APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC 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.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/adicon-holdings-limited" target="_blank" data-smartkarma-citation="entities:33786:1" rel="noopener">ADICON Holdings Limited (ADI HK)</a> is looking to raise about US$400m in its upcoming HK IPO. </li>
<li>Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&amp;S. </li>
<li>Adicon’s revenue growth has been driven by its medical diagnostic testing services segment, during the track record period. However, much of its growth appears to be driven by COVID-19 testing. </li>
</ul>



ADICON Holdings Limited (ADI HK) is looking to raise about US$400m in its upcoming HK IPO. 
Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&amp;S. 
Adicon’s revenue growth has been driven by its medical diagnostic testing services segment, during the track record period. However, much of its growth appears to be driven by COVID-19 testing. 


Adicon Holdings Pre-IPO - Too Much Growth from COVID-19

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>IPO activity continues to pick up momentum, although the recent market volatility will likely make a few companies reconsider their near term plans.</li>
<li>On the placements front, <a href="https://www.smartkarma.com/entities/japan-post-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:838:1" rel="noopener">Japan Post Bank (7182 JP)</a> hasn't been playing ball, as has been the case with most of the other past deals which offered a trivial discount.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
IPO activity continues to pick up momentum, although the recent market volatility will likely make a few companies reconsider their near term plans.
On the placements front, Japan Post Bank (7182 JP) hasn't been playing ball, as has been the case with most of the other past deals which offered a trivial discount.


ECM Weekly (19th Mar 2023) - Japan Post Bank, SBI Sumishin, Harita, Trial Holding, ZKH, DPC, Kelsian

<ul>
<li>
<a href="https://www.smartkarma.com/entities/adicon-holdings-limited" target="_blank" data-smartkarma-citation="entities:33786:1" rel="noopener">ADICON Holdings Limited (ADI HK)</a> is looking to raise about US$400m in its upcoming HK IPO. The deal will be run by Morgan Stanley and CICC. </li>
<li>Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&amp;S.</li>
<li>It offers comprehensive testing services primarily to hospitals and health check centers through an integrated network of self-operated laboratories across China. </li>
</ul>



ADICON Holdings Limited (ADI HK) is looking to raise about US$400m in its upcoming HK IPO. The deal will be run by Morgan Stanley and CICC. 
Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&amp;S.
It offers comprehensive testing services primarily to hospitals and health check centers through an integrated network of self-operated laboratories across China. 


HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The revenue generated from COVID-19 business would not be sustainable in the long term. The lower price of COVID-19 tests, DRGs, centralized procurement and fierce competition would drag down margins.</li>
<li>ADICON hasn’t established enough advantage and moat to secure its leading position and could be overtaken by competitors.The weak R&amp;D makes ADICON difficult to gain an edge in esoteric tests.</li>
<li>Considering the fierce competition, lower margins, the decline of COVID-19 business revenue, and poor liquidity and IPO market sentiment in HKEX, the PE could be below 10.</li>
</ul>


The revenue generated from COVID-19 business would not be sustainable in the long term. The lower price of COVID-19 tests, DRGs, centralized procurement and fierce competition would drag down margins.
ADICON hasn’t established enough advantage and moat to secure its leading position and could be overtaken by competitors.The weak R&amp;D makes ADICON difficult to gain an edge in esoteric tests.
Considering the fierce competition, lower margins, the decline of COVID-19 business revenue, and poor liquidity and IPO market sentiment in HKEX, the PE could be below 10.


Pre-IPO ADICON Holdings Limited - Uncertain Growth and Outlook in Post-COVID Era

<p>After more than 20 years of development in China, independent clinical laboratory (ICL) has achieved rapid growth, especially during the COVID-19. After <a href="https://www.smartkarma.com/entities/guangzhou-kingmed-diagnostics" target="_blank" data-smartkarma-citation="entities:30257:1" rel="noopener">Guangzhou Kingmed Diagnostics (603882 CH)</a> and <a href="https://www.smartkarma.com/entities/zhejiang-dian-diagnostics-a" target="_blank" data-smartkarma-citation="entities:19115:1" rel="noopener">Zhejiang Dian Diagnostics A (300244 CH) </a>got listed, the third-ranking ICL service provider in China, <a href="https://www.smartkarma.com/entities/adicon-holdings-limited" target="_blank" data-smartkarma-citation="entities:33786:1" rel="noopener">ADICON Holdings Limited (ADI HK)</a>, is also preparing to go public. On June 30, 2021, ADICON submitted its prospectus to the HKEX for listing on the main board. This insight mainly analyzed the industry characteristics, the business, and the concerns of the Company.</p>

After more than 20 years of development in China, independent clinical laboratory (ICL) has achieved rapid growth, especially during the COVID-19. After Guangzhou Kingmed Diagnostics (603882 CH) and Zhejiang Dian Diagnostics A (300244 CH) got listed, the third-ranking ICL service provider in China, ADICON Holdings Limited (ADI HK), is also preparing to go public. On June 30, 2021, ADICON submitted its prospectus to the HKEX for listing on the main board. This insight mainly analyzed the industry characteristics, the business, and the concerns of the Company.

Pre-IPO ADICON Holdings Ltd - Insights on Industry, Business and Concerns

China

ADICON is an investment holding company that provides independent clinical laboratory (ICL) services in the People's Republic of China. The company offers a broad portfolio of medical diagnostic testing services, including routine and esoteric tests, to hospitals, medical institutions, health check centers, consumers, pharmaceutical companies, and contract research organizations. It also engages in the trading of medical testing equipment and the sale of medical products. ADICON was founded in 2004 and is headquartered in Hangzhou, China.

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ADICON (9860 HK)

Adicon Holdings Pre-IPO - Too Much Growth from COVID-19

ADICON Holdings Limited (ADI HK) is looking to raise about US$400m in its upcoming HK IPO. Unfortunately, much of its growth appears to be driven...

Ethan Aw

ECM Weekly (19th Mar 2023) - Japan Post Bank, SBI Sumishin, Harita, Trial Holding, ZKH, DPC, Kelsian

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Adicon Holdings Pre-IPO Tearsheet

ADICON Holdings Limited (ADI HK) is looking to raise about US$400m in its upcoming HK IPO. The deal will be run by Morgan Stanley and CICC.

Ethan Aw

Pre-IPO ADICON Holdings Limited - Uncertain Growth and Outlook in Post-COVID Era

The unsustainable COVID-19 related revenue will put pressure on ADICON's performance in post-COVID era. It's difficult to make breakthrough due to...

Xinyao (Criss) Wang

Pre-IPO ADICON Holdings Ltd - Insights on Industry, Business and Concerns

This insight mainly analyzed ADICON in terms of the ICL industry characteristics in China, the business model of ADICON, the comparison with peers,...

Xinyao (Criss) Wang

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