APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

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Equity Capital Markets

<p><em>The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.</em></p><div class="content-highlight"><p>It has been a rather unexciting week in the IPO space as the IPO fever continues to fizzle out. Most recently, <a href="https://www.smartkarma.com/entities/26006" target="_blank" data-smartkarma-citation="entities:26006:1">PPDAI Group Inc</a> retraced back to its IPO price after a decent first-day pop as we have expected. However, <a href="https://www.smartkarma.com/entities/26007" target="_blank" data-smartkarma-citation="entities:26007:1">Jianpu Technology Inc (JT US)</a> broke 10% below IPO price after barely moving above its IPO price. <a href="https://www.smartkarma.com/profiles/1680" target="_blank" data-smartkarma-citation="accounts:1680">Arun George</a> has been on point with his analysis citing that the company is offered at a premium to the blended median of its peer group.</p><p>Perhaps what is most shocking this week was <a href="https://www.smartkarma.com/entities/26012" target="_blank" data-smartkarma-citation="entities:26012:1">Bestway Global Holding Inc (3358 HK)</a> IPO's collapse on the first day of trading. At one point, it traded -29% and eventually closed -24% to IPO price. While we can't say that we have seen it coming, <a href="https://www.smartkarma.com/profiles/4" target="_blank" data-smartkarma-citation="accounts:4">Sumeet Singh</a> raised some red flags about the company which includes inflated margins, the wide difference between reported and online ASP, and lack of transparency of its subsidiaries. <a href="https://www.smartkarma.com/profiles/1486" target="_blank" data-smartkarma-citation="accounts:1486">Rickin Thakrar</a> also wrote in a post-IPO note that company's cash could burn out as early as January 2018 in <a href="https://www.smartkarma.com/insights/a-disturbing-cash-profile-post-ipo" target="_blank" data-smartkarma-citation="insights:15421">A Disturbing Cash Profile Post IPO</a> .</p><p><strong>IPO outlook for the rest of Q4</strong></p><p>Typically, we see ourselves avoiding more IPOs in Q4 and taking a more cautious approach during this period. However, due to the momentum going into Q4, the IPO team has been leaning towards the bullish side so far.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/038/504/original/-Pct-of-Avoids-in-Q4-_chartbuilder.png?1510975884" class="editor-image img-responsive" data-smartkarma-image-id="38504"></figure><p>Going forward, we think that it is back to modus operandi of looking at IPOs with a more careful approach. Nevertheless, there are some exciting IPOs that we are looking forward to such as <a href="https://www.smartkarma.com/entities/24255" target="_blank" data-smartkarma-citation="entities:24255:1">Studio Dragon Corp (1440453D KS)</a> ,<a href="https://www.smartkarma.com/entities/25951" target="_blank" data-smartkarma-citation="entities:25951:1">Netwealth Group Ltd (NWL AU)</a> , and a handful of other Japan IPOs that we hear are coming soon in December.</p></div><h2>Accuracy Rate:</h2><p>Our overall accuracy rate is<strong> 72.8% for IPOs </strong>and <strong>63.3% for Placements.</strong></p><p><em>(Performance measurement criteria is explained at the end of the note)</em></p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/038/507/original/Total-Deals-Since-Inception-Accuracy-Rate-Since-Inception-_chartbuilder%20%281%29.png?1510977104" class="editor-image img-responsive" data-smartkarma-image-id="38507"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/038/508/original/2017-Total-Deals-2017-Accuracy-Rate-_chartbuilder.png?1510977118" class="editor-image img-responsive" data-smartkarma-image-id="38508"></figure><h2><strong>New IPO filings this week<br><br></strong></h2><ul><li><strong>Cromwell European REIT (Singapore, re-filed)</strong></li><li><strong>Nissin Foods (Hong Kong, re-filed)</strong></li><li><strong>Galaxy Surfactants (India, US$150m)</strong></li></ul><p>Below is a snippet of our IPO tool on upcoming events for the next week. Our 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 <a href="https://www.smartkarma.com/tools/ipos" target="_blank">here </a>or through the tools menu.