In today’s briefing:
- Globalwafers GDR Offering – Coming to Market Earlier than Anticipated
- Shinhan Financial Group Placement – Another Selldown, Momentum Is Strong but Deal Is Large
- Bharti Hexacom IPO: The Bear Case
- Pre-IPO Zhejiang Taimei Medical Technology – Be Cautious About the “valuation Bubble”
- MIXUE/ChaPanda/Good Me/Auntea Pre-IPO – Updated Peer Comparison
Globalwafers GDR Offering – Coming to Market Earlier than Anticipated
- Globalwafers (6488 TT) is looking to raise up to US$681m in its GDR offering. The proceeds will be used to purchase raw materials overseas.
- The deal is a somewhat large one to digest at 20.2 days of three month ADV and the proceeds will be used to purchase raw materials overseas.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Shinhan Financial Group Placement – Another Selldown, Momentum Is Strong but Deal Is Large
- BNP Paribas (BNP FP) is looking to raise around US$680m via selling 3.5% of its stake in Shinhan Financial (055550 KS).
- This will be the fourth selldown for the stock since the start of the year. It will also be the largest one of the lot, so far.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Bharti Hexacom IPO: The Bear Case
- Bharti Hexacom (6597372Z IN), a 70% owned subsidiary of Bharti Airtel (BHARTI IN), aims to raise up to US$513 million at an IPO price range of Rs542-570 per share.
- In Bharti Hexacom IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on low geographic diversification, slowing growth, share overhang from TCIL’s desire to exit fully, mid-tier revenue growth and EBITDA margin.
Pre-IPO Zhejiang Taimei Medical Technology – Be Cautious About the “valuation Bubble”
- Taimei has transformed from a classic SaaS model to an industrial Internet platform, with value-added digital services as main source of revenue.However, this may not necessarily bring better financial performance.
- Considering declining revenue growth/gross margin, as well as constantly increasing customer acquisition cost, it’s highly uncertain whether Taimei can successfully turn losses into profits in 2025 as expected by management.
- The significant valuation changes in Series E/E+/F Financing attracted the attention of Shanghai Stock Exchange.Taimei is actually not confident in its future performance. Its valuation could be lower than Yidu.
MIXUE/ChaPanda/Good Me/Auntea Pre-IPO – Updated Peer Comparison
- Mixue Group is looking to raise about US$1bn in its Hong Kong IPO, while Sichuan Baicha (ChaPanda), Guming (Good me) and Auntea are said to be looking to raise around US$300m.
- All four are primarily focussed on providing freshly-made drinks, including freshly-made fruit drinks, and tea, with some selling ice cream, coffee, baked goods and ready to drink beverages as well.
- We undertook a peer comparison in Feb 2024. In this note, we add Auntea to the mix and include the latest financials for ChaPanda.
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