In today’s briefing:
- POSCO Future M: A Rights Offering Capital Raise of 1.1 Trillion Won
- GENDA Placement – Good Track Record & Sort off Well Flagged but Relatively Large
- Unpacking Posco Future M’s Rights Offering Disclosed After Market Close Today
- Unisound Pre-IPO: Growing Steadily but Burning Cash
- Klarna IPO Valuation Analysis: Don’t Expect a Premium Multiple Relative to Affirm Holdings
- Busy Ming Group Pre-IPO Tearsheet
- Boxihe Outdoor Sports Pre-IPO Tearsheet
- Pre-IPO Xiamen Jihong Technology (PHIP Updates) – Lack of Sustainable Growth Logic
- Innogen (银诺医药) Pre-IPO First Take: Good News Is Also Bad News
POSCO Future M: A Rights Offering Capital Raise of 1.1 Trillion Won
- Posco Future M (003670 KS) announced today that it plans to complete a rights offering capital raise of 1.1 trillion won.
- The capital raise will involve 11.483 million new shares, representing 14.8% of current outstanding shares. The expected rights offering price is 95,800 won, which is 15.8% lower than current price.
- We have a Negative view on POSCO Future M and this capital raise, which is likely to have a negative impact on its shares due to the dilution risk.
GENDA Placement – Good Track Record & Sort off Well Flagged but Relatively Large
- GENDA (9166 JP), along with a selling shareholder, is looking to raise around US$190m to partly fund its M&A.
- Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Unpacking Posco Future M’s Rights Offering Disclosed After Market Close Today
- The pricing’s standard—20% discount, 14.82% dilution. First-round price on June 12, final on July 16. The 20% discount could offer a bigger arb window than Samsung SDI or Hanwha Aero.
- Posco Holdings confirmed full participation, taking half of the offering (500B+ KRW). With the ESOP in play, only 40% (400B KRW) remains, limiting potential trading upside despite the 20% discount.
- Future M’s down 8% in after-hours, Holdings 3.5%. The sharp drop follows no deal leaks and sector concerns, suggesting more downside tomorrow, with the price gap key for day-night trading.
Unisound Pre-IPO: Growing Steadily but Burning Cash
- Unisound AI Technology (1053075D CH) is looking to raise at least US$300m in its upcoming HK IPO.
- The firm specializes primarily in speech recognition and text-to-speech capabilities
- In this note, we look at the firm’s past performance.
Klarna IPO Valuation Analysis: Don’t Expect a Premium Multiple Relative to Affirm Holdings
- Klarna, a leading BNPL player in Europe, will try to push ahead with IPO in the second half of the year. The fintech unicorn plans to raise up to ~$1B.
- Klarna picked a not great time to take the company public, keeping in mind negative impact of Trump’s tariffs on BNPL players in the U.S. and European Union.
- I believe the company may price its IPO above last round valuation of ~$6.7B led by Sequoia Capital, Silver Lake, CPPIB, and Mubadala Investment Company, among others.
Busy Ming Group Pre-IPO Tearsheet
- Busy Ming Group Co., Ltd. (BMG) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by GS, Huatai, and DB.
- BMG is a leading F&B retailer in China, offering value-for-money products which are priced c.25% lower than the average for similar products available in the supermarket channel.
- It mainly operates under a franchised model and focuses mostly on third-tier cities and below.
Boxihe Outdoor Sports Pre-IPO Tearsheet
- Boxihe Outdoor Sports Group (BOS HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC and CITIC.
- BOS aspires to become a renowned leading outdoor brand globally, committed to providing high-performance outdoor garments and equipment.
- The firm began operations in 2012, with its core brand, Pelliot. Through Pelliot, BOS offered a wide range of products.
Pre-IPO Xiamen Jihong Technology (PHIP Updates) – Lack of Sustainable Growth Logic
- In order to maintain revenue growth, it’s necessary to continuously increase advertising investment. However, due to fierce market competition, the ROI from advertising is declining, leading to weak profitability.
- The big concern here is once Jihong’s e-commerce business loses its growth momentum, future performance will inevitably enter a downward trend. Jihong lacks a sustainable growth logic for the future.
- Jihong’s valuation could be about RMB3.2-4.3 billion, based on the valuation of cross-border social e-commerce business (P/E of 15-20x) + the valuation of traditional paper packaging business (P/E of 10-12x).
Innogen (银诺医药) Pre-IPO First Take: Good News Is Also Bad News
- Innogen, a China-based near-commercial stage biotech company, is looking to raise at least USD 100 million via a Hong Kong listing. CITIC Securities and CICC are the joint sponsors.
- In this note, we look at the company’s product pipeline, its pre-IPO investors, and management.
- Our initial view is that the stock will rely heavily on its sales ramp. Yet we are not seeing signs that the company is at full throttle post-NMPA approval.
💡 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
