Daily BriefsIPOs and Placements

Equity Capital Markets: Sichuan Tianqi Lithium Industries, Inc, ExaWizards, Thai Life Insurance, Beijing Yuanxin Technology Group Co Ltd and more

In today’s briefing:

  • Tianqi Lithium A/H Listing – Back once Again, This Time with a More Compelling Industry Backdrop
  • ExaWizards IPO Lock-Up – PE/Investment Funds Coming off Lockup, Could See Some Scattered Selling
  • Thai Life Insurance IPO: The Bull Case
  • Pre-IPO Beijing Yuanxin Technology Group – Conservative About the Outlook

Tianqi Lithium A/H Listing – Back once Again, This Time with a More Compelling Industry Backdrop

By Sumeet Singh

  • Tianqi Lithium (TL) is looking to raise up to US$1.5bn via its H-shares listing. It undertakes mining of lithium ore and manufacturing of lithium concentrate, lithium compounds and derivatives.
  • TL was the largest producer of mined lithium globally in terms of output and ranked third in terms of revenue generated from lithium in 2020, according to Wood Mackenzie .
  • In this note, we look at the company’s past performance and the deal dynamics.

ExaWizards IPO Lock-Up – PE/Investment Funds Coming off Lockup, Could See Some Scattered Selling

By Clarence Chu

  • ExaWizards (4259 JP) raised around US$300m in its Japan IPO in Dec 2021, where its IPO had been priced at the top end of its indicative price range.
  • ExaWizards is an AI service provider in Japan, it develops and delivers AI products with the aim of addressing industry and social issues.
  • While in our view, we would not expect a large block to come from this lockup expiry, we could expect some scattered selling across the shareholders.

Thai Life Insurance IPO: The Bull Case

By Arun George

  • Thai Life Insurance (124744Z TB) has started to meet investors ahead of its $1 billion IPO. The roadshow will run till early July with a listing targeted later in July.
  • Thai Life is the third-largest life insurer in Thailand with a 12.9% market share as measured by gross premium income in 1Q22.
  • The key elements of the bull case rest on a strong brand, the largest agent network, return to APE growth, high persistency ratio and improving VONB margin.

Pre-IPO Beijing Yuanxin Technology Group – Conservative About the Outlook

By Xinyao (Criss) Wang

  • Based on the business analysis, Beijing Yuanxin Technology Group Co Ltd (1865453D CH) is more of a traditional offline chain drugstores than a healthcare technology company.
  • Yuanxin has been suffering from loss for years. With a gross margin of lower than 10%, it’s going to be tough to turn a profit, leading to concerns on survival. 
  • Due to the fierce competition in each of its businesses, homogeneous business model, weak financial position, lack of high moat, policy risks, etc., we are conservative about the Company’s outlook.

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