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.

Equity Capital Markets

<ul>
<li>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPO front, we looked at a number of upcoming listings in India.</li>
<li>There was a revival in placement flows during the week, after a lull over the past few weeks.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, we looked at a number of upcoming listings in India.
There was a revival in placement flows during the week, after a lull over the past few weeks.


ECM Weekly (26th Aug 2024) - Zomato, Colowide, Star Asia, Yamaha, 99Speed, Hero Fin, Bajaj Housing

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Baidu announced (22 Aug) its 2Q24 results: revenue was RMB33.9bn, down 0.4% YoY and largely in line with Bloomberg consensus; non-GAAP net income was RMB7.4bn, 9% better than consensus, thanks to better-than-expected sales and marketing expense control.</li><li>Baidu is becoming more determined in driving user experience improvement, guiding to aim for a further increase in the contribution of Gen-AI generated results in search results page, and prioritize user experience improvement over monetization in the short term.</li><li>Although the transformation will likely bring incremental headwinds to ads revenue growth in the near term, Baidu’s long-term monetization prospects should be enhanced, in our view, with enhanced user stickiness, and potential innovative cost per sale (CPS) ads formats. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Baidu announced (22 Aug) its 2Q24 results: revenue was RMB33.9bn, down 0.4% YoY and largely in line with Bloomberg consensus; non-GAAP net income was RMB7.4bn, 9% better than consensus, thanks to better-than-expected sales and marketing expense control.Baidu is becoming more determined in driving user experience improvement, guiding to aim for a further increase in the contribution of Gen-AI generated results in search results page, and prioritize user experience improvement over monetization in the short term.Although the transformation will likely bring incremental headwinds to ads revenue growth in the near term, Baidu’s long-term monetization prospects should be enhanced, in our view, with enhanced user stickiness, and potential innovative cost per sale (CPS) ads formats. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu (BIDU US) - More aggressive in Gen-AI empowered ads business transformation

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>From C1Q24 results we concluded that media platforms with large, untapped and preferably contextual traffic tend to benefit the most from Generative AI (GAI). C2Q24 largely trended the same line;</li>
<li>But Google is experimenting with inserting ads above or below the AI Overview Box. We hold reservation on the result but Baidu can likely copy;</li>
<li>New growth emerged in AI Agent with API calls on Microsoft Azure, Google, Linked-In and Snap showing accelerated sequential growth. AI agent is likely the next hot spot in GAI.</li>
</ul>


From C1Q24 results we concluded that media platforms with large, untapped and preferably contextual traffic tend to benefit the most from Generative AI (GAI). C2Q24 largely trended the same line;
But Google is experimenting with inserting ads above or below the AI Overview Box. We hold reservation on the result but Baidu can likely copy;
New growth emerged in AI Agent with API calls on Microsoft Azure, Google, Linked-In and Snap showing accelerated sequential growth. AI agent is likely the next hot spot in GAI.


A Few Signs Beyond Advertising Optimization In GAI Commercialization

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>WeRide, a pure-play autonomous driving company with operations in 7 countries, may raise up to $120M in upcoming IPO in the United States.</li>
<li>WeRide is expected to IPO this week. The company’s amended prospectus puts the price range per ADS at $15.50 to $18.50, implying a market cap of ~$4.6B at the midpoint.</li>
<li>The company has raised ~$1.4B in equity financing to date and was backed by Qiming Venture Partners and the venture capital fund of the Renault Nissan Mitsubishi Alliance, among others.</li>
</ul>


WeRide, a pure-play autonomous driving company with operations in 7 countries, may raise up to $120M in upcoming IPO in the United States.
WeRide is expected to IPO this week. The company’s amended prospectus puts the price range per ADS at $15.50 to $18.50, implying a market cap of ~$4.6B at the midpoint.
The company has raised ~$1.4B in equity financing to date and was backed by Qiming Venture Partners and the venture capital fund of the Renault Nissan Mitsubishi Alliance, among others.


WeRide IPO: High-Risk Venture Investment and Unproven Business Model

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ola-electric-mobility-pvt-ltd" target="_blank" data-smartkarma-citation="entities:40618:1" rel="noopener">Ola Electric</a> managed to raise around US$734m in its India IPO.</li>
<li>Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells</li>
<li>In our previous notes, we looked at the company’s past performance and valuations. In this note, we talk about the trading dynamics.</li>
</ul>



Ola Electric managed to raise around US$734m in its India IPO.
Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells
In our previous notes, we looked at the company’s past performance and valuations. In this note, we talk about the trading dynamics.


Ola Electric IPO Trading - Decent Anchor, Tepid Overall Demand

China

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

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Baidu (BIDU US)

ECM Weekly (26th Aug 2024) - Zomato, Colowide, Star Asia, Yamaha, 99Speed, Hero Fin, Bajaj Housing

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

Baidu (BIDU US) - More aggressive in Gen-AI empowered ads business transformation

Baidu announced (22 Aug) its 2Q24 results: revenue was RMB33.9bn, down 0.4% YoY and largely in line with Bloomberg consensus

CMB International

A Few Signs Beyond Advertising Optimization In GAI Commercialization

C2Q24 Generative AI (GAI) showed increased uptake from US Internet companies. AI agent activities are on the rise, particularly in mid-sized...

Blue Lotus Research Institute

WeRide IPO: High-Risk Venture Investment and Unproven Business Model

WeRide, a Chinese autonomous driving company backed by Yutong and VC investors, is expected to IPO this week in the United States. I view WeRide...

Andrei Zakharov

Ola Electric IPO Trading - Decent Anchor, Tepid Overall Demand

Ola Electric managed to raise around US$734m in its India IPO. In this note, we talk about the trading dynamics. While the anchor book was decent,...

Sumeet Singh

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