In today’s briefing:
- China Hongqiao Placement: Good Valuation but Likely Opportunistic, on the Back of Chuangxin Listing
- Chuangxin Pre-IPO: Increasing Exposure to Volatile Alumina; Offered at Premium to Peers
- WT Micro GDR Offering – Slightly Larger Deal to Digest, Discount Mostly in Line With Recent Deals
- United Urban Investment Corporation Placement: Accretive Raising for Asset Acquisition
- [Japan Offering] Sakata Inx (4633 JP) Selldown by Financial Crossholders
- Klook Pre-IPO – The Negatives – Disclosures Lagging
- TPG Telecom Placement: Widely Anticipated but Large Deal to Digest
- Suzhou Ribo Life Science (瑞博生物) Pre-IPO: Competition Understated
- Central Bancompany, Inc. (CBC): Legacy Bank Steps Into the IPO Spotlight
- Emmvee Photovoltaic Power IPO Trading – Lacklustre Demand
China Hongqiao Placement: Good Valuation but Likely Opportunistic, on the Back of Chuangxin Listing
- China Hongqiao (1378 HK) is looking to raise around US$1.2bn from a primary placement.
- This represents 9.1 days of the stock’s three month ADV, and 2.9% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Chuangxin Pre-IPO: Increasing Exposure to Volatile Alumina; Offered at Premium to Peers
- Chuangxin Industries (CXI HK) is looking to raise up to US$700m in its upcoming Hong Kong IPO.
- It is focused on alumina refining and aluminum smelting within the upstream of the aluminum industry chain.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
WT Micro GDR Offering – Slightly Larger Deal to Digest, Discount Mostly in Line With Recent Deals
- WT Microelectronics (3036 TT) (WT Micro) is looking to raise up to US$393m, selling 90m shares(18m GDRs)via a GDR offering. It is also selling a two-year zero-coupon CB to raiseUS$350m.
- Similar to previous GDR listings, the firm has undergone a long drawn out process prior to launching the deal, having to jump through a number of board/shareholder/regulatory approval loops.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
United Urban Investment Corporation Placement: Accretive Raising for Asset Acquisition
- United Urban Investment (8960 JP) is looking to raise US$155m in a primary placement.
- The purpose is for financing of its medium-term growth strategy plan which includes the acquisition of new assets.
- In this note, we will talk about the placement and run the deal through our ECM framework.
[Japan Offering] Sakata Inx (4633 JP) Selldown by Financial Crossholders
- Yesterday post-close, Sakata Inx Corp (4633 JP) announced a ¥6bn+ selldown offering by financial crossholders. There may be others to come, but not clear how much.
- The company has had a good couple of years, the stock has reached book value. Optimised balance sheet ROE now clears 10%.
- Index impact is limited in all respects. Low vol, low multiple, decent dividend, high earnings progression on decent business growth are all positive factors.
Klook Pre-IPO – The Negatives – Disclosures Lagging
- Klook (KLK US), a pan-regional experiences platform in Asia-Pacific, aims to raise around US$500m in its US listing.
- Klook connects travelers with merchants providing a vast array of activities, tours, attractions and other travel services across the globe.
- In this note, we talk about the not-so-positive aspects of the deal.
TPG Telecom Placement: Widely Anticipated but Large Deal to Digest
- TPG Telecom (TPG AU) is looking to raise around US$359m from a primary placement.
- This is a large deal to digest, representing 111.2 days of the stock’s three month ADV, and 7.8% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Suzhou Ribo Life Science (瑞博生物) Pre-IPO: Competition Understated
- Suzhou Ribo Life is looking to raise at least US$100 million via a Hong Kong listing. CICC and Citi are the deal sponsors.
- While our previous note provides a brief background overview of the company, we look at the updates and competition in this note.
- We become more conservative when looking at its competitive landscape.
Central Bancompany, Inc. (CBC): Legacy Bank Steps Into the IPO Spotlight
- Discounted earnings valuation but premium to book; limited float and up-listing suggest muted early trading despite strong fundamentals.
- CBC leverages low-cost deposits, diversified lending, and disciplined organic and acquisition-driven growth to sustain stable, long-term regional banking performance.
- IPO demand is multiple-times oversubscribed; small float and family control create scarcity but may limit early trading liquidity.
Emmvee Photovoltaic Power IPO Trading – Lacklustre Demand
- Emmvee Photovoltaic Power Limited (0198068D IN) (EPPL) raised around US$327m in its India IPO.
- EPPL is a vertically-integrated solar PV module and cell manufacturer in India, with operations spanning the solar PV modules production cycle from solar cell production to solar PV module assembly.
- We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.
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