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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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

Joinn Laboratories China  Lt / Equity Capital Markets

Joinn Lab, a China-based niche market leader in the drug safety segment, launched the book building to raise up to USD 843m to list in Hong Kong.  In our previous note, we discussed that Joinn Lab's business segment. We note that it has a strong presence in the drug safety segment, particularly the IND application for biologic candidates thanks to its long history in the market and high standard of lab facilities and operation. We think the company has strong growth ahead, driven by the Wuzhou breeding facility, Suzhou lab and California lab in the next two years, followed by expansion in Chongqing and Guangzhou in the longer term. We are of the view that investors would like to pay a premium for the company's strong leadership in the niche market and high growth ahead, but the premium will be offset by its smaller size of operation compared to other CRO players.In this note, we look at the deal term. We think there is clear upside from the high end. The line-up of cornerstone investors is strong. There will also be plenty of shares for institutional investors even if clawback is triggered. We will participate in the deal.<h2>Our previous coverage on Joinn Lab</h2><ul><li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/joinn-lab-a-h-leader-in-the-niche-drug-safety-cro-segment" target="_blank" rel="noopener">Joinn Lab (昭衍新药) A+H: Leader in niche drug safety CRO segment</a></li></ul>

Joinn Lab, a China-based niche market leader in the drug safety segment, launched the book building to raise up to USD 843m to list in Hong Kong.  In our previous note, we discussed that Joinn Lab's business segment. We note that it has a strong presence in the drug safety segment, particularly the IND application for biologic candidates thanks to its long history in the market and high standard of lab facilities and operation. We think the company has strong growth ahead, driven by the Wuzhou breeding facility, Suzhou lab and California lab in the next two years, followed by expansion in Chongqing and Guangzhou in the longer term. We are of the view that investors would like to pay a premium for the company's strong leadership in the niche market and high growth ahead, but the premium will be offset by its smaller size of operation compared to other CRO players.In this note, we look at the deal term. We think there is clear upside from the high end. The line-up of cornerstone investors is strong. There will also be plenty of shares for institutional investors even if clawback is triggered. We will participate in the deal.Our previous coverage on Joinn LabJoinn Lab (昭衍新药) A+H: Leader in niche drug safety CRO segment

Joinn Lab (昭衍新药) A+H: Visible Upside

China

Joinn Laboratories (China) Co., Ltd. operates as a medicines development company. The Company offers drug development, pharmaceutical analysis, pharmacologic testing, and other related services. Joinn Laboratories (China) also provides pesticide and medical device safety evaluation services.

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Joinn Laboratories China Lt (6127 HK)

Joinn Lab (昭衍新药) A+H: Visible Upside

There is clear upside from the high end with strong line-up of cornerstone investors. There will also be plenty of shares for institutional...

Ke Yan, CFA, FRM

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