In today’s briefing:
- IFBH Ltd IPO: Heavy on Coconut and Light on Asset Makes the IPO Juicy
- Virgin Australia IPO Trading – Flying into Oil and Recent Air Crash Headwinds
- HDB Financial IPO: The Investment Case
- IFBH IPO – Leading Position in a High Growth F&B Segment Driving Valuations
- Jefferson Capital Inc (JCAP):Valuation Attractive, Sector-Dedicated Investors to Dominate the Book
- Pre-IPO FWD Group Holdings (PHIP Updates) – The Pain Points and the Outlook
- Cloudbreak (拨康视云) Pre-IPO: PHIP Updates
- Beijing Geekplus Pre-IPO: PHIP Updates – Losses Continue to Narrow but Growth Decelerating
- HDB Financial Services IPO – Parent Brand and Easing Macros Should See It Through
IFBH Ltd IPO: Heavy on Coconut and Light on Asset Makes the IPO Juicy
- IFBH Ltd launched its Hongkong IPO aiming to raise up to HK$1,160 million. The company plans to sell 41.7 million shares at HK$25.3–27.8 per share.
- IFBH is a ready-to-consume beverage and food company based in Thailand. It enjoys market leader position in the ready to drink coconut water segment in Mainland China.
- The growth momentum is expected to continue in the near term. IFBH’s leadership position would help garner volume strength. We would recommend the investors to subscribe to the issue.
Virgin Australia IPO Trading – Flying into Oil and Recent Air Crash Headwinds
- Bain Capital raised around US$440m via selling some of its stake in Virgin Australia Holdings (VAH AU).
- Virgin Australia is the second largest airline group operating in the Australian aviation market, with an average 32% domestic RPT capacity market share in CY24.
- We have looked at the company’s past performance and provided our thoughts on valuations in our previous note. In this note, we talk about the trading dynamics.
HDB Financial IPO: The Investment Case
- HDB Financial Services Ltd (0117739D IN) is India’s seventh-largest non-banking financial company (NBFC). It is seeking to raise Rs125 billion (US$1.4 billion).
- The proposed IPO comprises a primary raise of Rs25 billion (US$388 million) and a secondary raise of Rs100 billion (US$1.2 billion) by the parent.
- The fundamentals are average at best, as HDB does not outperform its NBFC peers on key performance indicators.
IFBH IPO – Leading Position in a High Growth F&B Segment Driving Valuations
- IFBH (IFBH HK) is looking to raise about US$148m in its HK IPO.
- IFBH specializes in ready-to-consume beverages and food, with a focus on coconut water and plant-based products.
- In our previous note, we looked at the firm’s past performance. In this note, we talk about the IPO valuations.
Jefferson Capital Inc (JCAP):Valuation Attractive, Sector-Dedicated Investors to Dominate the Book
- For the three months ended March 31, 2025, they had net income of $64.2 million, compared to $32.9 million for the three months ended March 31, 2024.
- The company is coming at an attractive valuation but our sources say traditional IPO investors “may” be staying on the sidelines for this deal.
- This company is private equity backed by J.C. Flowers & Co and they will own 68.9% of the voting power following this IPO.
Pre-IPO FWD Group Holdings (PHIP Updates) – The Pain Points and the Outlook
- Turning losses around in 2024 relied on capital market recovery and adjustment of accounting standards. If investment returns fluctuate or premium growth slows down, profits may again come under pressure.
- The excessive goodwill of insurance companies is essentially “overdrawing the current valuation with future expectations”.Whether goodwill can be transformed into actual synergy effects is the key to determining long-term value.
- The market usually gives lower valuation to companies with high goodwill. FWD relies on debt to provide funding for working capital/acquisition financing. Valuation of FWD should be lower than peers.
Cloudbreak (拨康视云) Pre-IPO: PHIP Updates
- Cloudbreak re-filed for a Hong Kong listing to raise at least USD 100 million.
- In this note, we look at updates to the prospectus. We noted delays in its products and downward revisions of prospects.
- We checked peer performance and have a negative readthrough for the company.
Beijing Geekplus Pre-IPO: PHIP Updates – Losses Continue to Narrow but Growth Decelerating
- Geek+ (1678559D CH) is looking to raise up to US$200m in its upcoming Hong Kong IPO.
- It is the leader in the global autonomous mobile robots (AMR) market.
- In this note, we provide updates on the firm’s past performance.
HDB Financial Services IPO – Parent Brand and Easing Macros Should See It Through
- HDB Financial Services is looking to raise around US$1.5bn in its upcoming India IPO.
- HDBFS is a leading retail-focused non-banking financial company (NBFC) in India, in terms of total gross loan book size, according to the CRISIL Report.
- We have looked at the past performance in our previous note. In this note, we talk about the IPO pricing.
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