In today’s briefing:
- Fermi Inc. (FRMI): Investors Bid Up Future AI Infrastructure, Shares Close 55% Higher
- Tata Capital IPO: RHP Update Points to Mixed Fundamentals
- Impact Therapeutics (英派药业) Pre-IPO: Credible R&D in PARP
- Neptune Insurance Holdings (NP): Double-Digit Oversubscribed Demand Leads To 24% First Day Return
- Pre-IPO Videotimes Technology Holdings – Expected to See Performance Decline Due to Tariff War
- Tata Capital IPO – Peer Comp and Thoughts on Valuation
Fermi Inc. (FRMI): Investors Bid Up Future AI Infrastructure, Shares Close 55% Higher
- The company priced 32.5 million shares at $21.00 and saw its shares open at $25.00, a 19% premium.
- Investor demand was strong and stemmed from pre-IPO testing-the-waters meetings with more than 100 investors.
- The strong momentum generated from the debut suggests that traders may continue to gravitate toward the name, creating the potential for sharp swings in the near term.
Tata Capital IPO: RHP Update Points to Mixed Fundamentals
- Tata Capital Limited (TATACAP IN) is the third-largest non-banking financial company (NBFC) in India. It is seeking to raise US$1.7 billion.
- I had previously discussed the investment case in Tata Capital IPO: The Investment Case.
- The RHP updates show that the fundamentals remain mixed. Positives include large size, mid-tier growth rates and good asset quality. Negatives include below peer average NIM, interest spread and ROA.
Impact Therapeutics (英派药业) Pre-IPO: Credible R&D in PARP
- Impact Therapeutics, a China-based near-commercial-stage biopharma company, is looking to raise at least USD 100 million via a Hong Kong listing. GS and CICC are the joint sponsors
- In this note, we look at the company’s core products, senaparib/IMP4297, and key products IMP1734 and IMP9064.
- We also look at the company’s pre-IPO investors and management team.
Neptune Insurance Holdings (NP): Double-Digit Oversubscribed Demand Leads To 24% First Day Return
- The company priced 18.4 million shares at $20.00, the high end of its $18.00–$20.00 range and shares opened at $22.50, a 12.5% premium.
- The deal was in high demand ahead of pricing, with order books reportedly more than 10x oversubscribed.
- Neptune’s debut follows five other insurance-related IPOs this year, a sector that has produced strong results immediately following their IPOs.
Pre-IPO Videotimes Technology Holdings – Expected to See Performance Decline Due to Tariff War
- Videotimes adopts a “domestic production + overseas sales” model. The Company competes for market share by relying largely on Amazon channel and price cuts, with overall revenue showing upward trend.
- Due to Sino-US tariff war and the risk of US dollar depreciation, future performance decline seems inevitable. Our forecast for 2025 is revenue/net profit could be down 4.8% YoY/21% YoY.
- Valuation of Videotimes could be lower than peer. A comfortable range is P/E of 10-15x. However, if 2025 performance decline is confirmed, valuation may be revised down to 6-10x P/E.
Tata Capital IPO – Peer Comp and Thoughts on Valuation
- Tata Capital Limited (TATACAP IN) is looking to raise up to US$1.7bn in its upcoming India IPO.
- Tata Capital Limited (TCL) is the flagship financial services company of the Tata group and a subsidiary of Tata Sons Private Limited.
- We have looked at the company’s past performance in our earlier notes. In this note, we talk about valuations.
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