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/038/510/original/upcoming.PNG?1510977970" class="editor-image img-responsive" data-smartkarma-image-id="38510"></figure><div class="content-caption">Source: Smartkarma</div><h2><strong>News on Upcoming IPOs<br><br></strong></h2><ul><li><a href="http://www.ifrasia.com/lemon-tree-hotels-delays-rs13bn-ipo-to-q1-2018/21317030.article" target="_blank">Lemon Tree Hotels delays Rs13bn IPO to Q1 2018</a></li><li><a href="http://www.straitstimes.com/business/companies-markets/indonesias-sinar-mas-planning-singapore-ipo-of-up-to-us800m-for-power" target="_blank">Indonesia's Sinar Mas planning mega Singapore IPO of up to US$800m for power assets</a></li></ul><h2><strong>Smartkarma Community's Analyses on Upcoming IPOs<br><br></strong></h2><ul><li><a href="https://www.smartkarma.com/insights/a-disturbing-cash-profile-post-ipo" target="_blank" data-smartkarma-citation="insights:15421">A Disturbing Cash Profile Post IPO</a></li><li><a href="https://www.smartkarma.com/insights/stitch-fix-ipo-preview-leaving-you-in-stitches" target="_blank" data-smartkarma-citation="insights:15255">Stitch Fix IPO Preview – Leaving You in Stitches</a></li><li><a href="https://www.smartkarma.com/insights/stitch-fix-ipo-preview-not-just-another-retail-subscription-service-this-one-s-profitable" target="_blank" data-smartkarma-citation="insights:15219">Stitch Fix IPO Preview: Not Just Another Retail Subscription Service -- This One’s Profitable!</a></li><li><a href="https://www.smartkarma.com/insights/jin-air-ipo-valuation-study" target="_blank" data-smartkarma-citation="insights:15253">Jin Air IPO Valuation Study</a></li><li><a href="https://www.smartkarma.com/insights/yixin-ipo-preview-when-it-sounds-too-good-to-be-true-it-probably-is" target="_blank" data-smartkarma-citation="insights:15252">Yixin IPO Preview: When It Sounds Too Good to Be True, It Probably Is</a></li><li><a href="https://www.smartkarma.com/insights/ctk-cosmetics-part-2-valuation-analysis-biggest-korean-cosmetics-ipo-in-2017" target="_blank" data-smartkarma-citation="insights:15239">CTK Cosmetics (Part 2) Valuation Analysis - Biggest Korean Cosmetics IPO in 2017</a></li><li><a href="https://www.smartkarma.com/insights/china-education-group-ipo-preview-the-story-of-1-shared-history-2-founders-3-schools" target="_blank" data-smartkarma-citation="insights:14499">China Education Group IPO Preview: The Story of 1 Shared History, 2 Founders, &amp; 3 Schools</a></li></ul><div><h2>List of pre-IPO Coverage on Smartkarma</h2></div><div><table class="table table-striped"><tbody><tr><td>Name</td><td>Insight</td></tr><tr><td colspan="2"><strong>Hong Kong</strong></td></tr><tr><td>Cenmintang</td><td><a href="https://www.smartkarma.com/insights/cenmintang-ipo-preview-a-beverage-and-snack-play-whose-growth-is-hard-to-grasp" target="_blank" data-smartkarma-citation="insights:9282">Cenmintang IPO Preview: A Beverage and Snack Play Whose Growth Is Hard to Grasp</a></td></tr><tr><td>China Edu Grp</td><td><a href="https://www.smartkarma.com/insights/china-education-group-ipo-preview-the-story-of-1-shared-history-2-founders-3-schools" target="_blank" data-smartkarma-citation="insights:14499">China Education Group IPO Preview: The Story of 1 Shared History, 2 Founders, &amp; 3 Schools</a></td></tr><tr><td>China Feihe</td><td><a href="https://www.smartkarma.com/insights/china-feihe-ipo-preview-goat-bless-infant-formula-milk" target="_blank" data-smartkarma-citation="insights:12751">China Feihe IPO Preview: Goat Bless Infant Formula Milk?