In today’s briefing:
- NTT DC REIT IPO: The Investment Case
- Alibaba Health Placement – Delta Placement for EB, but Track Record Isn’t Great
- Geekplus Technology IPO (2590 HK): Valuation Insights
- Leads Biolabs (维立志生物) Pre-IPO: Valuation
- Anjoy Foods Group A/H Trading – Cheap Price but Sluggish Demand
- Boxihe Outdoor Sports Pre-IPO – Scaling Fast in China’s Outdoor Boom
- Wakefit Innovations Ltd Pre-IPO Tearsheet
- Eacon Group Co., Ltd Pre-IPO Tearsheet
- Anjoy Foods: Joyless HK Issue-Priced Below Target. Value Play. Valuations Update.
NTT DC REIT IPO: The Investment Case
- NTT DC REIT (NTTDCR SP) is the exclusive S-REIT vehicle sponsored by NTT Group. It has launched an SGX IPO to raise proceeds up to US$864 million.
- The IPO portfolio comprises six data centres – three located in California, one in Virginia, one in Vienna, and one in Singapore.
- NTT DC REIT offers an attractive value proposition, comprising a blue-chip tenant base, a staggered lease expiry profile, a robust growth pipeline, and sizable debt headroom.
Alibaba Health Placement – Delta Placement for EB, but Track Record Isn’t Great
- Banks are offering US$500m of Alibaba Health Information Tec (241 HK) stock in order to allow Exchangeable Bond investors to hedge their exposure.
- Alibaba Health (AH) stock has been heading in the wrong direction for the past few years and it remains unclear if the EB offering was well flagged.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Geekplus Technology IPO (2590 HK): Valuation Insights
- Geekplus Technology (2590 HK) is a leader in the global autonomous mobile robot (AMR) market. It is seeking to raise US$300 million.
- I discussed the investment case in Geekplus Technology IPO (2590 HK): The Investment Case.
- In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is unattractive.
Leads Biolabs (维立志生物) Pre-IPO: Valuation
- Leads Biolabs, a China-based clinical-stage biotech, is looking to raise at least USD 100 million via a Hong Kong listing. The joint book runners are MS and CITIC.
- In our previous insight, we looked at the company’s core products and its management team, as well as investor backing, as well as PHIP updates.
- In this note we will provide an rNPV-based valuation for the company.
Anjoy Foods Group A/H Trading – Cheap Price but Sluggish Demand
- Anjoy Foods Group (2648 HK), a quick-frozen food company in China, raised around US$350m in its H-share listing.
- AFG was the largest quick-frozen food company in China in terms of revenue in 2023, with a market share of 6.2%, according to the Frost & Sullivan report.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.
Boxihe Outdoor Sports Pre-IPO – Scaling Fast in China’s Outdoor Boom
- Boxihe Outdoor Sports (BOS) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
- BOS has delivered impressive growth, with a 122% revenue CAGR (FY22–24) led by its core Pelliot brand.
- Its shift from a pure online DTC model to include offline and distributor channels has broadened reach, while improving gross margins reflect strong pricing and cost control.
Wakefit Innovations Ltd Pre-IPO Tearsheet
- Wakefit Innovations (1684049D IN) (WIL) is looking to raise about US$231m in its upcoming India IPO. The bookrunners for the deal are Axis, IIFL, Nomura.
- Wakefit Innovations is direct‑to‑consumer and sleep and home‑solutions company, founded in 2016.
- According to the Redseer Report, the company was the largest D2C home and furnishings company in India by revenue in FY24.
Eacon Group Co., Ltd Pre-IPO Tearsheet
- Eacon Group Co., Ltd (EG) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by Haitong.
- EG ranks first among all L4 autonomous driving companies globally by revenue in 2024, as per Frost & Sullivan.
- EG had 11 end-customer groups. Its technology has been deployed across 24 mining sites of leading mining groups like CHN Energy, SPIC, TBEA, Zijin Mining, Shougang Group, and Baowu Group.
Anjoy Foods: Joyless HK Issue-Priced Below Target. Value Play. Valuations Update.
- Anjoy Foods (2648 HK) has priced its HK offer at HKD 60/share—10% below the previously indicated HKD66, and a 30% discount to A share price, raising a HKD2.4 billion (USD305 million)
- Anjoy’s muted investor response—just 5.85x coverage on the international tranche—triggered a clawback, increasing the Hong Kong public allocation from 10% to 30%.
- Foshan Haitian(3288 HK) ’s disappointing post-listing performance has probably made investors more cautious, likely contributing to the subdued appetite for Anjoy’s HK offer despite inexpensive valuations.
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