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

<p>SF Real Estate Investment Trust (SFREIT), a logistics-focused REIT, aims to raise around US$300m in its Hong Kong IPO. SF REIT is sponsored by SF Holdings, listed in Shenzhen.</p><p>At the time of listing, SFREIT will own three properties located in Hong Kong, Foshan and Wuhu, all of which are modern logistics properties. The assets have an aggregated gross lettable area of approximately 307,617.5 sqm with an appraised value of HK$6.1bn, as at Mar 2021. The average occupancy of the properties was 95.3%, with a weighted average age of 3.5 years and weighted average remaining land tenure of 37.9 years.</p>

SF Real Estate Investment Trust (SFREIT), a logistics-focused REIT, aims to raise around US$300m in its Hong Kong IPO. SF REIT is sponsored by SF Holdings, listed in Shenzhen.At the time of listing, SFREIT will own three properties located in Hong Kong, Foshan and Wuhu, all of which are modern logistics properties. The assets have an aggregated gross lettable area of approximately 307,617.5 sqm with an appraised value of HK$6.1bn, as at Mar 2021. The average occupancy of the properties was 95.3%, with a weighted average age of 3.5 years and weighted average remaining land tenure of 37.9 years.

SF REIT Pre-IPO - One Trick Pony, Who’s Not Doing the Trick

Asia Fixed Income Analyst

Derek Silva

Credit

<p>Since their introduction less than a decade ago, there has been much discussion and little evidence about the enforceability of the ‘keepwell’ deed in many Chinese USD corporate bonds. And, given that the biggest issuer of keepwell bonds in 2020 is Evergrande’s Hengda Real Estate, it remains as relevant as ever. Until recently, the structure had yet to be put to the test in any prominent distressed cases.  </p><p>A high-profile case in 2020 seemed to have changed that. In recent months, investors and analysts have closely followed the situation with PKFounder, a distressed issuer with a keepwell bond. And it didn’t look good for keepwell bondholders: The<a href="https://www.reuters.com/article/china-bond-keepwell/administrator-for-chinas-pufg-rejects-keepwell-deed-for-300-mln-bond-redd-idINL4N2FP01J" target="_blank" rel="noopener"> judgement rejected the bondholders' claims</a>, seemingly solidifying the argument for those who said the structure was little more than a gentleman’s agreement and provided a false sense of security.  </p><p>But now there’s been a new legal decision from a smaller case that contradicts the PKFounder decision. Which brings to mind something important to remember: the concept of <em>legal precedent</em> is not as powerful in China as it is elsewhere. In the other case, Mainland company CEFC had an offshore subsidiary which also issued keepwell bonds and, this month, the Shanghai Financial Court ordered the company to pay a bondholder on account of the keepwell deed. </p><p>In the following sections, we take a closer look at the specifics. And, while there is no firm conclusion about the enforceability of a keepwell deed, the latest news shows that the situation is not cut-and-dry and the keepwell feature in bonds might not be worthless after all.</p><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/416/original/Screenshot%202020-11-14%20at%2011.21.07.png?1605330171" class="editor-image img-responsive" data-smartkarma-image-id="171416"></figure><div class="content-caption">Source: https://events.debtwire.com/apchart-of-the-week-keepwells-back-19-of-chinese-hy-bonds-ytd-while-pkfounder-cefc-bring-structure-on-focus</div></section><p></p></section>

