In today’s briefing:
- Jiangsu Hengrui Pharma A/H Listing – Low-End Is Probably Close to Fair Value
- Jiangsu Hengrui Pharma H Share Listing (1276 HK): Valuation Insights
- CATL (3750 HK): Powered by the PetroDollar. HK Offer Overview and Valuations.
- Bharti Airtel Block – Another Singtel Selldown Worth US$1bn
- Zinka Logistics IPO Lockup – US$530m Lockup Release; PE Investors Might Look to Book Gains
- Green Tea Group IPO Trading – Decent Institutional Coverage, Likely to Trade Well
- Mirxes IPO: Valuation Without Sensible Fundamentals
- MNTN, Inc. IPO Valuation Analysis: Growth Accelerated in 1Q’25, Attractive Valuation Vs. Peers
Jiangsu Hengrui Pharma A/H Listing – Low-End Is Probably Close to Fair Value
- Jiangsu Hengrui Medicine (600276 CH), a China-based pharmaceutical company, aims to raise around US$1.3bn in its H-share listing.
- JHP Has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
- We have looked at the company’s past performance and other deal dynamics in our previous note. In this note, we talk about the IPO pricing.
Jiangsu Hengrui Pharma H Share Listing (1276 HK): Valuation Insights
- Jiangsu Hengrui Pharmaceuticals (1276 HK) has launched its H Share listing at HK$41.45 to HK$44.05 per H Share. Pricing will be on 21 May.
- I discussed the H Share listing in Jiangsu Hengrui Pharma H Share Listing: The Investment Case.
- The proposed AH discount can be argued as either light or attractive. I lean toward the latter and would participate in the H Share listing.
CATL (3750 HK): Powered by the PetroDollar. HK Offer Overview and Valuations.
- Contemporary Amperex Technology (CATL) (300750 CH) has offered118 million shares in Hong Kong, priced at HKD263 per share, a modest discount to its A share price.
- More than half of the USD4 Billion Hong Kong share offering has already been subscribed by cornerstone investors.
- Middle Eastern sovereign wealth funds are amongst CATL’s key corner stone investors while the deal excluded US onshore investors given the mounting geopolitical tensions.
Bharti Airtel Block – Another Singtel Selldown Worth US$1bn
- Pastel Ltd, a subsidiary of Singapore Telecommunications (Singtel) is looking to raise up to US$1bn via selling a 0.8% stake in Bharti Airtel Limited.
- Singtel had sold a 0.8% stake (US$950m then) to GQG Partners in Mar 2024. Singtel had a total stake of around 29.3% in the firm, as of the last close.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Zinka Logistics IPO Lockup – US$530m Lockup Release; PE Investors Might Look to Book Gains
- Blackbuck (1355652D IN) raised around US$130m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
- Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of users), with 27.52% of India’s truck operators transacting on its platform in FY24, as per Redseer.
- In this note, we will talk about the lockup dynamics and possible placement.
Green Tea Group IPO Trading – Decent Institutional Coverage, Likely to Trade Well
- Green Tea Group (GTG) raised around US$ 110m in its Hong Kong IPO in its Hong Kong IPO.
- Green Tea is the fourth largest Casual Chinese Cuisine player in Mainland China, it has been gaining market share historically and is likely to continue doing so.
- We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.
Mirxes IPO: Valuation Without Sensible Fundamentals
- Mirxes, a Singapore-based clinical-stage biotechnology company, launched its IPO to raise up to US$139m via a Hong Kong listing.
- We look at the deal dynamics and latest developments in the early cancer screening sector in China.
- We are of the view that there’s little fundamentals supporting that valuation. Precision oncology companies have not done well in China.
MNTN, Inc. IPO Valuation Analysis: Growth Accelerated in 1Q’25, Attractive Valuation Vs. Peers
- MNTN, Inc., a fast-growing advertising software company, has announced the initial price range for its upcoming US IPO.
- The offering is expected to be between $14.00 and $16.00 per share, implying a market cap of ~$1.4B on a fully-diluted basis at the midpoint of price range.
- BlackRock has indicated a non-binding interest in purchasing up to $30M worth of MNTN shares at the IPO price. The price range is seen as attractively valued, in my view.
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