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.

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

Alpha-Centric ESG Research

Kyle Rudden

<p>Well, that sure escalated quickly.</p><p>Early last week, in the Insight <a href="https://www.smartkarma.com/insights/pre-ipo-esg-analysis-didi-s-exemplary-esg-achievements-eclipsed-by-regulatory-risks-and-uncertainty" target="_blank" data-smartkarma-citation="insights:53687" rel="noopener">Pre-IPO ESG Analysis: DiDi's Exemplary ESG Achievements Eclipsed By Regulatory Risks and Uncertainty</a>, I juxtaposed <a href="https://www.smartkarma.com/entities/didi-chuxing-inc" target="_blank" data-smartkarma-citation="entities:27467:1" rel="noopener">DiDi's (DIDI US)</a> relatively strong ESG results in areas under its control with serious concerns about regulatory risk outside of its direct control.</p><p>Late last week, days after DiDi's successful US$4.4 billion initial public offering, Chinese regulators ordered the removal of DiDi's business-critical ride-hailing apps from online app markets, until the company rectifies "serious violations" pertaining to collection and use of customer data.</p><p>DiDi is down 5.3% so far (delayed open today).</p><p>Regulatory risk was central to my thesis in the first Insight. I hardly anticipated this, but I referred to regulatory risk as real, near-term, tangible investment risk; not just some fuzzy ESG risk. Given that, I felt obliged to follow up. At the same time, however, this news is covered <em>ad nauseam.</em></p><p>No sense in beating a dead horse with a broken record.</p><p>So, I decided to do something different. That statement about regulatory risk being a real tangible investment risk is primarily based on anecdotal evidence – i.e., when regulators flex their muscle, stocks go down, not up. But "anecdotal" isn't good enough.</p><p>Which is why I took this opportunity to quantify the impacts of adverse regulatory events in China. Specifically, with event studies measuring abnormal returns around major regulatory events across four broad categories. That's what most of this Insight is about. But back to DiDi for a moment.</p><p>Regulatory risk and uncertainty for DiDi is much worse today than it was last week. Typically, the opposite would be true; a negative event out in the open is better than a possible event lurking in the shadows. But not this time. Barring an immediate change of heart by the PRC, this is bad.</p><p>Therefore, downgrading to bearish.</p>

Well, that sure escalated quickly.Early last week, in the Insight Pre-IPO ESG Analysis: DiDi's Exemplary ESG Achievements Eclipsed By Regulatory Risks and Uncertainty, I juxtaposed DiDi's (DIDI US) relatively strong ESG results in areas under its control with serious concerns about regulatory risk outside of its direct control.Late last week, days after DiDi's successful US$4.4 billion initial public offering, Chinese regulators ordered the removal of DiDi's business-critical ride-hailing apps from online app markets, until the company rectifies "serious violations" pertaining to collection and use of customer data.DiDi is down 5.3% so far (delayed open today).Regulatory risk was central to my thesis in the first Insight. I hardly anticipated this, but I referred to regulatory risk as real, near-term, tangible investment risk; not just some fuzzy ESG risk. Given that, I felt obliged to follow up. At the same time, however, this news is covered ad nauseam.No sense in beating a dead horse with a broken record.So, I decided to do something different. That statement about regulatory risk being a real tangible investment risk is primarily based on anecdotal evidence – i.e., when regulators flex their muscle, stocks go down, not up. But "anecdotal" isn't good enough.Which is why I took this opportunity to quantify the impacts of adverse regulatory events in China. Specifically, with event studies measuring abnormal returns around major regulatory events across four broad categories. That's what most of this Insight is about. But back to DiDi for a moment.Regulatory risk and uncertainty for DiDi is much worse today than it was last week. Typically, the opposite would be true; a negative event out in the open is better than a possible event lurking in the shadows. But not this time. Barring an immediate change of heart by the PRC, this is bad.Therefore, downgrading to bearish.

PRC Shows DiDi Who's Boss: An Analysis of Adverse Regulatory Events on Stock Prices

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

Ebang International Holdings I / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/ebang-international-holdings-inc" target="_blank" data-smartkarma-citation="entities:27247:1" rel="noopener">Ebang (EBANG HK)</a> is a Chinese designer of bitcoin mining machines which are sold under the Ebit brand. Ebang has launched its IPO at an indicative price range of $4.50-6.50 per share. At the mid-point of the IPO price range, Ebang will raise net proceeds of $97.4 million. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/ebang-ipo-initiation-bits-and-bob" target="_blank" rel="noopener">our initiation note</a>, we highlighted that Ebang is hoping that <a href="https://www.smartkarma.com/entities/canaan-inc" target="_blank" data-smartkarma-citation="entities:27054:1" rel="noopener">Canaan Inc. (CAN US)</a>’s disastrous post-IPO share performance and the Bitcoin price volatility will not deter investors. However, our analysis suggests Ebang (like Canaan) is unforecastable and therefore, uninvestable for most public market investors. Our valuation analysis suggests that the price range in unattractive and we would avoid the IPO. </p></div></div></div>

