In today’s briefing:
- GigaDevice A/H Listing -Strong Long Term Record but Exposed to the Memory Cycle
- NH Investment & Securities – Capital Raise of 650 Billion Won
- WeWork India Pre-IPO – Enterprise-Led, Promising Metrics
- Figma Inc (FIG): Figma Fireworks Do Not Disappoint, Stock Closes 250% Above Issue
- Shoulder Innovations, Inc. (SI): MedTech Implant Company Priced Well-Below Range, Opens 4% Higher
- Pre-IPO Sichuan Neautus Traditional Chinese Medicine – The Outlook Is Not Optimistic
GigaDevice A/H Listing -Strong Long Term Record but Exposed to the Memory Cycle
- GigaDevice Semiconductor (603986 CH) (GD), an IC design house, aims to raise around US$1bn in its H-share listing.
- GD is a leading specialty memory chip and MCU company in mainland China.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
NH Investment & Securities – Capital Raise of 650 Billion Won
- NH Investment & Securities Co (005940 KS) announced that it plans to raise 650 billion won through a third party paid-in capital allocation.
- Expected price of the capital raise is 20,150 won. Nonghyup Financial Group is expected to fund this capital raise.
- We believe there is likely to be some net selling of the Korean securities companies in the next several months due to disappointing new tax policies (especially for dividends).
WeWork India Pre-IPO – Enterprise-Led, Promising Metrics
- WeWork India Management Ltd (1690124D IN) is looking to raise about US$407m in its upcoming India IPO.
- WeWork India (WWI) offers a wide range of workspace solutions, including custom-designed buildings, floors, and offices; enterprise office suites; private offices; co-working spaces; customized managed offices; and hybrid digital solutions.
- In this note, we talk about the positive aspects of the deal.
Figma Inc (FIG): Figma Fireworks Do Not Disappoint, Stock Closes 250% Above Issue
- Figma priced a full-size offering of 36.9 million shares at $33.00 and opened at $85.00 for a gain of 157.6% at first trade.
- Exemplifying the strength of the IPO, the underwriters stated that the roadshow had a 100-percent hit rate or conversion rate. Half of the order book was allocated zero shares.
- The Figma story is one that is highly unique and one that we believe “could” ignite the IPO market.
Shoulder Innovations, Inc. (SI): MedTech Implant Company Priced Well-Below Range, Opens 4% Higher
- The stock priced a full-size deal of five million shares at $15.00 ($4 below the prevailing $19-$21 range) and opened at $15.60.
- According to our sources, the deal was reportedly multiple-times oversubscribed with several anchor orders from mutual fund and sector-dedicated funds.
- We think this deal was placed and priced well. Furthermore, the small deal size assisted in getting this company a small premium at first trade.
Pre-IPO Sichuan Neautus Traditional Chinese Medicine – The Outlook Is Not Optimistic
- Neautus is facing performance headwinds. Revenue growth rate is declining and profit margin is in downward trend. Net profit growth is lower than the revenue growth, indicating the weak profitability
- VBP, increasing competition and raw materials cost are the challenges. Because of financial fraud, Neautus once failed its A-share IPO. So, there is corporate governance issue in the Company.
- We’re conservative about the outlook of Neautus. It is already good for valuation to reach the industry average.Our forecast in 2025 is revenue to reach RMB1.4-1.5 billion (up 12-15% YoY).
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