In today’s briefing:
- SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off
- Trial Holdings IPO: The Bull Case
- ZKH Group Pre-IPO – If Only Its Growth Was Sustainable
- Trial Holdings Pre-IPO – The Negatives – Wafer-Thin Margins
- Adicon Holdings Pre-IPO Tearsheet
- DISH Network Corporation: Initiation of Coverage – Potential DirecTV Merger & Other Developments
- WestRock Company: Initiation of Coverage – Business Strategy & Key Drivers
SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off
- SBI Sumishin Net Bank (7163 JP) has introduced a price range of JPY1,200-1,260 per share in the wake of a sell-off in bank shares. Offer shares and timelines are unchanged.
- We previously discussed the IPO in SBI Sumishin Net Bank IPO: The Investment Case and SBI Sumishin Net Bank IPO: Valuation Insights. The shares will be listed on 29 March.
- Our analysis suggests that SBI Sumishin Net Bank is fairly valued at the new IPO price range. We would participate in the IPO.
Trial Holdings IPO: The Bull Case
- Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$380 million at the IPO reference price of JPY2,000. Pricing on 26 March.
- Trial aims to act as a one-stop shopping store where a consumer can buy whatever they want at a great price. Trial’s basic pricing strategy is Every Day Low Price.
- The key elements of the bull case rest on top quartile revenue growth, encouraging same-store sales growth, solid margin profile and cash generation.
ZKH Group Pre-IPO – If Only Its Growth Was Sustainable
- ZKH Group (ZKH US) is looking to raise about US$300m in its upcoming US IPO.
- ZKH Group is a leading maintenance repair and operations (MRO) procurement service platform in China, according to CIC, providing one-stop MRO procurement and management services and digital and fulfillment solutions.
- ZKH Group’s revenue has been primarily driven by its product sales segment during the track record period. However, its GMV growth slowed dramatically and its sales growth doesn’t appear sustainable.
Trial Holdings Pre-IPO – The Negatives – Wafer-Thin Margins
- Trial Holdings (5882 JP) is looking to raise around US$375m in its Japan IPO.
- TH operates a network of retail stores that offer one-stop shopping under its everyday low price model, across a variety of daily necessities, food items and other products.
- In this note, we will talk about the not-so-positive aspects of the deal.
Adicon Holdings Pre-IPO Tearsheet
- ADICON Holdings Limited (ADI HK) is looking to raise about US$400m in its upcoming HK IPO. The deal will be run by Morgan Stanley and CICC.
- Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&S.
- It offers comprehensive testing services primarily to hospitals and health check centers through an integrated network of self-operated laboratories across China.
DISH Network Corporation: Initiation of Coverage – Potential DirecTV Merger & Other Developments
- This is our first report on DISH Network Corporation, a leading provider of television entertainment and technology.
- DISH’s wireless and broadband networks, as well as DISH and Sling services, are still up and running and functioning regularly.
- DISH Network further launched Samsung-supported sites for the DISH Wireless 5G network, kicking off Samsung’s participation in the operator’s nationwide rollout.
WestRock Company: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on WestRock Company, one of the largest providers of fiber-based paper and packaging solutions in the world.
- Pension and foreign exchange rates also had a $57 million negative impact on its year-over-year consolidated adjusted EBITDA growth.
- But Corrugated Packaging improved quarter over quarter, with North American packaging shipments increasing 2% to 373 million square feet per day.
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