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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/softcare-limited" target="_blank" data-smartkarma-citation="entities:44292:1" rel="noopener">Softcare (2698 HK)</a> (SC) raised around US$307m in its upcoming Hong Kong IPO.</li>
<li>Softcare (SC) is an international hygiene product corporation engaged in the development, manufacturing and sales of baby and feminine hygiene products.</li>
<li>We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.</li>
</ul>



Softcare (2698 HK) (SC) raised around US$307m in its upcoming Hong Kong IPO.
Softcare (SC) is an international hygiene product corporation engaged in the development, manufacturing and sales of baby and feminine hygiene products.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.


Softcare IPO Trading Note: Strong Insti Sub, Midteens Upside

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/softcare-limited" target="_blank" data-smartkarma-citation="entities:44292:1" rel="noopener">Softcare (2698 HK)</a>'s IPO price was fixed at HK$26.20, or 16.4x FY26F PER, with overwhelming positive responses in both the Hong Kong IPO and international offer. </li>
<li>We calculate its fair value at HK$26.07-29.43, based on a 50% premium to <a href="https://www.smartkarma.com/entities/hengan-international-group-co-ltd" target="_blank" data-smartkarma-citation="entities:29:1" rel="noopener">Hengan International Group (1044 HK)</a> and a 20% discount to the US peers, leaving limited upside.</li>
<li>Its tiny public shareholder ownership (15%) and the potential of being an M&amp;A target will elevate its valuations. However, anything above the US peers (i.e. 20.5x PER) is expensive. </li>
</ul>



Softcare (2698 HK)'s IPO price was fixed at HK$26.20, or 16.4x FY26F PER, with overwhelming positive responses in both the Hong Kong IPO and international offer. 
We calculate its fair value at HK$26.07-29.43, based on a 50% premium to Hengan International Group (1044 HK) and a 20% discount to the US peers, leaving limited upside.
Its tiny public shareholder ownership (15%) and the potential of being an M&amp;A target will elevate its valuations. However, anything above the US peers (i.e. 20.5x PER) is expensive. 


Softcare (2698 HK): Where Should It Be Traded?

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The rise of Softcare is in line with the logic of "Chinese supply chain going global".It has solved channel/cost problems through localized production, quickly captured market share with low-price tactic.</li>
<li>Our forecast benefiting from market penetration/capacity expansion, revenue growth could be 15% YoY in 2025.In 2026-2027, as competition intensifies, revenue growth may slow down to 12% YoY, 10% YoY respectively.</li>
<li>Given that Softcare's main market is in Africa, which is characterized by high growth and high risk, a forecasted P/E of 8-12x for 2025 could be a comfortable valuation range.</li>
</ul>


The rise of Softcare is in line with the logic of "Chinese supply chain going global".It has solved channel/cost problems through localized production, quickly captured market share with low-price tactic.
Our forecast benefiting from market penetration/capacity expansion, revenue growth could be 15% YoY in 2025.In 2026-2027, as competition intensifies, revenue growth may slow down to 12% YoY, 10% YoY respectively.
Given that Softcare's main market is in Africa, which is characterized by high growth and high risk, a forecasted P/E of 8-12x for 2025 could be a comfortable valuation range.


Pre-IPO Softcare (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>
<a href="https://www.smartkarma.com/entities/softcare-limited" target="_blank" data-smartkarma-citation="entities:44292:1" rel="noopener">Softcare (SOFT HK)</a> is looking to raise up to US$307m in its upcoming Hong Kong IPO.</li>
<li>It is an international hygiene product corporation with a focus on fast-growing Emerging Markets including Africa, Latin America and Central Asia. </li>
<li>In this note, we examine the IPO dynamics, and look at the firm’s valuation.</li>
</ul>



Softcare (SOFT HK) is looking to raise up to US$307m in its upcoming Hong Kong IPO.
It is an international hygiene product corporation with a focus on fast-growing Emerging Markets including Africa, Latin America and Central Asia. 
In this note, we examine the IPO dynamics, and look at the firm’s valuation.


