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

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
Events next week:
There was a mix of good and bad news this week in the APAC ECM space this week. Starting with the good, Hyundai Heavy Industries (329180 KS) ended its first trading day 85% higher on the back of one of the best subscription rates among Korean IPOs even though we thought valuation was too expensive compared to peers. 

Hyundai Heavy IPO Trading - One of the Strongest Demand but KSOE Is Not Budging 
But, other Korea IPOs may not be as fortunate. In light of the regulatory backdrop, Kakao Pay (377300 KS) may its IPO again whereas Simone Accessories Collection (381920 KS) which we covered this week, has pushed back its bookbuild dates to mid October.

Simone Pre-IPO - A Leader in the Industry but Recovery Will Be Slow and Blackstone’s Stake Weighs 
Japan IPOs aren't looking great either. Our further analysis on PHC Holdings (6523 JP) suggest that the company doesn't standout compared to peers, neither did valuation make much sense given that it seemed to be a messy amalgamation of various unsynergetic businesses.


PHC Holdings Pre-IPO - Peer Comparison 

PHC Holdings Pre-IPO - Thoughts on Valuation 

In Hong Kong, Dongguan Rural Commercial Bank (DRCOBZ HK) opened its books on Friday and will be pricing on this coming Thursday. Shares will trade on 29th September. As with many Chinese banks that came before DRC Bank, valuation is unappealing.

Dongguan Rural Commercial Bank IPO - Mind the Valuation Gap 
There were two other biotech IPO launches in Hong Kong as well, Transcenta Holding (6628 HK) and Broncus (2216 HK). The latter's bookbuild saw strong demand, closing a day earlier and pricing at the top-end. They will debut on 29th September and 24th September (coming Friday), respectively.


Transcenta (创胜) IPO: Fairly Valued Despite Downsizing 

Broncus (堃博医疗) Pre-IPO: Thoughts on Valuation 

Broncus (堃博医疗) IPO: Long Term Faith Needed 

For upcoming IPOs, it was reported that ANE Logistics (1292621D CH) has won HKEX approval and will be pre-marketing its IPO this coming week. We also continued our coverage on Biel Crystal (0924581D HK), comparing the company to other Apple suppliers. 


ANE Logistics Pre-IPO - Margins Expanding but Appears to Be Falling Behind 

Biel Crystal (伯恩光学) Pre-IPO - Industry Landscape &amp; Peer Comparison -  Auto Is the Wildcard 

In India and US, we initiated on Star Health (7584769Z IN) and TDCX (TDCX US). The former is looking to raise about US$1bn while the latter is targeting a US$400m IPO.


Star Health Insurance Pre-IPO - Leading the Retail Healthcare Insurance Space 

TDCX Inc. Pre-IPO - Past Growth Looks Good, the Rest Is Iffy, Including the Founders S$325m Payout 

Last but not least, tearsheets for upcoming IPOs:


Laowang Holding Pre-IPO Tearsheet (Hong Kong)

TDCX Inc. Pre-IPO Tearsheet (US)

Healthium Medtech Pre-IPO Tearsheet (India)

CE Info Systems (MapmyIndia) Pre-IPO Tearsheet (India)

Tamilnad Mercantile Bank Pre-IPO Tearsheet (India)

It was a fairly busy week in the placement space too for Australia and Japan. The most notable one would be Demae-Can Co., Ltd. (2484 JP)'s massive dilution which raised more than US$700m. Share price ripped higher the day after the announcement of the placement but it is currently sitting right on deal price.


Worley Placement - Selldown by Jacobs but Could Be a Tough One to Digest 

Vulcan Energy Placement - Strong Momentum, Favorable Deal Dynamics 

Demae-Can Placement - Massive Dilution to Pursue Market Share 

Accuracy Rate:Our overall accuracy rate is 73.8% for IPOs and 68% for Placements (Performance measurement criteria is explained at the end of the note)New IPO filings this week  

