Equity Capital Markets

Weekly Top Ten Equity Capital Markets – Jun 16, 2024

This weekly newsletter pulls together summaries of the top ten most-read Insights across Equity Capital Markets on Smartkarma.

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1. ECM Weekly (10th June 2024) – Webtoon, Shift Up, QuantumPharm, Guzman, Kakaopay, Telix, Yankuang

By Sumeet Singh, Aequitas Research

2. Lalatech IPO: Using YMM:US as Main Comp, Equity Valuation of US$11-12 Bn (Or More) Justifiable

By Daniel Hellberg, Tracking Traffic

  • Based on returns and margins, US-listed Full Truck Alliance is best comp
  • Lalatech probably deserves premium valuation multiples vs Full Truck Alliance 
  • An equity valuation of US$11bn+ justifiable; will investors look at recent flops?

3. Atour Lifestyle Holdings Placement – Well Flagged Deal, past Selldowns Have Done Well

By Sumeet Singh, Aequitas Research

  • Legend Capital (LC), one of the principal shareholders of Atour Lifestyle Holdings (ATAT US), is looking to raise around US$168m through a secondary selldown.
  • This will be the third selldown by Legend Capital in just over a year’s time. Hence, the deal is well flagged.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

4. Guzman Y Gomez IPO – Peer Comp and Thoughts on Valuations

By Sumeet Singh, Aequitas Research

  • Guzman Y Gomez (GYG) now plans to raise US$221m, an increase from its earlier target of US$160m, in its Australian IPO.
  • GYG is a quick service restaurant business with more than 200 restaurants globally. It mainly focuses on fresh, made-to-order, Mexican-inspired food.
  • We have looked at the company’s performance in our past notes. In this note, we talk about valuations.

5. Shift Up IPO – Refiling and Other Updates, Not Ranked at the Top Anymore

By Sumeet Singh, Aequitas Research

  • Shift Up (462870 KS) plans to raise up to US$320m in its South Korean IPO.
  • Shift Up is a South Korean games developer, which as released three games so far for the global markets.
  • We have looked at the company’s performance, undertaken a peer comparison and talked about valuations in our past notes. In this note, we talk about the refiling and other updates.

6. Mao Geping Cosmetics Pre-IPO – Riding on the Founder’s Reputation

By Sumeet Singh, Aequitas Research

  • Mao Geping Cosmetics is looking to raise around US$300m in its upcoming Hong Kong IPO.
  • Mao Geping Cosmetics (MGC) operates in the premium beauty segment. Operating via its two brands, MAOGEPING and Love Keeps, MGC offers a wide range of color cosmetics and skincare products.
  • In this note, we look at the company’s past performance.

7. Clarifying BRV’s Post-Block Deal Lockup Conditions Involving Ecopro Materials

By Sanghyun Park, Clepsydra Capital

  • In Korea, the lockup period for block deals is set by the seller and underwriters, not by law, and can be adjusted if both parties agree.
  • BRV obtained consent from Goldman, UBS, and KB for a second block deal after assessing that many initial buyers had sold their shares.
  • Understanding this lockup structure provides key insights into predicting when the next block deal might occur.

8. Webtoon Entertainment IPO: The Bull Case

By Arun George, Global Equity Research Ltd

  • Webtoon Entertainment (WBTN US), a global storytelling platform, seeks to raise up to US$500 million through a Nasdaq IPO.
  • Webtoon is the leading web-comic player in all its major geographies, including Korea, the US and Japan. Naver Corp (035420 KS) and LY (4689 JP) are the primary shareholders.
  • The bull case rests on a large TAM, rising monthly active users, strong constant currency growth supported by monetisation initiatives, a shift to profitability, and cash generation.

9. Webtoon Entertainment Pre-IPO – Peer Comparison – Relatively Small in Operating Scale as a Platform

By Ethan Aw, Aequitas Research

  • Webtoon Entertainment (WBTN US) is looking to raise up to US$500m in its US IPO.
  • Webtoon Entertainment is a global storytelling platform where a community of creators and users discover, create and share new content.
  • In our previous note, we talked about the company’s historical performance. In this note, we undertake a peer comparison.

10. QuantumPharm IPO Trading – Lukewarm Insti Demand Combined with a Tight Float at Listing

By Clarence Chu, Aequitas Research

  • QuantumPharm (QUP HK) raised US$126m from its Hong Kong IPO.
  • QuantumPharm is a R&D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&D solutions.
  • We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.