have Expanded
- Pre-IPO TenNor Therapeutics (Suzhou) Limited – The Pipelines and the Concerns
- WaterBridge Infrastructure LLC (WBI): High-End Pricing Leads to Solid IPO Debut
Chery Automobile IPO (9973 HK): Valuation Insights
- Chery Automobile (9973 HK) is a Chinese automobile manufacturer. It has launched an HKEx IPO to raise up to US$1.2 billion.
- I previously discussed the IPO in Chery Automobile IPO: The Bull Case and Chery Automobile IPO: The Bear Case.
- In this note, I present my forecasts and valuation. My analysis suggests that the IPO price range is reasonable.
Chery Auto IPO – Probably Around Fair Value, Cash and Peer Momentum Might Save the Day
- Chery Automobile is looking to raise about US$1.2bn in its upcoming Hong Kong IPO.
- Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
- We have looked at the company’s past performance in our previous notes. In this note, we talk about valuations.
Myungin Pharmaceutical IPO Bookbuilding Analysis
- Myungin Pharm’s IPO price has been confirmed at 58,000 won, which is at the high end of the IPO price range.
- A total of 2,028 domestic and foreign institutional investors participated in the IPO demand forecast. The demand ratio was 488.9 to 1.
- Our base case valuation of Myungin Pharm is market cap of 1.2 trillion won, and target price of 80,349 won per share, which is 39% higher than the IPO price.
Dongfang Electric Placement: Second Primary Raise of the Year
- Dongfang Electric (1072 HK) is looking to raise around US$141m from a primary placement.
- The deal is a small one, representing 3.2 days of the stock’s three month ADV, and 1.5% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework
StubHub Holdings (STUB): Strong Open, Quick Retreat as Debt and Flipping Pressure Loom
- The company priced a full-size offering of 34.04 million shares at $23.50, the midpoint of the $22–$25 range, raising more than $750 million.
- Shares opened at $25.35, a 7.8% premium to the issue price, but that initial pop quickly evaporated. The stock closed its opening session at $22.00.
- Over the next 30 days, we expect investors to remain cautious, with many likely trimming exposure until upcoming quarterly results offer greater clarity.
Physicswallah Ltd Pre-IPO Tearsheet
- Physicswallah Limited (2076103D IN) is looking to raise about US$434m in its upcoming India IPO. The deal will be run by Axis, Kotak, GS, and JPM.
- Physicswallah Ltd (PWL) offers test preparation courses for competitive examinations, and other courses such as for upskilling, across 13 education categories, including JEE, NEET, and UPSC, among others.
- According to Redseer, PWL was among the top-five education companies in terms of revenue in India and one of the fastest-growing companies in terms of revenue growth during FY22-24.
Yusys Technologies A/H Listing: Market Share Loss but Profit Margins Have Expanded
- Yusys Technologies (300674 CH) is looking to raise around US$350m in its upcoming H-share listing.
- Yusys Technologies is a PRC leading fintech solution provider operating in the domestic and overseas market, providing full-stack product-oriented technology solutions to a wide spectrum of financial institutions.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
Pre-IPO TenNor Therapeutics (Suzhou) Limited – The Pipelines and the Concerns
- China has vigorously restricted the use of antibiotics. Even for novel antibiotics, they won’t replace old antibiotics completely considering higher price/the difficulty of changing prescription habits of existing clinical guidelines.
- The NMPA’s approval standards for new antibiotics are becoming increasingly strict. So, regulatory agencies’ evaluation of the true efficacy of TNP-2198 may lead to the delay in its market launch.
- Post-Money valuation after Series E financing reached RMB2 billion. Valuation of TenNor could be lower than peers Zai Lab and Everest Medicines who already have commercialized products on the market.
WaterBridge Infrastructure LLC (WBI): High-End Pricing Leads to Solid IPO Debut
- The Delaware Basin-focused water infrastructure provider priced 31.7 million shares at $20.00, the high end of its $17–$20 range, after upsizing from 27.0 million shares on robust demand.
- Shares opened at $25.00, giving early investors a 25% premium, before selling off into the close at $22.83.
- With Five Point’s backing, a growing project pipeline, and favorable positioning in the Delaware Basin, the company enters public markets on solid footing.
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