This weekly newsletter pulls together summaries of the top ten most-read Insights across Equity Capital Markets on Smartkarma.
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1. CATL A/H Listing – Thoughts on A/H Premium
- Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, aims to raise at least US$5bn in its H-share listing.
- CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
- We have looked at the company’s past performance in our earlier notes. In this note, we talk about its recent updates and provide our thoughts on valuations.
2. ECM Weekly (31st Mar 2025) – Xiaomi, NIO, FCT, Gigabyte, DN Sol, Nanshan Al, Zenergy, LXJ, Veeda
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, DN Solutions (298440 KS)‘s range looks a little pricey, while Eco-Shop Marketing (ECO MY) could trade ahead of its listed peers, in our view.
- On the placements front, Xiaomi Corp (1810 HK) matched BYD (1211 HK) in size, but couldn’t do so in returns.
3. Chagee Holdings (CHA US) IPO: The Bull Case
- Chagee Holdings (CHA US), a leading premium tea drinks brand, is seeking to raise US$400-500 million through a Nasdaq IPO.
- According to iResearch, as of December 31, 2024, Chagee was the largest premium freshly made tea drink brand in China by the number of stores.
- The bull case rests on a strong brand, leading market share, peer-leading revenue growth, top-tier profitability and cash generation.
4. Wuxi XDC Placement – Following Biologics Playbook, past Deals Have Been Mixed
- WuXi AppTec (2359 HK) aims to raise around US$250m via selling around 3.5% stake in WuXi XDC Cayman (2268 HK).
- WuXi XDC Cayman (WXDC) is a contract research, development, and manufacturing organization (CRDMO) focused on the global antibody drug conjugates (ADC) and broader bioconjugate market providing integrated and end-to-end services.
- In this note, we will talk about the placement and run the deal through our ECM framework.
5. Chagee Holdings Limited (CHA): Peeking at the IPO Prospectus of China’s Premium Tea Brand
- As of December 31, 2024, their network comprised 6,440 teahouses, including 6,284 located in China.
- Their net revenues increased by 844% to RMB4,640.2 million in 2023 from RMB491.7 million in 2022.
- We anticipate this company to set terms (share size, price range) and debut in the second half of April.
6. Duality Biotherapeutics (映恩生物) Pre-IPO: Valuation and the Trap
- Duality Biotherapeutics, a China-based clinical-stage biotechnology company, plans to raise up to US$250m via a Hong Kong listing.
- We look at the company’s valuation based on its core products, namely DB-1303, DB-1311, and DB-1305.
- We highlight key differences between our valuation and the broker valuation guidance.
7. Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure
- Samsung SDI’s rights offering is locked in and even accelerated. Hanwha Aerospace awaits FSS approval, but a pullback is unlikely, with no major red flags seen by regulators.
- With a four-week gap, supply pressure eases, reducing overhang concerns. This shift in dynamics impacts stock rights pricing and is key for any arb setup.
- The wider schedule gap between deals boosts lenders’ flexibility, increasing the likelihood of a stronger share recall. This makes for a solid trade setup, targeting recall-driven price action.
8. Chagee Pre-IPO – Market Leading Growth but Showing Signs of Fatigue
- Chagee Holdings (CHA US) is planning to raise up to US$500m through its upcoming US IPO.
- Chagee is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks.
- In this note, we look at the firm’s past performance.
9. SmartStop Self Storage (SMA): IPO for Yield Chasers, Traditional Players on the Sidelines
- According to our sources, the deal is multiple-times oversubscribed — our sources stated around 5x.
- Self-Storage was Monday’s second best performing sub-sector (+1.8%) as the overall REIT sector (+0.7%) slightly outperformed the broader market.
- While the “typical” IPO investor may not be “enthused”, the timing for this type of deal “may” be ideal for yield-chasers.
10. Maynilad Water Services Pre-IPO – The Positives – Key Infrastructure Provider
- Maynilad Water Services (MYNLD PH) (MWS) is looking to raise at least US$633m in its upcoming Philippines IPO.
- MWS is a leading global water utility player operating the largest concession by population served within a single concession area in the Philippines and Southeast Asia (SEA), as per GlobalData.
- In this note, we talk about the positive aspects of the deal.
