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

<div><p>Coupang, one of the largest product e-commerce players in Korea, raised around US$4.2bn in its US listing via a mix of selling primary and secondary shares. </p></div><div><p>In our previous note, links to which are below, we have spoke about various aspects of the deal. In this note, talk about the trading dynamics and provide a valuation table at different  share price levels.</p></div><div><p>We've covered various aspects of the deal in our earlier insights: </p></div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/coupang-pre-ipo-the-positives-fast-growth-sticky-customers" target="_blank" rel="noopener">Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers</a>, </li>
<li><a href="https://www.smartkarma.com/insights/coupang-pre-ipo-the-negatives-horrendous-data-disclosures-including-no-mention-of-ott-launch" target="_blank" rel="noopener">Coupang Pre-IPO - The Negatives - Horrendous Data Disclosures, Including No Mention of OTT Launch</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-pre-ipo-fair-bit-of-competition-but-it-s-doing-better-than-most-local-peers" target="_blank" rel="noopener">Coupang Pre-IPO - Fair Bit of Competition but It’s Doing Better than Most Local Peers</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-pre-ipo-earnings-forecast-and-valuation" target="_blank" rel="noopener">Coupang Pre-IPO - Earnings Forecast and Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-ipo-momentum-play-unequal-lock-up-index-inclusion" target="_blank" rel="noopener">Coupang IPO - Momentum Play, Unequal Lock-Up, Index Inclusion</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-ipo-quick-note-peers-move-down-range-moves-up-ripe-for-trading" target="_blank" rel="noopener">Coupang IPO - Quick Note - Peers Move Down, Range Moves Up. Ripe for Trading.</a></li>
</ul></div>

Coupang, one of the largest product e-commerce players in Korea, raised around US$4.2bn in its US listing via a mix of selling primary and secondary shares. In our previous note, links to which are below, we have spoke about various aspects of the deal. In this note, talk about the trading dynamics and provide a valuation table at different  share price levels.We've covered various aspects of the deal in our earlier insights: 

Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers, 
Coupang Pre-IPO - The Negatives - Horrendous Data Disclosures, Including No Mention of OTT Launch
Coupang Pre-IPO - Fair Bit of Competition but It’s Doing Better than Most Local Peers
Coupang Pre-IPO - Earnings Forecast and Valuation
Coupang IPO - Momentum Play, Unequal Lock-Up, Index Inclusion
Coupang IPO - Quick Note - Peers Move Down, Range Moves Up. Ripe for Trading.


Coupang IPO Trading - Most Hit near Term Peak on the First Day - Key Trading/Lock-Up Dates

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<p>Softbank Group shares fell 5% which seems like an outsize move relative to the overall markets (TOPIX -2%, NASDAQ -0.5%) but that does come off a record low discount (-16%). And whilst that has expanded to 20% it remains far better than the 27% discount when the company reported Q3 results on 8 Feb. One big difference is the Coupang IPO filing which implies at least $10bn in upside for Vision Fund based on aspirational pricing. If tech sentiment decidedly turns, the lost potential is probably as relevant for Softbank shares as today’s absolute downside for Vision Fund (-$1bn) and Alibaba (-2%, ~$2bn).</p>

Softbank Group shares fell 5% which seems like an outsize move relative to the overall markets (TOPIX -2%, NASDAQ -0.5%) but that does come off a record low discount (-16%). And whilst that has expanded to 20% it remains far better than the 27% discount when the company reported Q3 results on 8 Feb. One big difference is the Coupang IPO filing which implies at least $10bn in upside for Vision Fund based on aspirational pricing. If tech sentiment decidedly turns, the lost potential is probably as relevant for Softbank shares as today’s absolute downside for Vision Fund (-$1bn) and Alibaba (-2%, ~$2bn).

Softbank Group: Jitters in a Frothy Market

APAC IPOs & Placements

Zhen Zhou, Toh

Cloopen Group Holding Ltd / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/cloopen-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:31315:1" rel="noopener">Cloopen Group Holding Ltd (RAAS US)</a> raised about US$320m at US$16 per ADS, which is above the initial price range.</p>
<div>
<p>Cloopen is a multi-capability cloud-based communications solution provider in China. The company offers communications platform as a services (CPaaS), cloud-based contact center (CC), cloud-based UC&amp;C  solutions to customers.</p>
<p>In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.</p>
</div>
<div>
<p>Our previous coverage:</p>
</div>
<div>
<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-thematically-favorable-but-not-showing-results-for-now" target="_blank" data-smartkarma-citation="insights:47520" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Thematically Favorable but Not Showing Results for Now</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-peer-comparison-and-thoughts" target="_blank" data-smartkarma-citation="insights:47608" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Peer Comparison and Thoughts</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-forecast-assumptions-and-valuation" target="_blank" data-smartkarma-citation="insights:47651" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Forecast, Assumptions, and Valuation</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-investments-in-cloopen-pax-global-hi-sun-tech-market-cap" target="_blank" data-smartkarma-citation="insights:47655" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Investments in Cloopen + Pax Global &gt; Hi Sun Tech Market Cap</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-ipo-hi-sun-tech-angle-gets-more-attractive" target="_blank" data-smartkarma-citation="insights:47785" rel="noopener">Cloopen (容联.云通讯) IPO - Hi Sun Tech Angle Gets More Attractive</a> </li>
</ul>
</div>

Cloopen Group Holding Ltd (RAAS US) raised about US$320m at US$16 per ADS, which is above the initial price range.

