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.

Event-Driven

<a href="https://www.smartkarma.com/entities/nature-home-holding-company" target="_blank" data-smartkarma-citation="entities:20543:1" rel="noopener">Nature Home Holding Company (2083 HK)</a> manufactures and sells flooring products and customised home decoration products. After market close on Tuesday, it announced a privatisation offer by way of a scheme of arrangement from New Modern Home Limited. The offeror will offer HK$1.70 cash per scheme share. The bid represents a premium of 39.3% over the closing price of HK$1.22 per share on the last full trading day (16 July 2021 prior to the trading halt). The key condition precedents are the headcount test along with the scheme approved by at least 75% disinterested shareholders and &lt;10% rejection by all disinterested shareholders. As disinterested scheme shareholders represent 292.1 million shares or 21.20% of shares outstanding, the 10% blocking stake is 29.2 million shares or 2.12% of shares outstanding. No shareholder holds a blocking stake. <div class="content-highlight">Post-privatisation, the offeror plans to re-list all or part of its businesses in the PRC which while refreshingly honest, may not sit well with some shareholders. Overall, we think the offer price is attractive and that the privatisation bid will be successful. </div>

Nature Home Holding Company (2083 HK) manufactures and sells flooring products and customised home decoration products. After market close on Tuesday, it announced a privatisation offer by way of a scheme of arrangement from New Modern Home Limited. The offeror will offer HK$1.70 cash per scheme share. The bid represents a premium of 39.3% over the closing price of HK$1.22 per share on the last full trading day (16 July 2021 prior to the trading halt). The key condition precedents are the headcount test along with the scheme approved by at least 75% disinterested shareholders and &lt;10% rejection by all disinterested shareholders. As disinterested scheme shareholders represent 292.1 million shares or 21.20% of shares outstanding, the 10% blocking stake is 29.2 million shares or 2.12% of shares outstanding. No shareholder holds a blocking stake. Post-privatisation, the offeror plans to re-list all or part of its businesses in the PRC which while refreshingly honest, may not sit well with some shareholders. Overall, we think the offer price is attractive and that the privatisation bid will be successful. 

APAC IPOs & Placements

Zhen Zhou, Toh

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.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/zhongliang-holdings" target="_blank" data-smartkarma-citation="entities:28009:1" rel="noopener">Zhongliang Holdings (2772 HK)</a> is looking to raise up to US$452m in its upcoming Hong Kong IPO. We have previously covered the company in <a href="https://www.smartkarma.com/insights/zhongliang-pre-ipo-review-incredible-growth-bogged-down-by-related-party-transactions" target="_blank" data-smartkarma-citation="insights:28738" rel="noopener">Zhongliang (中梁地产) Pre-IPO Review - Incredible Growth Bogged Down by Related Party Transactions</a>.
In this insight, we will look at the company's updated financials, compare valuations to peers and run the deal through our ECM framework.

Zhongliang Holdings (2772 HK) is looking to raise up to US$452m in its upcoming Hong Kong IPO. We have previously covered the company in Zhongliang (中梁地产) Pre-IPO Review - Incredible Growth Bogged Down by Related Party Transactions.
In this insight, we will look at the company's updated financials, compare valuations to peers and run the deal through our ECM framework.

Zhongliang (中梁地产) IPO Review - Same Concerns

Helenbergh China Holdings / Equity Capital Markets

Helenbergh is looking to raise US$500m in its upcoming Hong Kong IPO.
HLB is a real estate developer in China with exposure to mostly first and second tier cities. It has a national presence but a large percentage of its land bank resides in Pearl River Delta region. The company had a healthy balance sheet with 69% net gearing but as it ramped up expansion efforts, net gearing doubled to 134% in FY2018. Further to that, average effective interest rate had increased along with net gearing.
However, our main concern is its related party transaction. It has a dizzying number of transactions with subsidiaries owned by the controlling shareholder.

Helenbergh is looking to raise US$500m in its upcoming Hong Kong IPO.
HLB is a real estate developer in China with exposure to mostly first and second tier cities. It has a national presence but a large percentage of its land bank resides in Pearl River Delta region. The company had a healthy balance sheet with 69% net gearing but as it ramped up expansion efforts, net gearing doubled to 134% in FY2018. Further to that, average effective interest rate had increased along with net gearing.
However, our main concern is its related party transaction. It has a dizzying number of transactions with subsidiaries owned by the controlling shareholder.