Since their introduction less than a decade ago, there has been much discussion and little evidence about the enforceability of the ‘keepwell’ deed in many Chinese USD corporate bonds. And, given that the biggest issuer of keepwell bonds in 2020 is Evergrande’s Hengda Real Estate, it remains as relevant as ever. Until recently, the structure had yet to be put to the test in any prominent distressed cases.  A high-profile case in 2020 seemed to have changed that. In recent months, investors and analysts have closely followed the situation with PKFounder, a distressed issuer with a keepwell bond. And it didn’t look good for keepwell bondholders: The judgement rejected the bondholders' claims, seemingly solidifying the argument for those who said the structure was little more than a gentleman’s agreement and provided a false sense of security.  But now there’s been a new legal decision from a smaller case that contradicts the PKFounder decision. Which brings to mind something important to remember: the concept of legal precedent is not as powerful in China as it is elsewhere. In the other case, Mainland company CEFC had an offshore subsidiary which also issued keepwell bonds and, this month, the Shanghai Financial Court ordered the company to pay a bondholder on account of the keepwell deed. In the following sections, we take a closer look at the specifics. And, while there is no firm conclusion about the enforceability of a keepwell deed, the latest news shows that the situation is not cut-and-dry and the keepwell feature in bonds might not be worthless after all.Source: https://events.debtwire.com/apchart-of-the-week-keepwells-back-19-of-chinese-hy-bonds-ytd-while-pkfounder-cefc-bring-structure-on-focus

Keepwells: Not Dead Yet - There Might Be Some Protection After All?

Independent Asian Credit Research, Bondcritic

Warut Promboon

Independent Asian Credit Research

Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

<p>We saw Trump's signing of the Hong Kong Human Rights Act as a part of the trade war negotiation. The signing of the act led to China's vow to retaliate but we see this as the US' leverage to further negotiate with China. At any rate, our prediction that the trade war will linger and last beyond Trump presidency (if he fails to get re-elected) remains unchanged.</p>

We saw Trump's signing of the Hong Kong Human Rights Act as a part of the trade war negotiation. The signing of the act led to China's vow to retaliate but we see this as the US' leverage to further negotiate with China. At any rate, our prediction that the trade war will linger and last beyond Trump presidency (if he fails to get re-elected) remains unchanged.

Bondcritic Market Monitor (2-Dec): All Quiet Before the Storms

APAC IPOs & Placements

Zhen Zhou, Toh

Wanda Sports Group / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/wanda-sports-group" target="_blank" data-smartkarma-citation="entities:28119:1" rel="noopener">Wanda Sports Group (WSG US)</a> lowered its IPO price range to US$9 - 11 per share and offering size to 28m ADS, implying a deal size of up to US$308m. The biggest change, however, is that there will no longer be any shareholders selling in the IPO.</p><p>We have previously covered the IPO extensively in: </p><ul>
<li>
<a href="https://www.smartkarma.com/insights/wanda-sports-early-thoughts-convoluted-by-contracts-and-cyclicality" target="_blank" data-smartkarma-citation="insights:30318" rel="noopener">Wanda Sports (万达体育) Early Thoughts - Convoluted by Contracts and Cyclicality</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/wanda-sports-pre-ipo-closer-look-at-the-business-segments" target="_blank" data-smartkarma-citation="insights:30374" rel="noopener">Wanda Sports (万达体育) Pre-IPO - Closer Look at the Business Segments</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/wanda-sports-ipo-review-well-priced" target="_blank" data-smartkarma-citation="insights:31083" rel="noopener">Wanda Sports (万达体育) IPO Review - Shareholders Selling in the IPO</a> </li>
</ul><p>In this insight, we update our ECM framework and valuation model.</p>

Wanda Sports Group (WSG US) lowered its IPO price range to US$9 - 11 per share and offering size to 28m ADS, implying a deal size of up to US$308m. The biggest change, however, is that there will no longer be any shareholders selling in the IPO.We have previously covered the IPO extensively in: 

Wanda Sports (万达体育) Early Thoughts - Convoluted by Contracts and Cyclicality 

Wanda Sports (万达体育) Pre-IPO - Closer Look at the Business Segments 

Wanda Sports (万达体育) IPO Review - Shareholders Selling in the IPO 
In this insight, we update our ECM framework and valuation model.