Ximalaya (Hong Kong, US$1bn)
Aim Vaccine (Hong Kong, US$1bn, refiled)
Shui On Xintiandi (Hong Kong, US$500m)
Shanghai Bio-heart Biological Technology (Hong Kong, US$300m, refiled)
Vedant Fashions (India, US$340m)
News on Upcoming IPOs  
Hong Kong/China
Broncus plans to price HK IPO at top of range
Novotech Health puts HK IPO on hold
Tianqi Lithium reboots H-share listing of at least US$1bn
Tam Jai International clears listing hearing
Ximalaya files for HK IPO
Warburg Pincus-backed Mofang mulls HK IPO
ANE (Cayman) to pre-market HK IPO on Monday
Private funds help frozen floats
Bio-Thera Solutions cancels H-share IPO application
AIM Vaccine Refiles for Hong Kong Initial Public Offering
Chinese Tea Chain Lelecha Said to Be in Talks for Hong Kong IPO
China’s Heytea Is Said to Tap UBS for $500 Million Hong Kong IPO
Shui On Land’s Xintiandi Unit Files for Hong Kong IPO
China’s DRC Bank Aims to Raise $1.3 Billion in Hong Kong IPO
Yunnan Water Investment to list solid waste treatment business
InnoCare Pharma files for Rmb4bn Star IPO
China Unicom spin-off kicks off tutorial ahead of A-share IPO
Hong Kong proposes to change rules to allow SPACs to list
US/China ADRs
India's Freshworks launches US$912m Nasdaq IPO
Del Monte Foods plans US listing
Taiwan’s Gogoro goes public via SPAC merger
Pine Labs gets Wall Street bankers for its IPO, eyes over $6 billion valuation
Byju’s Buys Coding Site Tynker for $200 Million to Grow in U.S.
Byju’s considering India or US for listing
HK unicorn Prenetics goes public via SPAC merger
India
Boat meets banks for up to Rs30bn IPO
Nasdaq-listed Yatra plans Indian subsidiary IPO
Synergy starts early IPO marketing
Pre-IPO bout to value PharmEasy at $6 billion
India's Paytm to file draft prospectus next week for $2.3 billion IPO
Indian Defense Supplier Is Said to Near $100 Million IPO Filing
India seeks up to 10t rupees in valuation for insurer's mega IPO 
Japan/Korea
JSDA to Review Practice of Setting IPO Price Range, Nikkei Says
Simplex IPO priced at top
Hyundai Heavy Industries soars 86% on debut
Regulators grind down Kakao
Kakao Mobility puts IPO plan on hold
Kakao Pay May Delay IPO Again, Seoul Economic Daily Reports
Blackstone-backed Simone Delays IPO bookbuilding to October 18 - 19
SK Innovation in No Hurry to Launch IPO of Battery Unit
Others
SiteMinder float preparations kick off, targets 2021 debut
MacCap shops lucky 8-times debt deal for SG Lottery
SG Lottery recruits McLennan, Cooke, Korsanos for IPO board
Scientific Games Seeks $5B Lotteries Unit IPO in Australia
RAM targets $356.9m raising at 5.7pc yield for new property IPO
Vulcan Launches IPO Cornerstone Process, Australian Says
Fabric Property to raise up to NZ$290m in IPO
Singapore Is Said to Plan Local Stocks Boost With Temasek Fund
Temasek-owned Vertex to bring first SPAC IPO in Singapore
Indonesia Overhauls IPO Regulations
Indonesia's Telkom to pursue IPO of unit in Q4, plans spinoffs
Indonesia to jump on IPO boom by listing 14 state-owned companies
Malaysia's Farm Fresh to file for IPO this month
TPG Capital mandates Credit Suisse for Greencross sale
Analysis on Upcoming IPOs

Name
Insight

Hong Kong

APM Monaco
APM Monaco Pre-IPO - China’s Resilience Shines 


Airdoc
Beijing Airdoc (北京鹰瞳科技) Pre-IPO - A Niche Field with Merits but Can It Sell? 


Anjuke
Anjuke Pre-IPO - Mixed (Positive and Negative) Developments 


Ambio
AmbioPharm (昂博制药) Pre-IPO: Peptide CDMO Leader Turning Licensor 


Biel Crystal
Biel Crystal (伯恩光学) Pre-IPO - Cash Flow Generative Business but Underlying Trend Is Worrying 


ByteDance
ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)


ByteDance
ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


ByteDance
ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)


ByteDance
ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H? 


ByteDance
ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants 


ByteDance
ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


ByteDance
ByteDance (字节跳动) Pre-IPO - Globally the Most Downloaded App for Jan 2020 Driven by India 


ByteDance
ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges 


Cloud Village
Cloud Village (NetEase Music) Pre-IPO - Mixed PHIP Update, Updated Thoughts on Valuation 


Cloud Village
Cloud Village (NetEase Music) Pre-IPO - Initial Thoughts on Valuation 


Cloud Village
Cloud Village (NetEase Music) Pre-IPO - Tencent Music Peer Comp, Regulatory Impact 


Cloud Village
Cloud Village (NetEase Music) Pre-IPO - Was in the Slow Stream, Playing Catch-Up 


Edda 
EDDA Healthcare Pre-IPO - RoboDoc - Has Been Around for a While but Is Just Getting the Robo Going 


Dingdang
Dingdang Health Tech (叮当健康) Pre-IPO - Impressive Growth but Not Without Concerns 


Intco Med
Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1 


Imeik
Imeik Tech (爱美客) A/H Pre-IPO - Dermal Filler Leader Capitalizing on Its Valuation 


Jenscare
Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio 


MicroPort Medbot
MicroPort MedBot Pre-IPO - RoboDoc - Pre-Revenue, Has a Large Competitor but a Large Market as Well 


