In today’s briefing:
- Xiamen Port’s Pre-Condition Satisfied
- Takeover Interest
- WCP IPO: Updated Prospectus, Solid 1H22, Unchanged and Unattractive Price Range
- Avalon Technologies Pre-IPO Tearsheet
Xiamen Port’s Pre-Condition Satisfied
- The pre-condition for Xiamen International Port H (3378 HK)’s privatisation offer from Xiamen Port Holding is satisfied. The offer is HK$2.25 per H share.
- The key conditions are approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders’ rejection). There is no minimum acceptance condition.
- The offer is attractive. At last close and for a 21 October payment, the gross and annualised spread to the offer is 2.7% and 16.0%, respectively.
Takeover Interest
- On 13 August, The Times reported of bid speculation around RS Group and specifically mentioned an offer at £15/share, a sizable premium to the prior closing share price.
- The shares trade on 19.6x Fwd P/E and 12.7x EV/Fwd EBITDA (source: Refinitiv). My fair value estimate is 1,229p, which implies 29% upside.
- I believe the shares offer value with good growth prospects, as the company takes advantage of operational leverage, and bolt-on M&A, with the potential upside risk of a bid. LONG.
WCP IPO: Updated Prospectus, Solid 1H22, Unchanged and Unattractive Price Range
- WCP (WCP KS), a lithium-ion batteries separator company, has released an updated prospectus for its IPO of KRW900 billion (US$692 million).
- The updated prospectus discloses 1H22 results and a marginal increase in the syndicate’s intrinsic value. Revenue growth and margin improved in 1Q22.
- The IPO price range of KRW80,000-100,000 remains unchanged. While the fundamentals are sound, the IPO price range remains unattractive.
Avalon Technologies Pre-IPO Tearsheet
- Avalon Technologies (6594468Z IN) is looking to raise about US$130m in its upcoming India IPO. The deal will be run by JM Financial, DAM Capital, IIFL Securities and Nomura.
- Avalon Technologies (AT) is a fully integrated Electronic Manufacturing Services (EMS) company with end-to-end capabilities in delivering box build solutions in India, with a focus on precision engineered products.
- As of the date of this Draft Red Herring Prospectus (9th Aug 2022), it has 12 manufacturing units located across the US and India.
💡 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
