In today’s briefing:
- Daiichi Sankyo Placement – Momentum Is Weak but the Deal Is Small
- Takasago Thermal Engineering Offering (1969) – Small Start to Larger Unwind
- CATL IPO Listing in Hong Kong Preview
- Takasago Thermal Engineering Placement – Share Buyback Should Aid Deal Performance
- Hengrui (恒瑞医药) A/H Listing: A Worthy Comparison with Hansoh Pharma
- SailPoint Inc (SAIL): Upwardly-Revised, Upsized IPO Falls Flat on Day One
- Kestra Medical Technologies, Ltd (KMTS): Peeking at the Prospectus of the Next Medical Device IPO
- Aegis Vopak Pre-IPO: Expanding Rapidly but Lots of Debt
- Veeda Clinical Research Ltd Pre-IPO Tearsheet
Daiichi Sankyo Placement – Momentum Is Weak but the Deal Is Small
- Mizuho Bank is looking to raise US$151m from selling some of its stake in Daiichi Sankyo (4568 JP).
- While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Takasago Thermal Engineering Offering (1969) – Small Start to Larger Unwind
- Takasago Thermal Engineering (1969 JP) reported Q3 earnings today. Revs up tiny yoy over 9m. OP +13%, Net +18.2%. Progression a bit behind guidance for full-year (but guidance unchanged)
- Orders received and carried forward a record high. Margins up. DX/etc investments up. Crossholdings down but still HUGE outbound/in-bound. Goal is to shrink from 20% of net assets to 15%.
- Today the company announced some crossholders would sell ~5% of shares out, and the company would launch a buyback for half that. Meh…
CATL IPO Listing in Hong Kong Preview
- Contemporary Amperex Technology (CATL) is getting ready to complete its IPO on the Hong Kong exchange. CATL is expected to raise at least US$5 billion.
- CATL maintained its 36.8% share in the global EV battery market in 2023 and January to November 2024. CATL has excellent fundamentals and improving profit margins.
- Major risk factors include additional tariffs by the US, recent addition to Pentagon’s blacklist, declining sales in 2024, and lower government subsidies for EVs globally.
Takasago Thermal Engineering Placement – Share Buyback Should Aid Deal Performance
- A group of shareholders are looking to raise US$118m from selling their respective stakes in Takasago Thermal Engineering (1969 JP) .
- While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Hengrui (恒瑞医药) A/H Listing: A Worthy Comparison with Hansoh Pharma
- Jiangsu Hengrui Medicine (600276 CH) a China-based pharmaceutical company, aims to raise around US$2bn in its H-share listing.
- Given its similarity to Hong Kong-listed Hansoh Pharma, we think it is worth a comparison between the two.
- Both companies are decent biopharma players and are trading at a premium to other pharmaceutical company peers. Upon comparison, we think Hengrui’s H should be at a premium to Hansoh.
SailPoint Inc (SAIL): Upwardly-Revised, Upsized IPO Falls Flat on Day One
- SailPoint traded below the issue price for the majority of its first trading session and hit a low of $20.77 before rebounding to a $22.00 print at the close
- The deal was more than 20-times oversubscribed and upsized its price range while on the road prior to pricing which makes the underperformance even more bizarre.
- Given the overhang of the underperforming IPO, we will be downgrading our 30-day forecast.
Kestra Medical Technologies, Ltd (KMTS): Peeking at the Prospectus of the Next Medical Device IPO
- They are a commercial-stage, wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease.
- As of January 31, 2025, the ASSURE WCD is actively being prescribed by more than 550 hospitals and has been worn by over 17,000 patients.
- We anticipate this company to set terms (share size, price range) and debut in the last week of February or the first week of March.
Aegis Vopak Pre-IPO: Expanding Rapidly but Lots of Debt
- Aegis Vopak Terminals Ltd (1902844D IN) is looking to raise about US$415m in its upcoming India IPO.
- Aegis Vopak (AV) is the largest Indian third-party owner and operator (in terms of storage capacity) of tank storage terminals for liquified petroleum gas (LPG) and liquid products.
- In this note, we look at the firm’s past performance.
Veeda Clinical Research Ltd Pre-IPO Tearsheet
- Veeda Clinical Research Ltd (3340714Z IN) (VCRL) is looking to raise about US$115m in its upcoming India IPO. The bookrunners for the deal are Axis, CLSA, IIFL, SBI.
- VCRL is a global contract research organization offering comprehensive drug development services, including non-clinical, pre-clinical, clinical trials, and studies across diverse drug types like generics, biosimilars, and medical devices.
- The company operates in key global markets, including North America, Europe, and Asia, with a presence in India.
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