Daily Brief ECM: Skymark Airlines Pre-IPO - Highly Leveraged with a History of Bankruptcy and more

In today’s briefing:

Skymark Airlines Pre-IPO – Highly Leveraged with a History of Bankruptcy
2023 High Conviction: Chindata’s Track Record & Rating Makes It a Takeover Target
DPC Dash Pre-IPO – The Positives – On a Rapid Expansion Spree

Skymark Airlines Pre-IPO – Highly Leveraged with a History of Bankruptcy

Skymark Airlines (9204 JP) is looking to raise approximately US$218m in its upcoming Japan IPO.
Skymark Airlines (SA) is a Japanese low-cost airline, being the third largest domestic airline according to the company. Unlike major airlines and other low-cost carriers, Skymark operates only domestic flights.
In this note, we talk about the company’s past performance.

Chindata Group (CD US)’s 3Q22 results beat both revenue and adjusted EBITDA consensus estimates. Chindata raised its full-year guidance for the second time this year.
Chindata continues to attract rumours of takeover interest, most recently from China Merchants. Its track record of beating guidance, modest leverage and beaten-down rating make it a target.
A forward EV/EBITDA multiple of 10.8x, in line with 21Vianet Group (VNET US)’s multiple implied by its founder’s offer (at US$8.20), would imply Chindata’s price of US$8 per ADS.

DPC Dash aims to raise around US$100m in its Hong Kong IPO.
The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 562 stores across 13 cities, as of Nov 2022.
In this note, we will talk about the positive aspects of the deal.

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