In today’s briefing:
- [Japan ECM] Kokusai Elec (6525) – Applied Materials $330mm Selldown
- Kokusai Electric Placement – Unexpected Seller but Relatively Small Deal
- WuXi XDC Placement: Past Secondary Deals Weak but Stock on a Tear
- Tekscend Photomask IPO: Forecast and Valuation
- Guangdong CHJ Industry Files Preliminary IPO Prospectus in Hong Kong
- Aimedbio IPO Valuation Analysis
- Once Upon a Farm (OFRM): Peeking at the IPO Prospectus of a Fresh Food Consumer Company
- Ottobock IPO: Modest Discount to Embla Despite Premium Margins and Market Share”
- Canara Robeco AMC IPO: Fairly Valued Given Strong Growth but Small Size
- LG Electronics India IPO: The Good,The Bad and Valuations. Expect Listing Pop
[Japan ECM] Kokusai Elec (6525) – Applied Materials $330mm Selldown
- Three weeks ago I wrote that KKR’s lockup would expire about now in [Japan ECM] Kokusai Elec (6525) – KKR’s Lock Up Expiry in 3 Weeks – $700mm Clean-Up Coming?
- Today post-close, Applied Materials (AMAT US) announced a 10.7mm share (4.5%) Accelerated Block Offering to be priced tomorrow morning, at an indicated 4.5-6.5% discount. This would put them at 10+%.
- This should be very well taken up. There is index demand on the follow. The question is more about the unwind of KKR’s last bit. Perhaps to come soon?
Kokusai Electric Placement – Unexpected Seller but Relatively Small Deal
- Applied Materials (AMAT US) is looking to raise approximately US$330m through an accelerated secondary offering for around 4.5% of Kokusai Electric (6525 JP) (KE) stock.
- KE had seen two selldown earlier, from KKR, with mixed results. KKR just came out of its last lockup.
- In this note, we will talk about the placement and run the deal through our ECM framework.
WuXi XDC Placement: Past Secondary Deals Weak but Stock on a Tear
- WuXi AppTec (2359 HK) is looking to raise US$308m via selling some of its stake in WuXi XDC Cayman (2268 HK).
- The deal is a small one, representing 4.5 days of the stock’s three month ADV, and 2.3% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Tekscend Photomask IPO: Forecast and Valuation
- Tekscend Photomask (429A JP) has set the IPO pricing at JPY2,900–3,000 per share, and will offer 39.6m shares raising around ¥115-118bn (US$800m) at a valuation of ¥240-250bn.
- The company is a leading global photomask manufacturer with strength in advanced EUV masks, and generates most of its revenue from overseas markets.
- We have compared the company against its closest pure-play peer Photronics Inc (PLAB US) and believe the IPO is valued attractively given its expansion plans and technological edge.
Guangdong CHJ Industry Files Preliminary IPO Prospectus in Hong Kong
- Guangdong Chj Industry Co A (002345 CH) (CHJ) submitted an application to list H-shares on the Main Board of the Hong Kong Stock Exchange.
- Despite higher valuation multiples, the company has been able to successfully generate higher sales and profits in the past several years.
- The high and rising global gold prices have created a strong loyal customers and investor base that could positively impact this IPO on the HK Stock Exchange.
Aimedbio IPO Valuation Analysis
- Our base case valuation of Aimedbio is implied market cap of 882 billion won or target price of 13,256 won per share over a one year view in 2026.
- This represents 21% upside over a one year period. Our cumulative sales and operating profit estimates from 2025 to 2029 are 11.4% and 48.3% lower than the company’s estimates, respectively.
- Aimedbio is not an easy company to value. Core investment thesis of the company is that it has an excellent technologies for antibody-based therapeutics, primarily antibody-drug conjugates (ADCs).
Once Upon a Farm (OFRM): Peeking at the IPO Prospectus of a Fresh Food Consumer Company
- They are driving systemic change in childhood nutrition with real, organic, farm-fresh food–made with no added sugar, no preservatives, and nothing artificial.
- Their net sales were $94.3 million and $156.8 million and their net loss was $17.6 million and $23.8 million in 2023 and 2024, respectively.
- The current government shutdown could delay the debut of this IPO due to the SEC unable to deem IPOs “effective” in a timely manner.
Ottobock IPO: Modest Discount to Embla Despite Premium Margins and Market Share”
- Expected to price at near 12% discount to Embla despite superior fundamentals, higher margins, and strong recurring revenue quality.
- Balanced B2B/B2C mix drives sustainable mid-single-digit growth and ongoing margin expansion.
- IPO proceeds to reduce leverage to 2.5x EBITDA, though low float and KGaA structure may cap valuation upside.
Canara Robeco AMC IPO: Fairly Valued Given Strong Growth but Small Size
- Canara Robeco AMC (570515Z IN) is looking to raise up to US$150m in its upcoming India IPO.
- Overall, revenue increased annually at about 39% since FY22 and based on 9M25 numbers, Canara’s FY25 performance is on track to surpass FY24’s levels
- We have looked at the company’s past performance in our previous note. In this note, we talk about valuations.
LG Electronics India IPO: The Good,The Bad and Valuations. Expect Listing Pop
- LG Electronics India (LGEIL) ’s USD 1.3 bn IPO, which opened on October 6, closes for subscription today, October 9, and is expected to list on October 14th.
- LGEIL has secured Rs34.7 bn from anchor investors ahead of its Rs116.1 bn IPO, signaling a likely strong oversubscription at close today.
- LGEIL IPO, priced at a steep discount to peers do not fully reflect company’s comparative strengths – strong market leadership, high returns and growth potential. Expect listing pop of 30%+.
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