Ebang (EBANG HK) is a Chinese designer of bitcoin mining machines which are sold under the Ebit brand. Ebang has launched its IPO at an indicative price range of $4.50-6.50 per share. At the mid-point of the IPO price range, Ebang will raise net proceeds of $97.4 million. In our initiation note, we highlighted that Ebang is hoping that Canaan Inc. (CAN US)’s disastrous post-IPO share performance and the Bitcoin price volatility will not deter investors. However, our analysis suggests Ebang (like Canaan) is unforecastable and therefore, uninvestable for most public market investors. Our valuation analysis suggests that the price range in unattractive and we would avoid the IPO. 

<p><a href="https://www.smartkarma.com/entities/ebang-international-holdings-inc" target="_blank" data-smartkarma-citation="entities:27247:1" rel="noopener">Ebang (EBANG HK)</a> is a Chinese designer of bitcoin mining machines which are sold under the Ebit brand. Ebang has filed for a $100 million IPO in the US. </p><div class="content-highlight"><p>Ebang is hoping that <a href="https://www.smartkarma.com/entities/canaan-inc" target="_blank" data-smartkarma-citation="entities:27054:1" rel="noopener">Canaan Inc. (CAN US)</a>’s disastrous post-IPO share performance and the Bitcoin price volatility will not deter investors. However, our analysis suggests Ebang (like Canaan) is unforecastable and therefore, uninvestable for most public market investors.</p></div>

Ebang (EBANG HK) is a Chinese designer of bitcoin mining machines which are sold under the Ebit brand. Ebang has filed for a $100 million IPO in the US. Ebang is hoping that Canaan Inc. (CAN US)’s disastrous post-IPO share performance and the Bitcoin price volatility will not deter investors. However, our analysis suggests Ebang (like Canaan) is unforecastable and therefore, uninvestable for most public market investors.

Equity Analyst, LightStream Research

Supun Walpola

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p>Our initial thoughts on <a href="https://www.smartkarma.com/entities/ebang-international-holdings-inc" target="_blank" data-smartkarma-citation="entities:27247:1" rel="noopener">Ebang (EBANG HK)</a>’s IPO is negative. We did not find anything likeable about Ebang apart from maybe the timing of the IPO. The bull thesis for <a href="https://www.smartkarma.com/entities/bitcoin-usd" target="_blank" data-smartkarma-citation="entities:25895:1" rel="noopener">Bitcoin (XBTUSD CURNCY)</a> is currently strong and it is likely that Ebang would interest investors who are looking to get indirect exposure to Bitcoin. However, Ebang’s past results suggest that the company has not been able to benefit during historical Bitcoin bull-runs. Moreover, the fact that Ebang has fallen so far behind its competition in terms of technology, makes its products less attractive for miners, especially during a bull-run, where mining difficulty would increase further.  </p>

Our initial thoughts on Ebang (EBANG HK)’s IPO is negative. We did not find anything likeable about Ebang apart from maybe the timing of the IPO. The bull thesis for Bitcoin (XBTUSD CURNCY) is currently strong and it is likely that Ebang would interest investors who are looking to get indirect exposure to Bitcoin. However, Ebang’s past results suggest that the company has not been able to benefit during historical Bitcoin bull-runs. Moreover, the fact that Ebang has fallen so far behind its competition in terms of technology, makes its products less attractive for miners, especially during a bull-run, where mining difficulty would increase further.  

China

Canaan Inc. provides semiconductor solutions. The Company produces custom designed integrated circuit microprocessors for supercomputing hardware. Canaan serves customers worldwide.

Canaan Inc. (CAN US)

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

PRC Shows DiDi Who's Boss: An Analysis of Adverse Regulatory Events on Stock Prices

Last week, I wrote about DiDi's regulatory risk. This week, it's worse. Hence the downgrade. But this is mostly an analysis of how regulatory...

Kyle Rudden

Ebang IPO: Valuation Insights

Ebang (EBANG HK) is a Chinese designer of bitcoin mining machines which are sold under the Ebit brand. Ebang has launched its IPO at an indicative...

Arun George

Ebang IPO Initiation: Bits and Bob

Ebang (EBANG HK) is a Chinese designer of bitcoin mining machines which are sold under the Ebit brand. Ebang has filed for a $100 million IPO in...

Arun George

Ebang IPO: More Troubled Than Bitcoin

Our initial thoughts on Ebang (EBANG HK)’s IPO is negative. We did not find anything likeable about Ebang apart from maybe the timing of the IPO....

Supun Walpola