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.

Equity Capital Markets

VISEN Pharmaceuticals / Equity Capital Markets

<ul>
<li>Visen Pharmaceuticals is looking at raising up to USD 100m to list in Hong Kong.</li>
<li>In an apparently downsized deal, the company is trying to sell at a blue sky valuation.</li>
<li>We disagree with its valuation and noted that tones have turned bearish in its offering documents.</li>
</ul>


Visen Pharmaceuticals is looking at raising up to USD 100m to list in Hong Kong.
In an apparently downsized deal, the company is trying to sell at a blue sky valuation.
We disagree with its valuation and noted that tones have turned bearish in its offering documents.


Pharmaceuticals (维升药业) IPO: Valuation and Book Building

<ul>
<li>Visen Pharmaceuticals is looking at raising up to USD 300m to list in Hong Kong.</li>
<li>The company has passed the hearing for the listing and filed a new version of the prospectus.</li>
<li>We look at the difference between previous filing and current filing. Most of the changes are not critical but we think overall it doesn’t look good.</li>
</ul>


Visen Pharmaceuticals is looking at raising up to USD 300m to list in Hong Kong.
The company has passed the hearing for the listing and filed a new version of the prospectus.
We look at the difference between previous filing and current filing. Most of the changes are not critical but we think overall it doesn’t look good.


Visen Pharmaceuticals (维升药业) IPO: PHIP Updates Don't Look Positive

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>All the three candidates lonapegsomatropin, TransCon CNP, palopegteriparatide in the pipeline of VISEN are based on Exclusive License Agreements with Ascendis Pharma. So, there're concerns about VISEN's independent R&amp;D capabilities.</li>
<li>VBP would destroy the price system of growth hormone market in China, and market size would shrink due to price reduction and decreasing demand as fewer babies will be born.</li>
<li>Post investment valuation reached US$1.03 billion. Since leading domestic companies have dominated the market, it’s not easy for VISEN to break through. Valuation of VISEN could be lower than peers.</li>
</ul>


All the three candidates lonapegsomatropin, TransCon CNP, palopegteriparatide in the pipeline of VISEN are based on Exclusive License Agreements with Ascendis Pharma. So, there're concerns about VISEN's independent R&amp;D capabilities.
VBP would destroy the price system of growth hormone market in China, and market size would shrink due to price reduction and decreasing demand as fewer babies will be born.
Post investment valuation reached US$1.03 billion. Since leading domestic companies have dominated the market, it’s not easy for VISEN to break through. Valuation of VISEN could be lower than peers.


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

<ul>
<li>Visen Pharmaceuticals is looking at raising up to USD 300m to list in Hong Kong.</li>
<li>We look at the company’s core product and highlight two unfavorable trends.</li>
<li>We are not excited about the company’s fundamentals, and are not keen in the deal.</li>
</ul>


Visen Pharmaceuticals is looking at raising up to USD 300m to list in Hong Kong.
We look at the company’s core product and highlight two unfavorable trends.
We are not excited about the company’s fundamentals, and are not keen in the deal.


Visen Pharmaceuticals IPO: Unfavorable Trends

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>While the 1H25 IPOs have gained an average of 38% YTD, their average share price change has been only 6.3% MTD.</li>
<li>"Rising Suns" stocks are interesting: <a href="https://www.smartkarma.com/entities/hainan-drinda-new-energy-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:45252:1" rel="noopener">Hainan Drinda New Energy Technology (2865 HK)</a>, <a href="https://www.smartkarma.com/entities/pegbio-co-ltd" target="_blank" data-smartkarma-citation="entities:40924:1" rel="noopener">PegBio (2565 HK)</a>, <a href="https://www.smartkarma.com/entities/caocao-inc" target="_blank" data-smartkarma-citation="entities:42803:1" rel="noopener">CaoCao (2643 HK)</a>, and <a href="https://www.smartkarma.com/entities/anhui-conch-material-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:45012:1" rel="noopener">Anhui Conch Material Technology (2560 HK)</a>.  </li>
<li>"Real Treasures" stocks are safe bets: <a href="https://www.smartkarma.com/entities/duality-biotherapeutics-inc" target="_blank" data-smartkarma-citation="entities:43878:1" rel="noopener">Duality Biotherapeutics (9606 HK)</a>, <a href="https://www.smartkarma.com/entities/unisound-ai-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:36800:1" rel="noopener">Unisound AI Tech. (9678 HK)</a>, <a href="https://www.smartkarma.com/entities/contemporary-amperex-technology-catl-co-limited" target="_blank" data-smartkarma-citation="entities:45179:1" rel="noopener">CATL (3750 HK)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:44224:1" rel="noopener">Jiangsu Hengrui (1276 HK)</a>, and <a href="https://www.smartkarma.com/entities/nanshan-aluminium-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:43976:1" rel="noopener">Nanshan Aluminium (2610 HK)</a>. </li>
</ul>


