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

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<p><a href="https://www.smartkarma.com/entities/waterdrop-inc" target="_blank" data-smartkarma-citation="entities:33018:1" rel="noopener">Waterdrop Inc (WDH US)</a>, a technology platform for insurance and healthcare services in China, raised around US$360m in its US IPO. <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> owned 22.1% and <a href="https://www.smartkarma.com/entities/swiss-re-ag-1f83dcbc-730e-46fa-82f2-bfe7e8e361a1" target="_blank" data-smartkarma-citation="entities:27914:1" rel="noopener">Swiss Re AG (SREN SW)</a> owned 5.7% of the company prior to its listing.</p>
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<p>We have covered various aspects of the deal in our previous notes, <a href="https://www.smartkarma.com/insights/waterdrop-pre-ipo-the-positives-fast-growth-strong-backers" target="_blank" rel="noopener">Waterdrop Pre-IPO - The Positives - Fast Growth, Strong Backers</a>, <a href="https://www.smartkarma.com/insights/waterdrop-pre-ipo-the-negatives-scandals-shutdowns-competing-with-giants-regulation" target="_blank" rel="noopener">Waterdrop Pre-IPO - The Negatives - Scandals, Shutdowns, Competing with Giants, Regulation</a> and <a href="https://www.smartkarma.com/insights/waterdrop-ipo-valuation-has-nearly-tripled-over-the-past-year" target="_blank" rel="noopener">Waterdrop IPO - Valuation Has Nearly Tripled over the past Year</a>.</p>
<p>In this note, we look at deal dynamics and provide an update on valuation.  </p>
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Waterdrop Inc (WDH US), a technology platform for insurance and healthcare services in China, raised around US$360m in its US IPO. Tencent Holdings (700 HK) owned 22.1% and Swiss Re AG (SREN SW) owned 5.7% of the company prior to its listing.


We have covered various aspects of the deal in our previous notes, Waterdrop Pre-IPO - The Positives - Fast Growth, Strong Backers, Waterdrop Pre-IPO - The Negatives - Scandals, Shutdowns, Competing with Giants, Regulation and Waterdrop IPO - Valuation Has Nearly Tripled over the past Year.
In this note, we look at deal dynamics and provide an update on valuation.  


Waterdrop IPO Trading - Ant's Mutual Aid Admissions Showcase the Regulatory Overhang

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.

<p><a href="https://www.smartkarma.com/entities/ximalaya-inc" target="_blank" data-smartkarma-citation="entities:33232:1" rel="noopener">Ximalaya (XIMA US)</a> is the largest online audio platform in China as measured by average MAUs (monthly active users), total mobile listening time, and total revenues in 2020, according to CIC. Ximalaya also has the largest audio content library and the most audio content creators in China. <br>Ximalaya is backed by <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> (5.4% of outstanding shares), <a href="https://www.smartkarma.com/entities/tal-education-group" target="_blank" data-smartkarma-citation="entities:1124:1" rel="noopener">TAL Education (TAL US)</a> and Sony Music Entertainment. Ximalaya has filed for an NYSE IPO to raise proceeds of $0.5-1.0 billion, according to press reports. </p><p>China is the world’s largest online audio market in terms of the number of online audio users. However, the number of mobile online audio MAUs (monthly active users) in China accounted for only 16.1% of total mobile Internet MAUs in 2020, according to CIC. China’s online audio market in terms of revenue is forecasted to grow from RMB13.1 billion in 2020 to RMB120.1 billion by 2025, representing a CAGR of 55.8%, according to CIC.</p><div class="content-highlight">
<p>At first glance, Ximalaya is well-positioned to benefit from this sizeable market opportunity. The strong user engagement, fast-paced revenue growth and declining loss margin suggest that Ximalaya is heading in the right direction. However, a closer look reveals concerning developments on several fronts.</p>
<p><a href="https://www.smartkarma.com/entities/lizhi-inc" target="_blank" data-smartkarma-citation="entities:28396:1" rel="noopener">Lizhi Inc (LIZI US)</a>, a peer, is trading around 50% below its IPO price which suggests that investors are not overly enthused by plays on the China online audio market. With sentiment on Chinese US listings weakening, we think that the negatives in the Ximalaya story warrant a pass.  </p>
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Ximalaya (XIMA US) is the largest online audio platform in China as measured by average MAUs (monthly active users), total mobile listening time, and total revenues in 2020, according to CIC. Ximalaya also has the largest audio content library and the most audio content creators in China.  Ximalaya is backed by Tencent (700 HK) (5.4% of outstanding shares), TAL Education (TAL US) and Sony Music Entertainment. Ximalaya has filed for an NYSE IPO to raise proceeds of $0.5-1.0 billion, according to press reports. China is the world’s largest online audio market in terms of the number of online audio users. However, the number of mobile online audio MAUs (monthly active users) in China accounted for only 16.1% of total mobile Internet MAUs in 2020, according to CIC. China’s online audio market in terms of revenue is forecasted to grow from RMB13.1 billion in 2020 to RMB120.1 billion by 2025, representing a CAGR of 55.8%, according to CIC.
At first glance, Ximalaya is well-positioned to benefit from this sizeable market opportunity. The strong user engagement, fast-paced revenue growth and declining loss margin suggest that Ximalaya is heading in the right direction. However, a closer look reveals concerning developments on several fronts.
Lizhi Inc (LIZI US), a peer, is trading around 50% below its IPO price which suggests that investors are not overly enthused by plays on the China online audio market. With sentiment on Chinese US listings weakening, we think that the negatives in the Ximalaya story warrant a pass.  


