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

<p>Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong Kong IPO. According to F&amp;S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.</p><p>Bairong has three main revenue generating segments: data analytics services, precision marketing services and insurance distribution services. As of FY19, data analytics accounted for 41.4% of revenue, with the next largest segment being precision marketing at 32.1% of revenue and insurance distribution making up for the rest.</p><p>Over 2017-19, Bairong’s revenue expanded by 3.56x or at 88.8% CAGR. While its data analytics revenue increased by 66% over the period, its precision marketing services revenue grew 22.6x, and insurance distribution grew 54.5x. Over the same time, gross profit grew 3.99x and adjusted EBITDA, PAT and OCF all turned positive during that period.</p><p>In this insight, I'll talk about the positive aspects of the deal. </p>

Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong Kong IPO. According to F&amp;S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.Bairong has three main revenue generating segments: data analytics services, precision marketing services and insurance distribution services. As of FY19, data analytics accounted for 41.4% of revenue, with the next largest segment being precision marketing at 32.1% of revenue and insurance distribution making up for the rest.Over 2017-19, Bairong’s revenue expanded by 3.56x or at 88.8% CAGR. While its data analytics revenue increased by 66% over the period, its precision marketing services revenue grew 22.6x, and insurance distribution grew 54.5x. Over the same time, gross profit grew 3.99x and adjusted EBITDA, PAT and OCF all turned positive during that period.In this insight, I'll talk about the positive aspects of the deal. 

Bairong Pre-IPO - The Positives - Largest Independent Big-Data Analytics Provider

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cloopen Group Holding Ltd / Equity Capital Markets

<p><strong>Our base case valuation of Cloopen Group Holdings is EV of $3.0 billion and implied market cap of $3.3 billion. This represents implied price per share of $22.2 per share, representing 48% higher than the high end of the IPO price range of $15 per share. Given the solid upside, we have a positive view of the Cloopen Group Holdings IPO. </strong></p><p>For the comparable companies analysis of Cloopen Group Holdings, we used five companies including <a href="https://www.smartkarma.com/entities/kingsoft-cloud" target="_blank" data-smartkarma-citation="entities:28835:1" rel="noopener">Kingsoft Cloud (KC US)</a>, <a href="https://www.smartkarma.com/entities/agora-inc" target="_blank" data-smartkarma-citation="entities:29037:1" rel="noopener">Agora Inc. (API US)</a>, <a href="https://www.smartkarma.com/entities/21-vianet-group-inc-adr" target="_blank" data-smartkarma-citation="entities:8489:1" rel="noopener">21Vianet Group (VNET US)</a>, <a href="https://www.smartkarma.com/entities/gds-holdings-adr" target="_blank" data-smartkarma-citation="entities:23649:1" rel="noopener">GDS Holdings (ADR) (GDS US)</a>, and <a href="https://www.smartkarma.com/entities/oneconnect-financial-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:28432:1" rel="noopener">OneConnect Financial Technology (OCFT US)</a>. </p>

Our base case valuation of Cloopen Group Holdings is EV of $3.0 billion and implied market cap of $3.3 billion. This represents implied price per share of $22.2 per share, representing 48% higher than the high end of the IPO price range of $15 per share. Given the solid upside, we have a positive view of the Cloopen Group Holdings IPO. For the comparable companies analysis of Cloopen Group Holdings, we used five companies including Kingsoft Cloud (KC US), Agora Inc. (API US), 21Vianet Group (VNET US), GDS Holdings (ADR) (GDS US), and OneConnect Financial Technology (OCFT US). 

Cloopen Group Holdings IPO Valuation Analysis

<div><p><a href="https://www.smartkarma.com/entities/lufax-holdings" target="_blank" data-smartkarma-citation="entities:29690:1" rel="noopener">Lufax Holdings (LU US)</a> (Lufax) aims to raise around US$2.4bn via its US listing. The company is backed by <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a> (Ping An).</p></div><div><p>Lufax is a technology-empowered personal financial services platform in China. The company aims to address the demand for personal lending among small business owners, as well as salaried workers in China. It also provides wealth management solutions to China’s middle class and affluent population.</p></div><div>
<p>I covered the various aspects of the deal in my earlier notes:</p>
<ul>
<li><a href="https://www.smartkarma.com/insights/lufax-pre-ipo-the-positives-able-to-grow-despite-the-headwinds" target="_blank" rel="noopener">Lufax Pre-IPO - The Positives - Able to Grow Despite the Headwinds</a></li>
<li><a href="https://www.smartkarma.com/insights/lufax-pre-ipo-the-negatives-remains-in-flux" target="_blank" rel="noopener">Lufax Pre-IPO - The Negatives - Remains in Flux</a></li>
<li><a href="https://www.smartkarma.com/insights/lufax-pre-ipo-peer-review-bigger-than-ant-s-credittech-in-revenue" target="_blank" rel="noopener">Lufax Pre-IPO - Peer Review - Bigger than Ant’s CreditTech, in Revenue</a></li>
</ul>
</div><div><p>In this insight, I'll run the deal through our ECM framework and talk about valuations.</p></div>

Lufax Holdings (LU US) (Lufax) aims to raise around US$2.4bn via its US listing. The company is backed by Ping An Insurance (H) (2318 HK) (Ping An).Lufax is a technology-empowered personal financial services platform in China. The company aims to address the demand for personal lending among small business owners, as well as salaried workers in China. It also provides wealth management solutions to China’s middle class and affluent population.
I covered the various aspects of the deal in my earlier notes:

Lufax Pre-IPO - The Positives - Able to Grow Despite the Headwinds
Lufax Pre-IPO - The Negatives - Remains in Flux
Lufax Pre-IPO - Peer Review - Bigger than Ant’s CreditTech, in Revenue

In this insight, I'll run the deal through our ECM framework and talk about valuations.

