In today’s briefing:
- Zhejiang Sanhua Intelligent Controls A/H Listing – Relatively Large but Digestible
- Vishal Mega Mart IPO Lockup Expiry – US$4bn Lockup Release with PE Sitting on 10x Gains
- Hann Holdings, Inc. Pre-IPO Tearsheet
- Wuxi Biologics Placement – Smaller Deal than Previous as Last Didn’t Do Well, Overhang Remain
- Kitazato IPO: Domestic Market Challenged by Structural Changes; Limited Prospect in Overseas Market
- Sanhua Intelligent Controls H Share Listing (2050 HK): Valuation Insights
- Jefferson Capital Inc (JCAP): Profitable Insolvency Account Manager Sets Terms for IPO
Zhejiang Sanhua Intelligent Controls A/H Listing – Relatively Large but Digestible
- Zhejiang Sanhua Intellignt Controls Co., Ltd. (002050 CH) (ZSIC), a manufacturer of refrigeration and air-conditioning control components, aims to raise around US$1bn in its H-share listing.
- ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.
Vishal Mega Mart IPO Lockup Expiry – US$4bn Lockup Release with PE Sitting on 10x Gains
- Vishal Mega Mart raised around US$950m in its India IPO. Its IPO linked lockup will expire soon.
- Vishal Mega Mart Limited (VMM), is a one-stop retail destination. As per the company it targets middle and lower-middle income consumers across India.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Hann Holdings, Inc. Pre-IPO Tearsheet
- Hann Holdings, Inc. is looking to raise about US$232mn in its upcoming Philippines IPO. The deal will be run by BDO, CLSA, China Bank, PNB Cap, and Asia United Bank.
- It operates the leading integrated gaming, hospitality, and luxury resort business in Clark, Philippines, with the highest market share (47.3%) in Clark’s land-based casino market.
- It owns and operates two of the only three five-star hotels in Central Luzon: Clark Marriott Hotel and Swissôtel Clark Philippines.
Wuxi Biologics Placement – Smaller Deal than Previous as Last Didn’t Do Well, Overhang Remain
- Wuxi Biologics Holdings is looking to raise up to US$288m by selling about 2% of Wuxi Biologics (2269 HK).
- This is the company’s 17th placement since it listed in June 2017.
- In this note, we talk about the updates since then and run the deal through our ECM Framework.
Kitazato IPO: Domestic Market Challenged by Structural Changes; Limited Prospect in Overseas Market
- Kitazato (368A JP) will debut on the Tokyo Stock Exchange’s Prime market on June 25th, with existing shareholders offering 14m shares at an indicative price range of ¥1,300-1,340 per share.
- Given a structurally challenging domestic market, Kitazato has expanded its operations globally, however, its overseas operations have seen very limited traction over the years.
- With growth rates expected to plateau, dividends are the only enticing thing and we think the IPO should be priced at a discount to compensate for the concerns.
Sanhua Intelligent Controls H Share Listing (2050 HK): Valuation Insights
- Zhejiang Sanhua Intelligent Controls (2050 HK) has launched its H Share listing at HK$21.21 to HK$22.53 per H Share. Pricing will be on 19 June.
- I discussed the H Share listing in Sanhua Intelligent Controls H Share Listing: The Investment Case.
- The proposed AH discount of 20.2%-24.9% (based on 12 June A Share price) is attractive and I would participate in the H Share listing.
Jefferson Capital Inc (JCAP): Profitable Insolvency Account Manager Sets Terms for IPO
- Jefferson Cap is offering 10.0mm shares at $15.00-$17.00 equating to a market cap of $972m-$1.1b and will debut on June 26th.
- The company is backed by J.C. Flowers and the majority of this IPO, 9.375mm shares, is secondary with J.C. Flowers offering 7.76mm shares and Canaccede offering 1.6mm.
- Debt buying companies have a vastly different profile than a Chime, CoreWeave or Voyager or Circle which has major, scalable tailwinds.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
Unlock all research summaries