In today’s briefing:
- Leapmotor IPO – Weak Demand but Concentrated Allocation
- Taiwan Cement Placement- Suffers from Weak Momentum but Deal Is Well Flagged and SI Has Been Growing
- Onewo Space-Tech IPO Trading – Weak but Relatively Better Demand
- Leapmotor IPO: Trading Debut
- Onewo IPO: Trading Debut
- Lawson Confirms Seijo Ishii IPO
- Oravel Stays (Oyo) Pre-IPO – Addendum Updates – Don’t Let the +ve EBITDA Mask Its Underlying Issues
- Leapmotor IPO: Thoughts on First Day Trading
- WCP IPO Trading – Peer Correction Means Price Cut Still Wasn’t Enough
- Unity Software: The AppLovin Acquisition Story & Other Developments
Leapmotor IPO – Weak Demand but Concentrated Allocation
- Leapmotor (9863 HK) raised around US$800m in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.
- As of end Jun 22, it had delivered a total of 104,829 cars with most of its sales coming from its mini units, T03.
- In this note, we will talk about the demand for the deal and other trading dynamics.
Taiwan Cement Placement- Suffers from Weak Momentum but Deal Is Well Flagged and SI Has Been Growing
- Taiwan Cement (1101 TT) is looking to raise US$437m from its GDS offering.
- The firm is offering 84m GDSs, or 420m common shares (1:5 conversion), at a 5.1-7.8% discount to its last close.
- While momentum hasn’t been the greatest, the deal is well flagged and short covering could support share price in the near term.
Onewo Space-Tech IPO Trading – Weak but Relatively Better Demand
- Onewo (2602 HK) (OST) raised around US$733m in its Hong Kong IPO. OST is a property management service provider primarily owned by China Vanke Co Ltd (H) (2202 HK) .
- As per Frost & Sullivan, amongst the residential community service providers in China, OST ranked first. It also ranked first in the commercial space integrated services market in China.
- In this note, we will talk about the demand for the deal and other trading dynamics.
Leapmotor IPO: Trading Debut
- Leapmotor (9863 HK) priced its H Share at HK$48.00 per share to raise net proceeds of HK$6,057.4 million (US$772 million). The H Share will start trading tomorrow.
- The H Shares of peers posted no first-day gains and are currently below the listing prices. Market sentiment on peers has remained weak since the release of the prospectus.
- Leapmotor, at best, should trade in line with median peer multiples. Leapmotor is fairly valued at the IPO price. We continue to remain on the sidelines.
Onewo IPO: Trading Debut
- Onewo (2602 HK) priced its H Share at HK$49.35 per share to raise net proceeds of HK$5.6 billion (US$713 million). The H Share will start trading tomorrow.
- Notwithstanding the industry headwinds, the H Shares of peers with financially sound parentco backgrounds are trading above the listing prices.
- Despite peer multiple derating, the IPO price remains attractive compared to peers with financially sound parentco backgrounds.
Lawson Confirms Seijo Ishii IPO
- Lawson Inc (2651 JP) has confirmed it will list its upscale supermarket subsidiary, Seijo Ishii early next year.
- Seijo leads in premium supermarket retailing and is growing as fast as the wealth market does, with plenty of room left to expand.
- Seijo Ishii is now building its own production and import capabilities to increase originality and could begin to challenge even some of their larger rivals.
Oravel Stays (Oyo) Pre-IPO – Addendum Updates – Don’t Let the +ve EBITDA Mask Its Underlying Issues
- Oyo (1698548D IN) is looking to raise around US$700m in its upcoming India IPO. The IPO will consist of both a primary and secondary portion.
- Oyo runs a digital platform that serves as a hotel and home aggregator between patrons, which include owners and lessors, and customers, such as travelers and guests booking for accommodation.
- Since our last notes, Oravel Stays (Oyo) had filed its addendum, containing both its full-year performance for FY22, and its most recent 1Q23 performance (period ending Jun 2022).
Leapmotor IPO: Thoughts on First Day Trading
- Leapmotor (9863 HK) has priced its IPO at HK$48 per share, at the lower end of the indicative IPO price range of HK$48-62 per share.
- At the above price, the company raised net proceeds of approx. HK$6,057.4m at a market capitalisation of HK$54.9bn and a post-money EV of HK$45.9bn.
- The HK offering was undersubscribed while the international offering was initially oversubscribed by 2.33x and the unsubscribed portion of the HK offering was later reallocated to international offering.
WCP IPO Trading – Peer Correction Means Price Cut Still Wasn’t Enough
- WCP raised around US$314m via selling a mix of primary and secondary shares in its Korean IPO.
- WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries.
- In this note, we will talk about the demand for the deal and other trading dynamics.
Unity Software: The AppLovin Acquisition Story & Other Developments
- Unity Software has been in the news for a number of reasons be it the ironSource acquisition or the management’s rejection of Applovin’s $20 billion acquisition offer.
- While Unity did surpass Wall Street expectations with respect to revenues, the company’s losses were wider than anticipated.
- On Oculus Quest, Unity Games accounted for 72% of the top-selling games and 80% of the top-performing VR games in July.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
