In today’s briefing:
- Xtep International Placement – Parent Trimming at ATHs, Last Deal Didn’t Do Well
- WCP IPO: Additional Important Considerations
- Signature Global (India) Pre-IPO Tearsheet
- Pre-IPO Best Wellness Innovation Group – Here Are the Concerns
Xtep International Placement – Parent Trimming at ATHs, Last Deal Didn’t Do Well
- Group Success Investments is looking to raise up to US$133m by trimming its holdings in Xtep International (1368 HK).
- We can’t say that the deal is expected and short interest on the stock hasn’t been creeping up as well.
- While the deal won’t be a large one, representing just 5.7 days of three month ADV, the firm’s last deal hasn’t done well.
WCP IPO: Additional Important Considerations
- We remain Bearish on the WCP IPO. Our base case valuation of WCP is implied market cap of 3.0 trillion won and target price of 87,805 won per share.
- In this insight, we highlight four additional important considerations to the WCP IPO including comparison to SK IE Technology, 1Q22 earnings comparison, higher IPO discount, and overly optimistic EBITDA estimates.
- We would categorize WCP as an excellent company but not exceptional as HPSP. Therefore, the weak market conditions will likely have a negative impact on the WCP IPO pricing.
Signature Global (India) Pre-IPO Tearsheet
- SignatureGlobal India Pvt Ltd (1468641D IN) is looking to raise around US$125m in its upcoming India IPO. The deal will be run by Axis, ICICI, and Kotak.
- Signature Global is a real estate development company in India, with its primary operations being the development of residential real estate projects in the affordable and mid segment.
- As of FY22, it had completed five projects with a land area of 34.9 acres and an aggregate saleable area of 2.86m sqft.
Pre-IPO Best Wellness Innovation Group – Here Are the Concerns
- The growth in revenue and profit was mainly driven by the face mask business, but this business has ceased, which raises the concerns on future growth momentum of Best Wellness.
- Best Wellness’s weak performance of its own-brand business would prevent it from standing out in the fierce market competition in the long term.
- Together with over-reliance on limited customers and the complex international relations, we are conservative about the Company’s outlook at the current stage.
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