</a></td></tr><tr><td>Bank of Jiujiang</td><td><a href="https://www.smartkarma.com/insights/scraping-the-bottom-of-the-barrel-bank-of-jiujiang" target="_blank">Scraping the Bottom of the Barrel: Bank of JiuJiang</a></td></tr><tr><td>Shandong Int'l Trust</td><td><a href="https://www.smartkarma.com/insights/shandong-international-trust-pre-ipo-faltering-growth-and-profitability-despite-aid-from-prop-book" target="_blank">Shandong Int'l Trust Pre-IPO - Faltering Growth and Profitability Despite Aid from Prop Book</a></td></tr><tr><td colspan="2"><strong>South Korea</strong></td></tr><tr><td>Bodyfriend</td><td><a href="https://www.smartkarma.com/insights/bodyfriend-ipo-preview-part-i-goodbye-osim-hello-bodyfriend" target="_blank">Bodyfriend IPO Preview: Part I (Goodbye Osim, Hello Bodyfriend) Bodyfriend) </a></td></tr><tr><td>CJ OliveNetworks</td><td><a href="https://www.smartkarma.com/insights/cj-olivenetworks-on-a-fast-track-to-an-ipo-in-2017" target="_blank">CJ OliveNetworks - On A Fast Track to an IPO in 2017? </a></td></tr><tr><td>Cafe24</td><td><a href="https://www.smartkarma.com/insights/cafe-24-ipo-preview-part-1-korea-s-shopify-leading-contender-for-tesla-requirements-based-ipo" target="_blank" data-smartkarma-citation="insights:13665">Cafe 24 IPO Preview (Part 1): Korea’s Shopify - Leading Contender For “Tesla” Requirements Based IPO</a></td></tr><tr><td>Data Solution</td><td><a href="https://www.smartkarma.com/insights/datasolution-ipo-summary-questions-remain-on-growth-but-market-seems-excited" target="_blank" data-smartkarma-citation="insights:12519">Datasolution IPO Summary - Questions Remain on Growth, but Market Seems Excited</a></td></tr><tr><td>Gentle Monster</td><td><a href="https://www.smartkarma.com/insights/gentle-monster-ipo-a-monster-growth" target="_blank" data-smartkarma-citation="insights:8630">Gentle Monster IPO - A Monster Growth</a></td></tr><tr><td>Korea Exchange</td><td><a href="https://www.smartkarma.com/insights/korea-exchange-ipo-question-is-when-not-if" target="_blank">Korea Exchange IPO - Question Is When, Not If</a></td></tr><tr><td>Mecaro</td><td><a href="https://www.smartkarma.com/insights/mecaro-ipo-part-1-ipo-prospectus-summary" target="_blank" data-smartkarma-citation="insights:14767">Mecaro IPO Part 1 - IPO Prospectus Summary</a></td></tr><tr><td>Outin Futures</td><td><a href="https://www.smartkarma.com/insights/outin-futures-corp-ipo-preview-part-1" target="_blank" data-smartkarma-citation="insights:11212">Outin Futures Corp IPO Preview (Part 1)</a>,  <a href="https://www.smartkarma.com/insights/outin-futures-corp-ipo-valuations-part-2" target="_blank" data-smartkarma-citation="insights:11736">Valuations (Part 2)</a></td></tr><tr><td>Tapex</td><td><a href="https://www.smartkarma.com/insights/tapex-ipo-preview-part-1" target="_blank" data-smartkarma-citation="insights:13543">Tapex IPO Preview (Part 1)</a></td></tr><tr><td>Tapex</td><td><a href="https://www.smartkarma.com/insights/tapex-ipo-valuation-analysis-a-market-leader-in-rechargeable-batteries-tapes" target="_blank" data-smartkarma-citation="insights:14486">Tapex IPO (Valuation Analysis) - A Market Leader in Rechargeable Batteries Tapes</a></td></tr><tr><td>Woowa Bro</td><td><a href="https://www.smartkarma.com/insights/woowa-brothers-corp-ipo-preview-part-1-the-most-popular-food-delivery-service-in-korea" target="_blank" data-smartkarma-citation="insights:11104">Woowa Brothers Corp IPO Preview (Part 1) - The Most Popular Food Delivery Service in Korea</a></td></tr><tr><td>V-One Tech</td><td><a href="https://www.smartkarma.com/insights/v-one-tech-ipo-summary-another-oled-stock-ipo" target="_blank" data-smartkarma-citation="insights:11689">V-One Tech IPO Summary - Another OLED Stock IPO</a>,  <a href="https://www.smartkarma.com/insights/v-one-tech-ipo-part-2-ipo-bookbuilding-results" target="_blank" data-smartkarma-citation="insights:11806">IPO Bookbuilding Results</a></td></tr><tr><td>Zinus</td><td><a href="https://www.smartkarma.com/insights/zinus-ipo-preview-part-1-an-amazing-comeback-story-1-mattress-brand-on-amazon" target="_blank" data-smartkarma-citation="insights:13698">Zinus IPO Preview (Part 1) - An Amazing Comeback Story (#1 Mattress Brand on Amazon)</a></td></tr><tr><td colspan="2"><strong>India</strong></td></tr><tr><td>NSE</td><td><a href="https://www.smartkarma.com/insights/national-stock-exchange-pre-ipo-review-bigger-better-stronger-but-a-little-too-fast-for-some" target="_blank">National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some</a></td></tr><tr><td>NSE</td><td><a href="https://www.smartkarma.com/insights/nse-ipo-preview-not-only-fast-its-risky-and-expensive" target="_blank">NSE IPO Preview- Not Only Fast..its Risky and Expensive</a></td></tr></tbody></table></div>

