In today’s briefing:
- Tekscend Photomask (429A JP) IPO: The Bull Case
- Ecopro Co – Confirms Raising 800 Billion Won Through a PRS Using Stake in Ecopro BM
- Chery Automobile IPO (9973 HK) IPO: Trading Debut
- Chery Auto IPO (9973.HK): Modest Potential Upside, Geely Auto Screens As a Good Comparison
- Tekscend Photomask IPO – The Positives – Strong Market Position
- Groww Pre-IPO Tearsheet
- Fermi Inc. (FRMI): Pre-Revenue Data Center REIT Sets Terms Seeking $13.2b Valuation
- Nippon Steel Placement – Relatively Small Deal with Recent Pick-Up in Momentum
- NOBA Bank: Flash Note on Valuation Ahead of Stockholm IPO
- Chery Auto IPO Trading – Half Decent Demand
Tekscend Photomask (429A JP) IPO: The Bull Case
- Tekscend Photomask (429A JP) is a global leader in semiconductor photomasks. It is seeking to raise up to JPY123 billion (US$832 million). Pricing is on 30 September.
- Tekscend, which was carved out of Toppan Printing (7911 JP) in 2022, is owned by Toppan (with a 50.1% stake) and Integral (5842 JP) (with a 49.9% stake).
- The bull case rests on its leading market position, attractive market opportunity, stable underlying margins, net cash position, and attractive dividend policy.
Ecopro Co – Confirms Raising 800 Billion Won Through a PRS Using Stake in Ecopro BM
- On 24 September, Ecopro Co confirmed that it will be raising 800 billion won through a PRS using its stake in Ecopro BM as the base asset.
- Ecopro BM has a market cap of 11.3 trillion won. A PRS worth 800 billion won represents 7.1% of Ecopro BM’s market cap.
- All in all, we believe this PRS deal worth 800 billion won is likely to negatively impact both Ecopro Co and Ecopro BM.
Chery Automobile IPO (9973 HK) IPO: Trading Debut
- Chery Automobile (9973. HK) priced its IPO at HK$30.75 per share to raise gross proceeds of approximately US$1.2 billion. The shares will begin trading on September 25.
- The IPO was discussed in Chery Automobile IPO: The Bull Case, Chery Automobile IPO: The Bear Case and Chery Automobile IPO (9973 HK): Valuation Insights.
- The market sentiment of the peers has declined since the IPO launch. Chery Auto is fairly valued at the IPO price.
Chery Auto IPO (9973.HK): Modest Potential Upside, Geely Auto Screens As a Good Comparison
- Chery Auto, the second largest Chinese domestic brand passenger vehicle company, priced its IPO at the high end of the range at HK$30.75/share.
- High demand for the stock was predictable. Cornerstone investors collectively agreed to acquire ~$588M worth of Chery Auto shares in this offering.
- The Chery Auto stock is set to start trading on Thursday. I see modest potential upside vs. IPO offer price as growth is slowing down and margins compressed.
Tekscend Photomask IPO – The Positives – Strong Market Position
- Tekscend Photomask (429A JP) (TP), a manufacturer and distributor of semiconductor photomasks, aims to raise around US$830m in its Japan IPO.
- TP is a global provider of photomasks and related support services. It has been the leader in the merchant photomask market in terms of sales since 2016.
- In this note, we talk about the positive aspects of the deal.
Groww Pre-IPO Tearsheet
- Groww (1573648D IN) is looking to raise up to US$803m in its upcoming India IPO. The deal will be run by JPM, Kotak, Axis, Citi and Motilal Oswal.
- Groww, officially called Billionbrains Garage Ventures, is a direct-to-customer (D2C) digital investment platform that provides multiple financial products and services.
- According to the Redseer Report, Groww was India’s largest and fastest growing investment platform by active users on NSE as of June 30, 2025.
Fermi Inc. (FRMI): Pre-Revenue Data Center REIT Sets Terms Seeking $13.2b Valuation
- Fermi set terms for its IPO on Wednesday afternoon and will offer 25 million shares at $18-$22 and to debut on Wednesday, 10/1.
- One of Fermi’s founders is former energy sector director, Rick Perry.
- The underwriters have reserved for sale at the initial public offering price up to 5% of the shares of common stock for sale through a directed share program.
Nippon Steel Placement – Relatively Small Deal with Recent Pick-Up in Momentum
- POSCO Holdings (005490 KS) is looking to raise up to US$169m via selling some of its stake in Nippon Steel Corporation (5401 JP).
- This deal represents 1.5 days of ADV representing around 0.7% of shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
NOBA Bank: Flash Note on Valuation Ahead of Stockholm IPO
- I view the fixed IPO price of SEK70/share (SEK35bn) as a very attractive entry point.
- Based on 2026e numbers the IPO price of SEK70 (SEK35bn) represents 2x P/TBV, 8.2x P/E. I see the stock trading to SEK47.2bn near term and climbing above with further upside.
- I This represents 35% upside vs. peer benchmark fair value on a P/TBV basis. On a P/E basis there’s potential for further upside to SEK56.8bn, or 62%.
Chery Auto IPO Trading – Half Decent Demand
- Chery Automobile (9973 HK) raised around US$1.2bn in its Hong Kong IPO.
- Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
- We have looked at the company’s past performance in our previous notes. In this note, we talk about the trading dynamics.
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