NewMed
NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR 


Neusoft Xikang
Neusoft Xikang (东软熙康) Pre-IPO: A Long Way to Profit 


Neusoft Med
Neusoft Medical Systems (东软医疗系统) Pre-IPO: Unattractive Fundamentals 


WeDoctor

WeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More 


WeDoctor

WeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor 


WeDoctor

We Doctor (微医) Pre-IPO - Peer Comparison - Picking Its Battles Wisely 


WeDoctor

We Doctor (微医) Pre-IPO - Forecasts, Early Thoughts on Valuation, and Acquisition Gripes 


Weilong

Weilong Delicious Global Pre-IPO - The Positives - Fast Growth, Strong Backers 


Weilong

Weilong Delicious Global Pre-IPO - The Negatives - Spicy Valuation 


WM Tech

WM Tech Pre-IPO - Peer Comparison and Pre-IPO Valuation - Some Signs of Advantage 


WM Tech

WM Tech Pre-IPO - Digitalization Efforts Coming Through but Not Well Substantiated 

India

Aadhar Housing

Aadhar Housing Finance Pre-IPO - Decent past Growth but Comes with Weird Disclosures 


Aditya AMC

Aditya Birla Sun Life AMC Pre-IPO - Strong Profit Growth but It's Losing Market Share 


Anmol Ind
Anmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders


Bharat Hotel
Bharat Hotels Pre-IPO - Catching up with Peers 


Bajaj En
Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It 


Crystal Crop
Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers


ESAF SFB

ESAF Small Finance Bank Pre-IPO - Growing Fast but Remains Highly Dependant on a Related Party 


Flemingo 
Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country


Emami Cem

Emami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO 


NSE
NSE IPO Preview- Not Only Fast..its Risky and Expensive


NSE
National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some


LIC

Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO 


Penna Cem

Penna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 


PNB Met
PNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers

Malaysia

QSR
QSR Brands Pre-IPO - As Healthy as Fast Food

Philippines

MREIT

MREIT Pre-IPO - Mediocre Performance, Convoluted Lease, Low Asset Yield 



ECM Weekly (19th September 2021) - PHC, StarHealth, TDCX, Biel Crystal, DRCBank, Transcenta, Broncus

Star Health and Allied Insurance (SHAI), the largest private health and retail health insurance company in India, plans to raise around US$1.0bn in its India IPO. It is backed by Westbridge and Rakesh Jhunjhuwala. Owing to the latter, it will draw a lot of retail interest. SHAI insured 20.5m people in FY21. SHAI primarily offers retail health insurance which accounted for 87.9% of its FY21 GWP. Individual agents accounted for 97% of its FY21 GWP. Its GWP has grown by 72.6% over FY19-21 on the back of 58.6% growth in agents and 62.5% growth in the number of policies. SHAI has consistently grown faster than the industry over the past few years resulting in a steady increase in its market share. With a gross written premium (GWP) of INR93.5bn in FY21, SHAI had a market share of 15.8% in the Indian health insurance market and 31.3% in the retail health insurance market. Along with growing fast, SHAI has also managed to remain profitable since FY16 with its claims ratio remaining below 67% in most years. Although, the company recorded a loss in FY21 on the back of higher claims due to COVID-19 and reinsurance related adjustments. In addition, as the second COVID-19 wave only peaked in 1Q22, FY22 will be impacted as well.

Star Health and Allied Insurance (SHAI), the largest private health and retail health insurance company in India, plans to raise around US$1.0bn in its India IPO. It is backed by Westbridge and Rakesh Jhunjhuwala. Owing to the latter, it will draw a lot of retail interest. SHAI insured 20.5m people in FY21. SHAI primarily offers retail health insurance which accounted for 87.9% of its FY21 GWP. Individual agents accounted for 97% of its FY21 GWP. Its GWP has grown by 72.6% over FY19-21 on the back of 58.6% growth in agents and 62.5% growth in the number of policies. SHAI has consistently grown faster than the industry over the past few years resulting in a steady increase in its market share. With a gross written premium (GWP) of INR93.5bn in FY21, SHAI had a market share of 15.8% in the Indian health insurance market and 31.3% in the retail health insurance market. Along with growing fast, SHAI has also managed to remain profitable since FY16 with its claims ratio remaining below 67% in most years. Although, the company recorded a loss in FY21 on the back of higher claims due to COVID-19 and reinsurance related adjustments. In addition, as the second COVID-19 wave only peaked in 1Q22, FY22 will be impacted as well.

Star Health Insurance Pre-IPO - Leading the Retail Healthcare Insurance Space

India

Star Health and Allied Insurance Company Limited operates as insurance company. The Company offers health, travel, and accidental insurance policies. Star Health and Allied Insurance serves customers in India.

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Star Health (STARHEAL IN)

ECM Weekly (19th September 2021) - PHC, StarHealth, TDCX, Biel Crystal, DRCBank, Transcenta, Broncus

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Star Health Insurance Pre-IPO - Leading the Retail Healthcare Insurance Space

Star Health and Allied Insurance (SHAI), the largest private health and retail health insurance company in India, plans to raise around US$1.0bn in...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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