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.

Event-Driven

<p>On 22nd March 2018, after market close in Hong Kong one of the largest overnight placements was launched. On that day, <a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a> reluctantly sold US$10bn worth of <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> shares. </p><p>I say reluctantly because Naspers provided a three year lock-up at the time of the deal. That lock-up will expire next month. </p><p>We have covered the previous placement in our earlier note, <a href="https://www.smartkarma.com/insights/tencent-placement-huge-deal-in-size-small-in-relative-terms-succumbing-to-the-holdco-discount" target="_blank" rel="noopener">Tencent Placement - Huge Deal in Size, Small in Relative Terms - Succumbing to the HoldCo Discount</a>. </p><p>In this note, I’ll talk about the upcoming lock-up expiry, its implications and the updates since then.</p>

On 22nd March 2018, after market close in Hong Kong one of the largest overnight placements was launched. On that day, Naspers (NPN SJ) reluctantly sold US$10bn worth of Tencent Holdings (700 HK) shares. I say reluctantly because Naspers provided a three year lock-up at the time of the deal. That lock-up will expire next month. We have covered the previous placement in our earlier note, Tencent Placement - Huge Deal in Size, Small in Relative Terms - Succumbing to the HoldCo Discount. In this note, I’ll talk about the upcoming lock-up expiry, its implications and the updates since then.

Tencent Placement Lock-Up Expiry - US$10bn+ Block and Buyback Linked Holdco Trade

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/coupang" target="_blank" data-smartkarma-citation="entities:28425:1" rel="noopener">Coupang (CPNG US)</a> , the largest product e-commerce player in Korea, aims to raise around US$3bn in its US listing via a mix of selling primary and secondary shares. As per media reports, the company has earlier obtained investments from Sequoia, Softbank, Blackrock and Fidelity.</p></div><div><p>Coupang offers its 14.8m customers a wide range of owned-inventory selection. In addition, on its marketplace it also offers millions of SKUs sourced from over 200,000 merchants. Apart from normal e-commerce operation, it also provides its customers with: grocery offering, Rocket Fresh; logistics food delivery offering, Coupang Eats; and digital financial services, Coupang Pay.</p></div><div>
<p>I've covered various aspects of the deal in my earlier insights: </p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/coupang-pre-ipo-the-positives-fast-growth-sticky-customers" target="_blank" rel="noopener">Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers</a>, </li>
<li><a href="https://www.smartkarma.com/insights/coupang-pre-ipo-the-negatives-horrendous-data-disclosures-including-no-mention-of-ott-launch" target="_blank" rel="noopener">Coupang Pre-IPO - The Negatives - Horrendous Data Disclosures, Including No Mention of OTT Launch</a></li>
</ul>
<p>In this insight, I'll talk about the local competition and how Coupang has been fairing.</p>
</div>

Coupang (CPNG US) , the largest product e-commerce player in Korea, aims to raise around US$3bn in its US listing via a mix of selling primary and secondary shares. As per media reports, the company has earlier obtained investments from Sequoia, Softbank, Blackrock and Fidelity.Coupang offers its 14.8m customers a wide range of owned-inventory selection. In addition, on its marketplace it also offers millions of SKUs sourced from over 200,000 merchants. Apart from normal e-commerce operation, it also provides its customers with: grocery offering, Rocket Fresh; logistics food delivery offering, Coupang Eats; and digital financial services, Coupang Pay.
I've covered various aspects of the deal in my earlier insights: 


Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers, 
Coupang Pre-IPO - The Negatives - Horrendous Data Disclosures, Including No Mention of OTT Launch

In this insight, I'll talk about the local competition and how Coupang has been fairing.


Coupang Pre-IPO - Fair Bit of Competition but It's Doing Better than Most Local Peers

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Kuaishou Technology / Equity Capital Markets

<p>The Chinese short-video and livestreaming platform <a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a>  started trading on the Hong Kong Stock Exchange on the 05<sup>th </sup>February 2021. The company set its final IPO pricing at HK$115 per share, the upper end of the IPO price range of HK$105-115 per share and raised net proceeds of HK$41.28bn (approx. 5.32bn).</p><p>Kuaishou’s shares opened strong at its debut at HK$338 per share, about 194% higher than the final IPO pricing of HK$115 per share. The company’s shares closed at HK$300 per share at the end of its first day of trading, still at a whopping premium of 161% to the final IPO price. The company’s shares closed at HK$415 per share (at the end of Wednesday’s trading), almost HK$300 more than the IPO price of HK$115 per share.</p><p>Following the company’s successful listing on 5<sup>th</sup> of February, FTSE Russell announced that Kuaishou will be added to FTSE China 50 Index effective 17<sup>th</sup> February 2021 (start of trading).</p><p>At the end of trading on 8<sup>th</sup> February, it was announced that the company will be included in the Hang Seng China Enterprise Index (HSCEI), Hang Seng Tech Index (HSTECH Index) and Hang Seng Composite Index (HSCI) after market close on February 22<sup>nd</sup>.</p>

