In today’s briefing:
- JD Industrials IPO – Valuation Cut Means Its Priced to Go
- Swiggy Possible Placement – US$1bn Raising, Will Be Well Flagged, Might Not Be Well Liked
- JD Industrials IPO (7618 HK): Valuation Insights
- Chubb Insurance Pre-IPO Tearsheet
- Mandi Pre-IPO Tearsheet
- JD Industrials (7618 HK) IPO: Only Attractive if Priced Cheaply
- JD Industrial IPO: Structural Efficiency, Asset Light Model, Upscaling Paves Way for Growth
- 3SBio Inc (1530 HK) Placement – The Placing Price Indicates Decent Upside Potential in Valuation
- CiDi Inc. IPO: PHIP Updates and Thoughts on Upcoming Offering In Hong Kong
JD Industrials IPO – Valuation Cut Means Its Priced to Go
- JD Industrials (7618 HK) is now looking to raise up to US$421m, in its Hong Kong IPO.
- JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
- We looked at the company’s past performance in our earlier notes. In this note, we talk about valuations.
Swiggy Possible Placement – US$1bn Raising, Will Be Well Flagged, Might Not Be Well Liked
- Swiggy (SWIGGY IN) raised around US$1.35bn in its India IPO in Nov 2024. The company now plans to raise another US$1bn worth of fresh funds.
- Swiggy is a business to commerce marketplace company offering users a platform for ordering grocery and household items and food delivery, through its on-demand delivery network
- In this note, we will talk about the deal dynamics and possible placement.
JD Industrials IPO (7618 HK): Valuation Insights
- JD Industrials (7618 HK) is a leading industrial supply chain technology and service provider in China. It has launched an HKEx IPO to raise up to US$420 million.
- I previously discussed the IPO in Jingdong Industrials (JDI) IPO: The Investment Case.
- In this note, I present my forecasts and valuation. My analysis suggests that the IPO price range is attractive.
Chubb Insurance Pre-IPO Tearsheet
- Chubb Insurance (1071557D MK) is looking to raise at least US$300m in its upcoming Malaysian IPO. The deal will be run by Maybank.
- It is a general insurer in Malaysia, offering a diversified portfolio of products across property and casualty, accident and health, and motor insurance.
- Originally incorporated in 1970 as Jerneh Insurance Corporation, the company was acquired by the Chubb Group in 2010.
Mandi Pre-IPO Tearsheet
- Mandi (MANDI HK) is looking to raise up to US$200m in its upcoming Hong Kong IPO. The deal will be run by Huatai.
- Mandi is a leading specialized consumer pharmaceuticals company in China, primarily focused on skin health (including hair health) and weight management.
- The company was spun off from 3SBio (1530.HK) to operate as a distinct entity.
JD Industrials (7618 HK) IPO: Only Attractive if Priced Cheaply
- Although JD Industrials (7618 HK) is China’s largest MRO player, its maximum IPO price of HK$15.5 implies a rich FY26 PER of 28.2x.
- The stock’s highest justified valuation is a 20% premium to the sector average FY26F PER, implying only 8% upside from the IPO price, providing a limited safety margin.
- We think it will only be attractive to price below the mid-point of the IPO range, that is, HK$14.10.
JD Industrial IPO: Structural Efficiency, Asset Light Model, Upscaling Paves Way for Growth
- JD Industrial launched its Hongkong IPO aiming to raise up to HK$3.3B. The company plans to sell 211.2M shares at a price band of HK$ 12.7-HK$ 15.5 per share.
- Proceeds to be used to enhance industrial supply chain capabilities, for business expansion across geographies, for potential strategic investments or acquisitions and for general corporate purposes and working capital needs.
- Topline growth momentum expected to remain strong in the near term alongside strengthening margins. We feel JD Industrial issue is fairly priced and investors can surely subscribe to the offer.
3SBio Inc (1530 HK) Placement – The Placing Price Indicates Decent Upside Potential in Valuation
- Mandi’s valuation logic is drifting away from the main line of 3SBio.Mandi is “good asset but not core asset” within 3SBio system, so it’s difficult to drive up overall valuation.
- Innovative drug R&D will be the main driver for future valuation growth in “post-Mandi era”. The Placing can be regarded as the continuous development of 3SBio after Mandi spin-off .
- 3SBio is undervalued. Valuation would be higher than Sino Biopharm and may also surpass Akeso, Hengrui in the future if its SSGJ-707 can deliver good clinical data in future trials.
CiDi Inc. IPO: PHIP Updates and Thoughts on Upcoming Offering In Hong Kong
- CiDi Inc., China’s leading provider of AD technology for commercial vehicles, plans to go public in Hong Kong in December or January at the latest.
- The AD company may seek to raise up to $US200M for development of its CiDiTruck, R&D, improvement of commercialization capabilities, and enhancing the international footprint, among others.
- The IPO looks promising after Pony AI and WeRide jointly raised ~US$1.2B in their public share offerings in Hong Kong this year.
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