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

<ul>
<li>On 26th Aug 2022, PCAOB and CSRC announced that they had entered into an agreement granting US authorities access to investigate public accounting firms headquartered in China and HK.</li>
<li>On 2nd Apr 2022, CSRC put out a draft for public comments on the revision of certain provisions which would allow easier access by overseas regulators to China ADRs audits.</li>
<li>In this note, we'll talk about the latest developments and its implications.</li>
</ul>


On 26th Aug 2022, PCAOB and CSRC announced that they had entered into an agreement granting US authorities access to investigate public accounting firms headquartered in China and HK.
On 2nd Apr 2022, CSRC put out a draft for public comments on the revision of certain provisions which would allow easier access by overseas regulators to China ADRs audits.
In this note, we'll talk about the latest developments and its implications.


China ADRs Delisting - Tide Is Turning - Non-HK Listed ADRs Are Already Outperforming

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Last week <strong><a href="https://www.smartkarma.com/entities/yum-china-holdings-inc-0533692c-6dae-4014-baa1-ed0b050638f2" target="_blank" data-smartkarma-citation="entities:29259:1" rel="noopener">Yum China Holdings Inc (9987 HK)</a></strong>  <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0815/2022081501554.pdf" target="_blank" rel="noopener">announced</a> it has applied for voluntary conversion to a primary listing on the Hong Kong Stock Exchange.</li>
<li>Should all necessary approvals from the HKEx be satisfied, Yum will become dual primary listed on the New York Stock Exchange and the HKEx.</li>
<li>This regulatory process, facilitated by rules introduced by the HKEx over the past year, enables the de-listing of the ADRs and the smooth transition to a sole HK listing.</li>
</ul>


Last week Yum China Holdings Inc (9987 HK)  announced it has applied for voluntary conversion to a primary listing on the Hong Kong Stock Exchange.
Should all necessary approvals from the HKEx be satisfied, Yum will become dual primary listed on the New York Stock Exchange and the HKEx.
This regulatory process, facilitated by rules introduced by the HKEx over the past year, enables the de-listing of the ADRs and the smooth transition to a sole HK listing.


Yum China Pursues Primary Listing Conversion On The HKEx

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>While AI has had a profound impact in image recognition,there has been little comparable progress in drug discovery, far from the current levels of investment and expectations in this sector.</li>
<li>The success of license-in model must be based on the appropriate valuation level. The ultimate parameter to measure a drug company based on license-in model is its cash flow status.</li>
<li>Pet medical equipment is not subject to the negative policy impact of centralized procurement. Together with high demand, it is expected to become the second growth curve of enterprises.</li>
</ul>


While AI has had a profound impact in image recognition,there has been little comparable progress in drug discovery, far from the current levels of investment and expectations in this sector.
The success of license-in model must be based on the appropriate valuation level. The ultimate parameter to measure a drug company based on license-in model is its cash flow status.
Pet medical equipment is not subject to the negative policy impact of centralized procurement. Together with high demand, it is expected to become the second growth curve of enterprises.


China Healthcare Weekly (Aug.12)-AI Drug Discovery, License-In Mode Valuation, Pet Medical Equipment

Travis Lundy

<ul>
<li>This morning - 26 July - <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (ADR) (BABA US)</a> / <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> issued an <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0726/2022072600077.pdf" target="_blank" rel="noopener">announcement</a> it would pursue a primary listing on the HKEX.</li>
<li>When Alibaba listed in NY, it was on ADRs. When it listed in HK, it was the shares underlying the ADRs but it was a quickie secondary listing.</li>
<li>It will now seek a dual primary listing as others have. This will make BABA Southbound-eligible and will slightly improve BABA's HSI funding trade prospects in future. </li>
</ul>


This morning - 26 July - Alibaba (ADR) (BABA US) / Alibaba Group (9988 HK) issued an announcement it would pursue a primary listing on the HKEX.
When Alibaba listed in NY, it was on ADRs. When it listed in HK, it was the shares underlying the ADRs but it was a quickie secondary listing.
It will now seek a dual primary listing as others have. This will make BABA Southbound-eligible and will slightly improve BABA's HSI funding trade prospects in future. 


Alibaba to Pursue Dual Primary Listing in HK - Impact on Stock Connect, Indices, Etc

Equity Capital Markets

Legend Biotech Corp / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/legend-biotech-corp" target="_blank" data-smartkarma-citation="entities:28963:1" rel="noopener">Legend Biotech Corp (LEGN US)</a>, a non-wholly owned subsidiary of Hong Kong-listed <a href="https://www.smartkarma.com/entities/genscript-biotech-corp" target="_blank" data-smartkarma-citation="entities:21041:1" rel="noopener">Genscript Biotech (1548 HK)</a>, is planning to raise up to US$250m in its follow-on offering.</li>
<li>The company last raised cash in Dec 2021 in a similar sized deal, which ended up doing very well after a sharp share price correction.</li>
<li>In this note, we will talk about the deal dynamics and  run the deal through our ECM framework.</li>
</ul>



Legend Biotech Corp (LEGN US), a non-wholly owned subsidiary of Hong Kong-listed Genscript Biotech (1548 HK), is planning to raise up to US$250m in its follow-on offering.
The company last raised cash in Dec 2021 in a similar sized deal, which ended up doing very well after a sharp share price correction.
In this note, we will talk about the deal dynamics and  run the deal through our ECM framework.


Legend Biotech Follow-On - A Little Opportunistic. Last Deal Did Well, After a Large Correction

China

Zai Lab Limited operates as a bio-pharmaceutical company. The Company researches and develops therapeutic technology for antibody-based oncology, autoimmune, and infectious diseases treatments. Zai Lab also manufactures drugs in the form of capsules, injections, and liquids. Zai Lab serves patients worldwide.

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Zai Lab Ltd (ZLAB US)

China ADRs Delisting - Tide Is Turning - Non-HK Listed ADRs Are Already Outperforming

On 26th Aug 2022, PCAOB and CSRC announced that they had entered into an agreement granting US authorities access to investigate public accounting...

Sumeet Singh

Yum China Pursues Primary Listing Conversion On The HKEx

It is not evident there is an immediate trade. It's a solid bet the next company seeking to upgrade its secondary listing into a dual-primary...

David Blennerhassett

China Healthcare Weekly (Aug.12)-AI Drug Discovery, License-In Mode Valuation, Pet Medical Equipment

AI drug discovery is far from meeting the current investment level and expectations. The success of license-in mode must be based on appropriate...

Xinyao (Criss) Wang

Alibaba to Pursue Dual Primary Listing in HK - Impact on Stock Connect, Indices, Etc

Alibaba this morning announced it will seek a Dual Primary Listing on the HKEX. This makes PCAOB-induced US exit easier, and will make the stock...

Travis Lundy

Legend Biotech Follow-On - A Little Opportunistic. Last Deal Did Well, After a Large Correction

Legend Biotech Corp (LEGN US), a non-wholly owned subsidiary of Hong Kong-listed Genscript Biotech (1548 HK), is planning to raise up to US$250m in...

Sumeet Singh

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