Aequitas Research puts out a weekly update on the deals that have been covered by Smartkarma Insight Providers recently, along with updates for upcoming IPOs.

Activity in the ECM space has been fairly muted this week. We've only had three listings this week, two in the US and one in Thailand, but no other new IPO being approved or looking to launch any time soon.

Starting off with the US listings, Studio City International Holdings Limited (MSC US) made a decent debut on Thursday, trading +47% at the day high. The strong performance stood out in a period of disappointing tech IPOs and it has been well flagged out by Ke Yan, CFA, FRM in his final valuation note. He pointed out that the IPO is offered at a decent discount to Melco Resorts & Entertainment (MLCO US) and Sjm Holdings (880 HK)'s FY18E EV/EBITDA. The float for MSC is expected to be small with MCE Cotai and Silver Point Capital taking up 15.3m and10.2m ADS respectively.

Niu Technologies (NIU US), on the other hand, closed below its IPO price on its Friday debut. It rallied up as much as 13% in early trading but crashed below its IPO price shortly after. Prior to its debut, the IPO was significantly downsized from 8m ADS to 7m ADS and its price range got cut from US$10.50 - 12.50 down to US$9 - 10. In our earlier note, our blue sky valuation already suggested limited upside at the initial price range. We will follow up with a quick trading update next Monday.

Back in Asia, Osotspa Co Ltd (OSP TB) opened on the first of trading at a high of THB30 but has been continuously sold down since then to close just above its IPO price. In our post-IPO update note, we pointed out that Carabao Group (CBG TB) which was trading at 34.6x FY2019E P/E ratio, down from 38x. But since then, CBG has gone on to fall by another 10% and it is now trading at about 31.5x FY2019E EV/EBITDA which explains the correction in OSP's share price and upside at this price level would still limited since we are pegging OSP's valuation at a discount to CBG. Nevertheless, if at any point OSP trades below its IPO price, we can expect near-term support from bookrunners.

In the pipeline, there are two decent size IPOs coming the way of Malaysia. QSR Malaysia and Leong Hup International both filed their prospectus this week and they are expected to raise US$500m and US$600m respectively. Thailands' TCC Group is also said to be planning an IPO of its domestic property business which could raise at least US$1.5bn.

Next week, Coronado Global Resources Inc (CRN AU) will debut in Australia and Sumeet Singh has covered the valuation in his note. The shares were said to be priced at A$4/share, at the bottom end of its range, as per AFR and prior to the start of bookbuilding, it was reported that books were covered counting the pre-orders and retail orders. However, even at the low-end, the shares are still expensive versus peers.

In the placement space, there is San Miguel Food and Beverage (FB PM) which downsized its re-IPO size from 1.02bn shares to just 523m shares. The selldown is an effort to comply with the minimum public ownership rule in the Philippines. We like the company and its dominant market share but our base case SOTP valuation suggests no upside at the top-end of the price range and a decent upside only from the bottom end.

Accuracy Rate:

Our overall accuracy rate is 71.9% for IPOs and 64.2% for Placements

(Performance measurement criteria is explained at the end of the note)

Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.

