In today’s briefing:
- Pony.AI Hong Kong IPO Preview
- BETA Technologies (BETA): Electric Aircraft Maker Revenue Tail Intrigues IPO Investors
- Orkla India IPO Review: Strong Brands and Valuations Are Not Too Spicy
- Pre-IPO Hangzhou Diagens Biotechnology – The Turning Point of Medical Imaging AI Has Not Arrived
Pony.AI Hong Kong IPO Preview
- Pony.ai is getting ready to complete its IPO in Hong Kong in the coming weeks. Pony.ai is one of the leading autonomous driving companies in China.
- Pony.ai plans to sell 41.96 million Class A shares under its global offering in Hong Kong, including 4.2 million shares for Hong Kong retail investors.
- The maximum offer price of the Hong Kong IPO is HK$180 (US$23) per share, which could value the company at more than US$10 billion.
BETA Technologies (BETA): Electric Aircraft Maker Revenue Tail Intrigues IPO Investors
- Each aircraft is projected to produce roughly $13 million in lifetime revenue at a 50% margin, driven largely by recurring battery replacement and service contracts.
- There are $300 million in anchor orders and a 5% directed share program. The deal is reportedly more than 10-times oversubscribed, according to our sources.
- The potential for Beta Technologies as a company is immense in a market with few operators. The critical story surrounding the recurring battery-driven economics makes this IPO highly-intriguing.
Orkla India IPO Review: Strong Brands and Valuations Are Not Too Spicy
- Orkla India owns two popular Indian food product brands ‘MTR’ and ‘Eastern that offer Ready to Cook/Eat products as well as pure and blended spices.
- Both its brands enjoy strong brand heritage in India as well as countries with a higher proportion of the Indian diaspora.
- IPO is being valued at TTM PE of 40x (lower end of 35-90x ascribed to Indian FMCGs). With a low double-digit growth profile and high ROCEs, valuations look reasonable.
Pre-IPO Hangzhou Diagens Biotechnology – The Turning Point of Medical Imaging AI Has Not Arrived
- The willingness of hospitals/patients to purchase medical AI products/services is still not strong enough. The real turning point for the commercialization of medical AI hasn’t arrived yet.
- The small revenue scale reflects that Diagens’ products have not received widespread recognition from the medical system. Market education cost would be high, leading to increasing selling and distribution expenses
- Valuation should be higher than Basecare (2170 HK) who just focuses on testing kits in assisted reproduction, but should be lower than Xunfei Healthcare, who has better commercialization performance/channels advantage.
💡 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