Softcare Pre-IPO: Decent Cornerstones, Riding on Africa Growth

<ul>
<li>
<a href="https://www.smartkarma.com/entities/softcare-limited" target="_blank" data-smartkarma-citation="entities:44292:1" rel="noopener">Softcare (SOFT HK)</a>  is looking to raise around US$300m in its upcoming Hong Kong IPO.</li>
<li>It is an international hygiene product corporation engaged in the development, manufacturing and sales of baby and feminine hygiene products.</li>
<li>We have looked at the company's past performance in our previous note. In this note, we will undertake a PHIP update.</li>
</ul>



Softcare (SOFT HK)  is looking to raise around US$300m in its upcoming Hong Kong IPO.
It is an international hygiene product corporation engaged in the development, manufacturing and sales of baby and feminine hygiene products.
We have looked at the company's past performance in our previous note. In this note, we will undertake a PHIP update.


Softcare Pre-IPO: PHIP Update: Continued Revenue Growth but Some Margin Deterioration

Hong Kong

Softcare Limited produces baby and feminine hygiene products. The Company manufactures and sells baby diapers, baby pants, sanitary pads, and wet wipes. Softcare markets its products in Africa, Latin America, and Central Asia.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Softcare (2698 HK)

Softcare IPO Trading Note: Strong Insti Sub, Midteens Upside

Softcare (2698 HK) raised US$307m in Hong Kong IPO, an international hygiene product corporation specializing in baby and feminine hygiene products.

Nicholas Tan

Softcare (2698 HK): Where Should It Be Traded?

Softcare's IPO price was fixed at HK$26.20, with positive responses. Fair value is HK$26.07-29.43, and limited upside is expected. Small free...

Osbert Tang, CFA

Pre-IPO Softcare (PHIP Updates) - Some Points Worth the Attention

Based on IPO pricing of HK$24.2-26.2, valuation is 20x PE based 2024 net profit and 21-23x PE based on 2025 forecast (US$90 million net profit),...

Xinyao (Criss) Wang

Softcare Pre-IPO: Decent Cornerstones, Riding on Africa Growth

Softcare is looking to raise up to US$307m in its upcoming Hong Kong IPO. In this note, we examine the IPO dynamics, and look at the firm’s valuation.

Nicholas Tan

Softcare Pre-IPO: PHIP Update: Continued Revenue Growth but Some Margin Deterioration

Softcare is looking to raise around US$300m in its upcoming Hong Kong IPO. We have looked at the company's past performance in our previous note....

Nicholas Tan

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Softcare IPO Trading Note: Strong Insti Sub, Midteens Upside

​Softcare (2698 HK) raised US$307m in Hong Kong IPO, an international hygiene product corporation specializing in baby and feminine hygiene products.

Nicholas Tan

Softcare (2698 HK): Where Should It Be Traded?

​Softcare's IPO price was fixed at HK$26.20, with positive responses. Fair value is HK$26.07-29.43, and limited upside is expected. Small free...

Osbert Tang, CFA

Pre-IPO Softcare (PHIP Updates) - Some Points Worth the Attention

Based on IPO pricing of HK$24.2-26.2, valuation is 20x PE based 2024 net profit and 21-23x PE based on 2025 forecast (US$90 million net profit),...

Xinyao (Criss) Wang

Softcare Pre-IPO: Decent Cornerstones, Riding on Africa Growth

Softcare is looking to raise up to US$307m in its upcoming Hong Kong IPO. In this note, we examine the IPO dynamics, and look at the firm’s valuation.

Nicholas Tan

Softcare Pre-IPO: PHIP Update: Continued Revenue Growth but Some Margin Deterioration

Softcare is looking to raise around US$300m in its upcoming Hong Kong IPO. We have looked at the company's past performance in our previous note....

Nicholas Tan

Softcare (2698 HK) raised US$307m in Hong Kong IPO, an international hygiene product corporation specializing in baby and feminine hygiene products.

Softcare's IPO price was fixed at HK$26.20, with positive responses. Fair value is HK$26.07-29.43, and limited upside is expected. Small free...