Daily BriefsIPOs and Placements

Equity Capital Markets: Qingdao Ainnovation Technology Group Co Ltd, Hyundai Engineering Co Ltd, Wanda Commercial Management Group and more

In today’s briefing:

  • Qingdao AInnovation Technology Group IPO – Fairly Valued with Mediocre Cornerstones
  • Hyundai Engineering IPO: Valuation Insights
  • AInnovation Technology IPO: Valuation Insights
  • Wanda Commercial Management Group Pre-IPO – The Positives – Aiming for One of HK’s Largest 2022 IPOs

Qingdao AInnovation Technology Group IPO – Fairly Valued with Mediocre Cornerstones

By Clarence Chu

  • Qingdao Ainnovation Technology Group Co Ltd (1853807D CH) is looking to raise up to US$157m in its Hong Kong IPO.
  • Qingdao AInnovation Technology Group is an AI solutions provider offering full-stack AI-based products and solutions. 
  • While we don’t have a fundamental issue with the listing, at asking valuations, the firm appears to be fairly valued with limited upside on its FY23 numbers. 

Hyundai Engineering IPO: Valuation Insights

By Arun George

  • Hyundai Engineering Co Ltd (HEC KS) has launched its IPO to raise US$0.8-1.0 billion at the price range of KRW57,900-75,700 per share.
  • In Hyundai Engineering IPO Initiation: Building on Good Foundations, we stated that HEC has attractive fundamentals with a strong backlog, healthy book-to-bill, improving 3Q21 revenue growth and improving margins. 
  • In this note, we look at the syndicate’s valuation methodology and present our valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive. 

AInnovation Technology IPO: Valuation Insights

By Arun George

  • AInnovation Technology (AIT HK) is a fast-growing enterprise AI solutions provider in China. It has launched an HKEx IPO to raise up to US$157 million. 
  • In AInnovation Technology IPO Initiation: Code Amber, we stated that the negatives outweigh the positives and we would give the IPO a pass.
  • Our valuation analysis suggests that the IPO price is fair. Due to our concerns about the fundamentals, we remain on the sidelines. Pricing is 20 January, listing on 27 January.

Wanda Commercial Management Group Pre-IPO – The Positives – Aiming for One of HK’s Largest 2022 IPOs

By Sumeet Singh

  • Wanda Commercial Management Group (WCMG) is looking to raise up to US$4bn in its upcoming Hong Kong IPO.
  • WCMG is a commercial operation service provider. As of Oct 2021, the firm managed 398 malls with total gross floor area (GFA) under management of 56.5m sqm.
  • In this note, we will talk about the positive aspects of the deal.

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