The Chinese short-video and livestreaming platform Kuaishou Technology (1024 HK)  started trading on the Hong Kong Stock Exchange on the 05th February 2021. The company set its final IPO pricing at HK$115 per share, the upper end of the IPO price range of HK$105-115 per share and raised net proceeds of HK$41.28bn (approx. 5.32bn).Kuaishou’s shares opened strong at its debut at HK$338 per share, about 194% higher than the final IPO pricing of HK$115 per share. The company’s shares closed at HK$300 per share at the end of its first day of trading, still at a whopping premium of 161% to the final IPO price. The company’s shares closed at HK$415 per share (at the end of Wednesday’s trading), almost HK$300 more than the IPO price of HK$115 per share.Following the company’s successful listing on 5th of February, FTSE Russell announced that Kuaishou will be added to FTSE China 50 Index effective 17th February 2021 (start of trading).At the end of trading on 8th February, it was announced that the company will be included in the Hang Seng China Enterprise Index (HSCEI), Hang Seng Tech Index (HSTECH Index) and Hang Seng Composite Index (HSCI) after market close on February 22nd.

Kuaishou IPO Trading Update: Further Upside Seems Limited; We Are Looking for Exit Points

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

<ul>
<li>The stock price has risen by 30% since we set Tencent as our “high-conviction” equity for 2021.</li>
<li>Chinese game player number shrank by 2% from March 2020.</li>
<li>Chinese online TV active users decreased by 5% in 2020.</li>
<li>In advertising, social media is inferior to e-commerce and short-video platforms.</li>
<li>We believe the stock has a downside of 7.6%.</li>
</ul>


The stock price has risen by 30% since we set Tencent as our “high-conviction” equity for 2021.
Chinese game player number shrank by 2% from March 2020.
Chinese online TV active users decreased by 5% in 2020.
In advertising, social media is inferior to e-commerce and short-video platforms.
We believe the stock has a downside of 7.6%.


Tencent (700 HK): Price Surged, Time to Look at Negative Industry Data

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.

<p><a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (JDL HK)</a> is the largest player in China’s integrated supply chain logistics services market, with a 2.2% revenue market share in 2019, according to CIC. JD Logistics was founded with the formation of <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a>’s in-house logistics department in 2007. <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (HK) (9618 HK)</a> is the controlling shareholder with a 79.12% stake. The other shareholders include Carlyle Group, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, Sequoia Capital and Hillhouse Capital. JD Logistics has filed for a Hong Kong IPO to raise as much as $4 billion, according to press reports. </p><div class="content-highlight"><p>JD Logistics is an indirect play on the shift of some customer behaviour permanently to online shopping, particularly in fast-moving consumer goods. JD Logistics should also benefit from favourable Chinese government policy support for developing integrated supply chain logistics services. Overall, we believe that JD Logistics fundamentals are attractive and remain well-placed to address consumers' demand for faster and more flexible supply chain logistics services. </p></div>

JD Logistics (JDL HK) is the largest player in China’s integrated supply chain logistics services market, with a 2.2% revenue market share in 2019, according to CIC. JD Logistics was founded with the formation of JD.com Inc (ADR) (JD US)’s in-house logistics department in 2007. JD.com (HK) (9618 HK) is the controlling shareholder with a 79.12% stake. The other shareholders include Carlyle Group, Tencent Holdings (700 HK), Sequoia Capital and Hillhouse Capital. JD Logistics has filed for a Hong Kong IPO to raise as much as $4 billion, according to press reports. JD Logistics is an indirect play on the shift of some customer behaviour permanently to online shopping, particularly in fast-moving consumer goods. JD Logistics should also benefit from favourable Chinese government policy support for developing integrated supply chain logistics services. Overall, we believe that JD Logistics fundamentals are attractive and remain well-placed to address consumers' demand for faster and more flexible supply chain logistics services. 

JD Logistics IPO Initiation: The Flow of Things

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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

Tencent Holdings (ADR) (TCEHY US)

Tencent Placement Lock-Up Expiry - US$10bn+ Block and Buyback Linked Holdco Trade

On 22nd March 2018, after market close, one of the largest overnight placements was launched. On that day, Naspers reluctantly sold US$10bn worth...

Sumeet Singh

Coupang Pre-IPO - Fair Bit of Competition but It's Doing Better than Most Local Peers

Coupang (CPNG US) , the largest product e-commerce player in Korea, aims to raise around US$3bn in its US listing via a mix of selling primary and...

Sumeet Singh

Kuaishou IPO Trading Update: Further Upside Seems Limited; We Are Looking for Exit Points

Kuaishou’s shares opened strong at its debut at HK$338 per share, about 194% higher than the final IPO pricing of HK$115 per share. The company’s...

Shifara Samsudeen, FCMA, CGMA

Tencent (700 HK): Price Surged, Time to Look at Negative Industry Data

The stock price has risen by 27% since we set a 24% upside.Chinese game player number shrank by 2% from March 2020.Chinese online TV active users...

Ming Lu

JD Logistics IPO Initiation: The Flow of Things

JD Logistics has filed for a Hong Kong IPO to raise as much as $4 billion, according to press reports. Overall, we believe that JD Logistics...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)