In today’s briefing:
- Postage Fraud Case Update: Guilty Plea, Asset Forfeiture, & Restitution Set at a Whopping US$158 Mn!
- Pre-IPO Sichuan Baicha Baidao Industrial (PHIP Updates) – Some Points Worth the Attention
- ECM Weekly (15th Apr 2024) – Hyundai Marine, Bharti, Kayou, Zeekr, ChaPanda, Samsung, WT Micr, Sompo
- Vodafone Idea Placement – Very Well Flagged but Its Not Going to Fix a Whole Lot of Issues
Postage Fraud Case Update: Guilty Plea, Asset Forfeiture, & Restitution Set at a Whopping US$158 Mn!
- A week ahead of trial, a defendant in massive fraud case copped a plea
- Terms of deal include guilty plea, asset forfeiture, restitution of US$158 mn
- US investigation continues; are other Chinese companies involved in case?
Pre-IPO Sichuan Baicha Baidao Industrial (PHIP Updates) – Some Points Worth the Attention
- Baicha Baidao’s profit model doesn’t rely on tea drink sales, but on continuous expansion of store size.However, rapid expansion brought by the franchise model has led to significant management challenges.
- The profitability/market attractiveness of ChaPanda stores are declining, which not only reflects franchisees’ concerns about future profit prospects,but also reflects the market’s re-evaluation of the attractiveness of Baicha Baidao brand.
- Although current financial performance of Baicha Baidao seems acceptable, after IPO, its performance could decline year by year, leading to a collapse in stock price/valuation if this is the case.
ECM Weekly (15th Apr 2024) – Hyundai Marine, Bharti, Kayou, Zeekr, ChaPanda, Samsung, WT Micr, Sompo
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, the focus remained on HD Hyundai Marine Solution (443060 KS), even as Sichuan Baicha Baidao Industrial is gearing up to launch its IPO.
- On the placement front, there were deals across India, South Korea and Australia.
Vodafone Idea Placement – Very Well Flagged but Its Not Going to Fix a Whole Lot of Issues
- Vodafone Idea (IDEA IN) plans to raise around US$2.2bn via a follow-on public offering.
- The deal has been in the works for years and proceeds will be used for capex and short-term debt repayment.
- In this note, we will run the deal through our ECM framework and talk about the deal dynamics.
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