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 (16 June 2025) – Haitian, Sanhua, Kitazato, Primo, Kioxia, Xtalpi, Horizon, Keymed, Wuxi
- 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, Foshan Haitian Flavouring & Food (603288 CH) launched its IPO, while Zhejiang Sanhua Intellignt Controls Co., Ltd. (002050 CH) has been pre-marketing.
- On the placements front, there were a number of large deals acros the region, along with some large lockup expiries.
2. Foshan Haitian Flavouring A/H Trading – Very Strong Demand, Weak Price Momentum
- Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, raised around US$1.5bn (including over-allocation) in its H-share listing.
- FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.
3. Cao Cao Pre-IPO: Grossly Overvalued
- CaoCao (2643 HK) is looking to raise up to $236m in its upcoming Hong Kong IPO.
- It is a ride hailing platform in China originally incubated by Geely Group connecting passengers and drivers to deliver consistent and high-quality ride experiences.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
4. CaoCao IPO (2643 HK): Valuation Insights
- CaoCao (2643 HK) has launched its IPO to raise US$236 million at HK$41.94 per share. The shares will be listed on 25 June.
- I previously discussed the IPO in CaoCao IPO: The Bull Case and CaoCao IPO: The Bear Case.
- In this note, I present my forecasts and discuss valuation. My analysis suggests that CaoCao is at best fairly valued at the offer price. Therefore, avoid the IPO.
5. Eternal Beauty IPO – Not Expensive but Its Not Enticing Either
- Eternal Beauty Holdings Limited is looking to raise around US$144m in its Hong Kong IPO.
- Eternal Beauty is the largest brand management company of perfumes in the combined markets of Mainland China, Hong Kong and Macau, in terms of retail sales in 2023.
- We have looked at the company’s past performance in our previous note. In this note we talk about valuations.
6. MakeMyTrip Placement – Basically a Selldown by Trip.com
- Makemytrip Ltd (MMYT US) is looking to raise upto US$2.66bn via an equity combo of a 14m share selldown, which could raise around US$1.41bn and US$1.25bn five-year put-three convertible bonds.
- The company plans to use the proceeds to buy back Class B shares from Trip.com to lower Trip.com’s voting power in MakeMyTrip to 19.99%.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
7. CaoCao IPO: The Bear Case
- CaoCao Inc (1646553D CH) is the second-largest ride-hailing player in China. It has filed its PHIP to raise US$200-300 million.
- In CaoCao IPO: The Bull Case, I highlighted the key elements of the bull case. In this note, I outline the bear case.
- The bear case rests on low net take rates, unfavourable trends of key cost items, expected losses in the current year and a stretched balance sheet.
8. Foshan Haitian Flavouring H Share Listing (3288 HK): Trading Debut
- Foshan Haitian Flavouring & Food Company (3288 HK) priced its H Share at HK$36.30 to raise HK$10,128.9 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.
- I discussed the H Share listing in Foshan Haitian Flavouring H Share Listing: The Investment Case.
- Haitian had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.
9. Foshan Haitian Flavouring & Food Company Hong Kong IPO Preview
- Foshan Haitian Flavouring & Food Company is the largest listed condiments producer in mainland China which is seeking to raise up to HK$9.56 billion (US$1.22 billion) in Hong Kong listing.
- It is offering 263.2 million shares at HK$35 to HK$36.30 each. The final offer price is expected to be announced on 17 June.
- Foshan Haitian Flavouring & Food is the largest condiments company in China with strong brand power with loyal customers.
10. Biocon Ltd QIP – Well Flagged US$522m QIP; Largely Towards Clearing Debt
- Biocon Ltd (BIOS IN) Biocon Ltd is looking to raise up to US$522m in its qualified institutional placement (QIP).
- The deal is well flagged, having gone through rounds of board/shareholder approvals. The QIP has also been covered by domestic media reports.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
