Weekly Top Ten Equity Capital Markets – May 18, 2025

1. POSCO Future M: A Rights Offering Capital Raise of 1.1 Trillion Won

By Douglas Kim, Douglas Research Advisory

• Posco Future M (003670 KS) announced today that it plans to complete a rights offering capital raise of 1.1 trillion won. 
• The capital raise will involve 11.483 million new shares, representing 14.8% of current outstanding shares. The expected rights offering price is 95,800 won, which is 15.8% lower than current price. 
• We have a Negative view on POSCO Future M and this capital raise, which is likely to have a negative impact on its shares due to the dilution risk.

2. GMO Internet (4784) Offering – This Is a GINORMOUS Re-IPO – AVOID LIKE THE PLAGUE

By Travis Lundy, Quiddity Advisors

• Last year, GMO injected its internet business into GMO Internet (4784 JP) and took shares as consideration. Somehow, GMO Internet got a TOPIX inclusion earlier this year. 
• The company has 1.24% float of 3.4mm shares. GMO Internet Group – the parent – will now offload 91.7mm shares in an equity offering to meet TSE Continued Listing Requirements.
• That is about ¥279bn at current price against float of ¥10bn. Full market cap is ¥850bn. That’s 170x Dec25e Net Income. I expect the price will fall. You were warned. 

3. CATL H Share Listing (3750 HK): Valuation Insights

By Arun George, Global Equity Research Ltd

• Contemporary Amperex Technology (CATL) (300750 CH) has launched its H Share listing at a maximum price of HK$263. Pricing will be on 19 May, and the listing on 20 May.
• I discussed the H Share listing in CATL H Share Listing: The Investment Case, CATL H Share Listing: AH Discount Views, CATL H Share Listing: PHIP Reinforces the Investment Case.
• Our valuation analysis suggests that the low AH discount can be justified. We would participate in the listing.

4. CATL A/H Listing – High Quality, Large Size Make It Unavoidable but Needs a Discount

By Sumeet Singh, Aequitas Research

• Contemporary Amperex Technology (CATL) (300750 CH) , one of the world’s largest battery solutions providers, aims to raise around US$4bn 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 the IPO pricing.

5. GENDA Placement – Good Track Record & Sort off Well Flagged but Relatively Large

By Sumeet Singh, Aequitas Research

• GENDA (9166 JP), along with a selling shareholder, is looking to raise around US$190m to partly fund its M&A.
• Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.
• In this note, we will talk about the placement and run the deal through our ECM framework.

6. CATL A/H Listing – More like ADR Secondary Listing than an A/H Listing – Performance & Subscription

By Sumeet Singh, Aequitas Research

• Contemporary Amperex Technology (CATL) (300750 CH)  , one of the world’s largest battery solutions providers, aims to raise around US$4bn 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.
• In this note, we talk about the IPO pricing and how it compares to some of the past listings.

7. Curator’s Cut: “Bubble” Tea, Japan M&A 🍿and TSMC from Different Lenses

By Pranav Rao, Smartkarma

• Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,200+ insights published over the past two weeks on Smartkarma
• In this cut, we look through the bubble in Chinese tea company listings, the recent entertainment provided by Japanese M&A situations and the varied ways analysts look at TSMC on Smartkarma
• Want to dig deeper? Comment or message with the themes you think should be highlighted next time

8. GMO Internet Placement: Secondary Sell-Down (Quasi IPO) To Meet Prime Listing Requirements

By Nicholas Tan, Aequitas Research

• GMO Internet Group (9449 JP) is looking to sell its 33.4% stake in its subsidiary GMO Internet (4784 JP) to meet free-float requirements.
• As the current free-float is tiny, the deal is more like a quasi-IPO rather than a placement, in our view.
• In this note, we will talk about the deal dynamics as well as updates on the company’s financial performance.

9. GMO Internet (4784 JP): A Huge US$1.9 Billion Secondary Offering

By Arun George, Global Equity Research Ltd

• GMO Internet (4784 JP) has announced a secondary offering of 91.7 million shares, worth around US$1.9 billion.
• The selling shareholder is GMO Internet Group (9449 JP). The secondary offering aims to increase the tradable share ratio to satisfy the TSE Prime Market’s continued listing criteria.
• The offering represents 239.4 days of the 1-year ADV, the highest compared to the recent large Japanese placements. Pricing is likely to be on 5 June.

10. Jiangsu Hengrui Pharma A/H Listing – Low-End Is Probably Close to Fair Value

By Sumeet Singh, Aequitas Research

• Jiangsu Hengrui Medicine (600276 CH), a China-based pharmaceutical company, aims to raise around US$1.3bn in its H-share listing.
• JHP Has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
• We have looked at the company’s past performance and other deal dynamics in our previous note. In this note, we talk about the IPO pricing.