APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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

Fangda Carbon New Material Co, Ltd. / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fangda-carbon-new-material-co-ltd" target="_blank" data-smartkarma-citation="entities:14878:1" rel="noopener">Fangda Carbon New Material Co, Ltd. (600516 CH)</a> is looking to raise around US$124m in its Swiss GDR listing. Huatai is the sole bookrunner in the deal.</li>
<li>The firm is offering 13.91m GDRs (1 GDR to 10 A-shares) for sale at US$8.63-8.9/GDR, or at a 8.3-11.1% discount to last close on the A-share leg.</li>
<li>As per the firm, it plans to use the net proceeds from the offering to support its business expansion, repay debt, supplement working capital and for general corporate purposes.</li>
</ul>



Fangda Carbon New Material Co, Ltd. (600516 CH) is looking to raise around US$124m in its Swiss GDR listing. Huatai is the sole bookrunner in the deal.
The firm is offering 13.91m GDRs (1 GDR to 10 A-shares) for sale at US$8.63-8.9/GDR, or at a 8.3-11.1% discount to last close on the A-share leg.
As per the firm, it plans to use the net proceeds from the offering to support its business expansion, repay debt, supplement working capital and for general corporate purposes.


Fangda Carbon New Material GDR Listing - Share Price Has Outperformed Index over the past 3 Months

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Shandong Weigao Group Medical Polymer Co / Equity Bottom-Up

<ul>
<li>Weigao formed a diversified product lines through a series of acquisitions and capital operation. Its performance is more driven by sales not R&amp;D, with limited core competitiveness.</li>
<li>Weigao’s orthopaedic products business is under pressure due to VBP, which would drag down the overall gross margin. The acquisition of Weigao New Life is hard to turn things around.</li>
<li>Weigao is a holding platform, which is worthless in secondary market.There could be some temporary rebounds but share price could still underperform or its valuation is lower than comparable companies.</li>
</ul>


Weigao formed a diversified product lines through a series of acquisitions and capital operation. Its performance is more driven by sales not R&amp;D, with limited core competitiveness.
Weigao’s orthopaedic products business is under pressure due to VBP, which would drag down the overall gross margin. The acquisition of Weigao New Life is hard to turn things around.
Weigao is a holding platform, which is worthless in secondary market.There could be some temporary rebounds but share price could still underperform or its valuation is lower than comparable companies.


Shandong Weigao Group Medical Polymer (1066.HK) - As a Holding Platform, Investment Value Is Limited

Guangzhou Tinci Materials Technlgy / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guangzhou-tinci-materials-technlgy" target="_blank" data-smartkarma-citation="entities:20975:1" rel="noopener">Guangzhou Tinci Materials Technlgy (002709 CH)</a> is looking to raise up to US$1.5bn in its upcoming Swiss GDR listing. Bookrunners on the deal are CICC, HSBC, and JPMorgan.</li>
<li>As per the firm’s filings, it is to issue no more than 289m A-shares, or not exceeding 15% of the firm’s total ordinary share capital.</li>
<li>In this note, we discuss the GDR's timeline, and the firm’s recent financial performance.</li>
</ul>



Guangzhou Tinci Materials Technlgy (002709 CH) is looking to raise up to US$1.5bn in its upcoming Swiss GDR listing. Bookrunners on the deal are CICC, HSBC, and JPMorgan.
As per the firm’s filings, it is to issue no more than 289m A-shares, or not exceeding 15% of the firm’s total ordinary share capital.
In this note, we discuss the GDR's timeline, and the firm’s recent financial performance.


Guangzhou Tinci Materials GDR Listing Early Look - US$1.5bn Raising Could Further Aid Growth Plans

Event-Driven

Contemporary Amperex Technology (CATL) / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/contemporary-amperex-techn-a" target="_blank" data-smartkarma-citation="entities:24404:1" rel="noopener">CATL (A) (300750 CH)</a> is looking to raise up to US$6bn in its upcoming Swiss GDR listing. Bookrunners on the deal are CICC, China Securities, Goldman Sachs, and UBS.</li>
<li>The relatively large listing comes after the firm has been undertaking a series of capital raisings, since it's A-share debut back in Jun 2018, to fund its expansion. </li>
<li>In this note, we discuss GDR timelines, and the firm’s recent financial performance/valuations.</li>
</ul>



CATL (A) (300750 CH) is looking to raise up to US$6bn in its upcoming Swiss GDR listing. Bookrunners on the deal are CICC, China Securities, Goldman Sachs, and UBS.
The relatively large listing comes after the firm has been undertaking a series of capital raisings, since it's A-share debut back in Jun 2018, to fund its expansion. 
In this note, we discuss GDR timelines, and the firm’s recent financial performance/valuations.


