In today’s briefing:
- SK Shieldus: Likely to Lower IPO Price by 19% Post Bookbuilding Results
- Delhivery Pre-IPO – RHP Updates – Growth Remains Strong, Pricing Remains Under Pressure
- Delhivery IPO: Yet to Convincingly Deliver
- PAG Pre-IPO – The Negatives – Planned Reorg Don’t Sound Great
- Pre-IPO Betters Medical Investment Holdings – The Industry, the Business and the Concerns
SK Shieldus: Likely to Lower IPO Price by 19% Post Bookbuilding Results
- Numerous local Korean media outlets reported today after the market close that SK Shieldus is likely to lower the IPO price by about 19% to 25,000 won.
- Our revised base case valuation of SK Shieldus is target price of 36,948 won per share, representing 48% upside from the estimated IPO price of 25,000 won.
- We maintain our same earnings estimates for SK Shieldus. We slightly lowered the valuation multiples mainly due to lower valuations of the comps and weaker market sentiment on IPOs.
Delhivery Pre-IPO – RHP Updates – Growth Remains Strong, Pricing Remains Under Pressure
- Delhivery is now looking to raise around US$700m in its upcoming 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.
- In this note, we talk about the updates from its RHP.
Delhivery IPO: Yet to Convincingly Deliver
- Delhivery is the largest and fastest-growing 3PL express parcel delivery player in India. It has cut its IPO raise from Rs74.6 billion ($1 billion) to Rs52.4 billion ($0.7 billion).
- In Delhivery IPO Initiation: Can It Deliver?, we noted that the fundamentals are mixed as it has been unable to leverage strong growth to deliver profits or cash generation.
- In this note, we look at the RHP which discloses 9MFY22 results. We continue to believe the negatives outweigh the positives. We are inclined to give the IPO a pass.
PAG Pre-IPO – The Negatives – Planned Reorg Don’t Sound Great
- PAG aims to raise around US$2bn via its Hong Kong IPO.
- PAG is an alternative investment firm focused on Asia-Pacific (APAC), it had approximately US$50bn in assets under management (AUM), as of Dec 21.
- In this note, we will talk about the not so positive aspects of the deal.
Pre-IPO Betters Medical Investment Holdings – The Industry, the Business and the Concerns
- The MWA market that Betters belongs to has showed rapid growth and large potential. Obviously, Betters would benefit from it based on its existing products and leading market position.
- However, the medical device industry in China is subject to strict policy supervision. It cannot rule out the possibility that the Company’s products would be included in the centralized procurement.
- In terms of valuation, Micro-Tech Nanjing Co Ltd (688029 CH) could be a comparable company, but Betters’ valuation should be lower than it.
Before it’s here, it’s on Smartkarma
