In today’s briefing:
- Wuxi XDC IPO: Forecasts and Valuation
- Prime Market Is Still the Market with the Most Listed Companies Even After 171 Companies Are Removed
- Rubicon Organics, Inc. – Water Tower Hour Recap
Wuxi XDC IPO: Forecasts and Valuation
- Wuxi plans to issue 178.4m shares at an indicative IPO price range of HK$19.9-20.6 per share and will raise net proceeds of US$479m at the midpoint of the IPO price.
- The company’s revenues have seen robust growth during the last 3-years driven by growth in ADC outsourcing market while margins have continued to decline.
- We have valued WuXi XDC Cayman (1877628D HK) using a DCF valuation which offers price per share of HK$23.44, 15.7% higher than the midpoint of the IPO price of HK$20.25.
Prime Market Is Still the Market with the Most Listed Companies Even After 171 Companies Are Removed
- The baseless confidence of the 177 companies that finally moved to Standard Market that their market capitalization would increase in18 months was nothing more than a waste of time.
- It is fine for a company to aim to be listed on the highest prime market, but high shareholder returns and quality management must come first.
- If the listing criteria for prime market was JPY100 billion market capitalization, the gap with investors who initially expected prime market before the market restructuring would have been much smaller.
Rubicon Organics, Inc. – Water Tower Hour Recap
- Rubicon Organics is a leading producer of premium cannabis products in Canada.
- In a challenging market, the company is differentiated by offering top-shelf, organically grown flower in the higher-margin premium market.
- Interim CEO, CFO, and Director Margaret Brodie joined us on The Water Tower Hour to discuss how Rubicon is overcoming the common Canadian obstacles.
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