Report
EUR 88.49
For Business Accounts Only
In this note, we discuss the deal terms and note that there is no cornerstone investor in the deal and the majority of its proceeds will be used to paydown offshore debt. We discuss our thoughts on the index inclusion. We think the company will not be fast-track included in the MSCI Indices.
We recap on the company’s minor corporate governance issue from the past. We discuss the deal’s valuation range and reckon that there are limited upsides near the low end. We also raise a few questions that we couldn’t answer during our research. Having said that, with positive sentiment towards IPOs in Hong Kong, we would still participate at the low end.
Our previous coverage on China Feihe
- China Feihe IPO Preview: Goat Bless Infant Formula Milk?
- China Feihe (ä¸å›½é£žé¹¤) IPO: New Numbers, New Red Flag, and Demographic Risk
- China Feihe (ä¸å›½é£žé¹¤) IPO: PHIP Updates, Favorable Policy, Updated Valuation
- Feihe IPO: Actively Promoted in Supermarkets, Some Concerns on Industrial History
- China Feihe (ä¸å›½é£žé¹¤) IPO: Peer Comparison and Thoughts on Valuation
China Feihe (ä¸å›½é£žé¹¤) IPO - Wide valuation range, no cornerstone, and things to note
China Feihe has started book building to raise up to USD 1.1 billion to list in Hong Kong. In our previous insight, we have discussed the company’s background, its history, shareholders, the latest financials disclosed in the PHIP, our on-the ground visit to its shelf in supermarkets, comparison of popularity online vs peers, and valuation.In this note, we discuss the deal terms and note that there is no cornerstone investor in the deal and the majority of its proceeds will be used to paydown offshore debt. We discuss our thoughts on the index inclusion. We think the company will not be fast-track included in the MSCI Indices.
We recap on the company’s minor corporate governance issue from the past. We discuss the deal’s valuation range and reckon that there are limited upsides near the low end. We also raise a few questions that we couldn’t answer during our research. Having said that, with positive sentiment towards IPOs in Hong Kong, we would still participate at the low end.
Our previous coverage on China Feihe
- China Feihe IPO Preview: Goat Bless Infant Formula Milk?
- China Feihe (ä¸å›½é£žé¹¤) IPO: New Numbers, New Red Flag, and Demographic Risk
- China Feihe (ä¸å›½é£žé¹¤) IPO: PHIP Updates, Favorable Policy, Updated Valuation
- Feihe IPO: Actively Promoted in Supermarkets, Some Concerns on Industrial History
- China Feihe (ä¸å›½é£žé¹¤) IPO: Peer Comparison and Thoughts on Valuation
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Ke Yan
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