In today’s briefing:
- Kingsoft Cloud Placement: Second Primary Offering This Year
- KCC Corp – To Issue 430 Billion Won in EB Using Its Treasury Shares?
- Jain Resource Recycling IPO – Quick Thoughts on Peer Comp and Valuation
- Victory Giant A/H Listing – Riding the AI Wave
- Hanon Systems – A Rights Offering of 900 Billion Won
- Atlanta Electricals: IPO Priced at 30% Discount to Peers. Can Bid for Listing Pop
- Canyon Resources Placement: Backstopped by Largest Shareholder; Strategic Assets
- Xuanzhu Biopharm (轩竹生物科技) Pre-IPO: Few Catalysts Left
- Orion Breweries IPO Trading – Robust Institutional Demand
- Pre-IPO Xuanzhu Biopharmaceutical (PHIP Updates) – Some Points Worth the Attention
Kingsoft Cloud Placement: Second Primary Offering This Year
- Kingsoft Cloud Holdings (3896 HK) is looking to raise around US$304m in a primary placement.
- The company will use the proceeds to support its AI business, including infrastructure expansion and enhancement of cloud services.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
KCC Corp – To Issue 430 Billion Won in EB Using Its Treasury Shares?
- On 23 September, Hankyung Business Daily reported that Kcc Corp (002380 KS) plans to issue about 430 billion won worth of exchangeable bonds (EB) based on its own treasury shares.
- We believe the overall impact on this EB issue on KCC is likely to be more negative as compared to the EB issue it conducted in July 2025.
- Our NAV valuation of KCC Corp suggests NAV per share of 508,467 won, which is 22% higher than current price.
Jain Resource Recycling IPO – Quick Thoughts on Peer Comp and Valuation
- Jain Resource Recycling (2300699D IN) is looking to raise about US$142m in its India IPO.
- The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
- In this note, we take a quick look at the peer comparison and IPO valuations.
Victory Giant A/H Listing – Riding the AI Wave
- Victory Giant Technology -A (300476 CH) (VG) aims to raise around US$1bn in its H-share listing.
- VG is one of the global leaders in advanced printed circuit boards (PCB) products for AI and high-performance computing.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
Hanon Systems – A Rights Offering of 900 Billion Won
- Hanon Systems announced that it has finalized a rights offering capital increase of 900 billion won. This capital raise will involve 347.5 million common shares (51.2% of outstanding shares)
- The expected rights offering price is 2,590 won per share, which is 18.4% lower than current price of 3,175 won.
- We remain Negative on Hanon Systems (018880 KS). There is a high probability that this rights offering deal will likely be a dilutive deal for the Hanon System shareholders.
Atlanta Electricals: IPO Priced at 30% Discount to Peers. Can Bid for Listing Pop
- Atlanta is the third largest manufcaturer of transformers in India. With recent capex coming online, it boasts of capacity and product offering in line with the market leaders.
- The company has a strong order book of 1,600cr and given the fairly short execution timeline is positioned to deliver 25-30% growth in FY26.
- We believe IPO is being fairly valued at 20-24 times FY26 EBITDA, implying a 30-35% discount vs market leader Transformers & Rectifiers (India) Ltd (TRIL IN)
Canyon Resources Placement: Backstopped by Largest Shareholder; Strategic Assets
- Canyon Resources (CAY AU) is looking to raise around US$132m in a primary placement.
- The company will use the proceeds to fund capital expenditures, as well as increase its stake in the railway line serving its mine in Central Africa’s Cameroon.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Xuanzhu Biopharm (轩竹生物科技) Pre-IPO: Few Catalysts Left
- Xuanzhu Biopharm, the biotech arm of HK-listed Sihuan Pharma, is seeking to raise at least USD 100m via a Hong Kong listing. The sole sponsor is CICC.
- In previous insight, we looked at the company’s core products and key products, including XBP-3571, XZP-3287, and XZP-3621, and its management team and investor backing.
- In this note, we look at the company’s PHIP updates.
Orion Breweries IPO Trading – Robust Institutional Demand
- Orion Breweries’ (409A JP) operations span across alcoholic beverages, tourism and hotel businesses. It raised around US$159m in its Japan IPO.
- 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 its past performance and the deal dynamics. In this note, look at the trading dynamics.
Pre-IPO Xuanzhu Biopharmaceutical (PHIP Updates) – Some Points Worth the Attention
- Three Core Products need to face fierce competition, and there’re other similar products being included in NRDL reimbursement or VBP. So, we’re not optimistic about the commercialization performance of Xuanzhu.
- The A-share listing committee had doubts about Xuanzhu’s pipeline strength and future commercialization outlook. So, Xuanzhu’s A-share IPO failed. The peak sales of three core products could be just RMB800mn-1bn.
- Considering Xuanzhu’s unsatisfactory growth outlook, market value is just RMB2.4-3 billion. This means that Xuanzhu is overvalued, and reasonable valuation could be even lower than that after Series B Financing.
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