IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/huazhu-group-ltd" target="_blank" data-smartkarma-citation="entities:17527:1" rel="noopener">Huazhu Group (HTHT US)</a> will commence trading in Hong Kong on Tuesday, 22 September. Huazhu priced its Hong Kong secondary listing at HK$297 per share. Huazhu raised net proceeds of HK$5,924.8 million ($0.8 billion).</p></div><div><div class="content-highlight"><p><a href="https://www.smartkarma.com/profiles/rickin-thakrar" target="_blank" data-smartkarma-citation="accounts:1486" rel="noopener">Rickin Thakrar</a> outlined his views on the fundamentals and valuation in <a href="https://www.smartkarma.com/insights/huazhu-secondary-listing-hotel-motel-hanting-hotel" target="_blank" data-smartkarma-citation="insights:43241" rel="noopener">Huazhu Secondary Listing: Hotel, Motel, Hanting Hotel</a>. At the 18 September close price of $42.02 per ADS, the H-share offer price of HK$297 implies a 8.8% discount. We believe that the H-share will likely trade to a slight premium to the ADS on average, broadly similar to the overall median of previous secondary listings.</p></div></div>

Huazhu Group (HTHT US) will commence trading in Hong Kong on Tuesday, 22 September. Huazhu priced its Hong Kong secondary listing at HK$297 per share. Huazhu raised net proceeds of HK$5,924.8 million ($0.8 billion).Rickin Thakrar outlined his views on the fundamentals and valuation in Huazhu Secondary Listing: Hotel, Motel, Hanting Hotel. At the 18 September close price of $42.02 per ADS, the H-share offer price of HK$297 implies a 8.8% discount. We believe that the H-share will likely trade to a slight premium to the ADS on average, broadly similar to the overall median of previous secondary listings.

Huazhu Group Secondary Listing: Trading Debut

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<div><p><a href="https://www.smartkarma.com/entities/huazhu-group-ltd" target="_blank" data-smartkarma-citation="entities:17527:1" rel="noopener">Huazhu Group (HTHT US)</a> raised around US$900m in its secondary listing in Hong Kong.</p></div><div><p>I have covered the background of the deal in my earlier notes, <a href="https://www.smartkarma.com/insights/huazhu-hk-secondary-listing-early-look-needs-the-cash-more-than-most-secondary-candidates" target="_blank" rel="noopener">Huazhu HK Secondary Listing - Early Look - Needs the Cash More than Most Secondary Candidates</a> and <a href="https://www.smartkarma.com/insights/huazhu-hk-secondary-listing-needs-the-money-but-looks-toppish" target="_blank" rel="noopener">Huazhu HK Secondary Listing - Needs the Money but Looks Toppish.</a></p></div><div><p>In this insight, I'll talk about the deal dynamics and updates over the past week.</p></div>

Huazhu Group (HTHT US) raised around US$900m in its secondary listing in Hong Kong.I have covered the background of the deal in my earlier notes, Huazhu HK Secondary Listing - Early Look - Needs the Cash More than Most Secondary Candidates and Huazhu HK Secondary Listing - Needs the Money but Looks Toppish.In this insight, I'll talk about the deal dynamics and updates over the past week.

Huazhu HK Secondary Listing Trading - Lowest Coverage, Biggest Correction, Highest Concentration

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<p><a href="https://www.smartkarma.com/entities/zai-lab-ltd" target="_blank" data-smartkarma-citation="entities:25877:1" rel="noopener">Zai Lab Ltd (ZLAB US)</a> has launched a $0.9 billion secondary listing in Hong Kong. Zai Lab is a commercial-stage biopharmaceutical company which started to generate revenue from sales of commercialized products from 2018. In 1H20, revenue was primarily derived from the sales of both ZEJULA and Optune in Hong Kong and China.</p>
<div class="content-highlight"><p>The H shares will be priced on 22 September (Tuesday) and are scheduled for listing on 28 September.  Zai Lab will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Zai Lab pricing its H-shares around a 2% discount to its ADSs will be reasonable.</p></div>
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Zai Lab Ltd (ZLAB US) has launched a $0.9 billion secondary listing in Hong Kong. Zai Lab is a commercial-stage biopharmaceutical company which started to generate revenue from sales of commercialized products from 2018. In 1H20, revenue was primarily derived from the sales of both ZEJULA and Optune in Hong Kong and China.
The H shares will be priced on 22 September (Tuesday) and are scheduled for listing on 28 September.  Zai Lab will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Zai Lab pricing its H-shares around a 2% discount to its ADSs will be reasonable.


