In today’s briefing:
- Cleanaway (CWY AU): EQT Deal on Track, but the Vote Won’t Be a Formality
- A Tender Offer of 19% Stake in Hanwha Machinery & Service Holdings By Kim Dong-Seon
- Aequitas: DST Sustainable Pre-IPO – Strong Topline Growth, GIC and Blackrock Are Shareholders
- Soilbuild Construction Group (SGX: ZQM): Initiation Research (4 October 2026)
- Aequitas: Zetwerk IPO – Order Book Strength and Scale, but Losses and Cash Burn Persist
- Aequitas: Suzhou Dongshan Precision A/H Listing – PHIP Updates and Thoughts on A/H Premium
- ISDN Holdings: Asset-Light Industrial Consultancy with Hydro-Energy Infrastructure
- DTS IPO Bookbuilding Results Analysis
- Aequitas: Mi Materials IPO – Discount to Parent Co but In-Line with Larger/Liquid Peers
- HD Fire Protect IPO: A High-Margin Export Franchise
Cleanaway (CWY AU): EQT Deal on Track, but the Vote Won’t Be a Formality
- EQT has reconfirmed its A$3.13 offer (A$3.095 net of dividend) for Cleanaway Waste Management (CWY AU) three times. Financing is well covered, and a SID looks likely.
- Shares fell 3.6% to A$2.66 today, likely reflecting sell-the-news profit-taking, a third exclusivity extension, growing institutional opposition and the 22 October AGM overhang.
- The scheme vote should pass, as confirmed dissent (10.3%) is insufficient to block it, but industry funds (14%) joining and the AGM spill risk make it contested, not a formality.
A Tender Offer of 19% Stake in Hanwha Machinery & Service Holdings By Kim Dong-Seon
- Kim Dong-seon (third son of Hanwha Group Chairman Kim Seung-youn) has launched a tender offer of a 19% stake in Hanwha Machinery & Service Holdings (0220W0 KS) (HMSH).
- The tender offer is for 16.06 million common shares at 8,000 won per share, running from 12 October to 2 November.
- I have a positive view on this tender offer and on HMSH whose share price fell excessively post split and Kim Dong-seon is trying to capitalize on this price decline.
Aequitas: DST Sustainable Pre-IPO – Strong Topline Growth, GIC and Blackrock Are Shareholders
- DST Sustainable Technology Shenzhen Co Ltd (2659720D HK) DST Sustainable Technology is looking to raise US$400m in its upcoming Hong Kong IPO.
- DST Sustainable Technology (Shenzhen) is a leading provider of intelligent logistics electric vehicle (EV) management solutions in China.
- In this note, we look at the company’s past performance.
Soilbuild Construction Group (SGX: ZQM): Initiation Research (4 October 2026)
- Soilbuild Construction Group (“SBCG”) has moved from a S$31.7m net loss in FY2022 to a S$63.6m net profit in FY2025 and S$70.9m on a trailing twelve-month (TTM) basis as of 30 June 2026, as loss-making pre-COVID contracts rolled off, gross margin widened to 15.8% and a S$647.5m PSA award in 2024 took the order book above S$1.0b.
- Net cash of S$136.6m at 30 June 2026 is 40.9% of its S$334.2m market capitalisation.
- The shares are 54.9% below their February 2026 high and close to their 52-week low, as the order book has declined to S$800.0m, about 1.3 years of TTM revenue.
Aequitas: Zetwerk IPO – Order Book Strength and Scale, but Losses and Cash Burn Persist
- Zetwerk Manufacturing Businesses (1834044D IN, ZMBL) is looking to raise around US$525m in its India IPO, having upsized from an earlier estimated size of about US$440m.
- ZMBL is a technology-led manufacturing platform for industrial and consumer goods in India and globally,built with exposure to renewable energy, power infrastructure, electronics, defence and industrial products.
- In this note, we look at the firm’s past performance as of the updated RHP filings.
Aequitas: Suzhou Dongshan Precision A/H Listing – PHIP Updates and Thoughts on A/H Premium
- Suzhou Dongshan Precision A (002384 CH) (SDPM), a global PCB and other component provider, aims to raise up to US$3bn in its H-share listing.
- SDPM was the third largest PCB supplier and seventh largest global transceiver supplier by revenue in 2025, according to CIC.
- We have looked at the company’s past performance in our previous note. In this note, we talk about the recent updates and likely A/H premium.
ISDN Holdings: Asset-Light Industrial Consultancy with Hydro-Energy Infrastructure
- ISDN revenues are highly leveraged to Chinese economy with 61.1% of FY2025 revenue coming from China’s industrial sector.
- Largely a result of its consultancy (asset-light) model, from providing bespoke solutions and a full-service suite across different hardware equipment procurement & servicing to unifying software protocols for Industrial Automation clients.
- Recent efforts to diversify into higher margin Hydro-Electric portfolio seems to be paying off with an estimated 16% of revenue coming from its Indonesian hydropower business (denominated in USD).
DTS IPO Bookbuilding Results Analysis
- DTS finalized its IPO price at 18,500 won (high end of IPO price range). A total of 2,381 institutions participated in the demand forecasting. Demand ratio was 983.98 to 1.
- Based on the finalized offering price, the total proceeds from the IPO amount to approximately 41.2 billion won, and the company’s expected market capitalization post-listing is around 275.3 billion won.
- My base case valuation of DTS is a target price 29,360 won per share, which is 59% higher than the IPO price (18,500 won).
Aequitas: Mi Materials IPO – Discount to Parent Co but In-Line with Larger/Liquid Peers
- Mi Material Holding Ltd (MIMH SP), aims to raise up to US$110m in its SGX listing.
- It is a global manufacturer of semiconductor advanced packaging materials, established in 1998 and operating as the Semiconductor Material Business Unit (SMBU) spun off from Mi Technovation Berhad (MI MK).
- In this note, we look at its past performance, valuation, and other deal dynamics that might impact the listing.
HD Fire Protect IPO: A High-Margin Export Franchise
- HD Fire Protect is entering the public market through an entirely secondary offer worth Rs. 712.31 crore at the upper price band. Subscription is scheduled for 13–15 October 2026.
- A specialised maker of sprinklers, valves, foam systems and engineered fire-protection equipment, the company combines broad international product approvals with exports to more than 90 countries.
- FY26 operating EBITDA margin of 30.75% and RoCE of approximately 40.3% indicate a comparatively profitable, capital-efficient franchise; nevertheless, FY26 PAT increased only 6.4%, and margin pressure continued in Q1 FY27.
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