Daily BriefsIPOs and Placements

Equity Capital Markets: Hyundai Engineering Co Ltd, CTOS Digital Bhd, Huitongda and more

In today’s briefing:

  • Hyundai Engineering IPO Initiation: Building on Good Foundations
  • CTOS Digital Lock-Up Expiry:High Chance of Slow Motion Creador Exit but There Should Be Ample Buyers
  • Huitongda (汇通达) Pre-IPO – PHIP Updates and Competitive Landscape

Hyundai Engineering IPO Initiation: Building on Good Foundations

By Arun George

  • Hyundai Engineering Co Ltd (HEC KS)/HEC is a leading global EPC (Engineering, Procurement and Construction) contractor. It is seeking to raise up to $1 billion.  
  • HEC is offering 16.0 million shares with a primary/secondary split of 25/75 at an indicative price range of KRW57,900-66,800 per share.
  • HEG has attractive fundamentals with a strong backlog, healthy book-to-bill, improving 3Q21 revenue growth and improving margins. 

CTOS Digital Lock-Up Expiry:High Chance of Slow Motion Creador Exit but There Should Be Ample Buyers

By Sumeet Singh

  • CTOS Digital (CTOS) raised around US$291m in its Malaysian IPO in Jul 2021. It is majority owned by Creador, a PE firm.
  • The stock has done well since listing and is now trading 72% above its IPO price. 
  • In this note, we talk about the updates since listing and the upcoming lock-up expiry.

Huitongda (汇通达) Pre-IPO – PHIP Updates and Competitive Landscape

By Clarence Chu

  • Huitongda (1566215D CH) is looking to raise up to US$500m in its upcoming Hong Kong IPO.
  • While the numbers from the growth of member stores look promising, it did not translate to stronger revenue from member stores and HTD did not give a clear explanation.
  • In this note, we look at PHIP updates and competitive landscape.

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