In today’s briefing:
- Wuxi Biologics Placement – Smaller Deal than Previous as Last Didn’t Do Well, Overhang Remain
- Medtronic Plc. (NYSE: MDT) To Separate Its Diabetes Business
- Kitazato IPO: Domestic Market Challenged by Structural Changes; Limited Prospect in Overseas Market
- Cyberdyne (7779 JP) – Ongoing Improvement in Reducing Operating Loss
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.
Medtronic Plc. (NYSE: MDT) To Separate Its Diabetes Business
- The separation will occur via a two step transaction – an initial minority IPO carve-out followed by a split-off of the remaining stake.
- Two-Step separation allows investors an early opportunity to assess and value the Diabetes business independently, while Medtronic ultimately divests full ownership over time. Diabetes business could be valued between $8-$11B.
- The move will allow Medtronic to focus on its faster-growing, higher-margin businesses such as pulsed field ablation and renal denervation.
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.
Cyberdyne (7779 JP) – Ongoing Improvement in Reducing Operating Loss
- Cleared two major hurdles, accelerating the path to profitability – Management executed a large-scale restructuring of the U.S. subsidiary RISE Healthcare Group (RHG) and completed the divestiture of the underperforming LeyLine business.
- These actions have materially contributed to narrowing operating losses and advancing the group’s overall turnaround.
- Overseas drove the growth of the Product Rental business – FY results showed strong overseas performance in the Product Rental segment, led by demand from Ukraine and Malaysia.
💡 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
