In today’s briefing:
- Giant Biogene Pre-IPO – The Negatives – Co-Founders Have Already Cashed in US$1bn+
- Hongjiu Fruit IPO: A Bitter Fruit
- Sai Silk Kalamandir Pre-IPO Tearsheet
- Biocytogen (百奥赛图) Pre-IPO: Prospectus and Valuation Updates
- Pre-IPO Cali Biosciences – The Industry, the Business and the Concerns
Giant Biogene Pre-IPO – The Negatives – Co-Founders Have Already Cashed in US$1bn+
- Giant Biogene (GB) aims to raise around US$500m in its Hong Kong IPO.
- GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
- In this note, we talk about the not-so-positive aspects of the deal.
Hongjiu Fruit IPO: A Bitter Fruit
- Chongqing Hongjiu Fruit (CHF HK), a multi-brand fruit company in China, is pre-marketing an HKEX IPO to raise US$200-300 million.
- The fundamentals are uninspiring as it is delivering profitable growth with a heavy cash burn. The rising but tiny market share suggests a lack of sustainable competitive advantage.
- Hongjiu Fruit aims to be the first HKEx-listed fruit distributor. Investors can likely avoid a bitter aftertaste by remaining on the sidelines.
Sai Silk Kalamandir Pre-IPO Tearsheet
- Sai Silk Kalamandir (SSKL IN) is looking to raise about US$150m in its upcoming India IPO. The deal will be run by Motilal Oswal, Edelweiss and HDFC Bank.
- Sai Silk Kalamandir (SSK) is one of the largest retailers of ethnic apparel in South India, particularly in sarees, according to Technopak.
- Through its four store formats, it offers ethnic and value fashion products to various segments across different price points. As of 31 May 2022, it has 46 network stores.
Biocytogen (百奥赛图) Pre-IPO: Prospectus and Valuation Updates
- Biocytogen, a China-based pre-clinical research and biopharmaceutical company, will pre-market its IPO to raise USD 25m, which is a significant downsize from the previous USD 300m fundraising target.
- In our previous note, we covered the company’s fundamentals and compared its business with its peers.
- We will provide an update on its latest prospectus and its peer performance in this note.
Pre-IPO Cali Biosciences – The Industry, the Business and the Concerns
- Both the postoperative pain management and the expansive application of anesthetics in various fields would increase the market demand for ropivacaine.
- Cali Biosciences (CALI HK)’s core product, the ropivacaine long-acting analgesic injection drug candidate CPL-01, would have to face the challenges of fierce competition, uncertain market acceptance, and negative policy impact.
- Together with other concerns such as slow development progress, “not rich enough” pipeline and potential liquidity risk, we are conservative about Cali’s outlook at the current stage.
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