In today’s briefing:
- GMO Internet (4784) Offering – This Is a GINORMOUS Re-IPO – AVOID LIKE THE PLAGUE
- GMO Internet Placement: Secondary Sell-Down (Quasi IPO) To Meet Prime Listing Requirements
- GMO Internet (4784 JP): A Huge US$1.9 Billion Secondary Offering
- Mirxes Pre-IPO: Challenges for Mass Adoption Become Clearer
- Hinge Health (HNGE): VC Backed Virtual Therapist Company Seeking $2.6b Valuation
- SMPP Ltd Pre-IPO – In the Right Space (Defence), at the Right Time but Growth Has Been Inconsistent
- MNTN, Inc. (MNTN) -Performance Marketing Platform Sets Terms for IPO; Seeking $1.2b Valuation
- EToro Group Ltd (ETOR): Strong IPO Pricing Outcome Yields Explosive Debut
- Omada Health (OMDA): Virtual Healthcare Provider for Chronic Conditions Filed for IPO
- Ravi Infrabuild Projects Ltd Pre-IPO Tearsheet
GMO Internet (4784) Offering – This Is a GINORMOUS Re-IPO – AVOID LIKE THE PLAGUE
- Last year, GMO injected its internet business into GMO Internet (4784 JP) and took shares as consideration. Somehow, GMO Internet got a TOPIX inclusion earlier this year.
- The company has 1.24% float of 3.4mm shares. GMO Internet Group – the parent – will now offload 91.7mm shares in an equity offering to meet TSE Continued Listing Requirements.
- That is about ¥279bn at current price against float of ¥10bn. Full market cap is ¥850bn. That’s 170x Dec25e Net Income. I expect the price will fall. You were warned.
GMO Internet Placement: Secondary Sell-Down (Quasi IPO) To Meet Prime Listing Requirements
- GMO Internet Group (9449 JP) is looking to sell its 33.4% stake in its subsidiary GMO Internet (4784 JP) to meet free-float requirements.
- As the current free-float is tiny, the deal is more like a quasi-IPO rather than a placement, in our view.
- In this note, we will talk about the deal dynamics as well as updates on the company’s financial performance.
GMO Internet (4784 JP): A Huge US$1.9 Billion Secondary Offering
- GMO Internet (4784 JP) has announced a secondary offering of 91.7 million shares, worth around US$1.9 billion.
- The selling shareholder is GMO Internet Group (9449 JP). The secondary offering aims to increase the tradable share ratio to satisfy the TSE Prime Market’s continued listing criteria.
- The offering represents 239.4 days of the 1-year ADV, the highest compared to the recent large Japanese placements. Pricing is likely to be on 5 June.
Mirxes Pre-IPO: Challenges for Mass Adoption Become Clearer
- After an IPO attempt two years ago, Mirxes filed an updated prospectus in an attempt to raise at least US$100m via a Hong Kong listing.
- In our previous note, we analyzed its product pipelines and highlighted signs of commercialization challenges.
- In this note, we note that the company expanded its clinical trial plans. Yet, more data shows that blockbuster-level uptakes are unlikely given the profile of its clinical data.
Hinge Health (HNGE): VC Backed Virtual Therapist Company Seeking $2.6b Valuation
- The venture-capital backed company set terms for its IPO on Tuesday. The company will be offering 13.666 million shares at a $28-$32 range equating to a valuation of $2.3b-$2.6b.
- Their revenue was $123.8 million and $82.7 million for the three months ended March 31, 2025 and 2024, respectively, representing a year-over-year growth rate of 50%.
- This IPO is checking the boxes in terms of growth and the valuation comes at a significant discount to a previous funding round making the deal attractive for new investors.
SMPP Ltd Pre-IPO – In the Right Space (Defence), at the Right Time but Growth Has Been Inconsistent
- SMPP Ltd is planning to raise about US$476m through its upcoming IPO in India.
- SMPP Ltd. designs and manufactures defence equipment, specialising in ammunition components and personal protection products for the Indian armed forces, police, and security agencies.
- In this note, we look at the company’s past performance.
MNTN, Inc. (MNTN) -Performance Marketing Platform Sets Terms for IPO; Seeking $1.2b Valuation
- MNTN set terms for its IPO by offering 11.7mm shares at $14-$16 and will debut on Thursday (5/22).
- BlackRock is indicating for up to $30 million in this offering as a cornerstone investor and there is a directed share program locking down another 5% of the deal.
- Their revenue grew by 47.3% to $64.5 million for the three months ended March 31, 2025, from $43.8 million for the three months ended March 31, 2024.
EToro Group Ltd (ETOR): Strong IPO Pricing Outcome Yields Explosive Debut
- The company priced 11.9mm shares (upsized from 10.0mm) at $52.00 and opened at $69.69 for a gain of 34.0% at first trade.
- Our sources stated that the deal finished north of 20-times oversubscribed with the bottom-third of the book being completely shut-out.
- We believe the company was well-received due to an attractive valuation versus comps and by the performance of the comps in the sessions leading up to this debut.
Omada Health (OMDA): Virtual Healthcare Provider for Chronic Conditions Filed for IPO
- Omada delivers virtual care between doctor’s visits, providing an engaging, personalized, and integrated experience for their members that is designed to improve their health
- Revenue increased by 38% from $122.8 million to $169.8 million for the years ended December 31, 2023 and 2024, respectively.
- The company’s last funding round, Series E (February 2022), secured $192 million in a round led by Fidelity Management & Research with a valuation north of $1bn.
Ravi Infrabuild Projects Ltd Pre-IPO Tearsheet
- Ravi Infrabuild Projects Ltd (1607447D IN) (RIPL) is looking to raise about US$178m in its upcoming India IPO. The bookrunners for the deal are Axis, Motilal.
- RIPL is one of the leading infrastructure construction firms in India, experienced in executing structural projects such as flyovers, bridges, railways, highways, and expressways.
- RIPL had grown 16.6x in terms of its average order size, reaching INR2,577m (as on Dec 2024), as per the company.
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