In today’s briefing:
- [Japan Offering] Kasumigaseki Capital (3498 JP) – BIG Primary for Big Plans
- WeRide HK Listing: The Investment Case
- Kasumigaseki Capital Placement: Primary Offering for Ambitious Expansion Plans
- Seres Group A/H IPO Pricing – Thoughts on Valuations
- SANY Heavy Industry H Share Listing (6031 HK): Trading Debut
- Seres Group H Share Listing (9927 HK): Valuation Insights
- Sany Heavy Industries A/H Trading – Strong Insti, Weak Retail. Pricing Still Tight
- Seres Group Hong Kong IPO Preview
- Mininglamp Technology IPO: Inflection into Profitability but Priced at a Steep Premium
- CIG Shanghai IPO Trading: Tight Premium but Strong Insti Demand
[Japan Offering] Kasumigaseki Capital (3498 JP) – BIG Primary for Big Plans
- On Friday, Kasumigaseki Capital (3498 JP) announced Aug-25 earnings and a combination ¥45-50bn primary+secondary offering worth 5.3mm shares, 6x ADV, and a float increase of 37%. Shares fell 15% today.
- 2yrs ago they did a large offering. It went well. They’d had a ridiculous plan to grow OP 6x from ¥3.5bn to ¥20bn in 2yrs to Aug-26. Then by Aug-25.
- They got to ¥8.5bn in Aug-24 and now ¥18.9bn in Aug-25 and now guide to ¥26.5bn in Aug-26 (the original plan having been ¥20bn).
WeRide HK Listing: The Investment Case
- WeRide (WRD US), a provider of autonomous driving products and services, is seeking to raise between US$350 million through an HKEx listing.
- It was listed on the Nasdaq on 25 October 2024, raising US$120 million at US$15.50 per ADS. Since listing, the shares are down 31%.
- The investment case centres around accelerating revenue growth, progress towards mass commercialisation and valuation in line with historical averages. However, the path to profitability remains uncertain.
Kasumigaseki Capital Placement: Primary Offering for Ambitious Expansion Plans
- Kasumigaseki Capital (3498 JP), is looking to raise US$250m in a primary placement.
- The purpose is for financing of its medium-term management plan phase 2 which includes strengthening KC’s domestic hotel, logistics and healthcare businesses, and for expansions abroad (Dubai, US).
- In this note, we will talk about the placement and run the deal through our ECM framework.
Seres Group A/H IPO Pricing – Thoughts on Valuations
- Seres Group (601127 CH), a Chinese NEV manufacturer, aims to raise around US$1.7bn in its H-share listing.
- Seres Group (SG) is principally engaged in the research and development, manufacturing, sales and services of new energy vehicles (NEV) as well as core NEV components.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.
SANY Heavy Industry H Share Listing (6031 HK): Trading Debut
- Sany Heavy Industry (600031 CH) priced its H Share at HK$21.30 to raise HK$13,453 million (US$1.7 billion) in gross proceeds. The H Share will be listed tomorrow.
- I discussed the H Share listing in SANY Heavy Industry H Share Listing: The Investment Case and SANY Heavy Industry H Share Listing (6031 HK): Valuation Insights.
- Sany’s international oversubscription rates were above the median of recent large AH listings. The AH discount remains reasonable.
Seres Group H Share Listing (9927 HK): Valuation Insights
- Seres Group (601127 CH), a Chinese NEV manufacturer, has launched an H Share listing to raise US$1.7 billion.
- I discussed the H Share listing in Seres Group H Share Listing: The Investment Case.
- The proposed AH discount of 24.8% (based on the 24 October A Share price) is attractive, and I would participate in the H Share listing.
Sany Heavy Industries A/H Trading – Strong Insti, Weak Retail. Pricing Still Tight
- Sany Heavy Industry (600031 CH), raised around US$2.0bn in its H-share listing.
- Sany Heavy Industry was the world’s third largest and China’s largest construction machinery company in terms of construction machinery’s cumulative revenue from 2020 to 2024, according to Frost & Sullivan.
- We have looked at the past performance and valuation in our previous note. In this note, we talk about the trading dynamics.
Seres Group Hong Kong IPO Preview
- Seres Group is getting ready to complete its IPO on the Hong Kong exchange in the coming weeks that could raise about US$1.7 billion.
- At the high end of the IPO price range of HK$131.50 per share, Seres would have a market capitalization of nearly HK$215 billion (about $27.6 billion).
- Seres Group is one of the largest new-energy vehicle makers in China. There are 22 cornerstone investors that have committed to purchase approximately 49% of the offer.
Mininglamp Technology IPO: Inflection into Profitability but Priced at a Steep Premium
- Mininglamp Technology (1912140D HK) is looking to raise US$131m in its Hong Kong IPO.
- Mininglamp Technology (formerly known as Leading Smart Holdings), is a data intelligence software provider in China, specializing in transforming enterprises’ marketing and operational decision-making through large model driven analytics.
- In this note, we will talk about the company’s past performances and valuations.
CIG Shanghai IPO Trading: Tight Premium but Strong Insti Demand
- Cig Shanghai (603083 CH) , telecommunications equipment company, is looking to raise up to US$594m in its upcoming Hong Kong IPO.
- CIG was founded in 2005, and is a provider of critical infrastructure components for the development of AI.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
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