In today’s briefing:
- Tianqi Lithium A/H Listing – Large Deal but Its Been Priced to Go
- Tianqi Lithium H Share Listing: Valuation Insights
- SoCar Pre-IPO – Aiming to Become an All-In-One Mobility Solution Provider
- Pre-IPO Dental Doctor Medical Holding Group – An Uncertain Outlook and Concerns About Profitability
Tianqi Lithium A/H Listing – Large Deal but Its Been Priced to Go
- Tianqi Lithium (TL) is looking to raise up to US$1.7bn 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 in 2020 and ranked third in terms of revenue generated from lithium in 2020.
- In this note, we take about the deal pricing and run the deal through our ECM framework.
Tianqi Lithium H Share Listing: Valuation Insights
- Tianqi Lithium (9696 HK) has launched its H Share listing at an indicative price range of HK$69.00-82.00 per share. Pricing is on 6 July and listing on 13 July.
- Tianqi Lithium (002466 CH)‘s AH discount range of 52.9%-44.0% is reasonable in the context of Ganfeng Lithium (1772 HK)’s average AH discount is 38.5% since its H Share listing.
- Our relative valuation analysis suggests that Tianqi’s H Share valuation is attractive in comparison to median peers’ multiples.
SoCar Pre-IPO – Aiming to Become an All-In-One Mobility Solution Provider
- SOCAR (403550 KS) is looking to raise up to US$159m in its upcoming Korea IPO.
- SoCar is a Korean car sharing business which aims to become an all-in-one mobility solutions provider beyond car sharing, with approximately 80% domestic market share in the car sharing space.
- As of May 2022, SoCar has over 8m subscribers and over 10m SoCar app downloads. However, the firm remains loss-making with no signs of being profitable in the near/medium term.
Pre-IPO Dental Doctor Medical Holding Group – An Uncertain Outlook and Concerns About Profitability
- Dental Doctor has not established core competitiveness and high moat, and has to invest more on marketing and promotion to attract customers and drive growth.
- The lack of dentists, weak talent and training system as well as high dentist turnover rate would be big concerns for the Company’s long term development, especially for nationwide expansion.
- This industry has not yet entered the profit mode. Most of chain dental services providers are still in the stage of cash-burning expansion. So, we are conservative about the Company’s outlook.
Before it’s here, it’s on Smartkarma
