In today’s briefing:
- KRX Virtually Locks In Parentco Payout Rules for Spin-Off IPOs
- Marui Group Placement: Clean up by Toho; Improving Fundamentals
- Figma IPO Preview: Fast-Growing Disruptor In The Design Software Market
- Travel Food Services: $250M OFS, Niche Travel QSR but Valuations Seem Full Amidst near Term Weakness
- Xuanzhu Biopharm (轩竹生物科技) Pre-IPO: Alarming Signs upon Further Checks
- Carlsmed, Inc. (CARL): Peeking at the Prospectus of the Next Medical Tech IPO
- Travel Food Services IPO – RHP Updates & Thoughts on Valuation
- Figma IPO Valuation Analysis: Premium Multiple Is Deserved, High Growth and Rule of 60 Story
- MegaRobo Pre-IPO Tearsheet
- Genor Biopharma (6998 HK) – The Reverse Merger Will Unleash the Upside Potential of Valuation
KRX Virtually Locks In Parentco Payout Rules for Spin-Off IPOs
- KRX is set to spotlight Philenergy’s 2023 IPO as the model, pushing spin-off deals to reward parentco holders—like Philoptics’ move to hand out IPO shares.
- Philoptics doubled pre-Philenergy IPO on crazy momentum, then round-tripped post-listing. Setups like this hint at bigger parentco moves ahead in future spin-off IPO plays.
- SK Enmove IPO is scrapped; but SK Plasma (SK Discovery) still live; LS E-Link (LS Corp) also likely to be an early test case for the new parentco compensation framework.
Marui Group Placement: Clean up by Toho; Improving Fundamentals
- A group of shareholders are looking to raise US$184m from selling their respective stakes in Marui Group (8252 JP) .
- While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Figma IPO Preview: Fast-Growing Disruptor In The Design Software Market
- Figma Inc., a VC-backed collaborative design software maker, filed for long-awaited IPO. Morgan Stanley and Goldman Sachs are the lead bankers on the offering.
- The San Francisco-based company was valued at $12.5B in a 2024 tender offer. Figma is well-positioned with a strong brand among designers and a growing footprint in enterprise segment.
- With strong financial profile and network effects, driven by large scale and efficient GTM strategy, the company remains the leader in collaborative design software market.
Travel Food Services: $250M OFS, Niche Travel QSR but Valuations Seem Full Amidst near Term Weakness
- TFS operates QSRs and lounge in airports. They are present in the top 14 airports in India accounting for 26% of Indian-airport QSR and ~45% of the Indian-airport Lounge revenues
- FY26 performance is expected to be flattish as 1H results will lap impact of Adani operated airports being moved from TFS books to Joint venture with 25% stake.
- FY27 onwards growth is estimated at 15+% with EBITDA margins of 34-37%. We estimate FY27 revenues of ~2,000cr with PAT of 450-500cr implying the deal is being priced at 30-33x
Xuanzhu Biopharm (轩竹生物科技) Pre-IPO: Alarming Signs upon Further Checks
- 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 latest filing and its previous attempt to list in the A-share market.
Carlsmed, Inc. (CARL): Peeking at the Prospectus of the Next Medical Tech IPO
- The company describes itself as a commercial-stage medical technology company pioneering AI-enabled personalized spine surgery solutions.
- For the years ended December 31, 2024 and 2023, they recognized revenue of $27.2 million and $13.8 million, respectively, representing year-over-year growth of 97.2%.
- The area in which this company operates in is one that is traditionally well-received by IPO investors.
Travel Food Services IPO – RHP Updates & Thoughts on Valuation
- Travel Food Services Ltd (1450229D IN) is looking to raise about US$233m in its India IPO.
- Travel Food Services Limited (TFS) operates a network of travel quick service restaurants (Travel QSRs) and private lounges in airports.
- We have looked at the company’s past performance in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.
Figma IPO Valuation Analysis: Premium Multiple Is Deserved, High Growth and Rule of 60 Story
- Figma Inc. is planning to go public in the second half of July. The amount the company intends to raise is not yet disclosed, but it’s likely to exceed $1B.
- I like Figma’s high growth, rule of 60 story, cash flow generation and solid balance sheet. They are profitable and still growing 40%+ YoY while doing $800M+ in LTM revenue.
- I believe Figma’s premium multiple is justified given its best-in-class metrics, top-tier VC investors and Adobe’s attempt to acquire the design software maker for ~$20B in 2022.
MegaRobo Pre-IPO Tearsheet
- MegaRobo Technologies (MRT HK) is looking to raise at least US$300m in its upcoming Hong Kong IPO. The deal will be run by Morgan Stanley, Huatai, Deutsche Bank, CCB International.
- It is a leading provider of autonomous agents in robotic applications in China, dedicated to improving productivity and driving innovation for businesses across both laboratory and manufacturing settings.
- It serves a diversified customer base with over 880 customers. Key account customers newly acquired in 2022, had a repurchase rate of 74%, and a revenue retention rate of 115%.
Genor Biopharma (6998 HK) – The Reverse Merger Will Unleash the Upside Potential of Valuation
- The merger is good for both parties. On the one hand, it helps boost Genor’s valuation. On the other hand, it finally makes Edding realize its desire to go public.
- The outlook of Edding Genor Group depends on the pipeline quality. Core products Vancocin/Ceclor/FPN are facing different challenges. The pipeline strength/R&D capabilities of Genor hasn’t been recognized by the market.
- Short-Term valuation is expected to reach RMB7.5 billion. Future valuation could be above RMB10 billion if pipeline R&D progress/clinical data and the commercialization performance of marketed products meet the expectation.
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