Daily BriefsIPOs and Placements

Equity Capital Markets: Wuxi Biologics, KakaoBank, Krafton Inc, Paytm, Iljin Hysolus, Lotte Rental, Bukalapak, Abbisko Cayman and more

In today’s briefing:

  • Wuxi Biologics Placement – Similar Deal Will Yield Similar Results
  • A Delay in Kakao Pay IPO Should Help Kakao Bank IPO Demand
  • Krafton Listing Date Confirmed as August 10th: Rebalancing Trading Timeline
  • Paytm (One 97) Pre-IPO – The Positives – Will Be One of India’s Largest IPOs
  • Iljin Hysolus IPO Valuation Analysis
  • Lotte Rental IPO – Not Growing Its Fleet as Fast but Utilizing Them Better
  • Bukalapak IPO: Revenue Take Rate Moving Up, But Not Fast Enough
  • Pre-IPO Abbisko Cayman – It Still Takes Some Time for Commercialization
  • Paytm (One 97) Pre-IPO – The Negatives – Asking Valuations a Long Shot

Wuxi Biologics Placement – Similar Deal Will Yield Similar Results

By Sumeet Singh

Wuxi Biologics Holdings is looking to raise up to US$1.3bn by selling about 1.8% of Wuxi Biologics (2269 HK). This is the company’s 15th placement since it listed in June 2017. 

In this note, we will discuss deal dynamics, past deal performance, and share the scores of our ECM framework.

Links to our coverage of the IPO and past deals:


A Delay in Kakao Pay IPO Should Help Kakao Bank IPO Demand

By Douglas Kim

It was announced today that the Kakao Pay IPO will get postponed to 4Q 2021. Kakao Pay will submit revised IPO prospectus filings towards end of September/early October 2021.

As a result of this delay in IPO for Kakao Pay, we believe that this could actually lead to a greater demand for the Kakao Bank IPO. 


Krafton Listing Date Confirmed as August 10th: Rebalancing Trading Timeline

By Sanghyun Park

Listing date

The listing date of Krafton has been confirmed as August 10th.

Krafton IPO schedule
Book open2021. 7. 14
Book close2021. 7. 27
Allotment2021. 7. 29
Subscription2021. 8. 2
Payment2021. 8. 5
Listing2021. 8. 10
 – Kakao Bank’s listing2021. 8. 5
Source: DART
  • The initially scheduled date was August 10th. However, as Kakao Pay’s listing date was set for August 12, Krafton could not easily finalize the listing date due to the issue of mutual interference for retail investors with Kakao Pay.
  • The fact that Krafton confirmed the listing date as soon as Kakao Pay’s listing schedule was delayed shows how sensitive Krafton was to this retail interference issue.

The listing date of Kakao Bank is August 5, and there is a gap of 3 business days until the listing date of Krafton. However, in this case, Krafton is in a position to absorb retail demand from Kakao Bank. More importantly, Kakao Bank must draw less attention from retail investors than Kakao Pay in terms of business nature, so there is no need to worry too much about potential interference with Kakao Bank.

And then, at least until the end of August, there is no major listing. That is, there is enough temporal buffer for Krafton to drive retail demand.


Paytm (One 97) Pre-IPO – The Positives – Will Be One of India’s Largest IPOs

By Sumeet Singh

Paytm (PAYTM IN) plans to raise around US$2.2bn via a mix of selling primary and secondary shares in its India IPO. The company is backed by Ant Financial Services Group (6688 HK) (Alibaba Group (BABA US)), Softbank Group (9984 JP) and counts Berkshire Hathaway Inc Cl A (BRK/A US) among its investors.

Paytm offers payment services, commerce and cloud services, and financial services to 333m consumers and over 21m merchants, as of Mar 21. It offers consumers a wide selection of payment options on the Paytm app. It also offers merchants solutions that allow them to accept payments, acquire and retain consumers, improve their business operations and access financial services.

The company clocked payment gross merchant value (GMV) of INR4tn (US$50bn) in FY21 for 114m transacting users during the year. Its users undertook a total of 7.4bn transactions in 2020. Along with its payment infrastructure, PayTM also runs a payment bank, in which it owns a 49% stake. The payment bank had a deposit base of INR52bn across 64m payment bank accounts.

In this note we will talk about the positive aspects of the deal.


Iljin Hysolus IPO Valuation Analysis

By Douglas Kim

Our base case valuation of Iljin Hysolus is implied market cap of 817.6 billion won or 22,517 won per share. This represents 26% lower than the low end of the IPO price range of 30,300 won. Given the lower target price versus the IPO price range, we would AVOID this deal. 

Established in 2012, Iljin Hysolus is a hydrogen mobility-related parts company that provides hydrogen fuel tanks and modules based on hydrogen storage technology. The company supplied hydrogen fuel tanks for the first time in the industry to the Tucson hydrogen electric vehicle, which Hyundai Motors successfully commercialized in 2014. Since then, it has been supplying hydrogen fuel tanks to hydrogen fuel cell vehicles (FCEV) ‘Nexo’ and hydrogen buses. 


Lotte Rental IPO – Not Growing Its Fleet as Fast but Utilizing Them Better

By Zhen Zhou, Toh

Lotte Rental (KTRENZ KS) is looking to raise about US$740m in its Korea IPO. 

Lotte Rental (LR) is the largest car rental provider in South Korea in 2020 based on the number of registered rental cars. The company mainly offers car rentals and leasing services. It provides short-term car rental, monthly car rental, and chauffeur-driven car rental services. The company buys and sells used cars and also owns 84% stake in Green Car, a car-sharing platform.


Bukalapak IPO: Revenue Take Rate Moving Up, But Not Fast Enough

By Oshadhi Kumarasiri

After a successful bookbuilding, Indonesian e-commerce unicorn Bukalapak (BUKA IJ) is expected to price its IPO at the top end of the offer range, which implies a market cap and EV of $6.0bn and $4.4bn respectively. The offer period starts on 28th July and ends on 30th July 2021, while the listing date is expected to be 6th August 2021.


Pre-IPO Abbisko Cayman – It Still Takes Some Time for Commercialization

By Xinyao (Criss) Wang

On June 16, Abbisko Cayman (ABB HK) submitted a prospectus to the HKEX to be listed on the main board. Abbisko is a R&D-driven, clinical-stage biopharmaceutical company dedicated to the discovery and development of innovative and differentiated small molecule oncology therapies, with a pipeline of 14 programs focused on oncology. This insight mainly analyzed the four important product candidates at the clinical stage (ABSK011, ABSK091, ABSK021 and ABSK081) in the pipeline.


Paytm (One 97) Pre-IPO – The Negatives – Asking Valuations a Long Shot

By Sumeet Singh

Paytm (PAYTM IN) plans to raise around US$2.2bn via selling a mix of primary and secondary shares in its India IPO. The company is backed by Ant Financial Services Group (6688 HK) (Alibaba Group (BABA US)), Softbank Group (9984 JP) and counts Berkshire Hathaway Inc Cl A (BRK/A US) among its investors.

Paytm offers payment services, commerce and cloud services, and financial services to 333m consumers and over 21m merchants, as of Mar 21. It offers consumers a wide selection of payment options on the Paytm app. It also offers merchants solutions that allow them to accept payments, acquire and retain consumers, improve their business operations and access financial services.

We covered the company’s background and positive aspects of the deal in our earlier note, Paytm (One 97) Pre-IPO – The Positives – Will Be One of India’s Largest IPOs.

In this note, we will talk about the not so flattering aspects of the deal.


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