In today’s briefing:
- Hanwha Aerospace: Higher Rights Offering Price and Amount
- Chery IPO Preview: More Than A Local Hero, Chery’s Road To IPO Glory
- Xiamen Hithium Pre-IPO: Potential Data Center Play
- Karamtara Engineering Ltd Pre-IPO – Robust Revenue Growth Amid Cash Flow Pressures
- Pre-IPO Ab&B Bio-Tech: Commercialization May Be Lower than Expected, Thereby Dragging Down Valuation
Hanwha Aerospace: Higher Rights Offering Price and Amount
- On 21 May, Hanwha Aerospace (012450 KS) announced that the rights offering price increased to 684,000 won (up 26.9% from 539,000 won previously) due to recent increase in price.
- Due to the higher rights offering price, the scale of the capital raise has increased from 2.3 trillion won previously to 2.9 trillion won (US$2.1 billion).
- Issue price is determined by applying a 15% discount rate to the one-month weighted arithmetic average price, one-week weighted arithmetic average price, and the closing price on the base date.
Chery IPO Preview: More Than A Local Hero, Chery’s Road To IPO Glory
- Chery Auto, one of China’s oldest state-owned carmakers and #2 domestic passenger vehicle brand, plans to raise more than $1B in its upcoming IPO in Hong Kong.
- The company has been China’s top vehicle exporter for 22 consecutive years since 2003. The automaker was founded in 1997 Mr. Yin Tongyue, Chairman & President of Chery Auto.
- Chery Auto is an extremely ambitious company with strong overseas presence. The biggest revenue growth driver will be higher NEV sales in the coming years, in my view.
Xiamen Hithium Pre-IPO: Potential Data Center Play
- Xiamen Hithium (2190977D CH) is looking to raise at least US$500m in its upcoming HK IPO.
- It is a leading global new energy technology company providing all-round energy storage solutions centred around energy storage batteries and systems.
- In this note, we look at the firm’s past performance.
Karamtara Engineering Ltd Pre-IPO – Robust Revenue Growth Amid Cash Flow Pressures
- Karamtara Engineering Ltd (6589452Z IN) (KEL) is planning to raise about US$200m in its upcoming India IPO.
- KEL is a backward integrated manufacturer of products for renewable energy and transmission lines sectors.
- As per F&S report, KEL was a leading manufacturer of solar mounting structures and tracker components in India and the largest in terms of installed capacity in FY24 and 1H25.
Pre-IPO Ab&B Bio-Tech: Commercialization May Be Lower than Expected, Thereby Dragging Down Valuation
- The investment logic of vaccine companies is different from that of biotech. Generally speaking, vaccine companies cannot develop to large scale without successfully betting on blockbuster vaccine varieties.
- Commercialization of Ab&B’s vaccines could face uncertainties due to fierce competition/price war/slower R&D progress. Some Class II vaccines could be converted to Class I vaccines. Breakthrough point lies in internationalization.
- After Series B financing, post-money valuation reached RMB4.2 billion. Since CanSino’s pipelines are either global innovative, or potential best-in-class or first-in-class in China, Ab&B’s valuation should be lower than CanSino.
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