APAC IPOs & Placements

Zhen Zhou, Toh

Event-Driven

<p><a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (JDL HK)</a> is looking to raise US$4bn in its upcoming Hong Kong IPO and JD.com holds an 81% stake in the company prior to the IPO.</p><p>In this note, we will look at the impact of JD Logistics’ IPO on JD.com’s valuation.</p><p>We had previously covered JD Logistics IPO in:</p><ul style="list-style-type: disc;">
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<a href="https://www.smartkarma.com/insights/jd-logistics-pre-ipo-peer-comparison-shielded-from-price-war" target="_blank" data-smartkarma-citation="insights:50575" rel="noopener">JD Logistics (京东物流) Pre-IPO - Peer Comparison - Shielded from Price War</a> </li>
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<a href="https://www.smartkarma.com/insights/jd-logistics-pre-ipo-tethered-to-jd-group-and-looking-beyond" target="_blank" data-smartkarma-citation="insights:48396" rel="noopener">JD Logistics (京东物流) Pre-IPO - Tethered to JD Group and Looking Beyond</a> </li>
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<a href="https://www.smartkarma.com/insights/jd-logistics-pre-ipo-thoughts-on-valuation" target="_blank" data-smartkarma-citation="insights:50953" rel="noopener">JD Logistics (京东物流) Pre-IPO - Thoughts on Valuation</a> </li>
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<a href="https://www.smartkarma.com/insights/jd-logistics-pre-ipo-phip-updates-and-fine-tuning-valuation" target="_blank" data-smartkarma-citation="insights:51008" rel="noopener">JD Logistics (京东物流) Pre-IPO - PHIP Updates and Fine-Tuning Valuation</a> </li>
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<a href="https://www.smartkarma.com/insights/jd-logistics-pre-ipo-index-implications-it-will-cut-close" target="_blank" data-smartkarma-citation="insights:51054" rel="noopener">JD Logistics (京东物流) Pre-IPO - Index Implications - It Will Cut Close</a> </li>
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<a href="https://www.smartkarma.com/insights/jd-logistics-pre-ipo-bull-bear-case-valuation-sensitivity" target="_blank" data-smartkarma-citation="insights:51105" rel="noopener">JD Logistics (京东物流) Pre-IPO - Bull/Bear Case + Valuation Sensitivity</a> </li>
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JD Logistics (JDL HK) is looking to raise US$4bn in its upcoming Hong Kong IPO and JD.com holds an 81% stake in the company prior to the IPO.In this note, we will look at the impact of JD Logistics’ IPO on JD.com’s valuation.We had previously covered JD Logistics IPO in:

JD Logistics (京东物流) Pre-IPO - Peer Comparison - Shielded from Price War 

JD Logistics (京东物流) Pre-IPO - Tethered to JD Group and Looking Beyond 

JD Logistics (京东物流) Pre-IPO - Thoughts on Valuation 

JD Logistics (京东物流) Pre-IPO - PHIP Updates and Fine-Tuning Valuation 

JD Logistics (京东物流) Pre-IPO - Index Implications - It Will Cut Close 

JD Logistics (京东物流) Pre-IPO - Bull/Bear Case + Valuation Sensitivity 


JD.com (京东) HoldCo Valuation Quick Note - Impact of JD Logistics (京东物流) IPO

<p><a href="https://www.smartkarma.com/entities/ximalaya-inc" target="_blank" data-smartkarma-citation="entities:33232:1" rel="noopener">Ximalaya (XIMA US)</a>, the largest online audio platform in China, is looking to raise around US$1bn in its US listing. </p><p>As of 1Q21, it had 250m average MAUs, which included 104m mobile MAUs through its apps and 146m MAUs through internet-of-things (IoT) and other third-party platforms. As per CIC, it accounted for 75% of total mobile listening time among all online audio platforms in China. It had 5.2m active content creators in 2020.</p><p>In this note, we will talk about the positive aspects of the deal.</p>

