APAC IPOs & Placements, Aequitas Research

Nicholas Tan

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

Red Avenue New Materials Group / Equity Capital Markets

Red Avenue New Materials Group (RANMG HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/red-avenue-new-materials-group" target="_blank" data-smartkarma-citation="entities:55522:1" rel="noopener">Red Avenue New Materials Group (RANMG HK)</a> raised ~US$380m in its Hong Kong IPO.</li>
<li>It operates across rubber additives for tyres and other chemical products, electronic materials, and fully biodegradable materials.</li>
<li>In this note, we look at its past performance, valuation, and other deal dynamics that might impact the listing.</li>
</ul>



Red Avenue New Materials Group (RANMG HK) raised ~US$380m in its Hong Kong IPO.
It operates across rubber additives for tyres and other chemical products, electronic materials, and fully biodegradable materials.
In this note, we look at its past performance, valuation, and other deal dynamics that might impact the listing.


Aequitas: Red Avenue New Materials A/H IPO Trading - Weak Insti and Retail Demand

<ul>
<li>
<a href="https://www.smartkarma.com/entities/red-avenue-new-materials-group" target="_blank" data-smartkarma-citation="entities:55522:1" rel="noopener">Red Avenue New Materials Group (RANMG HK)</a>, aims to raise up to US$380m in its H-share listing.</li>
<li>It operates across rubber additives for tyres and other chemical products, electronic materials, and fully biodegradable materials.</li>
<li>In this note, we look at its past performance, valuation, and other deal dynamics that might impact the listing.</li>
</ul>



Red Avenue New Materials Group (RANMG HK), aims to raise up to US$380m in its H-share listing.
It operates across rubber additives for tyres and other chemical products, electronic materials, and fully biodegradable materials.
In this note, we look at its past performance, valuation, and other deal dynamics that might impact the listing.


Aequitas: Red Avenue New Materials Pre-IPO - Wide A/H Premium but Still Too Expensive

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Red Avenue utilizes tire rubber additives as the "cash cow" to provide stable profits as the fundamental foundation, meanwhile, through M&amp;As, entering high-growth electronic materials to create "second growth curve".</li>
<li>A comfortable range could be 35-45x P/E based on 2026 forecast (between the industry average of the chemical sector and the valuation of semiconductor materials, reflecting the premium for transformation).</li>
<li>If electronic materials business fails to achieve expected growth rate, or if traditional rubber additive business continues to face pressure, valuation may approach the average of chemical industry (28x P/E).</li>
</ul>


Red Avenue utilizes tire rubber additives as the "cash cow" to provide stable profits as the fundamental foundation, meanwhile, through M&amp;As, entering high-growth electronic materials to create "second growth curve".
A comfortable range could be 35-45x P/E based on 2026 forecast (between the industry average of the chemical sector and the valuation of semiconductor materials, reflecting the premium for transformation).
If electronic materials business fails to achieve expected growth rate, or if traditional rubber additive business continues to face pressure, valuation may approach the average of chemical industry (28x P/E).


Pre-IPO Red Avenue New Materials Group (PHIP Updates) - Some Points Worth the Attention

Hong Kong

Red Avenue New Materials Group Co., Ltd. is a comprehensive new materials service provider in the PRC, specializing in advanced chemical products including rubber additives, electronic materials, and fully biodegradable materials. The company holds leading market positions in global and PRC phenolic resins rubber additives, and PRC semiconductor and TFT array photoresist markets, and is undertaking this listing to expand financial resources and enhance brand awareness.

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Red Avenue New Materials Group (RANMG HK)

Aequitas: Red Avenue New Materials A/H IPO Trading - Weak Insti and Retail Demand

Red Avenue raised ~US$380m in its Hong Kong IPO. We have covered various aspects of the deal in our previous note. In this note, we will talk about...

Nicholas Tan

Aequitas: Red Avenue New Materials Pre-IPO - Wide A/H Premium but Still Too Expensive

Red Avenue New Materials, aims to raise up to US$380m in its H-share listing. In this note, we look at its past performance, valuation, and other...

Nicholas Tan

Pre-IPO Red Avenue New Materials Group (PHIP Updates) - Some Points Worth the Attention

Through M&A, Red Avenue entered high-growth electronic materials sector to create "second growth curve", but volume of photoresist business is...

Xinyao (Criss) Wang

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