In today’s briefing:
- Gotion High Tech GDR Listing – Recent GDRs Have Seen Narrowing Discounts
- GEM Co., Ltd. GDR Listing – Better Discount than Last Two and Ming Yang Has Held Up
- Sebit Chem IPO Book Building Results
- Shenzhen Pagoda Industrial Pre-IPO – Earnings Recovered but Nothing Really Stands Out
- Onewo Space-Tech Pre-IPO – The Positives – One of the Largest and Still Growing Fast
Gotion High Tech GDR Listing – Recent GDRs Have Seen Narrowing Discounts
- Gotion High-Tech Co Ltd (002074 CH) (GHT) is looking to raise US$1bn from its Swiss GDR listing. Bookrunners on the deal are CICC and Haitong International.
- The shares offered in GHT’s GDR offering ranges between 16.65m – 33.29m GDRs (83.24m – 166.47m A-shares), ranging the deal size between US$499m-US$1bn.
- At the top end, in terms of number of GDRs offered, the deal would represent 4.7 days of ADV on the A-share market and 9.6% of current mcap.
GEM Co., Ltd. GDR Listing – Better Discount than Last Two and Ming Yang Has Held Up
- Gem Co Ltd A (002340 CH) is looking to raise around US$245m in its Swiss GDR listing.
- Proceeds will be used mainly for overseas expansion, such as the development of the Indonesian Nickel Resource Base and development of its production base and recycling center in Europe.
- In terms of discount, relative to the most recent two deals, Keda Industrial and Ningbo Shanshan, GEM’s GDRs are offered at a more enticing 11.7-14.2% discount to its A-shares,
Sebit Chem IPO Book Building Results
- Sebit Chem had excellent IPO book building results. The demand ratio from the institutional investors was 1,671 to 1.
- The IPO price has been determined at 35,000 won, which is higher than the high end of the IPO price range (25,000 won to 30,000 won).
- Our base case valuation is implied market cap of 256 billion won or target price of 50,775 won per share (45% higher than the IPO price of 35,000 won).
Shenzhen Pagoda Industrial Pre-IPO – Earnings Recovered but Nothing Really Stands Out
- Shenzhen Pagoda Industrial (1317437D CH) is looking to raise up to US$500m in its upcoming Hong Kong IPO.
- Shenzhen Pagoda Industrial (SPI) is a fruit retail operator in China. According to Frost & Sullivan, it ranked first among all fruit specialty retail operators in China in 2021.
- However, the firm operates in a highly fragmented industry with low market share of 1.0%, even as the largest player.
Onewo Space-Tech Pre-IPO – The Positives – One of the Largest and Still Growing Fast
- Onewo Space-Tech (OST) aims to raise around US$2bn in its Hong Kong IPO. OST is a property management service provider primarily owned by China Vanke Co Ltd (H) (2202 HK).
- As per Frost & Sullivan, amongst the residential community service providers in China, OST ranked first. It also ranked first in the commercial space integrated services market in China.
- In this note, we will talk about the positive aspects of the deal.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
