Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyse the changes of A/H premium on 136 stocks over the last week.</li>
<li>Average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. </li>
<li>37 stocks reached 52 week high last week but most have retreated since, representing arb opportunities in volatile market. </li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week.
Average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. 
37 stocks reached 52 week high last week but most have retreated since, representing arb opportunities in volatile market. 


A/H Premium Weekly: Arb Opportunities Last Week

<ul>
<li>We analyse the changes of A/H premium on 136 stocks over the last week.</li>
<li>A/H premium increased by 5.7ppt WoW mainly driven by information technology and health care.</li>
<li>We highlight that 15 stocks reached their 52 week high of A/H premium last week.</li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week.
A/H premium increased by 5.7ppt WoW mainly driven by information technology and health care.
We highlight that 15 stocks reached their 52 week high of A/H premium last week.


A/H Premium Weekly: 15 Stocks at 52 Week High

<ul>
<li>We analyse the changes of A/H premium on 136 stocks over the last week. </li>
<li>Increases of A/H premium was mainly due to the consumer staple,  energy and consumer discretionary sector.</li>
<li>We highlight stocks including: Xinjiang Goldwind, GWM, Yankuang, China Oilfield, First Tractor, CCCC, Huaneng.</li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week. 
Increases of A/H premium was mainly due to the consumer staple,  energy and consumer discretionary sector.
We highlight stocks including: Xinjiang Goldwind, GWM, Yankuang, China Oilfield, First Tractor, CCCC, Huaneng.


A/H Premium Weekly: Xinjiang Goldwind, Great Wall Motor, First Tractor

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<div>
<p>Following a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0816/2021081600024.pdf" target="_blank" rel="noopener">suspension</a> in trading on the morning of the 16 August "<em>pursuant to The Hong Kong Code on Takeovers and Mergers</em> ", piped natural gas operator <a href="https://www.smartkarma.com/entities/suchuang-gas-corp-ltd" target="_blank" data-smartkarma-citation="entities:304:1" rel="noopener">Suchuang Gas Corp (1430 HK)</a> has announced a privatisation <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0825/2021082501197.pdf" target="_blank" rel="noopener">Offer</a> by way of a Scheme from a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/china-resources-gas-group-ltd" target="_blank" data-smartkarma-citation="entities:20525:1" rel="noopener">CR Gas (1193 HK)</a>.</p>
</div>
<div>
<p>CR Gas is offering HK$2.50/share, a 2.88% premium to last close - or given the pre-announcement pop, a 23.15% premium to the average closing price for the 10 days to the last day of trading. Suchuang shareholders are afforded the option of exchanging their shares on a one-for-one basis into Holdco.</p>
<p>No dividends are expected to be paid during the Offer period. </p>
<p>Irrevocables totaling 74.75% have been received from the Controlling Shareholders inter alia. This is somewhat misleading as some of these shares are held by Fung Yu (23.76%) and Total Honest (13.64%) - vehicles ultimately controlled by ex-EDs Su Aping and his wife Zhu Yaying - are in concert with the Offeror, and are therefore required to abstain from voting at the Scheme Meeting. </p>
<p>Disinterested Shareholders total 62.6% of shares out.</p>
</div>
<div>
<p>The headcount test applies as Suchuang is Cayman incorporated.</p>
<p>Regulatory approvals include SASAC.</p>
</div>
<div>
<p>This looks done.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


Following a suspension in trading on the morning of the 16 August "pursuant to The Hong Kong Code on Takeovers and Mergers ", piped natural gas operator Suchuang Gas Corp (1430 HK) has announced a privatisation Offer by way of a Scheme from a wholly-owned subsidiary of CR Gas (1193 HK).


CR Gas is offering HK$2.50/share, a 2.88% premium to last close - or given the pre-announcement pop, a 23.15% premium to the average closing price for the 10 days to the last day of trading. Suchuang shareholders are afforded the option of exchanging their shares on a one-for-one basis into Holdco.
No dividends are expected to be paid during the Offer period. 
Irrevocables totaling 74.75% have been received from the Controlling Shareholders inter alia. This is somewhat misleading as some of these shares are held by Fung Yu (23.76%) and Total Honest (13.64%) - vehicles ultimately controlled by ex-EDs Su Aping and his wife Zhu Yaying - are in concert with the Offeror, and are therefore required to abstain from voting at the Scheme Meeting. 
Disinterested Shareholders total 62.6% of shares out.


The headcount test applies as Suchuang is Cayman incorporated.
Regulatory approvals include SASAC.


This looks done.


More below the fold.