Source: Aequitas Research, Smartkarma

News on Upcoming IPOs

Smartkarma Community's this week Analysis on Upcoming IPO

List of pre-IPO Coverage on Smartkarma

Name	Insight
Hong Kong
Ant Financial	Ant Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
Asia Info	AsiaInfo Tech (亚信科技) IPO: Cost Control Is the Key (Part 1)
BabyTree	Babytree Group Pre-IPO - Young Moms Need It but Almost All Seem to Have It, Might Be at Peak MAU
BabyTree	Babytree IPO Preview: In Desperate Need of Alibaba to Unleash Its Potential
Bitmain	Bitmain IPO Preview: The Last Hurrah Before Reality Bites
Bitmain	Bitmain IPO Preview (Part 2) - King of Cryptocurrency Mining Rigs but Its Moat Is Shrinking
Bitmain	Bitmain: A Counter Thesis
Bitmain	Bitmain (比特大陆) IPO: Running Out of Steam on Mining Rigs (Part 1)
Canaan Inc.	Canaan Inc. IPO Preview (Part 1) - The Biggest Blockchain Related IPO Globally in 2018
Canaan Inc.	Canaan Inc. IPO Preview (Part 2) - A Closer Look at ASIC Developments and Competition
Canaan Inc.	Canaan Inc. IPO Preview (Part 3): Earnings Forecast & Valuation Analysis
Canaan Inc.	Canaan (嘉楠耘智) IPO Quick Take: Beware that ASIC Is a Different Ball Game
Cenmintang	Cenmintang IPO Preview: A Beverage and Snack Play Whose Growth Is Hard to Grasp
China Feihe	China Feihe IPO Preview: Goat Bless Infant Formula Milk?
Entertnmt Plus	Entertainment Plus – 60% Market Share, Margin Not a Concern
Entertnmt Plus	Maoyan IPO Preview: Running Out of Growth Drivers
Entertnmt Plus	Entertainment Plus (猫眼娱乐) IPO: The Engineered Movie Ticketing Leader Running Out of Steam (Part 1)
Entertnmt Plus	Entertainment Plus (猫眼娱乐) IPO: The Coming Regulatory Bang Isn't That Bad (Part 2)
Fosun Tourism	Fosun Tourism IPO, Part 1: Back to the Beach With Club Med! \| But Is This a 'China' Play?
Fosun Tourism	Fosun Tourism IPO Analysis: Quid Pro Quo for the Better of Fosun Group?
China Kepei	China Kepei Edu (科培教育) Pre-IPO Review - A Well Run Private Higher Education Company
MicuRx	MicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
Sinochem Energy	Sinochem Energy (中化能源) IPO First Impression: Trophy Asset Mixed with Volatile Trading Business
STX	STX IPO Preview– a One-Hit Wonder
STX	STX Entertainment (胜图娱乐) IPO: Legendary Founder but Results Matter
Stealth Bio	Stealth Biotherapeutics IPO: Cure the Symptoms but Not the Cause (Part 1)
Tongcheng	Tongcheng-ELong (同程艺龙) Pre-IPO Review - A Force to Be Reckoned With
Tongcheng	Tongcheng-Elong IPO Preview: When Unequals Try to Merge as Equals
Qilu Express	Qilu Expressway IPO Preview: Concentration Risk and Recent News May Mean Discount to Peers
WeLab	WeLab Pre-IPO - Stuck in a Regulatory Quagmire; Not the Right Time to List
South Korea
Asiana	Asiana IDT IPO Preview (Part 1)
Asiana	Asiana IDT IPO Preview (Part 2) - Valuation Analysis
Daeyu	Daeyu Co. IPO Preview (Part 1)
Ebang	Ebang IPO Preview (Part 1): Lower Sales but Higher Operating Profit Versus Canaan Inc.
Foodnamoo	Foodnamoo Inc IPO Preview (Part 1) - A Leader in Home Meal Replacement Products in Korea
Livent	Livent IPO Preview (Part 1): A Profitable Company that Produces Lithium
Plakor	Plakor IPO Preview (Part 1)
Robotis	Robotis IPO Preview (Part 1) - An Innovative Provider of Robotic Solutions in Korea
Zinus	Zinus IPO Preview (Part 1) - An Amazing Comeback Story (#1 Mattress Brand on Amazon)
India
CMS Info	CMS Info Systems Pre-IPO Review - When a PE Sells to Another PE... Only One Gets the Timing Right
Crystal Crop	Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers
Flemingo	Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country
NSE	NSE IPO Preview- Not Only Fast..its Risky and Expensive
NSE	National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some
Mazagon Dock	Mazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Lodha	Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
Lodha	Lodha Developers IPO: Large Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
The U.S.
CNFinance	CNFinance (泛华金融) IPO First Impression: Beware Rising Credit Risk and Slowing Loan Origination
CNFinance	CNFinance IPO Preview: A Renaissance that May Not Come
Tencent Music	Tencent Music IPO: A Deep-Dive on Why Tencent Music Is Profitable and Spotify Is Not
Tencent Music	Tencent Music (TME): Only 29% Spotify-Like, But the Other Business Produces Profits
Tencent Music	Tencent Music IPO: A Deep-Dive on Why Tencent Music Is Profitable and Spotify Is Not
Tencent Music	Tencent Music Entertainment Group - Much Ado Nah Music About Nothing!
Tencent Music	Tencent Music Entertainment Group: Part 2 -The Curious Case of Acquiring Ultimate Music Inc
Tencent Music	Tencent Music Pre-IPO - This Is How We Do It - A Quick Look at How the Apps Work
Tencent Music	Tencent Music Pre-IPO Review - The Final Countdown - Growth Doesn't Seem to Be Slowing Down
Tencent Music	Tencent Music Entertainment Group– Competitors Aplenty Imply No Differentiation Except Moniker
Tencent Music	Tencent Music:We Estimate Value at USD 3.77 Per Share; Lower Than Many Expect - $11.7 B for TME
Tencent Music	Tencent Music Pre-IPO - Valuations Estimates - Leaving on a Jet Plane - $30bn Was Quite Stretched
Tencent Music	Tencent Music Pre-IPO - Quick Peer Analysis - If I Was You, I’d Wanna Be Me Too - Bigger and Fast
Tencent Music	Tencent Music Pre-IPO - Industry - Don't Cry - In 2010 a Little Red Dot Almost Overtook the Dragon
Weidai	Weidai IPO Preview: Robust Foundations in Turbulent Times
Australia
Latitude financial	Latitude Financial Group Pre-IPO Review - Credit Prospectus Throw up Some Interesting Data Points

ECM Weekly (20 October 2018) - San Miguel F&B, Mobvista, AoBiome, Stealth Bio, Coronado

Aequitas Research puts out a weekly update on the deals that have been covered by Smartkarma Insight Providers recently, along with updates for...

Zhen Zhou, Toh

Mobvista Pre-IPO - Impairments Would Have Wiped off past Profit, Related Parties Still Owed Money

Mobvista (MBV HK) plans to raise up to US$400m in its Hong Kong IPO, as per media reports. Although looking at the reported numbers the amount...

Sumeet Singh