Ximalaya (XIMA US), the largest online audio platform in China, is looking to raise around US$1bn in its US listing. As of 1Q21, it had 250m average MAUs, which included 104m mobile MAUs through its apps and 146m MAUs through internet-of-things (IoT) and other third-party platforms. As per CIC, it accounted for 75% of total mobile listening time among all online audio platforms in China. It had 5.2m active content creators in 2020.In this note, we will talk about the positive aspects of the deal.

Ximalaya Pre-IPO - The Positives - A Whole Lot of Listening

<div><p><a href="https://www.smartkarma.com/entities/waterdrop-inc" target="_blank" data-smartkarma-citation="entities:33018:1" rel="noopener">Waterdrop Inc (WDH US)</a>, a technology platform for insurance and healthcare services in China, aims to raise up to US$360m in its US IPO. <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> owned 22.1% and <a href="https://www.smartkarma.com/entities/swiss-re-ag-1f83dcbc-730e-46fa-82f2-bfe7e8e361a1" target="_blank" data-smartkarma-citation="entities:27914:1" rel="noopener">Swiss Re AG (SREN SW)</a> owned 5.7% of the company prior to its listing.</p></div><div><p>In our previous note, <a href="https://www.smartkarma.com/insights/waterdrop-pre-ipo-the-positives-fast-growth-strong-backers" target="_blank" rel="noopener">Waterdrop Pre-IPO - The Positives - Fast Growth, Strong Backers</a>, and <a href="https://www.smartkarma.com/insights/waterdrop-pre-ipo-the-negatives-scandals-shutdowns-competing-with-giants-regulation" target="_blank" rel="noopener">Waterdrop Pre-IPO - The Negatives - Scandals, Shutdowns, Competing with Giants, Regulation</a> we spoke about the positive and negative aspects of the deal. </p></div><div><p>In this note, we’ll run the deal through our ECM framework and talk about valuations.</p></div>

Waterdrop Inc (WDH US), a technology platform for insurance and healthcare services in China, aims to raise up to US$360m in its US IPO. Tencent Holdings (700 HK) owned 22.1% and Swiss Re AG (SREN SW) owned 5.7% of the company prior to its listing.In our previous note, Waterdrop Pre-IPO - The Positives - Fast Growth, Strong Backers, and Waterdrop Pre-IPO - The Negatives - Scandals, Shutdowns, Competing with Giants, Regulation we spoke about the positive and negative aspects of the deal. In this note, we’ll run the deal through our ECM framework and talk about valuations.

Waterdrop IPO - Valuation Has Nearly Tripled over the past Year

China

JD.com, Inc. is an online direct sales company in China. The Company offers a wide selection of products through its website and mobile applications. JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com (9618 HK)

Waterdrop IPO Trading - Ant's Mutual Aid Admissions Showcase the Regulatory Overhang

Waterdrop, a technology platform for insurance and healthcare services in China, raised around US$360m in its US IPO. Tencent owned 22.1% and Swiss...

Sumeet Singh

Ximalaya IPO Initiation: Out of Tune

At first glance, Ximalaya is well-positioned to benefit from the sizeable China online audio market opportunity. However, a closer look reveals...

Arun George

JD.com (京东) HoldCo Valuation Quick Note - Impact of JD Logistics (京东物流) IPO

JD Logistics (JDL HK) is looking to raise US$4bn in its upcoming Hong Kong IPO and JD.com holds an 81% stake in the company prior to the IPO.

Zhen Zhou, Toh

Ximalaya Pre-IPO - The Positives - A Whole Lot of Listening

Ximalaya (XIMA US), the largest online audio platform in China, is looking to raise around US$1bn in its US listing. In this note, we'll talk about...

Sumeet Singh

Waterdrop IPO - Valuation Has Nearly Tripled over the past Year

Waterdrop, a technology platform for insurance and healthcare services in China, aims to raise up to US$360m in its US IPO. Tencent owned 22.1% and...

Sumeet Singh

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