In today’s briefing:
- Interglobe Aviation (Indigo) Placement – Another US$800m+ Deal by Co-Founder
- Schloss Bangalore IPO – Thoughts on Peer Comp and Valuation
- Foshan Haitian Flavouring H Share Listing: The Investment Case
- LS Marine Solution: Rights Offering Capital Raise of 278 Billion Won
- PegBio IPO Trading Update
- Dowoo Insys IPO Valuation Analysis
- Foshan Haitian Flavouring A/H Listing – PHIP Updates and Thoughts on A/H Premium
- Pre-IPO GenFleet Therapeutics – The Pipeline Outlook Is Full of Challenges
- Leads Biolabs (维立志生物) Pre-IPO: Long Time to Commercialization
Interglobe Aviation (Indigo) Placement – Another US$800m+ Deal by Co-Founder
- InterGlobe Aviation Ltd (INDIGO IN)‘s co-founder, Rakesh Gangwal, aims to raise around US$803m via selling around a 3.3% stake in Indigo.
- He had earlier stated his intention to pare down his stake after a long drawn, and very public battle, with his co-founder Rahul Bhatia. He has sold many times before.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Schloss Bangalore IPO – Thoughts on Peer Comp and Valuation
- 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.
- In this note, we will talk about the IPO valuations.
Foshan Haitian Flavouring H Share Listing: The Investment Case
- Foshan Haitian Flavouring & Food (603288 CH), a leading Chinese pharmaceutical company, has filed its PHIP for an H Share listing to raise US$1 billion.
- Foshan Haitian Flavouring & Food Company (FHF HK) has been China’s leading condiments company in terms of sales volume for 28 consecutive years.
- The investment case rests on its market positioning, return to growth, industry-leading profitability, cash generation and strong balance sheet. However, the valuation of the A Shares is full.
LS Marine Solution: Rights Offering Capital Raise of 278 Billion Won
- After the market close on 26 May, LS Marine Solution (060370 KS) announced that it plans to conduct a capital raise worth 278.3 billion won.
- LS Marine Solution plans to issue 19.57 million new shares in this capital raise, which represents 60% of its outstanding shares.
- Despite the company’s strong sales and profit growth, LS Marine Solution’s valuation multiples may be a bit too aggressive, especially with the major rights offering that will dilute existing shareholders.
PegBio IPO Trading Update
- PegBio raised HKD 300.8m (USD 38m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, May 27th.
- In our previous note, we looked at the company’s GLP-1 product and its valuation.
- In this note, we provide an update for the IPO before trading debut. The free float shares are mostly at the hands of retail investors.
Dowoo Insys IPO Valuation Analysis
- Our base case valuation of Dowoo Insys is target price of 40,667 won per share, which is 27% higher than the high end of the IPO price range (32,000 won).
- We used an EV/EBITDA multiple of 14.9x to value the company, which is 10% premium to the comps’ valuation multiples in 2024.
- The decline in operating margin remains one of the biggest risk factors on the company. Its major customers such as Samsung Display are putting increasing pressure to reduce its prices.
Foshan Haitian Flavouring A/H Listing – PHIP Updates and Thoughts on A/H Premium
- Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, now aims to raise around US$1bn in its H-share listing.
- FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
- We have looked at the past performance in our earlier note. In this note we talk about the PHIP updates and likely A/H premium.
Pre-IPO GenFleet Therapeutics – The Pipeline Outlook Is Full of Challenges
- The whole KRAS field just crossed the threshold of druggablility but hasn’t met previous expectations. KRAS monotherapy on NSCLC/CRC is not good. It also progresses slowly when combined with PD-1.
- If GFH925 cannot at least demonstrate the same level of strong efficacy as other existing targeted inhibitors/combination therapies and also with favorable safety profile, there’s little chance in afterwards commercialization
- Pre-IPO valuation has already reached RMB3.1 billion. In our view, valuation of GenFleet could be similar to that of Jacobio if the sales performance of GFH925 fails to meet expectations.
Leads Biolabs (维立志生物) Pre-IPO: Long Time to Commercialization
- Leads Biolabs, a China-based clinical-stage biotech, is looking to raise at least USD 100 million via a Hong Kong listing. The joint book runners are MS and CITIC.
- In this insight, we look at the company’s two products with the most advanced stage of clinical trial, LBL-024 and LBL-007.
- We also look at the company’s pre-IPO investors and management team.
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