Lufax IPO - Stuck with the Earlier Fundraising Valuation

<div><p><a href="https://www.smartkarma.com/entities/lufax-holdings" target="_blank" data-smartkarma-citation="entities:29690:1" rel="noopener">Lufax Holdings (LU US)</a> (Lufax) aims to raise around US$3bn via its US listing. The company is backed by <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a> (Ping An).</p></div><div><p>Lufax is a technology-empowered personal financial services platform in China. The company aims to address the demand for personal lending among small business owners, as well as salaried workers in China. It also provides wealth management solutions to China’s middle class and affluent population.</p></div><div>
<p>I covered the positive aspects of the deal in my earlier note, <a href="https://www.smartkarma.com/insights/lufax-pre-ipo-the-positives-able-to-grow-despite-the-headwinds" target="_blank" rel="noopener">Lufax Pre-IPO - The Positives - Able to Grow Despite the Headwinds</a> and the negative aspects in<a href="https://www.smartkarma.com/insights/lufax-pre-ipo-the-negatives-remains-in-flux" target="_blank" rel="noopener"> Lufax Pre-IPO - The Negatives - Remains in Flux.</a></p>
<p>In this insight, I'll undertake a peer comparison.</p>
</div>

Lufax Holdings (LU US) (Lufax) aims to raise around US$3bn via its US listing. The company is backed by Ping An Insurance (H) (2318 HK) (Ping An).Lufax is a technology-empowered personal financial services platform in China. The company aims to address the demand for personal lending among small business owners, as well as salaried workers in China. It also provides wealth management solutions to China’s middle class and affluent population.
I covered the positive aspects of the deal in my earlier note, Lufax Pre-IPO - The Positives - Able to Grow Despite the Headwinds and the negative aspects in Lufax Pre-IPO - The Negatives - Remains in Flux.
In this insight, I'll undertake a peer comparison.


Lufax Pre-IPO - Peer Review - Bigger than Ant’s CreditTech, in Revenue

<p><a href="https://www.smartkarma.com/entities/lufax-holdings" target="_blank" data-smartkarma-citation="entities:29690:1" rel="noopener">Lufax Holdings (LU US)</a> (Lufax) aims to raise around US$3bn via its US listing. The company is backed by <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a> (Ping An).</p>
<p>Lufax is a technology-empowered personal financial services platform in China. The company aims to address the demand for personal lending among small business owners, as well as salaried workers in China. It also provides wealth management solutions to China’s middle class and affluent population.</p>
<p>Despite having to change its funding model and loan mix over the past few years, the company has still managed to grow its loan book and revenue. </p>
<p>In this insight, I'll talk about the positive aspects of the deal.</p>

Lufax Holdings (LU US) (Lufax) aims to raise around US$3bn via its US listing. The company is backed by Ping An Insurance (H) (2318 HK) (Ping An).
Lufax is a technology-empowered personal financial services platform in China. The company aims to address the demand for personal lending among small business owners, as well as salaried workers in China. It also provides wealth management solutions to China’s middle class and affluent population.
Despite having to change its funding model and loan mix over the past few years, the company has still managed to grow its loan book and revenue. 
In this insight, I'll talk about the positive aspects of the deal.

Lufax Pre-IPO - The Positives - Able to Grow Despite the Headwinds

China

Oneconnect Financial Technology Co., Ltd. software as a services. The Company offers technological applications for financial institutes such as digital transformations, revenue increase, and risk management. Oneconnect Financial Technology serves customers in China.

OneConnect Financial Technology (OCFT US)

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OneConnect Financial Technology (OCFT US)

Bairong Pre-IPO - The Positives - Largest Independent Big-Data Analytics Provider

Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong...

Sumeet Singh

Cloopen Group Holdings IPO Valuation Analysis

Our base case valuation of Cloopen Group Holdings is an implied price per share of $22.2 per share, representing 48% higher than the high end of...

Douglas Kim

Lufax IPO - Stuck with the Earlier Fundraising Valuation

Lufax Holdings (LU US) aims to raise around US$2.4bn via its US listing. The company is backed by Ping An Insurance and has undergone major changes...

Sumeet Singh

Lufax Pre-IPO - Peer Review - Bigger than Ant’s CreditTech, in Revenue

Lufax Holdings (LU US) aims to raise around US$3bn via its US listing. The company is backed by Ping An Insurance (2318 HK).

Sumeet Singh

Lufax Pre-IPO - The Positives - Able to Grow Despite the Headwinds

Lufax aims to raise around US$3bn via its US listing. The company is backed by Ping An Group and caters to retail and small business credit needs.

Sumeet Singh

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