In today’s briefing:
- Harita Nickel IPO – The Negatives – Reliant on JVs and with Lygend Group. Market Is About to Shift
- DPC Dash IPO – Might Be Worth a Small Slice
- Trial Holdings IPO: Valuation Insights
- Blue Jet Healthcare Pre-IPO – Marquee Clients but Inconsistent Growth and Margins
- Harita Nickel IPO: The Bull Case
- DPC Dash IPO Valuation: Looks Expensive Cf. Yum China & Dominos Master Franchisees in Other Regions
- Kelsian Group Placement – Yet Another Acquisition to Add to Its Arsenal
- ZKH IPO: Neither Good nor Bad
Harita Nickel IPO – The Negatives – Reliant on JVs and with Lygend Group. Market Is About to Shift
- PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ) is looking to raise about US$650m in its Indonesian IPO.
- PT Trimegah Bangun Persada Tbk (Harita Nickel, HN) is a vertically integrated pure-play nickel company operating on Obi Island, Indonesia.
- In this note, we will talk about the not so positive aspects of the deal.
DPC Dash IPO – Might Be Worth a Small Slice
- DPC Dash (1405 HK) is now looking to raise up to US$90m, after having shelved its last attempt to raise around US$75m in its Hong Kong IPO in December.
- The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 604 stores across 17 cities, as of Feb 2023.
- In this note, we run the deal through our ECM framework and talk about valuations.
Trial Holdings IPO: Valuation Insights
- Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$380 million at the IPO reference price of JPY2,000. Pricing on 26 March.
- We previously discussed the IPO in Trial Holdings IPO: The Bull Case and Trial Holdings IPO: The Bear Case.
- In this note, we discuss valuation. Our analysis suggests that Trial is attractively valued at the IPO reference price of JPY2,000. We would participate in the IPO.
Blue Jet Healthcare Pre-IPO – Marquee Clients but Inconsistent Growth and Margins
- Blue Jet Healthcare Ltd (BJHC IN) is looking to raise about US$300m in its upcoming India IPO.
- Blue Jet Healthcare (BJH) is a specialty pharmaceutical and healthcare ingredient and intermediate company, offering niche products targeted toward innovator pharmaceutical companies and multinational generic pharmaceutical companies.
- In this note, we look at the company’s past performance.
Harita Nickel IPO: The Bull Case
- PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ), an Indonesian nickel play, has launched an IDX IPO to raise US$650 million. Book building ends on 21 March.
- Harita is expected to become Indonesia’s largest pure nickel producer based on volume expectations of Harita’s nickel mining production in 2022.
- The key elements of the bull case rest on good underlying revenue growth, near-term capacity expansion, high profitability, capex nearing the peak and manageable leverage.
DPC Dash IPO Valuation: Looks Expensive Cf. Yum China & Dominos Master Franchisees in Other Regions
- The exclusive master franchisee of Domino’s Pizza in mainland China, Hong Kong and Macau, DPC Dash’s IPO opened for subscriptions today at a price range of HK$ 46.0-55.0 per share.
- The IPO valuation is not particularly enticing to lure us as we don’t think it’s at a sufficient discount to Yum China Holdings Inc (9987 HK)’s multiples.
- DPC Dash (1405 HK) is also relatively more expensive than Domino’s Pizza (DPZ US) master franchisees in other regions.
Kelsian Group Placement – Yet Another Acquisition to Add to Its Arsenal
- Kelsian Group (KLS AU) aims to raise around US$90m (A$135m) via an institutional placement. Together with the placement, the company will also undertake a US$95m (A$143m) non-renounceable entitlement offer.
- The issuance of new shares will be a large one for the firm to digest, representing 150.6 days of three month ADV and 20.3% of current mcap.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
ZKH IPO: Neither Good nor Bad
- ZKH Group (ZKH US) is a leading MRO procurement service platform in China offering digital and fulfilment solutions for participants in the industry value chain.
- The company has filed for an IPO to list its shares in the US and plans to raise about US$200-300m through the IPO.
- Having analyzed the limited information available, we are indifferent on ZKH’s operating performance and would only recommend if shares are priced attractively
💡 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