While the 1H25 IPOs have gained an average of 38% YTD, their average share price change has been only 6.3% MTD.
"Rising Suns" stocks are interesting: Hainan Drinda New Energy Technology (2865 HK), PegBio (2565 HK), CaoCao (2643 HK), and Anhui Conch Material Technology (2560 HK).  
"Real Treasures" stocks are safe bets: Duality Biotherapeutics (9606 HK), Unisound AI Tech. (9678 HK), CATL (3750 HK), Jiangsu Hengrui (1276 HK), and Nanshan Aluminium (2610 HK). 


HK Strategy: Finding the Gems in 1H25 HK IPOs

China

VISEN Pharmaceuticals develops biopharmaceutical technology focused on treatments in selected endocrinology diseases. The Company provides lonapegsomatropin, navepegritide, palopegteriparatide, and other treatments. VISEN Pharmaceuticals conducts businesses in China.

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VISEN Pharmaceuticals (2561 HK)

Pharmaceuticals (维升药业) IPO: Valuation and Book Building

Visen Pharmaceuticals seeks to raise $100m for Hong Kong listing. We think the valuation is extremely inflated with tones turning bearing in the...

Ke Yan, CFA, FRM

Visen Pharmaceuticals (维升药业) IPO: PHIP Updates Don't Look Positive

Visen Pharmaceuticals plans to raise up to USD 300m for a Hong Kong listing. We look at changes to prospectus, which don't make the company look...

Ke Yan, CFA, FRM

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

Concerns arise over VISEN's R&D capabilities, facing challenges in a competitive market with potential price system disruption and limited market...

Xinyao (Criss) Wang

Visen Pharmaceuticals IPO: Unfavorable Trends

Visen Pharmaceuticals plans to raise $300m for a Hong Kong listing, but concerns about their core product and unfavorable trends make us not keen...

Ke Yan, CFA, FRM

HK Strategy: Finding the Gems in 1H25 HK IPOs

1H25 IPOs have seen a YTD average gain of 38%, but only 6.3% MTD. "Rising Suns" like Hainan Drinda New Energy, PegBio, CaoCao Inc., and Anhui...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pharmaceuticals (维升药业) IPO: Valuation and Book Building

​Visen Pharmaceuticals seeks to raise $100m for Hong Kong listing. We think the valuation is extremely inflated with tones turning bearing in the...

Ke Yan, CFA, FRM

Visen Pharmaceuticals (维升药业) IPO: PHIP Updates Don't Look Positive

​Visen Pharmaceuticals plans to raise up to USD 300m for a Hong Kong listing. We look at changes to prospectus, which don't make the company look...

Ke Yan, CFA, FRM

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

​Concerns arise over VISEN's R&D capabilities, facing challenges in a competitive market with potential price system disruption and limited market...

Xinyao (Criss) Wang

Visen Pharmaceuticals IPO: Unfavorable Trends

​Visen Pharmaceuticals plans to raise $300m for a Hong Kong listing, but concerns about their core product and unfavorable trends make us not keen...

Ke Yan, CFA, FRM

HK Strategy: Finding the Gems in 1H25 HK IPOs

​1H25 IPOs have seen a YTD average gain of 38%, but only 6.3% MTD. "Rising Suns" like Hainan Drinda New Energy, PegBio, CaoCao Inc., and Anhui...

Osbert Tang, CFA

Visen Pharmaceuticals seeks to raise $100m for Hong Kong listing. We think the valuation is extremely inflated with tones turning bearing in the...

Visen Pharmaceuticals plans to raise up to USD 300m for a Hong Kong listing. We look at changes to prospectus, which don't make the company look...

Concerns arise over VISEN's R&D capabilities, facing challenges in a competitive market with potential price system disruption and limited market...

Visen Pharmaceuticals plans to raise $300m for a Hong Kong listing, but concerns about their core product and unfavorable trends make us not keen...

1H25 IPOs have seen a YTD average gain of 38%, but only 6.3% MTD. "Rising Suns" like Hainan Drinda New Energy, PegBio, CaoCao Inc., and Anhui...