Wanda Sports (万达体育) Update - Existing Shareholders No Longer Selling but the Intention Remains

Asia ex-Japan Credit - Analyst, Bondcritic

Brayan Lai

Asia ex-Japan Credit - Analyst

<p>Sunac China Holdings (“the company” or ”Sunac”) is a mid-sized Chinese property developer of high-end residential and commercial properties. Its business is predominantly located in Tier 1-3 cities within the Beijing/Tianjin vicinity, Yangtze River Delta (“YRD”) and Pearl River Delta (“PRD”) regions. The company and its sponsors are known to exhibit highly opportunistic and aggressive qualities which have manifested itself in its early history in the international credit markets. Since then (with the assistance of relatively cheap debt and alternative funding sources), it has aggressively expanded its land bank and scope to encompass tourism/cultural as well as TMT businesses.</p><p>The company is the most highly-levered credit within the existing Chinese property universe which is the prime concern in the market. In terms of acquisition strategy, the higher structural subordination attached to JV/associate acquisitions is partially mitigated by discounts on NAV and faster access to saleable resources. In the foreseeable future, we do not expect its newly acquired tourism/cultural-related and TMT assets to be value-accretive which would provide moderate performance drag on its overall asset profile. However, we have strong conviction that its residential asset churn should improve from here as a means to provide higher discretionary cashflow. This is somewhat limited by the company’s potentially opportunistic behaviour with regard to further debt-funded acquisitions.</p>

Sunac China Holdings (“the company” or ”Sunac”) is a mid-sized Chinese property developer of high-end residential and commercial properties. Its business is predominantly located in Tier 1-3 cities within the Beijing/Tianjin vicinity, Yangtze River Delta (“YRD”) and Pearl River Delta (“PRD”) regions. The company and its sponsors are known to exhibit highly opportunistic and aggressive qualities which have manifested itself in its early history in the international credit markets. Since then (with the assistance of relatively cheap debt and alternative funding sources), it has aggressively expanded its land bank and scope to encompass tourism/cultural as well as TMT businesses.The company is the most highly-levered credit within the existing Chinese property universe which is the prime concern in the market. In terms of acquisition strategy, the higher structural subordination attached to JV/associate acquisitions is partially mitigated by discounts on NAV and faster access to saleable resources. In the foreseeable future, we do not expect its newly acquired tourism/cultural-related and TMT assets to be value-accretive which would provide moderate performance drag on its overall asset profile. However, we have strong conviction that its residential asset churn should improve from here as a means to provide higher discretionary cashflow. This is somewhat limited by the company’s potentially opportunistic behaviour with regard to further debt-funded acquisitions.

China

Dalian Wanda Commercial Management Group Co., Ltd. operates as a commercial property developer, owner, and operator. The Company develops and manages mixed-use property projects including retail, office, hotel, residential, restaurant, entertainment, and other projects. Dalian Wanda Commercial Management Group conducts businesses in China.

Dalian Wanda Commercial Properties (1567411D HK)

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

Dalian Wanda Commercial Properties (1567411D HK)

SF REIT Pre-IPO - One Trick Pony, Who’s Not Doing the Trick

SF Real Estate Investment Trust (SFREIT), a logistics-focused REIT, aims to raise around US$300m in its Hong Kong IPO. SF REIT is sponsored by SF...

Sumeet Singh

Keepwells: Not Dead Yet - There Might Be Some Protection After All?

Investors increasingly believe Keepwell deeds are worthless after the PKFounder legal decision this year. But a more recent case seems to...

Derek Silva

Bondcritic Market Monitor (2-Dec): All Quiet Before the Storms

We saw Trump's signing of the Hong Kong Human Rights Act as a part of the trade war negotiation. The signing of the act led to China's vow to...

Bondcritic

Wanda Sports (万达体育) Update - Existing Shareholders No Longer Selling but the Intention Remains

Wanda Sports Group (WSG US) lowered its IPO price range to US$9 - 11 per share and offering size to 28m ADS, implying a deal size of up to US$308m....

Zhen Zhou, Toh

Sunac China: In Consolidation Mode (?)

Sunac China Holdings (“the company” or ”Sunac”) is a mid-sized Chinese property developer of high-end residential and commercial properties. Its...

Bondcritic

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)