In today’s briefing:
- [Japan ECM] Kokusai Elec (6525) Offering – Expect It Very Well Bid, and the Back End Squeezy
- Kokusai Electric Placement – Well Flagged but past Deal Didn’t Do Well
- MMC Port Holdings Berhad Pre-IPO Tearsheet
- Zijin Gold Pre-IPO Tearsheet
- Figma Inc (FIG): Peeking at the Prospectus of the Next Software IPO
- Pre-IPO Dermavon Holdings- Weak R&D and the Lack of Synergy in Pipelines Lead to Unfavorable Outlook
[Japan ECM] Kokusai Elec (6525) Offering – Expect It Very Well Bid, and the Back End Squeezy
- After the close today, Kokusai Electric (6525 JP) announced that large holder (and original PE owner) KKR HKE Investment LP would sell down 30mm shares or 12.88% of shares out.
- This is not expected, but also not unexpected – it’s exactly a year since the first selldown. There is a decent-sized short position, and it isn’t a huge offering.
- This changes two aspects of the future supply/demand balance. Both are important for how this trades in coming months.
Kokusai Electric Placement – Well Flagged but past Deal Didn’t Do Well
- KKR is looking to raise approximately US$620m through an accelerated secondary offering for around 13% of Kokusai Electric (6525 JP)‘s (KE) stock.
- KKR had sold in the IPO and undertaken an extended selldown in July 2024 as well. Hence, this deal is somewhat well flagged.
- In this note, we will talk about the placement and run the deal through our ECM framework.
MMC Port Holdings Berhad Pre-IPO Tearsheet
- MMC Port Holdings Berhad (MMC) is looking to raise about US$1.5bn in its upcoming Malaysia IPO. The deal will be run by CIMB, Maybank, RHB, and UBS.
- MMC is Malaysia’s largest container port operator and the country’s leading container hub for transshipment and gateway cargo, according to Drewry.
- MMC operates five sea ports and a solid product jetty terminal and conducts ship-to-ship transfer (STS) services at an offshore port.
Zijin Gold Pre-IPO Tearsheet
- Zijin Gold (2579355D HK) is looking to raise up to US$2.0bn in its upcoming Hong Kong IPO. The deal will be run by Morgan Stanley and CITIC.
- It is a leading gold mining company formed by combining all the gold mines of Zijin Mining, located outside of China.
- It held interests in eight gold mines located in gold-rich regions across South America, Oceania, Central Asia and Africa.
Figma Inc (FIG): Peeking at the Prospectus of the Next Software IPO
- Figma (FIG US) filed for an IPO on the NYSE on July 1st for a debut later this month.
- Their revenue was $749.0 million for the year ended December 31, 2024, representing 48% year-over-year growth.
- Adobe’s acquisition of Figma collapsed in December 2023 after regulatory hurdles paving the way for this IPO.
Pre-IPO Dermavon Holdings- Weak R&D and the Lack of Synergy in Pipelines Lead to Unfavorable Outlook
- The big gap between the revenue proportion of the two business lines indicates that there’s little synergistic effect, thus further delaying the formation of the “medicine and makeup complementary ecosystem”.
- The weakness in R&D has led to a low overlap in the demands of existing products among the customer groups,making it impossible to match the medical demand through self R&D.
- The business model of Dermavon is sales-driven rather than R&D-driven. There are concerns on the Company’s pipeline quality. Dermavon has not proved its sustainable profitability. Valuation should be lower peers.
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