In today’s briefing:
- Zijin Gold IPO (2259 HK): Trading Debut
- Tekscend Photomask (429A JP) IPO: Valuation Insights
- [Japan ECM] MIGALO Holdings (5535 JP) Offering to Raise Capital, Generate Interest
- Tekscend Photomask IPO – Peer Comparison
- The Pinkfong Company IPO Valuation Analysis
- Neptune Insurance Holdings Inc. (NP): Investors See Upside in Private Option to Flood Insurance
- Zijin Gold (2259 HK) IPO Debut – Some Points Worth the Attention
- Zijin Gold : Listing Pop Likely. Know Your Thresholds. Avoid Valuation Pitfalls.
- Sunway Healthcare Pre-IPO Tearsheet
- Zijin Gold IPO Trading: Decent Retail but Strong Insti Demand
Zijin Gold IPO (2259 HK): Trading Debut
- Zijin Gold (2259 HK) priced its IPO at HK$71.59 per share to raise gross proceeds of approximately US$3.2 billion. The shares will begin trading on September 30.
- The IPO was discussed in Zijin Gold IPO: The Investment Case and Zijin Gold IPO (2259 HK): Valuation Insights.
- The market sentiment of the peers has increased since the IPO launch. My analysis suggests that the IPO price range is attractive.
Tekscend Photomask (429A JP) IPO: Valuation Insights
- Tekscend Photomask (429A JP) is a global leader in semiconductor photomasks. It is seeking to raise up to JPY123 billion (US$828 million). Pricing is on 30 September.
- I previously discussed the IPO in Tekscend Photomask (429A JP) IPO: The Bull Case and Tekscend Photomask (429A JP) IPO: The Bear Case.
- In this note, I present my forecasts and discuss valuation. My analysis suggests that Tekscend is attractively valued at the IPO price range compared to peer multiples.
[Japan ECM] MIGALO Holdings (5535 JP) Offering to Raise Capital, Generate Interest
- Migalo Holdings (5535 JP) is one of the rare TSE Prime-listed companies which got the boot from TOPIX, stayed in Prime, and is clawing its way back.
- As of end-March-25, it met all the criteria to stay in Prime and rejoin TOPIX. Now they are launching a primary offering, and this may presage an effort to rejoin.
- They are adding float and 10% of shares to the pile, in this ¥4.4-5.0bn offering. But instos are net short this stock.
Tekscend Photomask IPO – Peer Comparison
- Tekscend Photomask (429A JP), 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.
- We have looked at the company’s past performance in our previous note. In this note, we will undertake a peer comparison.
The Pinkfong Company IPO Valuation Analysis
- Our base case valuation of the Pinkfong Co is implied market cap of 671.4 billion won or target price of 46,369 won per share (over the next 6-12 months).
- This represents a 22% upside to the high end of the IPO price range. Given the reasonable upside, we have a Positive view of the Pinkfong Co IPO.
- Pinkfong Co is one of the most sought-after acquisition candidates in the global animation industry and this is one of the major reasons why it should trade at premium valuation.
Neptune Insurance Holdings Inc. (NP): Investors See Upside in Private Option to Flood Insurance
- Neptune Insurance is seeing strong demand in its pre-IPO roadshow, with channel checks revealing that the deal is multiple-times oversubscribed—north of 10x.
- Financially, Neptune has delivered impressive profitability. In 2024 it generated $119.3 million in revenue, $34.6 million in net income, and $72.1 million in adjusted EBITDA.
- The company is efficient and profitable and they believe they have a SaaS-like scalability which, in our opinion, investors will be able to properly forecast out.
Zijin Gold (2259 HK) IPO Debut – Some Points Worth the Attention
- Based on DCF model, valuation is about US$28.4 billion. We think this is the valuation bottom line. Conservative investors can take profits at this valuation level.
- Valuation has the potential to reach US$34-42bn (or 18-22x P/E ) if based on 2025 forecast.Optimistic investors can choose to wait for stock price to fall within this valuation range.
- Considering better profitability/shareholder resources, Zijin Gold has more advantage than Shandong Gold Mining. Therefore, market value of Zijin Gold will widen the gap with Shandong Gold Mining in the future.
Zijin Gold : Listing Pop Likely. Know Your Thresholds. Avoid Valuation Pitfalls.
- Riding on strong investor demand, Zijin Gold (2259 HK) has exercised its over-allotment option, boosting the total IPO size to USD 3.7 billion from USD 3.2 billion previously.
- As Hong Kong’s only pure-play gold miner with global exposure, Zijin Gold may command a premium, though any sharp price gains still depend on sustained gold price strength.
- Investors should define their medium- to-long-term gold price thresholds to shape a clear post-IPO strategy for Zijin Gold.
Sunway Healthcare Pre-IPO Tearsheet
- Sunway Healthcare (2268774D MK) is looking to raise at least US$800m in its upcoming Malaysia IPO. The deal will be run by AmInvestment Bank, Maybank, CIMB, HSBC, Jefferies and UBS.
- It is one of the largest private hospital groups and only private hospital group (among major private hospital groups) in Malaysia that provide services covering the full lifecycle of care.
- The firm’s flagship hospital, Sunway Medical Centre Sunway City Kuala Lumpur, in Subang Jaya, Selangor, which is a quaternary hospital, commenced operations in November 1999.
Zijin Gold IPO Trading: Decent Retail but Strong Insti Demand
- Zijin Gold (2259 HK) raised around US$3.2bn in its Hong Kong IPO.
- It is a global leading gold mining company formed by combining all of the gold mines of Zijin Mining, located outside of China.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
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