This weekly newsletter pulls together summaries of the top ten most-read Insights across Equity Capital Markets on Smartkarma.
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1. Amer Sports IPO Trading – Downsized and Cornered, Close to Optimistic Fair Value
- Amer Sports (AS US) raised around US$1.3bn in its US IPO, after pricing its IPO below its initial range, as per media reports.
- Amer Sports is a sports and outdoor brands company making clothing and other sporting equipment for use in snow sports, running, climbing, baseball, american football, tennis and other sports.
- We have looked at the company’s performance and valuation in our past note. In this note, we talk about the trading dynamics.
2. Mixue Pre-IPO: Reliable Price Advantage – An On-The-Ground Viewpoint
- We believe Mixue’s low prices are fit for the current weak economy.
- Any “freshly made” price lower than Mixue’s will compete with bottled drinks.
- We also believe low rental is the key for Mixue’s low prices.
3. Brainbees Solutions (FirstCry) IPO: The Bear Case
- FirstCry (0172540D IN), India’s largest multi-channel retailing platform for mothers’, babies’ and kids’ products, has filed for a US$700 million IPO.
- In Brainbees Solutions (FirstCry) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on the worrying trend of India’s KPIs, margin pressures, cash burn, and deteriorating balance sheet strength.
4. Ola Electric Pre-IPO – The Negatives – Still a Long Road Ahead with Ample Competition
- Ola Electric is looking to raise about US$1bn in its upcoming India IPO.
- Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
- In this note, we talk about the not-so-positive aspects of the deal.
5. Metals Acquisition Ltd Secondary Listing – Too Much to Pay for a Single Asset
- Metals Acquisition (MTAL US) is looking to raise up to A$300m (US$197m) through its ASX secondary listing.
- The proceeds will be used to repay Glencore’s deferred consideration facility for the MTAL’s acquisition of its CSA copper mine, amongst other uses.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
6. Ola Electric Pre-IPO – The Positives – India’s Answer to Tesla?
- Ola Electric is looking to raise about US$1bn in its upcoming India IPO.
- Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
- In this note, we talk about the positive aspects of the deal.
7. Samhyun IPO Preview
- Samhyun is getting ready to complete its IPO on the KOSDAQ exchange in March. The IPO total offering amount is 40 billion won to 50 billion won.
- The company generated sales of 99.8 billion won (up 45.5% YoY) and operating profit of 9.8 billion won (up 250% YoY) in 2023.
- Samhyun developed one of the world’s first CVVD (Continuously Variable Valve Duration) technology for automobile engines, which improves fuel efficiency by controlling the engine’s valve opening time.
8. Xiaocaiyuan International Holding Pre-IPO Tearsheet
- Xiaocaiyuan International Holding (XCY HK) is looking to raise up to US$200m in its upcoming HK IPO. The deal will be run by Huatai and UBS.
- Xiaocaiyuan is a Chinese home-style cuisine restaurant operator. It prices its menus’ items to achieve average spending per consumer between RMB50 and RMB70 for its dine-in customers at its restaurants.
- According to the firm, a Xiaocaiyuan restaurant offers approximately 45 to 50 menu items in each season, including cold dishes, stews and braised dishes, amongst others.
9. ECM Weekly (4th Feb 2024) – Ola Electric, Mixue, Citicore, Amer, Thai Credit, Indus Tower, MTAL
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, Amer Sports (AS US) was priced below its range, while Thai Credit Bank PCL, managed to get enough support to pull thru.
- Given the earnings season, there weren’t many placement apart from Indus Towers (INDUSTOW IN) and Metals Acquisition (MTAL US)‘s CDR offering.
10. Shouhui Tech Pre-IPO Tearsheet
- Shouhui Tech (SHOU HK) is looking to raise around US$200m in its upcoming Hong Kong IPO. The bookrunners on the deal are CICC, and Huatai International.
- Shouhui Tech (Shouhui) is an online life and health insurance intermediary service provider in China.
- According to F&S, Shouhui was the third largest online insurance intermediary in China in terms of GWPs of long-term life and health insurance in 2022, with a 7.1% market share.