CATL GDR Listing Early Look - Past Deals Have Done Well. Valuations Somewhat Justifiable

Lepu Medical Technology A / Equity Bottom-Up

<ul>
<li>After China reopens and demand for COVID-19 testing drops sharply, Lepu has lost the big driving force of performance growth. The 2022 full year performance may not be optimistic.</li>
<li>
<a href="https://www.smartkarma.com/entities/lepu-medical-technology-a" target="_blank" data-smartkarma-citation="entities:16654:1" rel="noopener">Lepu Medical Technology A (300003 CH)</a> has begun to focus more on capital operation. As a holding platform, the valuable assets are spun off, which changes the valuation logic.</li>
<li>Even if Lepu could finally digest the negative impact of centralized procurement, such development mode would still put pressure/uncertainties on its future performance, leading to lower-than-expected financial results.</li>
</ul>


After China reopens and demand for COVID-19 testing drops sharply, Lepu has lost the big driving force of performance growth. The 2022 full year performance may not be optimistic.

Lepu Medical Technology A (300003 CH) has begun to focus more on capital operation. As a holding platform, the valuable assets are spun off, which changes the valuation logic.
Even if Lepu could finally digest the negative impact of centralized procurement, such development mode would still put pressure/uncertainties on its future performance, leading to lower-than-expected financial results.


Lepu Medical Technology (300003.CH) - New Development Mode Changes the Valuation Logic

China

Lepu Medical Technology (Beijing) Co., Ltd. develops, produces and sells medical devices and parts.  The Company also offers medical devices consulting services.  The company's products include stent system and blockage system.

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Lepu Medical Technology A (300003 CH)

Shandong Weigao Group Medical Polymer (1066.HK) - As a Holding Platform, Investment Value Is Limited

Weigao is lack of core competitiveness due to weak R&D. Its performance could improve after China reopens, but Weigao could still underperform its...

Xinyao (Criss) Wang

Guangzhou Tinci Materials GDR Listing Early Look - US$1.5bn Raising Could Further Aid Growth Plans

Guangzhou Tinci Materials Technlgy (002709 CH) is looking to raise up to US$1.5bn in its Swiss GDR listing. In this note, we discuss GDR timelines,...

Clarence Chu

CATL GDR Listing Early Look - Past Deals Have Done Well. Valuations Somewhat Justifiable

CATL (A) (300750 CH) is looking to raise up to US$6bn in its upcoming Swiss GDR listing. Bookrunners on the deal are CICC, China Securities,...

Clarence Chu

Lepu Medical Technology (300003.CH) - New Development Mode Changes the Valuation Logic

As the pandemic dividend fades,Lepu has lost performance driving force. It begins to focus on capital operation, but the new development mode...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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Fangda Carbon New Material GDR Listing - Share Price Has Outperformed Index over the past 3 Months

Fangda Carbon New Material Co, Ltd. (600516 CH) is looking to raise around US$124m in its Swiss GDR listing. Huatai is the sole bookrunner in the...

Clarence Chu

Shandong Weigao Group Medical Polymer (1066.HK) - As a Holding Platform, Investment Value Is Limited

Weigao is lack of core competitiveness due to weak R&D. Its performance could improve after China reopens, but Weigao could still underperform its...

Xinyao (Criss) Wang

Guangzhou Tinci Materials GDR Listing Early Look - US$1.5bn Raising Could Further Aid Growth Plans

Guangzhou Tinci Materials Technlgy (002709 CH) is looking to raise up to US$1.5bn in its Swiss GDR listing. In this note, we discuss GDR timelines,...

Clarence Chu

CATL GDR Listing Early Look - Past Deals Have Done Well. Valuations Somewhat Justifiable

CATL (A) (300750 CH) is looking to raise up to US$6bn in its upcoming Swiss GDR listing. Bookrunners on the deal are CICC, China Securities,...

Clarence Chu

Lepu Medical Technology (300003.CH) - New Development Mode Changes the Valuation Logic

As the pandemic dividend fades,Lepu has lost performance driving force. It begins to focus on capital operation, but the new development mode...

Xinyao (Criss) Wang