In today’s briefing:
- Foshan Haitian Flavouring & Food Company Hong Kong IPO Preview
- Challenger Limited Placement: TAL Dai-Ichi Bidding Higher, Apollo Overhang Gone
- Foshan Haitian HK Offer: Pantry Staples at Pricey Valuations. Key Facts, Financials & More
- FWD IPO: What Are We Buying?
- Biocon Ltd QIP – Well Flagged US$522m QIP; Largely Towards Clearing Debt
- Bayzed Health Group IPO: Shows Flare; Still a Tough Road Ahead; Can Avoid The Issue
- Pre-IPO Eternal Beauty Holdings (PHIP Updates) – The Outlook Has Changed
- Slide Holdings Insurance, Inc.(SLDE): Florida Based Insurer Looking to Ride the Tailwinds of Sector
- TransThera Sciences (Nanjing) IPO: Uniqueness of Lead Candidate Provides Comfort for Long-Term
- Caris Life Sciences, Inc. (CAI): Price Bumped Higher, Intersection of Cancer and AI in High Demand
Foshan Haitian Flavouring & Food Company Hong Kong IPO Preview
- Foshan Haitian Flavouring & Food Company is the largest listed condiments producer in mainland China which is seeking to raise up to HK$9.56 billion (US$1.22 billion) in Hong Kong listing.
- It is offering 263.2 million shares at HK$35 to HK$36.30 each. The final offer price is expected to be announced on 17 June.
- Foshan Haitian Flavouring & Food is the largest condiments company in China with strong brand power with loyal customers.
Challenger Limited Placement: TAL Dai-Ichi Bidding Higher, Apollo Overhang Gone
- AP Liberty (Apollo) is looking to raise US$170m from selling out its stake in Challenger Ltd (CGF AU) .
- This selldown comes on the heels of a previous selldown in September 2024 ; Apollo is conducting a clean-up sale now.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Foshan Haitian HK Offer: Pantry Staples at Pricey Valuations. Key Facts, Financials & More
- Foshan Haitian, already listed in Shanghai, is offering 263.2 million shares in Hong Kong to raise up to HKD9.56 billion (USD1.22 billion); Final offer price will be set by today.
- HK offer price is pitched at an appealing 19%–22% discount to its A-share close, however valuations are pricing in growth expectations that may not align with the underlying business dynamics.
- Foshan Haitian operates in the condiments and sauces segment—a mature, saturated and competitive market with limited room for meaningful margin or volume expansion.
FWD IPO: What Are We Buying?
- While FWD has achieved strong growth in certain key markets, its overall new business growth rate didn’t differ significantly from the peers, AIA and Prudential.
- Compared to the peers, it offers more exposure to Thailand/Cambodia, in terms of APE and VNB mix. But, the peers still have better scale in these markets.
- We struggle to develop the thesis unless FWD’s valuation is really attractive. It’s also not expecting to pay any dividends in the near future while both peers do.
Biocon Ltd QIP – Well Flagged US$522m QIP; Largely Towards Clearing Debt
- Biocon Ltd (BIOS IN) Biocon Ltd is looking to raise up to US$522m in its qualified institutional placement (QIP).
- The deal is well flagged, having gone through rounds of board/shareholder approvals. The QIP has also been covered by domestic media reports.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Bayzed Health Group IPO: Shows Flare; Still a Tough Road Ahead; Can Avoid The Issue
- Bayzed Health Group (BHG HK) launched its Hongkong IPO aiming to raise up to HK$ 900 million. The company plans to sell 133 million shares at HK$4.22–6.75 per share.
- The company plans to utilize the IPO proceeds to continuously strengthening the full-cycle oncology healthcare services primarily through purchasing medical equipment and recruiting medical professionals.
- Bayzed Health is an oncology healthcare group which posted revenue of RMB 1,189 million in 2024, up by 11% YoY. Gross margins improve; net losses narrow too.
Pre-IPO Eternal Beauty Holdings (PHIP Updates) – The Outlook Has Changed
- Given that leading luxury groups are inclined to abandon agency and “get involved directly” in the beauty/fragrance category, such trend implies the risk of losing key suppliers in the future
- Although there’re “reusable aspects” in management, expenses spent on brand channel are big, which makes it impossible for profits to benefit from “scale effect”.So, low profit margin is the norm.
- Considering the risk of economic recession/sluggish consumption, Eternal Beauty’s net profit may experience negative growth in FY2025. It would gradually recover in FY2026-2027. Valuation could be lower than peers.
Slide Holdings Insurance, Inc.(SLDE): Florida Based Insurer Looking to Ride the Tailwinds of Sector
- According to our sources, the deal is well-oversubscribed with good diversification from long-only accounts.
- Looking at the financial metrics of this company, they wrote premiums of $1.33b in 2024 which was a 52.5% increase from 2023.
- The success of the insurance sector as a whole including the strong performance of Ategrity Specialty Holdings (ASIC US) last week will only further enhance the optics of this IPO.
TransThera Sciences (Nanjing) IPO: Uniqueness of Lead Candidate Provides Comfort for Long-Term
- TransThera Sciences, a clinical-stage biopharma, filed to list on HK. The company aims to raise HK$200M by offering 15M shares. The offer price is set at HK$13.15 ($1.7) per share.
- The IPO opened on June 13 and closes on June 18. Allocations are expected on June 20, while trading is anticipated to commence on June 23.
- The company intends to use the IPO proceeds to fund the research and development of core product candidate, Tinengotinib for various types of solid tumors.
Caris Life Sciences, Inc. (CAI): Price Bumped Higher, Intersection of Cancer and AI in High Demand
- Caris Life Sciences increased the price range on its IPO on Monday ahead of a Wednesday scheduled debut.
- According to our sources, the deal is multiple-times oversubscribed with a mix of new and existing investors. There are multiple mutual-fund anchor orders in the book.
- Given how important this company’s technology is to the cancer arena and the revenue growth that is “ramping” into the IPO, we like the risk-reward profile of this deal.
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