Zai Lab Secondary Listing: HK-ADS Premium/​​(Discount) Views

ZTO Express Cayman  / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/zto-express" target="_blank" data-smartkarma-citation="entities:23628:1" rel="noopener">ZTO Express (ZTO US)</a> has launched a $1.6 billion secondary listing in Hong Kong. We previously <a href="https://www.smartkarma.com/insights/zto-express-secondary-listing-home-delivery" target="_blank" rel="noopener">outlined our views</a> on ZTO Express’ fundamentals and valuation. The H shares will be priced on 22 September (Tuesday) and are scheduled for listing on 29 September.  </p><div class="content-highlight"><p>In this note, we will look at ZTO Express’ potential HK-ADS premium/(discount). ZTO Express will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that ZTO Express pricing its H-shares around a 3% discount to its ADSs will be reasonable.</p></div>

ZTO Express (ZTO US) has launched a $1.6 billion secondary listing in Hong Kong. We previously outlined our views on ZTO Express’ fundamentals and valuation. The H shares will be priced on 22 September (Tuesday) and are scheduled for listing on 29 September.  In this note, we will look at ZTO Express’ potential HK-ADS premium/(discount). ZTO Express will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that ZTO Express pricing its H-shares around a 3% discount to its ADSs will be reasonable.

ZTO Express Secondary Listing: HK-ADS Premium/​(Discount) Views

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<p><a href="https://www.smartkarma.com/entities/zto-express" target="_blank" data-smartkarma-citation="entities:23628:1" rel="noopener">ZTO Express (ZTO US)</a> plans to raise around US$1.4bn in its secondary listing in Hong Kong.</p>
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<p>While the company filed its PHIP on Friday, 11th Sep 2020, it has only launched its deal today. The deal size was smaller than what has been rumoured earlier. </p>
<p>I've covered most aspects of the deal in my previous insight, <a href="https://www.smartkarma.com/insights/zto-express-secondary-listing-fast-growth-but-it-hasn-t-been-flowing-down-to-earnings" target="_blank" rel="noopener">ZTO Express Secondary Listing - Fast Growth but It Hasn’t Been Flowing Down to Earnings.</a></p>
<p>In this insight, I'll provide a quick overview of the deal. </p>
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ZTO Express (ZTO US) plans to raise around US$1.4bn in its secondary listing in Hong Kong.


While the company filed its PHIP on Friday, 11th Sep 2020, it has only launched its deal today. The deal size was smaller than what has been rumoured earlier. 
I've covered most aspects of the deal in my previous insight, ZTO Express Secondary Listing - Fast Growth but It Hasn’t Been Flowing Down to Earnings.
In this insight, I'll provide a quick overview of the deal. 


ZTO Express Secondary Listing - Smaller than Expected

China

Huazhu Group Limited operates a hotel operator and franchisor. The Company provides hotel leasing, directly hotel operation, and co-development services. Huazhu Group mainly conducts businesses in China.

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Huazhu Group (HTHT US)

Huazhu Group Secondary Listing: Trading Debut

Yum China Holdings Inc (9987 HK) will commence trading in Hong Kong on Thursday, 10 September. Yum China Holdings, Inc (YUMC US) priced its Hong...

Arun George

Huazhu HK Secondary Listing Trading - Lowest Coverage, Biggest Correction, Highest Concentration

Huazhu Group (HTHT US) raised around US$900m in its secondary listing in Hong Kong. I have covered the background of the deal in my earlier...

Sumeet Singh

Zai Lab Secondary Listing: HK-ADS Premium/(Discount) Views

ZTO Express (ZTO US) has launched a $1.6 billion secondary listing in Hong Kong. We previously outlined our views on ZTO Express’ fundamentals and...

Arun George

ZTO Express Secondary Listing: HK-ADS Premium/(Discount) Views

ZTO Express (ZTO US) has launched a $1.6 billion secondary listing in Hong Kong. We previously outlined our views on ZTO Express’ fundamentals and...

Arun George

ZTO Express Secondary Listing - Smaller than Expected

ZTO Express (ZTO US) plans to raise around US$1.4bn in its secondary listing in Hong Kong. While the company filed its PHIP on Friday, 11th Sep...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Huazhu Group Secondary Listing: Trading Debut

Yum China Holdings Inc (9987 HK) will commence trading in Hong Kong on Thursday, 10 September. Yum China Holdings, Inc (YUMC US) priced its Hong...

Arun George

Huazhu HK Secondary Listing Trading - Lowest Coverage, Biggest Correction, Highest Concentration

Huazhu Group (HTHT US) raised around US$900m in its secondary listing in Hong Kong. I have covered the background of the deal in my earlier...

Sumeet Singh

Zai Lab Secondary Listing: HK-ADS Premium/​​(Discount) Views

ZTO Express (ZTO US) has launched a $1.6 billion secondary listing in Hong Kong. We previously outlined our views on ZTO Express’ fundamentals and...

Arun George

ZTO Express Secondary Listing: HK-ADS Premium/​(Discount) Views

ZTO Express (ZTO US) has launched a $1.6 billion secondary listing in Hong Kong. We previously outlined our views on ZTO Express’ fundamentals and...

Arun George

ZTO Express Secondary Listing - Smaller than Expected

ZTO Express (ZTO US) plans to raise around US$1.4bn in its secondary listing in Hong Kong. While the company filed its PHIP on Friday, 11th Sep...

Sumeet Singh

Zai Lab Secondary Listing: HK-ADS Premium/(Discount) Views

ZTO Express Secondary Listing: HK-ADS Premium/(Discount) Views