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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Smartkarma

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Equity Capital Markets

Greentown Service Group / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/8954" target="_blank" data-smartkarma-citation="entities:8954:1">Greentown China Holdings</a>' related property management company <a href="https://www.smartkarma.com/entities/22795" target="_blank" data-smartkarma-citation="entities:22795:1">Greentown Service Group Co Ltd</a> is raising US$174 to US$221m to fund its acquisition and community development projects. </p><p>As it is a relatively small deal I will briefly review its business, compare it with its peers and run it through our <a href="https://www.smartkarma.com/tools/ipos" target="_blank">ECM framework</a>. The conclusion can be found at the end of my insight.</p><div><h2>Deal and framework score overview</h2></div><p>Regular readers will be familiar with the below embed from our IPO tool which has been designed to…</p>

Greentown China Holdings' related property management company Greentown Service Group Co Ltd is raising US$174 to US$221m to fund its acquisition and community development projects. As it is a relatively small deal I will briefly review its business, compare it with its peers and run it through our ECM framework. The conclusion can be found at the end of my insight.Deal and framework score overviewRegular readers will be familiar with the below embed from our IPO tool which has been designed to…

Greentown Service IPO: A Quality Property Manager in a Fragmented Industry

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Ronshine China Holdings / Equity Capital Markets

<p>Ronshine China Holdings plans to raise US$230-270 through an issuance of primary shares in its IPO. </p><p>The company seems to have a good reputation as a developer in the Fujian province. However, the deal doesn't score well on our framework and valuations don't look appealing versus peers. Even post the IPO, the company will have one of the highest gearing ratios in the sector and will primarily be funded through borrowings via trust funds. </p><p>Furthermore, JV's with related party companies have accounted for a substantial proportion of profits in the past. Lack of clarity on how projects will be split between related parties and the company going forward, raises corporate governance issues as well. </p>

Ronshine China Holdings plans to raise US$230-270 through an issuance of primary shares in its IPO. The company seems to have a good reputation as a developer in the Fujian province. However, the deal doesn't score well on our framework and valuations don't look appealing versus peers. Even post the IPO, the company will have one of the highest gearing ratios in the sector and will primarily be funded through borrowings via trust funds. Furthermore, JV's with related party companies have accounted for a substantial proportion of profits in the past. Lack of clarity on how projects will be split between related parties and the company going forward, raises corporate governance issues as well. 

Ronshine China IPO: Needs a Lot More Equity to Be Investable

China

Greentown China Holdings Ltd. develops real estate.  The Company builds residential villas, low-rise apartment buildings, and high-rise apartment buildings for middle and high-income people.

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Greentown China (3900 HK)

Greentown Service IPO: A Quality Property Manager in a Fragmented Industry

Greentown China Holdings' related property management company Greentown Service Group Co Ltd is raising US$174 to US$221m to fund its acquisition...

Ke Yan, CFA, FRM

Ronshine China IPO: Needs a Lot More Equity to Be Investable

Ronshine China Holdings plans to raise US$230-270 through an issuance of primary shares in its IPO. The company seems to have a good reputation as...

Sumeet Singh

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52-week Range

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