Helenbergh (海伦堡) Early Thoughts - The Usual Red Flag - Related Party Transactions

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Yincheng International / Equity Capital Markets

Yincheng International, a China Yangtze delta focused property developer, is raising up to USD 110 million to list on the Hong Kong Stock Exchange. In this note, we will cover the following topics:
<ul class="">
<li>The company's property portfolio</li>
<li>Financial performance that concerns us</li>
<li>Shareholders and use of proceeds</li>
<li>Our view on the deal</li>
</ul>

Yincheng International, a China Yangtze delta focused property developer, is raising up to USD 110 million to list on the Hong Kong Stock Exchange. In this note, we will cover the following topics:

The company's property portfolio
Financial performance that concerns us
Shareholders and use of proceeds
Our view on the deal


Yincheng Intl (银城国际) IPO Quick Note: A Highly Levered Nanjing Developer Bet

<a href="https://www.smartkarma.com/entities/27887" target="_blank" data-smartkarma-citation="entities:27887:1">Dexin China Holdings (2019 HK)</a> (Dexin) is looking to raise up to US$220m in its upcoming IPO. We have covered the company in our previous insight, <a href="https://www.smartkarma.com/insights/dexin-china-pre-ipo-related-party-transactions-and-partial-asset-listing" target="_blank" data-smartkarma-citation="insights:27474">Dexin China (德信中国) Pre-IPO - Related Party Transactions and Partial Asset Listing</a>.
While details of Huzhou's property growth has been provided and showed that the city is growing the fastest compared to Hangzhou and Wenzhou, other concerns such as related party transactions and the partial listing of assets remain.
In this insight, we will provide updates on the company's 9M 2018 financials, details of the cornerstone investor, and valuation compared to listed peers. We will also run the deal through our framework.

Dexin China Holdings (2019 HK) (Dexin) is looking to raise up to US$220m in its upcoming IPO. We have covered the company in our previous insight, Dexin China (德信中国) Pre-IPO - Related Party Transactions and Partial Asset Listing.
While details of Huzhou's property growth has been provided and showed that the city is growing the fastest compared to Hangzhou and Wenzhou, other concerns such as related party transactions and the partial listing of assets remain.
In this insight, we will provide updates on the company's 9M 2018 financials, details of the cornerstone investor, and valuation compared to listed peers. We will also run the deal through our framework.

Dexin China (德信中国) IPO Review - Key Issues Remain but 9M Results Showed Strong Growth

China

Midea Real Estate Holding Limited is an investment holding company that provides property management services, asset operation, real estate technology, and project management services. The company has transitioned to an asset-light model, focusing on integrated property services and smart living solutions. It was founded in 2004 and is headquartered in Foshan, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Midea Real Estate Holding (3990 HK)

Nature Home’s Privatisation Bid

Nature Home announced a privatisation offer at HK$1.70 cash per scheme share. Overall, we think the offer price is attractive and that the...

Arun George

Zhongliang (中梁地产) IPO Review - Same Concerns

Zhongliang Holdings (2772 HK) is looking to raise up to US$452m in its upcoming Hong Kong IPO. We have previously covered the company in Zhongliang...

Zhen Zhou, Toh

Yincheng Intl (银城国际) IPO Quick Note: A Highly Levered Nanjing Developer Bet

Yincheng International, a China Yangtze delta focused property developer, is raising up to USD 110 million to list on the Hong Kong Stock Exchange....

Ke Yan, CFA, FRM

Dexin China (德信中国) IPO Review - Key Issues Remain but 9M Results Showed Strong Growth

Dexin China Holdings (2019 HK) (Dexin) is looking to raise up to US$220m in its upcoming IPO. We have covered the company in our previous insight,...

Zhen Zhou, Toh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Nature Home’s Privatisation Bid

Nature Home announced a privatisation offer at HK$1.70 cash per scheme share. Overall, we think the offer price is attractive and that the...

Arun George

Zhongliang (中梁地产) IPO Review - Same Concerns

Zhongliang Holdings (2772 HK) is looking to raise up to US$452m in its upcoming Hong Kong IPO. We have previously covered the company in Zhongliang...

Zhen Zhou, Toh

Helenbergh (海伦堡) Early Thoughts - The Usual Red Flag - Related Party Transactions

Helenbergh is looking to raise US$500m in its upcoming Hong Kong IPO. HLB is a real estate developer in China with exposure to mostly first and...

Zhen Zhou, Toh

Yincheng Intl (银城国际) IPO Quick Note: A Highly Levered Nanjing Developer Bet

Yincheng International, a China Yangtze delta focused property developer, is raising up to USD 110 million to list on the Hong Kong Stock Exchange....

Ke Yan, CFA, FRM

Dexin China (德信中国) IPO Review - Key Issues Remain but 9M Results Showed Strong Growth

Dexin China Holdings (2019 HK) (Dexin) is looking to raise up to US$220m in its upcoming IPO. We have covered the company in our previous insight,...

Zhen Zhou, Toh