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.It has been a rather unexciting week in the IPO space as the IPO fever continues to fizzle out. Most recently, PPDAI Group Inc retraced back to its IPO price after a decent first-day pop as we have expected. However, Jianpu Technology Inc (JT US) broke 10% below IPO price after barely moving above its IPO price. Arun George has been on point with his analysis citing that the company is offered at a premium to the blended median of its peer group.Perhaps what is most shocking this week was Bestway Global Holding Inc (3358 HK) IPO's collapse on the first day of trading. At one point, it traded -29% and eventually closed -24% to IPO price. While we can't say that we have seen it coming, Sumeet Singh raised some red flags about the company which includes inflated margins, the wide difference between reported and online ASP, and lack of transparency of its subsidiaries. Rickin Thakrar also wrote in a post-IPO note that company's cash could burn out as early as January 2018 in A Disturbing Cash Profile Post IPO .IPO outlook for the rest of Q4Typically, we see ourselves avoiding more IPOs in Q4 and taking a more cautious approach during this period. However, due to the momentum going into Q4, the IPO team has been leaning towards the bullish side so far.Going forward, we think that it is back to modus operandi of looking at IPOs with a more careful approach. Nevertheless, there are some exciting IPOs that we are looking forward to such as Studio Dragon Corp (1440453D KS) ,Netwealth Group Ltd (NWL AU) , and a handful of other Japan IPOs that we hear are coming soon in December.Accuracy Rate:Our overall accuracy rate is 72.8% for IPOs and 63.3% for Placements.(Performance measurement criteria is explained at the end of the note)New IPO filings this week  Cromwell European REIT (Singapore, re-filed)Nissin Foods (Hong Kong, re-filed)Galaxy Surfactants (India, US$150m)Below is a snippet of our IPO tool on upcoming events for the next week. Our 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: SmartkarmaNews on Upcoming IPOs  Lemon Tree Hotels delays Rs13bn IPO to Q1 2018Indonesia's Sinar Mas planning mega Singapore IPO of up to US$800m for power assetsSmartkarma Community's Analyses on Upcoming IPOs  A Disturbing Cash Profile Post IPOStitch Fix IPO Preview – Leaving You in StitchesStitch Fix IPO Preview: Not Just Another Retail Subscription Service -- This One’s Profitable!Jin Air IPO Valuation StudyYixin IPO Preview: When It Sounds Too Good to Be True, It Probably IsCTK Cosmetics (Part 2) Valuation Analysis - Biggest Korean Cosmetics IPO in 2017China Education Group IPO Preview: The Story of 1 Shared History, 2 Founders, &amp; 3 SchoolsList of pre-IPO Coverage on SmartkarmaNameInsightHong KongCenmintangCenmintang IPO Preview: A Beverage and Snack Play Whose Growth Is Hard to GraspChina Edu GrpChina Education Group IPO Preview: The Story of 1 Shared History, 2 Founders, &amp; 3 SchoolsChina FeiheChina Feihe IPO Preview: Goat Bless Infant Formula Milk?Bank of JiujiangScraping the Bottom of the Barrel: Bank of JiuJiangShandong Int'l TrustShandong Int'l Trust Pre-IPO - Faltering Growth and Profitability Despite Aid from Prop BookSouth KoreaBodyfriendBodyfriend IPO Preview: Part I (Goodbye Osim, Hello Bodyfriend) Bodyfriend) CJ OliveNetworksCJ OliveNetworks - On A Fast Track to an IPO in 2017? Cafe24Cafe 24 IPO Preview (Part 1): Korea’s Shopify - Leading Contender For “Tesla” Requirements Based IPOData SolutionDatasolution IPO Summary - Questions Remain on Growth, but Market Seems ExcitedGentle MonsterGentle Monster IPO - A Monster GrowthKorea ExchangeKorea Exchange IPO - Question Is When, Not IfMecaroMecaro IPO Part 1 - IPO Prospectus SummaryOutin FuturesOutin Futures Corp IPO Preview (Part 1),  Valuations (Part 2)TapexTapex IPO Preview (Part 1)TapexTapex IPO (Valuation Analysis) - A Market Leader in Rechargeable Batteries TapesWoowa BroWoowa Brothers Corp IPO Preview (Part 1) - The Most Popular Food Delivery Service in KoreaV-One TechV-One Tech IPO Summary - Another OLED Stock IPO,  IPO Bookbuilding ResultsZinusZinus IPO Preview (Part 1) - An Amazing Comeback Story (#1 Mattress Brand on Amazon)IndiaNSENational Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for SomeNSENSE IPO Preview- Not Only Fast..its Risky and Expensive

