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

China Education Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-education-group-holdin" target="_blank" data-smartkarma-citation="entities:18218:1" rel="noopener">China Education Group (839 HK)</a> is looking to raise up to US$209m in its top-up placement. </li>
<li>This will be the fourth placement by the group since its listing in 2017, we have earlier looked at the past three placements as well.</li>
<li>In this note, we will look  at the deal dynamics and run the deal through our ECM framework.</li>
</ul>



China Education Group (839 HK) is looking to raise up to US$209m in its top-up placement. 
This will be the fourth placement by the group since its listing in 2017, we have earlier looked at the past three placements as well.
In this note, we will look  at the deal dynamics and run the deal through our ECM framework.


China Education Group Placement - Recent Momentum Has Been Strong but past Deals Were Mixed

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Bright Scholar Education Holdi / Event-Driven

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/bright-scholar-education" target="_blank" data-smartkarma-citation="entities:24126:1" rel="noopener">Bright Scholar Education (BEDU US)</a></strong> (BSE), an operator of schools across China, the UK, and the US, received an Offer earlier this year from Huiyan Yang, the chairperson.</li>
<li>Yang is offering US$3.32/ADS - adjusted for the recent reverse split - a 44% premium to the undisturbed price. </li>
<li>Yang controls 92.5% of the votes. There is no shareholder vote on this transaction should a firm Offer unfold.</li>
</ul>



Bright Scholar Education (BEDU US) (BSE), an operator of schools across China, the UK, and the US, received an Offer earlier this year from Huiyan Yang, the chairperson.
Yang is offering US$3.32/ADS - adjusted for the recent reverse split - a 44% premium to the undisturbed price. 
Yang controls 92.5% of the votes. There is no shareholder vote on this transaction should a firm Offer unfold.


Bright Scholar: Cheap Homecoming, Yet Limited Downside

<p>China Education Group (839 HK) is looking to raise up to US$154m in its top-up placement. This will be the third placement by the group over the past 15 months.</p><p>We covered the previous placement in Jan 21, China Education Group Placement - Back for More, past Deal Didn’t Do Well.</p><p>In this note, we will look  at the deal dynamics and run the deal through framework.</p>

China Education Group (839 HK) is looking to raise up to US$154m in its top-up placement. This will be the third placement by the group over the past 15 months.We covered the previous placement in Jan 21, China Education Group Placement - Back for More, past Deal Didn’t Do Well.In this note, we will look  at the deal dynamics and run the deal through framework.

China Education Group Placement - Recent Momentum Is Strong but past Deal Record Isn’t Supportive

<div><p><a href="https://www.smartkarma.com/entities/china-education-group-holdin" target="_blank" data-smartkarma-citation="entities:18218:1" rel="noopener">China Education Group (839 HK)</a> is looking to raise up to US$268m in its top-up placement. This will be second placement for the stock in less than six months.  </p></div><div><p>In this note, we will look at the use of proceeds, deal dynamics, and run the deal through framework.</p></div>

China Education Group (839 HK) is looking to raise up to US$268m in its top-up placement. This will be second placement for the stock in less than six months.  In this note, we will look at the use of proceeds, deal dynamics, and run the deal through framework.

China Education Group Placement - Back for More, past Deal Didn't Do Well

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.

<div class="content-highlight">
<p>In our previous note, <a href="https://www.smartkarma.com/insights/ihuman-ipo-competition-is-likely-to-eat-into-profits" target="_blank" data-smartkarma-citation="insights:43574" rel="noopener">IHuman IPO: Competition Is Likely to Eat into Profits</a>, we suggested that, while we like iHuman for its robust medium-term growth profile, tight competition in the online edutainment market would prevent this strong growth from being reflected in the bottom-line, and we would only subscribe to the IPO as long as these weaknesses are compensated through the valuation. However, iHuman’s valuation looks expensive to us compared to its Chinese edutech peers, making the risk-reward nowhere near attractive.</p>
</div>


In our previous note, IHuman IPO: Competition Is Likely to Eat into Profits, we suggested that, while we like iHuman for its robust medium-term growth profile, tight competition in the online edutainment market would prevent this strong growth from being reflected in the bottom-line, and we would only subscribe to the IPO as long as these weaknesses are compensated through the valuation. However, iHuman’s valuation looks expensive to us compared to its Chinese edutech peers, making the risk-reward nowhere near attractive.


China

China Distance Education Holdings Ltd. offers a range of online and test preparation courses and other related services and products.  The Company's courses are designed to help professionals and participants obtain and maintain skills, licenses, certifications necessary to pursue careers in China in the areas of accounting, law, healthcare, construction engineering, IT, and others.

China Distance Education Holdings Ltd (ADR) (DL US)

China Distance Education Holdings Ltd (ADR)

China Distance Education Holdings Ltd (ADR) (DL US)

China Education Group Placement - Recent Momentum Has Been Strong but past Deals Were Mixed

China Education Group (839 HK) is looking to raise up to US$209m in its top-up placement. In this note, we run the deal through our ECM framework.

Sumeet Singh

Bright Scholar: Cheap Homecoming, Yet Limited Downside

Trading tight at a 1.8% gross spread to terms. However, your downside is probably limited here as operations recover. And Yang may still bump terms.

David Blennerhassett

China Education Group Placement - Recent Momentum Is Strong but past Deal Record Isn’t Supportive

China Education Group (839 HK) is looking to raise up to US$154m in its top-up placement. This will be the third placement by the group over the...

Sumeet Singh

China Education Group Placement - Back for More, past Deal Didn't Do Well

China Education Group (839 HK) is looking to raise up to US$268m in its top-up placement. This will be second placement for the stock in less than...

Sumeet Singh

IHuman IPO: Just Not Worth It

In our previous note, we suggested that, while we like iHuman for its robust medium-term growth profile, tight competition in the online...

Supun Walpola