In today’s briefing:
- [Japan ECM] Koei Tecmo (3635 JP) Needs to Sell Shares To Stay in Prime ($280mm Offering)
- Koei Tecmo Placement: Some Non-Fundamental Selling; but Weak Fundamentals
- Hesai Group H Share Listing: The Investment Case
- Tata Capital Pre-IPO – The Positives – Will Ride High on the Brand Name
- Klarna Group (KLAR): Commerce Provider Seeks $14b IPO Valuation After Lengthy Delay
- Legence Corp. (LGN): Blackstone Backed Engineering Firm Sets Terms for IPO Seeking $3.0b Valuation
- Simcere Pharmaceutical (2096 HK) Placement: Innovative Pipeline Enlightens Growth Prospects
- Black Rock Coffee Bar, Inc. (BRCB): Drive-Thru Chain Sets Terms for IPO, Seeking $2.0b Valuation
- Figure Technology Solutions (FIGR): Blockchain Lender Sets Terms Seeking $4.1 Billion Valuation
- Molbio Diagnostics Limited Pre-IPO Tearsheet
[Japan ECM] Koei Tecmo (3635 JP) Needs to Sell Shares To Stay in Prime ($280mm Offering)
- In December 2021, Koei Tecmo Holdings (3635 JP) announced a complex but lower-impact move to increase float share count in order to stay listed on TSE Prime.
- Scheme: buyback from two holders plus CB issuance. Unfortunately, shares did not rise enough to convert the CBs so as of March 2025, the tradable share criteria was not met.
- So now the two main holders are selling more shares and the company is diluting holders with new issuance to get float/tradable shares up with a US$280mm offering.
Koei Tecmo Placement: Some Non-Fundamental Selling; but Weak Fundamentals
- Koei Tecmo Holdings (3635 JP) is looking to raise around US$270m from a primary and secondary placement.
- The deal is a large one to digest, representing 37.6 days of the stock’s three month ADV and 6.1% of the shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Hesai Group H Share Listing: The Investment Case
- Hesai Group (HSAI US), a global leader in LiDAR solutions, is seeking to raise US$300 million through an H Share listing.
- On 9 February 2023, Hesai listed on the Nasdaq, raising US$190 million at US$19.00 per ADS.
- The investment case is based on a solid competitive positioning, high growth, emerging profitability, declining cash burn, and a reasonable valuation.
Tata Capital Pre-IPO – The Positives – Will Ride High on the Brand Name
- Tata Capital Limited is looking to raise up to US$2bn in its upcoming India IPO.
- Tata Capital Limited (TCL) is the flagship financial services company of the Tata group and a subsidiary of Tata Sons Private Limited.
- In this note, we talk about the positive aspects of the deal.
Klarna Group (KLAR): Commerce Provider Seeks $14b IPO Valuation After Lengthy Delay
- Klarna will offer 34.3 million shares at $35-$37 and is scheduled to debut on Wednesday (9/10).
- Total revenue for the six months ended June 30, 2025 increased by $199 million, or 15% (17% on a like-for-like basis), compared to the six months ended June 30, 2024.
- A “buy-now, pay-later” competitor, Affirm Holdings (AFRM US), has been trading extremely well since April.
Legence Corp. (LGN): Blackstone Backed Engineering Firm Sets Terms for IPO Seeking $3.0b Valuation
- Legence Corp set terms for its IPO and will offer 26 million shares at $25-$29 and is scheduled to debut on Friday, September 12th.
- The company is private-equity backed by BlackStone and PE-backed deals have struggled, broadly speaking, in 2025.
- From 2021 to 2024, their revenues grew at a CAGR of approximately 39% and as of June 30, 2025, they had $2.8 billion of backlog and awarded contracts.
Simcere Pharmaceutical (2096 HK) Placement: Innovative Pipeline Enlightens Growth Prospects
- Simcere Pharmaceutical Group (2096 HK) is placing 120M shares at the price of HK$12.95 per share. The placing shares represents ~5% of the current total issued shares of the company.
- The company intends to apply 90% of the net proceeds for the R&D-related expenditures. For context, Simcere has over 60 R&D pipelines of innovative drugs.
- Considering strong growth prospect of Simcere, reasonable valuation, and upbeat investor sentiment toward Chinese pharmaceutical sector, we are bullish on the placement.
Black Rock Coffee Bar, Inc. (BRCB): Drive-Thru Chain Sets Terms for IPO, Seeking $2.0b Valuation
- Black Rock Coffee Bar (BRCB US) is set to offer 14.7 million shares at $16-$18 equating to a valuation of up to $861 million at the high-end of the range.
- Wellington Management has indicated an interest in purchasing up to $30.0 million in shares of Class A common stock in this offering.
- Store revenue has increased by the mid 20% in the 1H 2025 and the expansion plan is aggressive. At first glance, we like the risk-reward of this deal.
Figure Technology Solutions (FIGR): Blockchain Lender Sets Terms Seeking $4.1 Billion Valuation
- Figure Solutions is offering 26.3 million shares at $18-$20 and will debut on Thursday, September 11th.
- Duquesne Family Office LLC has indicated an interest in purchasing up to an aggregate of $50 million of shares as an anchor order.
- Figure has grown quickly and profitably, with net income of $29 million and Adjusted EBITDA of $83 million, for the six months ended June 30, 2025.
Molbio Diagnostics Limited Pre-IPO Tearsheet
- Molbio Diagnostics Limited (1788863D IN) is looking to raise about US$229m in its upcoming India IPO. The deal will be run by Kotak, IIFL, Jefferies and Motilal.
- Molbio specializes in point-of-care molecular diagnostics. The company sells hardware devices such as the Polymerase Chain Reaction (PCR) analyzers and consumable test kits tailored to detect specific diseases.
- As of FY25, its revenue base remains primarily domestic, with ~80% of revenue from India and the rest from Nigeria, Bangladesh, and Indonesia. The company manufactures its products in India.
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