In today’s briefing:
- Merger Arb Mondays (16 June) – Mayne, Pointsbet, Fengxiang, HKBN, Seven & I, Shibaura, Smartpay
- Kitazato (368A JP): Greenshoe Nudges It Closer to Global Index Inclusion, but Shortfall Remains
- Shanghai Junshi Bioscience (1877 HK): Placement Good, A Long Term Bet for Sure
- Pre-IPO Bayzed Health Group (PHIP Updates) – Some Points Worth the Attention
- Inventurus IPO Lockup: US$2.4bn Lockup Release; Pre-IPO Investors May Monetize
Merger Arb Mondays (16 June) – Mayne, Pointsbet, Fengxiang, HKBN, Seven & I, Shibaura, Smartpay
- We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: Mayne Pharma (MYX AU), Insignia Financial (IFL AU), ENN Energy (2688 HK), Smartpay Holdings (SPY NZ), Seven & I Holdings (3382 JP), Smart Share Global (EM US).
- Lowest spreads: Bright Smart Securities And (1428 HK), Avjennings Ltd (AVJ AU), Toyota Industries (6201 JP), Nippon Road (1884 JP), AEON Mall (8905 JP), Nissin Corp (9066 JP).
Kitazato (368A JP): Greenshoe Nudges It Closer to Global Index Inclusion, but Shortfall Remains
- Kitazato (368A JP) is forecasted to fail the market cap and float cap threshold of Global-F SmallCap even with the full exercise of the greenshoe.
- Kitazato (368A JP) is expected to come close but miss the float cap threshold of Global-M SmallCap.
- The full exercise of the greenshoe increases the probability of inclusion in Global-M SmallCap at the November 2025 review.
Shanghai Junshi Bioscience (1877 HK): Placement Good, A Long Term Bet for Sure
- Shanghai Junshi Biosciences (1877 HK) is placing 41M H shares for subscription at HK$25.35 per H Share.
- Shanghai Junshi intends to use 70% of the net proceeds from the placement for innovative drug development and balance 30% for general corporate purposes such as replenishment of working capital.
- Early green shoots in the form of lower R&D expenses and narrowing losses. Junshi offers for a good long-term bet as the company turning profitable will take some time.
Pre-IPO Bayzed Health Group (PHIP Updates) – Some Points Worth the Attention
- The positioning of Bayzed is just “a supplement to public hospitals system”, with limited scale and competitiveness, which is a point that investors may need to be aware of.
- A big problem in the operation of Bayzed is the loss status/weak profitability. At current gross margin level, it would be difficult for Bayzed to deliver good returns for investors.
- Valuation of Bayzed should be lower than Inkon Life Technology and Hygeia. The Pre-IPO valuation is not cheap, and the valuation upside potential may be limited considering weak profitability.
Inventurus IPO Lockup: US$2.4bn Lockup Release; Pre-IPO Investors May Monetize
- Inventurus Knowledge Solutions (IKSINCD IN) raised around US$295m in its India IPO in Dec 2024. The lockup on its pre-IPO investors is set to expire soon.
- It is a technology-enabled healthcare solutions provider, assisting physician enterprises in US, Canada and Australia, with a core focus in the US.
- In this note, we will talk about the lockup dynamics and possible placement.
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