In today’s briefing:
- [Japan ECM] Lifedrink (2585) – Fast-Growing Beverage Seller Meets P.E. Firm Selldown
- Shandong Gold Mining Placement – H-Share Running Ahead of A-Shares
- Simcere Pharma Placement – First Primary Raising, past Deals Have Been Mixed
- Lifedrink Placement: Cleanup Sale but Placement Properties Are Not Great
- Orion Breweries IPO – Smaller Scale Warrants Discount
- Aux Electric IPO Trading: Decent Insti Demand; Is Cheap
- Klarna IPO Valuation Update: $13B-$14B IPO Valuation Is Cheap Vs. Peers, ~68% Discount To Affirm
- Orion Breweries IPO: Turning Local Strength into Growth Abroad
[Japan ECM] Lifedrink (2585) – Fast-Growing Beverage Seller Meets P.E. Firm Selldown
- Today post-close, Lifedrink (2585 JP) announced the Sunrise PE funds which own 22% of the company will sell their stake in a clean-up offering with pricing in 8 days.
- This offering comes 8 trading days after a new post-earnings all-time-high. At 24x ADV, the offering will increase Max Real World Float by 50+%.
- There are some index and buyback supply/demand dynamics to note. It’s a heavy offering, so bullish/bearish may be a matter of horizon.
Shandong Gold Mining Placement – H-Share Running Ahead of A-Shares
- Shandong Gold Mining (1787 HK) aims to raise around US$500m via a primary placement, in order to pay down debt.
- The H-shares are now trading at all-time highs and have been performing better than the A-shares this year.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
Simcere Pharma Placement – First Primary Raising, past Deals Have Been Mixed
- Simcere Pharmaceutical Group (2096 HK) is looking to raise around US$200m via a top-up placement.
- This is the first primary raising by the company since its listing. There have been a few secondary deals, with mixed results.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
Lifedrink Placement: Cleanup Sale but Placement Properties Are Not Great
- Lifedrink (2585 JP) is looking to raise around US$175m from a secondary placement.
- The deal is a large one to digest, representing 20.7 days of the stock’s three month ADV, despite being 18.4% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Orion Breweries IPO – Smaller Scale Warrants Discount
- Orion Breweries Limited’s (409A JT) operations span across alcoholic beverages, tourism and hotel businesses, aiming to raise ~US$126m in its Japan IPO via a mix of primary and secondary offerings.
- Orion Breweries (OBL) has a strong Okinawa market position. Share of overseas sales has been growing (~23% of FY25 revenues), while profitability has also largely been steady.
- In our previous note, we looked at the firm’s past performance. In this note, we talk about the peer comparison and IPO valuations.
Aux Electric IPO Trading: Decent Insti Demand; Is Cheap
- Aux Electric (2580 HK) raised around US$532m in its Hong Kong IPO.
- It is one of the global top five air conditioner providers.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
Klarna IPO Valuation Update: $13B-$14B IPO Valuation Is Cheap Vs. Peers, ~68% Discount To Affirm
- Klarna Group plc, a first mover in the BNPL space and AI-powered fintech company, is targeting an IPO valuation of between $13B and $14B, according to Reuters.
- A Swedish founder-led decacorn is preparing for a roadshow after Labor Day this week. They intend to raise up to ~$1B and start trading in September.
- $13B-$14B IPO valuation is cheap vs. peers and implies ~68% discount to Affirm. Klarna’s last down round was a $800M venture round in July of 2022 at a ~$6.7B valuation.
Orion Breweries IPO: Turning Local Strength into Growth Abroad
- Orion Breweries Limited (409A JT) has become synonymous with Okinawa, combining heritage, loyalty, and local identity into a brand experience that larger rivals struggle to replicate.
- The company benefits from Okinawa’s nearly 10 million annual visitors, turning tourism into both a sales driver and a powerful channel for brand amplification abroad.
- The IPO offers attractive valuation versus peers, despite risks from MBO-related debt and potential share overhang from private equity owners.
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