APAC IPOs & Placements

Zhen Zhou, Toh

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


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




Hong Kong IPO activity is still looking busy. Joy Spreader Interactive Technology (6988 HK) and Huazhu Group (HTHT US) launched their respective US$225m and US$900m bookbuilds this week. 


Huazhu HK Secondary Listing - Needs the Money but Looks Toppish 

Joy Spreader (乐享互动) Pre-IPO - Found a Niche in Games but Still Just a Middleman 

Joy Spreader (乐享互动) IPO - Fairly Valued at Best 

On top of that, there were news reports that ZTO Express, Zai Lab and Baozun, Ming Yuan Cloud Group, and, Genor Biopharma, have gotten approval from HKEx. The first three names are secondary listings and, out of them, two have already filed their PHIP with HKEx as of Friday. We are also hearing that Genor Biopharma (0883276D CH) is looking to kickstart pre-marketing next week for its US$300m IPO.


Genor (嘉和生物) Pre-IPO: Slow R&amp;D Progress in the past but that Might Change 

Ming Yuan Cloud (明源云) Pre-IPO - Leaning on Regional Partners for Growth but Hefty Commissions Paid 

We continued our coverage of Ant Group. This week, Sumeet Singh looked into implications of dual listing on index inclusion. There were also news reporting that Temasek and GIC are looking to participate in Ant Group's IPO. 

Ant Group (蚂蚁集团) Pre-IPO: Dual Listing Makes Early Index Inclusion Tricky

In other parts of Asia, there seemed to be a wave of IPOs coming. We continue to look at Converge ICT Solutions Inc (ITC PM), this time, comparing the company with established peers in the Philippines. 


Converge ICT Pre-IPO - Peer Comparison - Not a Clear Cut Winner 

We are also hearing that, in India, UTI Asset Management (UTIAMC IN) and Computer Age Management Services (CAMS IN) are looking to launch their IPO next week. We have earlier covered the companies in:

UTI Asset Management Company Pre-IPO - Well past Its Remote Glory Days
Computer Age Management Services Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance

Last, but not least, there were a handful of China ADR filings with the SEC. We took a look at Bain Capital-backed Chindata (CD US)'s potential US$400m IPO.


Chindata Group Holdings Pre-IPO - Patchy Data but Is Growing Fast in a Hot Sector 

Also, as mentioned last week, MR D.I.Y. Group (1706769D MK) is returning to market and it was pre-marketing during the week, likely to seek up to US$400m and, in Thailand, there were reports that SCG Packaging (SCGP TB) is targeting to launch its US$1.5bn IPO next month.


Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia 

Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition 

Mr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share  
Mr D.I.Y. Pre-IPO - Assumptions and Thoughts on Valuation
SCG Packaging Pre-IPO - Shift to Packaging Has Been Aiding Margins but Acquisition Drove up Leverage

For placements, we share updates on Softbank Corp (9434 JP)'s mega selldown by Softbank Group (9984 JP) which is looking to price on Monday.


Softbank Corp Placement - Quick Update - Wide Discount from Undisturbed but Don't Expect Much 






Accuracy Rate:



Our overall accuracy rate is 73.0% for IPOs and 66.1% for Placements 


(Performance measurement criteria is explained at the end of the note)






New IPO filings this week  





SciClone Pharma (Hong Kong, ~US$500m)
Sino-Ocean Services (Hong Kong, &gt;US$100m)
Chindata Group (the U.S., US$400m) 
Boqii (the U.S., US$115m) 
iHuman (the U.S., US$100m)



Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.






News on Upcoming IPOs  





Neusoft wins approval for Hong Kong listing
Marketing firm Joy Spreader Interactive launches $225m HK IPO
Temasek, GIC eyeing stakes in Ant's mega IPO
India's Zomato raises $160 million from Tiger Global, Temasek unit; plans IPO in 2021
Chinese e-learning Firm iHuman seeks up to $100m in US IPO




Analysis on Upcoming IPOs






Name
Insight


Hong Kong


Ant Group

Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles 


Ant Group

Ant Group (蚂蚁集团) IPO: Numbers Suggest It's More Tech than Financials 


Ant Group

Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/Questions to Ask - Falling Fees, Margins, Cash Flow 


Ant Group
Ant Financial IPO Early Thought: Understand Fintech Empire, Growth &amp; Risk Factors


Ant Group

Ant Financial (蚂蚁金服) IPO Early Thought: What's New About the Listing News 


Ant Group

Ant Group - Index Inclusion Possibilities &amp; Timeline 


Blue Moon

Blue Moon Group Pre-IPO - The Positives - Dominant Market Share, Strong Online Sales 



Blue Moon

Blue Moon Group Pre-IPO - The Negatives - Flagging Offline Sales, Not Really a Primary Raising 



Blue Moon

Blue Moon: No. 1 But No Exclusive Advantage, Observation on the Ground 



Blue Moon

Blue Moon Group Pre-IPO - Online Reviews and Peer Comparison 



ByteDance

ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)



ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 



ByteDance

ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)



ByteDance

ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H? 



