Daily BriefsECM

Equity Capital Markets: Campus Activewear Ltd, Life Insurance Corp of India (LIC), Chungdam Global, Scivita Medical Technology and more

In today’s briefing:

  • Campus Activewear IPO: Mysterious Return Ratios
  • Life Insurance Corporation of India IPO – Regional Peer Comparison
  • Chungdam Global IPO Preview
  • Pre-IPO Scivita Medical Technology – The Industry, the Business, and the Concerns

Campus Activewear IPO: Mysterious Return Ratios

By Nitin Mangal

  • Campus Activewear Ltd (1535013D IN) is about to go public soon. 
  • The RHP has portrayed Campus’s return ratios such as ROCE to be one of the highest in its peer group, inching past the likes of Bata India Ltd (BATA IN).
  • However, upon further investigation of the financials, the return ratios seem to be mysterious, simply because of capital reserve arising from acquisition of promoter-companies, back when Ind AS was adopted.

Life Insurance Corporation of India IPO – Regional Peer Comparison

By Sumeet Singh

  • Government of India (GoI) is looking to raise around US$2.7bn via selling a 3.5% stake in Life Insurance Corporation of India (LIC) in its upcoming India IPO.
  • This is less than half of its initial plans in terms of fundraising target and comes at less than half of its initial valuation target.
  • We have looked at various aspects of the deal in our earlier notes. In this note, we compare it to its international peers and talk about valuations.

Chungdam Global IPO Preview

By Douglas Kim

  • Chungdam Global is getting ready to complete its IPO in the next several weeks. The expected market cap after the IPO is from 179 billion won to 204 billion won.
  • Chungdam Global sells Korean cosmetics and other global beauty brands to e-commerce companies in China and other countries. It generated more than 75% of its sales in 2021 from JD.com.
  • The company experienced exceptional growth in sales and profits in the past several years. Its sales and operating profits jumped by 97.4% and 204% CAGR from 2019 to 2021, respectively

Pre-IPO Scivita Medical Technology – The Industry, the Business, and the Concerns

By Xinyao (Criss) Wang

  • Scivita Medical Technology (SMT HK) has certain technical advantage and a comprehensive portfolio of products and candidates, which would help the Company seize a position in this market.
  • There are also some potential risks and concerns that could be unfavorable for Scivita’s development, which should be aware of by investors.
  • In terms of the valuation, SonoScape and Aohua Endoscopy (688212.CH) could be the comparable companies, but the valuation of Scivita should be lower than either of them.

Before it’s here, it’s on Smartkarma