Smartkarma: ECM Coverage Weekly Update (18 November 2017)

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Netwealth Group  / Equity Capital Markets

<p>Heine family plans to raise up to US$200 by selling a part of <a href="https://www.smartkarma.com/entities/25951" target="_blank" data-smartkarma-citation="entities:25951:1">Netwealth Group Ltd (NWL AU)</a> in its IPO. The business has a strong track record and with most metrics pointing in the right direction, though there are a few niggling doubts.  </p><p>In this insight, we analyse the company's past growth and compare it with some of its listed peers. We will also run the deal through our IPO framework.</p>

Heine family plans to raise up to US$200 by selling a part of Netwealth Group Ltd (NWL AU) in its IPO. The business has a strong track record and with most metrics pointing in the right direction, though there are a few niggling doubts.  In this insight, we analyse the company's past growth and compare it with some of its listed peers. We will also run the deal through our IPO framework.

Netwealth Group IPO - Fast Growth Has Been Getting Faster

Australia

Netwealth Group Limited provides investment management services. The Company offers portfolio management, insurance, advisory, and investment solutions. Netwealth Group focuses on funds, deposits, accounts, cash, and securities. Netwealth Group serves customers in Australia.

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Netwealth Group (NWL AU)

Smartkarma: ECM Coverage Weekly Update (18 November 2017)

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs. It has been a rather...

Zhen Zhou, Toh

Netwealth Group IPO - Fast Growth Has Been Getting Faster

Heine family plans to raise up to US$200 by selling a part of Netwealth Group Ltd (NWL AU) in its IPO. The business has a strong track record and...

Sumeet Singh

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