Suchuang Gas (1430 HK): Delisting Proposal From CR Gas

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Blue Moon Group Holdings / Equity Capital Markets

<div>
<p><a href="https://www.smartkarma.com/entities/guangzhou-blue-moon-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:29179:1" rel="noopener">Blue Moon Group Holdings (BMG HK)</a> is a leading consumer household care company in China. At the proposed IPO price range of HK$10.20-13.16 per share, Blue Moon will have a market cap of HK$58,621-75,632 million ($7.6-9.8 billion). At the mid-point of the IPO price range, the total net proceeds are HK$8,492 million ($1.1 billion). </p>
<p>Six cornerstone investors will subscribe for HK$1,821 million ($235 million) of the offer shares (20.87% of the offer shares at the mid-point of the price range). The cornerstone investors are BOCHK Asset Management, <a href="https://www.smartkarma.com/entities/shanghai-dazhong-public-utilities-a" target="_blank" data-smartkarma-citation="entities:7847:1" rel="noopener">Shanghai Dazhong Public Utilities - A (600635 CH)</a>,  Fullerton, Changjia Group, Greater Bay Area Fund and Veritas Asset Management.</p>
</div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/blue-moon-ipo-initiation-laundry-list" target="_blank" data-smartkarma-citation="insights:41086" rel="noopener">Blue Moon IPO Initiation: Laundry List</a>, we stated that on balance we think the positives (market-leading brand, strong margin progression, solid cash generation) outweigh the negatives (declining revenue growth and short-term COVID-19 impact). In <a href="https://www.smartkarma.com/insights/blue-moon-ipo-doing-the-wash" target="_blank" data-smartkarma-citation="insights:45481" rel="noopener">Blue Moon IPO: Doing the Wash</a> we noted that the 1H20 results disclosed in the PHIP show that the Blue Moon has creditably navigated the adverse revenue decline on its core business due to the COVID-19 outbreak by improving margin and cash generation. Overall, we would participate in the IPO due to an attractive IPO price range.</p></div></div>


Blue Moon Group Holdings (BMG HK) is a leading consumer household care company in China. At the proposed IPO price range of HK$10.20-13.16 per share, Blue Moon will have a market cap of HK$58,621-75,632 million ($7.6-9.8 billion). At the mid-point of the IPO price range, the total net proceeds are HK$8,492 million ($1.1 billion). 
Six cornerstone investors will subscribe for HK$1,821 million ($235 million) of the offer shares (20.87% of the offer shares at the mid-point of the price range). The cornerstone investors are BOCHK Asset Management, Shanghai Dazhong Public Utilities - A (600635 CH),  Fullerton, Changjia Group, Greater Bay Area Fund and Veritas Asset Management.
In Blue Moon IPO Initiation: Laundry List, we stated that on balance we think the positives (market-leading brand, strong margin progression, solid cash generation) outweigh the negatives (declining revenue growth and short-term COVID-19 impact). In Blue Moon IPO: Doing the Wash we noted that the 1H20 results disclosed in the PHIP show that the Blue Moon has creditably navigated the adverse revenue decline on its core business due to the COVID-19 outbreak by improving margin and cash generation. Overall, we would participate in the IPO due to an attractive IPO price range.

China

Shanghai Dazhong Public Utilities (Group) Co., Ltd. provides utility service and public transportation service. The Company also researches, develops and produces high technologies products.

Shanghai Dazhong Public Utilities - H (1635 HK)

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Shanghai Dazhong Public Utilities - H (1635 HK)

A/H Premium Weekly: Arb Opportunities Last Week

We highlight average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. 37 stocks reached 52w high...

Ke Yan, CFA, FRM

A/H Premium Weekly: 15 Stocks at 52 Week High

We highlight that 15 stocks reached their 52 week high of A/H premium last week, including Xinjiang Gold Wind (2208 HK), Fuyao Glass (3606 HK),...

Ke Yan, CFA, FRM

A/H Premium Weekly: Xinjiang Goldwind, Great Wall Motor, First Tractor

We highlight changes in A/H premium for stocks: Xinjiang Goldwind, Great Wall Motor, Yankuang, China Oilfield, First Tractor, CCCC, Huaneng.

Ke Yan, CFA, FRM

Suchuang Gas (1430 HK): Delisting Proposal From CR Gas

This appears a reasonable Offer price. Trading wide at 8.7%/33.3%, probably on account of the prior news leakage. Plus this is not a super liquid...

David Blennerhassett

Blue Moon IPO: Valuation Insights

Blue Moon has launched its HK IPO to raise net proceeds of $1.1 billion, at the mid-point of the HK$10.20-13.16 price range. Overall, we think that...

Arun George

Price Gauge

52-week Range

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