In today’s briefing:
- Orion Breweries IPO – Deal Upsized; Lower End Looks Digestible
- Zijin Gold IPO Preview
- Urban Company IPO – Profitability Just Before the IPO Appears to Be a Mirage
- Dalrymple Bay Infra Placement: Cleanup by Brooksfield; Valuation Is Fair
- Kotak Mahindra Bank Placement – SMBC’s Kotak Exit to Power Yes Bank Entry
- Chery Auto Pre-IPO – Peer Comparison
- Annto Supply Chain Pre-IPO Tearsheet
- MegaRobo Pre-IPO: Robotics Trend but Losses Widening
- Gemini Space Station, Inc. (GEMI): Range Increased, Next Crypto Moonshot Potentially On Deck
- Pre-IPO 160 Health (PHIP Updates) – Some Points Worth the Attention
Orion Breweries IPO – Deal Upsized; Lower End Looks Digestible
- Orion Breweries’ (409A JP) operations span across alcoholic beverages, tourism and hotel businesses. It aims to raise around US$162m in its Japan IPO which could increase to US$196m (including over-allotment).
- 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 the firm’s past performance and peer comparison. In this note, we talk about the pricing updates and IPO valuations.
Zijin Gold IPO Preview
- Zijin Gold is getting ready to complete its IPO in Hong Kong this year. A successful IPO of Zijin Gold could fetch as high as US$3 billion in IPO proceeds.
- Zijin Gold had sales of US$3.0 billion (up 32.2% YoY) in 2024. Net margin increased from 14.2% in 2023 to 20.8% in 2024.
- There has been a sharp increase in the gap between gold AISC (all-in-sustaining cost) and gold price in the past year, leading to higher profit margins of gold producers globally.
Urban Company IPO – Profitability Just Before the IPO Appears to Be a Mirage
- Urban Company (UCL IN) reported profits in FY25 after years of losses, but the improvement is largely due to temporary cost compression and one-off accounting adjustments.
- Revenue growth remains robust (INR11,445m in FY25 vs INR 6,366m in FY23), but profitability sustainability is questionable given competition and structural risks.
- Deferred tax credits (INR 2112m in FY25) inflated net profit to INR 2,398m despite thin operating profit (Adj. EBITDA only ₹121m, 1.06% margin).
Dalrymple Bay Infra Placement: Cleanup by Brooksfield; Valuation Is Fair
- Dalrymple Bay Infrastructure (DBI AT) is looking to raise around US$347m from a secondary placement.
- The deal is a large one to digest, representing 101.8 days of the stock’s three month ADV, despite being 24.4% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Kotak Mahindra Bank Placement – SMBC’s Kotak Exit to Power Yes Bank Entry
- Sumitomo Mitsui Banking Corporation (SMBC) aims to raise around US$700m via a cleanup of its 1.65% stake in Kotak Mahindra Bank (KMB IN).
- SMBC received RBI’s approval last month to buy a 24.99% stake in Yes Bank (YES IN). As per media reports,the cleanup is to procure funds for its Yes Bank stake.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Chery Auto Pre-IPO – Peer Comparison
- Chery Automobile is looking to raise about US$1.5bn in its upcoming Hong Kong IPO.
- Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
- We have looked at the company’s past performance in our previous notes. In this note, we undertake a peer comparison.
Annto Supply Chain Pre-IPO Tearsheet
- Annto Logistics Supply Chain Technology (ANNTO HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by Morgan Stanley and CICC.
- It is the leading integrated supply chain logistics solutions provider in China.
- According to CIC, it achieved the fastest revenue CAGR between 2022 and 2024, and is amongst the top five comprehensive integrated supply chain logistics solutions providers in China
MegaRobo Pre-IPO: Robotics Trend but Losses Widening
- MegaRobo Technologies (MRT HK) is looking to raise at least US$300m in its upcoming Hong Kong IPO.
- It is the leading provider of autonomous agents in robotics applications in China, dedicated to improving productivity and driving innovation for businesses across both laboratory and manufacturing settings.
- In this note, we provide updates on the firm’s past performance.
Gemini Space Station, Inc. (GEMI): Range Increased, Next Crypto Moonshot Potentially On Deck
- The underwriters raised the price range from $17–$19 to $24–$26, one of the largest upward revisions in recent memory.
- The underwriters re-filed a prospectus and added a $50 million concurrent private placement with Nasdaq on Tuesday morning.
- From our years of experience in IPOs and short-term forecasting, one rule stands above the rest: deal dynamics.
Pre-IPO 160 Health (PHIP Updates) – Some Points Worth the Attention
- This “high input, low output” model has led 160 Health into a profit predicament when its revenue failed to grow in tandem.The turnaround from losses to profits is far away.
- 160 Health operates as a distributor, but VBP has shifted more procurement activities to direct transactions between hospitals and manufacturers, thereby reducing pricing flexibility for intermediaries such as 160 Health.
- Valuation of 160 Health should be lower than PAGD, JD Health, Alibaba health, who have turned losses into profits and established mature business foundation and model, but higher than ClouDr.
💡 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
