In today’s briefing:
- Doosan Bobcat Placement – Past Deals Have Been Mixed but the Stock Has Been Doing Well
- Doosan Bobcat Block Deal Sale: Concerned About North America Construction Sector Downturn
- J&T Global Express IPO: The Bear Case
- ASK Automotive Pre-IPO Tearsheet
Doosan Bobcat Placement – Past Deals Have Been Mixed but the Stock Has Been Doing Well
- Doosan Enerbility (034020 KS) aims to raise around US$220m via selling around 4.9% of Doosan Bobcat Inc (241560 KS) .
- This will be the third selldown in the company in less than a year with the previous two deals in Nov 22 and May 23 having delivered mixed results
- In this note, we will run the deal through our ECM framework and comment on other deal dynamics.
Doosan Bobcat Block Deal Sale: Concerned About North America Construction Sector Downturn
- After the market close on 20 June, Doosan Enerbility announced that it will sell 5 million shares of Doosan Bobcat through a block deal worth about 300 billion won.
- The block deal price range is from 54,800 won to 56,200 won, which represents a discount range from 6.18% to 8.51% (versus current price).
- We have a negative view of Doosan Bobcat block deal as we expect lower share price of Doosan Bobcat in 2H 2023 due to construction sector downturn in North America.
J&T Global Express IPO: The Bear Case
- J&T Global Express (1936374D CH), a leading express delivery business in Southeast Asia and China has filed for a HKEx IPO to raise US$1 billion, according to press reports.
- In J&T Global Express IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on organic revenue decline in SEA/China, deteriorating contract liabilities, SEA margin pressure, high cash burn and weak balance sheet.
ASK Automotive Pre-IPO Tearsheet
- Ask Automotive (7175293Z IN) is looking to raise about US$145m in its upcoming India IPO. The deal will be run by Axis Capital, IIFL Securities, ICICI Securities and JM Financial.
- ASK Automotive is the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers (2W) in India, according to CRISIL.
- The company has been supplying safety systems and critical engineering solutions for more than three decades with in-house designing, developing and manufacturing capabilities.
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