ByteDance

ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants 



ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 



ByteDance

ByteDance (字节跳动) Pre-IPO - Globally the Most Downloaded App for Jan 2020 Driven by India 



ByteDance

ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges 



E-Star Comm

E-Star Commercial Management Pre-IPO - Better Disclosure in New Prospectus 



E-Star Comm

E-Star Commercial Management Pre-IPO - Still Largely Reliant on Galaxy, Poor Disclosure Doesn’t Help 



Excellence Comm

Excellence Commercial Property (卓越商企服务) Pre-IPO - Diversifying Away from Excellence Group 



Everest Med

Everest Medicines (云顶新耀) Pre-IPO: License-In Specialist Led by Biotech Investors 



Genor

Genor (嘉和生物) Pre-IPO: Slow R&amp;D Progress in the past but that Might Change 



Huazhu

Huazhu HK Secondary Listing - Early Look - Needs the Cash More than Most Secondary Candidates 



Jiayuan Svcs

Jiayuan Services (佳源服务) Pre-IPO - Another Small Property Management Company 



Jinke Svcs

Jinke Smart Services (金科智慧服务) Pre-IPO - GFA Growth at the Expense of Fees 



Kilcoy

Kilcoy Global Foods Pre-IPO - Rapid Earnings Growth on the Back of Margin Improvement 



Kilcoy

Kilcoy Global Foods Pre-IPO - A Lot of Things Still Remain Unexplained 



KWG Living

KWG Living (合景悠活) Pre-IPO - Strong Growth and Margin Expansion but Overly Reliant on KWG Group 



Megvii

Megvii (旷视) Pre-IPO - Remarkable Growth (Part 1) 


Megvii

Megvii (旷视) Pre-IPO - A Bet on the Future - Segments, Revenue Drivers and Growth Potential 


Megvii

Megvii (旷视) Pre-IPO - The Real Race Is in Research - Founders' Profile and Talent 


Megvii

Megvii (旷视) Pre-IPO - Competitive Landscape and Peer Analysis 


Megvii

Megvii (旷视) Pre-IPO -  Initial Thoughts on Valuation 


MIngyuan Cloud

Ming Yuan Cloud (明源云) Pre-IPO - Leaning on Regional Partners for Growth but Hefty Commissions Paid 


Neusoft

Neusoft Edu (东软教育) Pre-IPO: Long Established Name on IT Education 


Ocumension

Ocumension (欧康维视) Pre-IPO: All Ready for a Great Listing Except a Block Buster 


Pop Mart

Pop Mart Pre-IPO - The Negatives - Is It a Brand Owner or Just a Retailer? 


Pop Mart

Pop Mart Pre-IPO - The Positives - Expanding Portfolio+Wider Distribution= Explosive Earnings Growth 


Pop Mart

Pop Mart Pre-IPO - Peer Set and Valuation 


Pop Mart

Pop Mart Pre-IPO Quick Note - On the Ground - Pop-Up Stores Are Effective 


Radiance

Radiance Holdings (金辉控股) Pre-IPO - Property Mgt Svc Sold Out at a Ridiculously Cheap Valuation 


Shimao Svcs

Shimao Services (世茂服务) Pre-IPO - Community VAS Segment Is the Star 


Sunac Svcs

Sunac Services (融创服务) Pre-IPO - Promising Growth &amp; Diversifying Away from Sunac Via Acquisitions 


RemeGen

RemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48 


Simcere

Simcere (先声制药) Pre-IPO: Long History but Products Concentrated 


Toplist

Toplist China Pre-IPO - Overwhelmingly More Negatives than Positives 


Tasly

Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters 


Weihai Bank

Weihai City Commercial Bank Pre-IPO - More of an Asset Manager Rather than a Lender 


WeDoctor

WeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More 


WeDoctor

WeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor 


India


ASK

ASK Investment Managers Pre-IPO - Riding on a Wave of Wealth 


Anmol Ind
Anmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders


Bharat Hotel

Bharat Hotels Pre-IPO - Catching up with Peers 



Burger King

Burger King India Pre-IPO - Has Been Growing Fast and Plans to Grow Even Faster 



Burger King

Burger King India Pre-IPO - Peer Comparison Yields Interesting Nuggets on Profitability and Capex 



Bajaj En

Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It 



CAMS

CAMS Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance 


CMS Info
CMS Info Systems Pre-IPO - When a PE Sells to Another PE... Only One Gets the Timing Right


