Daily BriefsIPOs and Placements

Equity Capital Markets: Nufarm Ltd, Converge ICT Solutions, Delhivery, Next Chip, Cloud Village and more

In today’s briefing:

  • Nufarm Placement – Cleanup by Strategic Investor
  • Converge ICT Placement – Clean-Up and Buyback, Just in Time for the Index Inclusion
  • Delhivery IPO Trading – Anchor Book Was Good but Overall Demand Was Still Tepid
  • Next Chip IPO Preview
  • Cloud Village IPO Lock-Up – Selling the PE Stock (US$350m) Might Solve the Liquidity Issues

Nufarm Placement – Cleanup by Strategic Investor

By Clarence Chu

  • Sumitomo Chemical (4005 JP) is looking to sell its entire stake in Nufarm Ltd (NUF AU) to raise A$338.3m (US$240.6m).
  • Sumitomo Chemical had been a strategic investor, where it purchased 20% stake via a tender offer at A$14/share. The former had also acquired Nufarm’s South American businesses in mid-2020.
  • While this would be a clean-up sale, the deal is a large one to process at 36 days ADV.

Converge ICT Placement – Clean-Up and Buyback, Just in Time for the Index Inclusion

By Sumeet Singh

  • Warburg Pincus, aims to raise around US$138m via selling its 3.6% in Converge ICT (CICT). The sale will be accompanied by a company buyback and a private transaction.
  • Warburg had earlier sold in the IPO and then in Nov 21, and this trade will be a cleanup.
  • In this note, we will run the deal through our ECM framework.

Delhivery IPO Trading – Anchor Book Was Good but Overall Demand Was Still Tepid

By Sumeet Singh

  • Delhivery raised around US$680m in its India IPO, the company is backed by a host of financial investors, the largest being Softbank.
  • Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.
  • We have covered various aspects of the deal in our earlier notes. In this note, we talk about the demand and trading dynamics. 

Next Chip IPO Preview

By Douglas Kim

  • Next Chip (396270 KS) is getting ready for an IPO in Korea in June. The IPO price range is from 9,900 won to 11,600 won.
  • Next Chip is a Korean system semiconductor company for automobiles and autonomous vehicles. Next Chip was split from NC& Co Ltd (092600 KS) in January 2019.
  • The bankers used four companies including Abov Semiconductor (102120 KS), MCNEX Co Ltd (097520 KS), Chips & Media, and Telechips as comps for Next Chip Co.

Cloud Village IPO Lock-Up – Selling the PE Stock (US$350m) Might Solve the Liquidity Issues

By Sumeet Singh

  • Cloud Village Inc. (CVI), also known as NetEase Music, raised around US$420m in its Hong Kong IPO in Dec 21. The IPO was almost entirely taken up by cornerstones.
  • The company had also earlier obtained investments from Baidu and Alibaba, along with other mainly PE investors. These investors will be released from their lock-up on 1st Jun 2022.
  • In this note, we will talk about the lock-up dynamics and updates over the past few months.

Before it’s here, it’s on Smartkarma