In today’s briefing:
- Local Brokers Sound Off on 40% IPO Lock-Up—A Major Setup for Offshore Traders
- Hanwha Systems: Expand 3rd Party Allocation Capital Increase Limit from 20% to 30% of Issued Shares
- It’s Been a Tough Two+ Years for SHEIN & Its Investors, & Things Don’t Get Easier From Here
- Zhejiang Sanhua Intelligent Controls A/H Listing – Strong Track Record
Local Brokers Sound Off on 40% IPO Lock-Up—A Major Setup for Offshore Traders
- This 40% rule will distort bookbuilding, force down-pricing, choke float post-listing, and amplify volatility.
- Offshore investors like us benefit most—cheap IPO pricing with no lock-up. Local brokers see this as a giveaway to foreign funds and pushed back hard last Friday.
- FSS won’t budge—40% lock-up is happening. If issues arise post-implementation, they might adjust later.
Hanwha Systems: Expand 3rd Party Allocation Capital Increase Limit from 20% to 30% of Issued Shares
- In the past week, Hanwha Systems announced that it plans to expand third party allocation capital increase limit from 20% to 30% of issued shares in its articles of incorporation.
- This plan to significantly increase the amount of capital raise limit sets the stage for a major capital increase by Hanwha Systems in 2025, in our view.
- Unlike in 2021 when we were bullish on Hanwha Systems post a large-scale capital raise, we are more cautious on the company’s potential new large scale capital raise this year.
It’s Been a Tough Two+ Years for SHEIN & Its Investors, & Things Don’t Get Easier From Here
- Over the last 25 months, there’s been a steady stream of bad news for DTC platform SHEIN
- The latest challenges: US tariff chaos & Amazon’s launch of its competing platform, Haul
- Tariff changes & growth of Haul could mean SHEIN IPO gets done at fraction of 2023 valuation
Zhejiang Sanhua Intelligent Controls A/H Listing – Strong Track Record
- Zhejiang Sanhua Intellignt Controls Co., Ltd. (002050 CH) (ZSIC), a manufacturer of refrigeration and air-conditioning control components, aims to raise around US$1bn in its H-share listing.
- ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
Before it’s here, it’s on Smartkarma
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