Crystal Crop
Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers


ESAF SFB

ESAF Small Finance Bank Pre-IPO - Growing Fast but Remains Highly Dependant on a Related Party 


Equitas SFB

Equitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing 


Equitas SFB

Equitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing 


Flemingo 
Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country


Emami Cem

Emami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO 


IRFC

Indian Railway Finance Pre-IPO - Low Risk, Low Margin Business 


NSE
NSE IPO Preview- Not Only Fast..its Risky and Expensive


NSE
National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some


Mazagon
Mazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending


Mrs. Bector
Mrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta



LIC


Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO 



Lodha

Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable


Lodha
Lodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt


Penna Cem

Penna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 


PNB Met
PNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers


Samhi Hotels

Samhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace 


UTI AMC

UTI Asset Management Company Pre-IPO - Well past Its Remote Glory Days 



Malaysia


Mr DIY

Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia 


Mr DIY

Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition 


Mr DIY

Mr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share  


Mr DIY

Mr D.I.Y. Pre-IPO - Assumptions and Thoughts on Valuation 


QSR
QSR Brands Pre-IPO - As Healthy as Fast Food


Thailand


PTTOR

PTT Oil and Retail IPO - F&amp;B Business Is the Profit Driver 


SCGP

SCGP Pre-IPO - Shift to Packaging Has Been Aiding Margins but Acquisition Drove up Leverage 


The U.S


CDP

CDP Holdings Pre-IPO Review - Highly Reliant on Best Inc. 


CloudMinds
CloudMinds Inc Early Thoughts - Still Nascent


Japan


Kioxia

Kioxia IPO Early Thought: Inventor of the NAND Flash 





ECM Weekly (13 September 2020) - Ant Group, Joy Spreader, Chindata, Huazhu Secondary, Converge ICT

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Genor Biopharma Holdings  / Equity Capital Markets

Gencor Biopharmaceutical (hereafter Gencor) is a China based biotech company with a focus on oncology and autoimmune drugs with development programs for both China and global market. The company's main portfolio is BG491 (best-in-class CDK4/6), GB226 (PD-1), and three biosimilars (trastuzumab, infliximab, bevacizumab).While the CDK4/6 was a licensed-in product in 2020 and is potentially best-in-class oral CDK4/6 inhibitor for HR+/HER2- breast cancer in terms of tolerability, we think its slow R&amp;D is evidenced by the GB226 (PD-1 candidate) that it is still in Phase 2 trial of PD-1 five years after licensing from Crown Bioscience, as well as GB221 (me-too of trastuzumab) which is still in Phase 3 after four years. After the change of ownership and pre-IPO financing in 2018 and 2019, the company is now backed by a decent line-up of institutional investors led by Hillhouse Capital. We note the key product GB491 (potentially best- in-class-CDK4/6) was in-licensed after the investment by Hillhouse Capital. We think there have been positive changes to the company in the past two years but its R&amp;D capability remains to be proven.

Gencor Biopharmaceutical (hereafter Gencor) is a China based biotech company with a focus on oncology and autoimmune drugs with development programs for both China and global market. The company's main portfolio is BG491 (best-in-class CDK4/6), GB226 (PD-1), and three biosimilars (trastuzumab, infliximab, bevacizumab).While the CDK4/6 was a licensed-in product in 2020 and is potentially best-in-class oral CDK4/6 inhibitor for HR+/HER2- breast cancer in terms of tolerability, we think its slow R&amp;D is evidenced by the GB226 (PD-1 candidate) that it is still in Phase 2 trial of PD-1 five years after licensing from Crown Bioscience, as well as GB221 (me-too of trastuzumab) which is still in Phase 3 after four years. After the change of ownership and pre-IPO financing in 2018 and 2019, the company is now backed by a decent line-up of institutional investors led by Hillhouse Capital. We note the key product GB491 (potentially best- in-class-CDK4/6) was in-licensed after the investment by Hillhouse Capital. We think there have been positive changes to the company in the past two years but its R&amp;D capability remains to be proven. 

Genor (嘉和生物) Pre-IPO: Slow R&D Progress in the past but that Might Change

China

Genor Biopharma Holdings Ltd operates as a biopharmaceutical company. The Company focuses on developing and commercializing oncology and autoimmune drugs. Genor Biopharma Holdings serves customers worldwide.

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Genor Biopharma Holdings (6998 HK)

ECM Weekly (13 September 2020) - Ant Group, Joy Spreader, Chindata, Huazhu Secondary, Converge ICT

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

Zhen Zhou, Toh

Genor (嘉和生物) Pre-IPO: Slow R&D Progress in the past but that Might Change

Gencor Biopharmaceutical (hereafter Gencor) is a China based biotech company with a focus on oncology and autoimmune drugs with development...

Ke Yan, CFA, FRM

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