In today’s briefing:
- Kelun-Biotech Placement – Recent Run-Up Makes Its Tricky
- Virgin Australia IPO – Not Terribly Exciting, After Significant Items Adjustment
- Guangzhou Xiao Noodles Catering Management Pre-IPO – Fast-Growing Noodle Chain Navigates Competition
- Caris Life Sciences, Inc. (CAI): Peeking at the Prospectus of an AI TechBio IPO
- Shanghai Forest Cabin Biological-Tech Pre-IPO Tearsheet
- Jefferson Capital Inc (JCAP): Peeking at the IPO Prospectus of PE-Backed Insolvency Account Manager
- Pre-IPO Annoroad Gene Technology – The Outlook Is Not Optimistic
- Busy Ming Pre-IPO: Scaled up but Fragmented Market
Kelun-Biotech Placement – Recent Run-Up Makes Its Tricky
- Sichuan Kelun-Biotech Biopharm (6990 HK) is looking to raise up to US$200m from a primary placement. The offering is priced at HK$ 330.2-341, a 5-8% discount to last close.
- The company plans to use the proceeds for research and development, clinical trials of its core products and as working capital.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Virgin Australia IPO – Not Terribly Exciting, After Significant Items Adjustment
- Bain Capital is looking to raise around US$440m via selling some of its stake in Virgin Australia Holdings (VAH AU).
- Virgin Australia is the second largest airline group operating in the Australian aviation market, with an average 32% domestic RPT capacity market share in CY24.
- In this note, we look at the company’s past performance and provide our thoughts on valuations.
Guangzhou Xiao Noodles Catering Management Pre-IPO – Fast-Growing Noodle Chain Navigates Competition
- Guangzhou Xiao Noodles Catering Management (GXNCM) is looking to raise about US$200m in its upcoming Hong Kong IPO.
- GXNCM has shown strong growth momentum by expanding its network of corporate-owned restaurants and improving overall profitability, benefiting from post-COVID recovery and economies of scale, with operational performance turning positive.
- However, its reliance on price cuts to stay competitive, coupled with weakening same-store sales and a highly fragmented market, raises concerns about long-term sustainability.
Caris Life Sciences, Inc. (CAI): Peeking at the Prospectus of an AI TechBio IPO
- Sixth Street Partners is a significant investor in Caris Life Sciences and has been involved in multiple funding rounds since 2018.
- The company has more than 100 biopharma partners, such as Moderna, AbbVie, Xencor, and Merck KGaA.
- For the three months ended March 31, 2025 and 2024, they generated total revenue of $120.9 million and $80.7 million, respectively. The company also has significant net losses.
Shanghai Forest Cabin Biological-Tech Pre-IPO Tearsheet
- Shanghai Forest Cabin Biological-Tech Co., Ltd. (SFC) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by Citic, and Huatai.
- SFC is the leader among China’s premium domestic skincare brands with a focus on anti-wrinkle and firming skincare market In 2024, its flagship brand, Forest Cabin.
- As of FY24, Forest Cabin had 188 SKUs with its core products at a recommended retail price range of RMB 200-800, targeting primarily consumers aged 25-40.
Jefferson Capital Inc (JCAP): Peeking at the IPO Prospectus of PE-Backed Insolvency Account Manager
- They are a leading analytically driven purchaser and manager of charged-off and insolvency consumer accounts with four geographic regions with the majority of their operations landing in the USA.
- The principal purposes of this offering are to increase their capitalization and flexibility, facilitate an orderly distribution for the selling stockholders, and create a public market for their common stock.
- We anticipate this offering to likely find participation from sector dedicated investors and not draw the attention of “traditional” IPO players.
Pre-IPO Annoroad Gene Technology – The Outlook Is Not Optimistic
- Annoroad has its competitiveness in the industry, but in a complex market environment, the comprehensive product lines may not necessarily bring high performance growth and large revenue scale.
- The prenatal testing business is not easy. VBP is headwind.After Illumina was listed on “Unreliable Entity List”, it’s uncertain whether NextSeq 550AR sequencer can continue to be sold in China.
- Taking into account the future growth uncertainty/centralized procurement/competitive pressure/lack of deep layout of the entire industry chain/policy risks, it’s already good to have a valuation of RMB2-3.5 billion after IPO
Busy Ming Pre-IPO: Scaled up but Fragmented Market
- Busy Ming Group (BMG HK) is looking to raise at least US$300m in its upcoming Hong Kong IPO.
- It is a rapidly growing food and beverage retailer in China. Stores are typically located in high-traffic, high visibility, and easily accessible street-side locations.
- In this note, we look at the firm’s past performance.
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