Cloopen is a multi-capability cloud-based communications solution provider in China. The company offers communications platform as a services (CPaaS), cloud-based contact center (CC), cloud-based UC&amp;C  solutions to customers.
In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.


Our previous coverage:




Cloopen (容联.云通讯) Pre-IPO - Thematically Favorable but Not Showing Results for Now 

Cloopen (容联.云通讯) Pre-IPO - Peer Comparison and Thoughts 

Cloopen (容联.云通讯) Pre-IPO - Forecast, Assumptions, and Valuation 

Cloopen (容联.云通讯) Pre-IPO - Investments in Cloopen + Pax Global &gt; Hi Sun Tech Market Cap 

Cloopen (容联.云通讯) IPO - Hi Sun Tech Angle Gets More Attractive 



Cloopen (容联.云通讯) IPO Trading - Set for a Strong Debut

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul class="">
<li>Property Developers’ advertising budgets surged in December 2020.</li>
<li>BEKE’s active users increased by 147% YoY in December 2020, compared to 61% YoY for Anjuke.</li>
<li>We believe revenue will rise by 29% in 2021.</li>
<li>We set the upside between 24% and 33% for the end of 2021.</li>
</ul>


Property Developers’ advertising budgets surged in December 2020.
BEKE’s active users increased by 147% YoY in December 2020, compared to 61% YoY for Anjuke.
We believe revenue will rise by 29% in 2021.
We set the upside between 24% and 33% for the end of 2021.


KE (BEKE): Outperform Competitors in Booming Property Market

<p>As expected, the IPO of DoorDash and a recovery in sentiment for Uber drove huge gains for Vision Fund in Q3 as that investment segment came roaring back. The asset management business, which handles proceeds from asset sales, posted less impressive results however with another quarter of close to $3bn (¥285bn) in losses from derivative trading. Softbank reiterated today that it is an investment company and bright talk on Vision Fund 2 probably means that has more to with new ideas and less with its own shares or a “slow-burn” MBO. Investors bidding up shares to a new 21-year high before the report after the market close were probably looking for more.    </p>

As expected, the IPO of DoorDash and a recovery in sentiment for Uber drove huge gains for Vision Fund in Q3 as that investment segment came roaring back. The asset management business, which handles proceeds from asset sales, posted less impressive results however with another quarter of close to $3bn (¥285bn) in losses from derivative trading. Softbank reiterated today that it is an investment company and bright talk on Vision Fund 2 probably means that has more to with new ideas and less with its own shares or a “slow-burn” MBO. Investors bidding up shares to a new 21-year high before the report after the market close were probably looking for more.    

Softbank Group Q3 20 Results: Well-Flagged VF Gains but Derivative Losses Remain a Drag

China

KE Holdings Inc. operates as an integrated online and offline platform for housing transactions and services. The Company offers existing and new home sales, home rentals, home renovation, real estate financial solutions, and other services. KE Holdings conducts businesses in China.

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KE Holdings (BEKE US)

Coupang IPO Trading - Most Hit near Term Peak on the First Day - Key Trading/Lock-Up Dates

Coupang, one of the largest product e-commerce players in Korea, raised around US$4.2bn in its US listing via a mix of selling primary and...

Sumeet Singh

Softbank Group: Jitters in a Frothy Market

Tech jitters hit Softbank shares which dropped 5% v -1% for NASDAQ. We think the gap is partially explained by the Coupang IPO and low visibility...

Kirk Boodry

Cloopen (容联.云通讯) IPO Trading - Set for a Strong Debut

Cloopen is a multi-capability cloud-based communications solution provider in China. In this note, we will look at the deal dynamics and provide a...

Zhen Zhou, Toh

KE (BEKE): Outperform Competitors in Booming Property Market

Property Developers’ advertising budgets surged in December 2020. BEKE’s active users increased by 147% YoY in December 2020. We set the upside...

Ming Lu

Softbank Group Q3 20 Results: Well-Flagged VF Gains but Derivative Losses Remain a Drag

Softbank posted robust profits thanks to Vision Fund gains from DoorDash and Uber but public market investments lost money again after another...

Kirk Boodry

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