Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

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

Research Reinvented

Equity Capital Markets

Jiayuan International / Equity Capital Markets

Jiayuan International (Jiayuan) plans to raise US$85-145m through an issuance of primary shares in its IPO. The company offers no unique exposure as such, as there are a plethora of China real estate developers listed in Hong Kong to choose from. Moreover the founders entire real estate business isn't being injected in the listco, for reasons that remain far from clear. Pricing at the lower end seems digestible but a negative score on our framework and unconvincing explanations for segregation of private assets inclines us to avoid the deal.

Jiayuan International (Jiayuan) plans to raise US$85-145m through an issuance of primary shares in its IPO. The company offers no unique exposure as such, as there are a plethora of China real estate developers listed in Hong Kong to choose from. Moreover the founders entire real estate business isn't being injected in the listco, for reasons that remain far from clear. Pricing at the lower end seems digestible but a negative score on our framework and unconvincing explanations for segregation of private assets inclines us to avoid the deal.

Jiayuan International IPO - Private Real Estate Is 2x the Size of Business Being Listed

Ronshine China Holdings / Equity Capital Markets

Ronshine China Holdings plans to raise US$230-270 through an issuance of primary shares in its IPO. The company seems to have a good reputation as a developer in the Fujian province. However, the deal doesn't score well on our framework and valuations don't look appealing versus peers. Even post the IPO, the company will have one of the highest gearing ratios in the sector and will primarily be funded through borrowings via trust funds. Furthermore, JV's with related party companies have accounted for a substantial proportion of profits in the past. Lack of clarity on how projects will be split between related parties and the company going forward, raises corporate governance issues as well.

Ronshine China Holdings plans to raise US$230-270 through an issuance of primary shares in its IPO. The company seems to have a good reputation as a developer in the Fujian province. However, the deal doesn't score well on our framework and valuations don't look appealing versus peers. Even post the IPO, the company will have one of the highest gearing ratios in the sector and will primarily be funded through borrowings via trust funds. Furthermore, JV's with related party companies have accounted for a substantial proportion of profits in the past. Lack of clarity on how projects will be split between related parties and the company going forward, raises corporate governance issues as well. 

Ronshine China IPO: Needs a Lot More Equity to Be Investable

China

Soho China Ltd. is a property developer. The Company develops properties in central Beijing and Shanghai. Soho China collaborates with internationally recognized architects, translating their designs into real estate which possesses strong appeal to property investors and the local businesses and customer bases they serve.

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Soho China (410 HK)

Jiayuan International IPO - Private Real Estate Is 2x the Size of Business Being Listed

Jiayuan International (Jiayuan) plans to raise US$85-145m through an issuance of primary shares in its IPO. The company offers no unique exposure...

Sumeet Singh

Ronshine China IPO: Needs a Lot More Equity to Be Investable

Ronshine China Holdings plans to raise US$230-270 through an issuance of primary shares in its IPO. The company seems to have a good reputation as...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)