In today’s briefing:
- GMO Internet (4784) – Squeeze-Able So Squeezing, Offering Likely Gets Pulled – AVOID LIKE THE PLAGUE
- Jiangsu Hengrui Pharma H Share Listing (1276 HK): Trading Debut
- HD Hyundai Marine Placement – Very Well Flagged, Overhang Easing but Last Deal Didn’t Do Well
- Schloss Bangalore IPO – Growth Has Softened; Corporate Structure Reorganised
- Jiangsu Hengrui Pharma A/H Trading – Strong Demand for Quality Asset, but Is Pricey
- Paradigm REIT IPO – Stable Retail Base Facing Near-Term Lease Risks
- Eco-Shop IPO Trading: Tepid Retail Demand but at a Discount to 99 Speedmart
- Mirxes IPO Trading Update
- MNTN Inc. (MNTN) – Marketing IPO Meets Investor Eye; Jumps 65% on Day One
- Hinge Health (HNGE): VC Backed Virtual Therapy Provider IPO Pops 22% at Opening Print
GMO Internet (4784) – Squeeze-Able So Squeezing, Offering Likely Gets Pulled – AVOID LIKE THE PLAGUE
- GMO Internet (4784 JP) was created by the reverse takeover of a listed cad/media company by its parent company’s “internet infrastructure” business. GMO Internet Group ended up with ~98%.
- In the process, the stock rose 500%. Now, as part of its promise to the TSE allowing TSE Prime membership for the extraordinarily low-float target, the parent is offering shares.
- The squeeze has it at 180x Dec25e EPS, 111x EBIT, 70x book. The offering likely gets pulled and the stock isn’t shortable… so what next? Pain, and an ECLWO.
Jiangsu Hengrui Pharma H Share Listing (1276 HK): Trading Debut
- Jiangsu Hengrui Pharmaceuticals (1276 HK) priced its H Share at HK$44.05 to raise HK$9,890.1 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.
- The timing of the H Share listing is fortuitous, as the peers have materially re-rated since the prospectus was released on 15 May.
- Hengrui had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.
HD Hyundai Marine Placement – Very Well Flagged, Overhang Easing but Last Deal Didn’t Do Well
- KKR is looking to raise around US$410m via selling some of its stake in HD Hyundai Marine Solution (443060 KS).
- KKR had come out of its IPO linked lockup in Nov 2024 and had tried to launch a deal in Dec 2024 and finally undertook a deal in Feb 2025.
- In this note, we will talk about the placement and run the deal through our ECM framework
Schloss Bangalore IPO – Growth Has Softened; Corporate Structure Reorganised
- Schloss Bangalore Ltd (SCHBL IN) is looking to raise about US$409m in its India IPO. The deal has been downsized from an earlier size of around US$600m.
- It is a luxury hospitality company which owns, operates, manages and develops luxury hotels and resorts under ‘The Leela’ brand, through direct ownership and hotel management agreements with third-party owners.
- We have looked at the company’s past performance in our previous notes. In this note, we talk about the RHP updates.
Jiangsu Hengrui Pharma A/H Trading – Strong Demand for Quality Asset, but Is Pricey
- Jiangsu Hengrui Pharmaceuticals (1276 HK) (JHP, 600276 CH ), a China-based pharmaceutical company, raised around US$1.5bn in its H-share listing.
- JHP Has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
- We have looked at the company’s past performance and other deal dynamics in our previous note. In this note, we talk about trading dynamics.
Paradigm REIT IPO – Stable Retail Base Facing Near-Term Lease Risks
- Paradigm REIT (PR) is looking to raise about US$131m in its upcoming Malaysia IPO. The deal will be run by Maybank, AmInvestment Bank, and CGS International.
- PR offers stable exposure to well-located retail assets with high occupancy and steady rental growth.
- While lease expiry risks and tenant concentration are concerns, current valuation at 17.4x FY25E P/E and 5.7% yield appears fair, given its higher occupancy and lower gearing than peers.
Eco-Shop IPO Trading: Tepid Retail Demand but at a Discount to 99 Speedmart
- Eco-Shop Marketing (ECO MY) raised around US$227m in its Malaysia IPO, after pricing the deal at the bottom of the range at M$1.13/share.
- It is the largest dollar chain in Malaysia, as per the number of stores it operates, as of 31 October 2024.
- In our previous notes, we talked about the company’s historical performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we talk about the trading dynamics.
Mirxes IPO Trading Update
- Mirxes raised HKD 1086m (USD 140m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, May 23rd.
- In our previous note, we looked at the company’s core gastric cancer early detection products and brief analysis of its valuation.
- In this note, we provide an update for the IPO before trading debut. The free float shares are highly concentrated.
MNTN Inc. (MNTN) – Marketing IPO Meets Investor Eye; Jumps 65% on Day One
- MNTN priced a full-size deal of 11.7mm shares at the high-end of the range, $16.00, and opened at $21.00 for a gain of 31.3% at first trade.
- The fireworks continued as the stock traded to a high of $26.88 before closing its opening session at $26.36 for a first day return of 65%.
- The deal was considered multiple-times oversubscribed and our sources stated that the final deal finished north of 12-times oversubscribed.
Hinge Health (HNGE): VC Backed Virtual Therapy Provider IPO Pops 22% at Opening Print
- Hinge Health priced a full-size deal of 13.666mm shares at the high-end of the range, $32.00 and opened for trading at $39.25 for a gain of 21.9% at first trade.
- According to our sources, the deal finished north of 15-times oversubscribed. We are told that the deal was made more “exclusive” with one-third of the book being completely shut-out.
- Another virtual healthcare provider, Omada Health, recently filed for its IPO. If the valuation of Omada Health is more aggressive, it could provide a boost to Hinge Health’s price.
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