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.

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/baidu-inc" target="_blank" data-smartkarma-citation="entities:179:1" rel="noopener">Baidu (BIDU US)</a> launched a $3 billion secondary listing in Hong Kong last Thursday evening. Bookbuilding is scheduled to run until the pricing on 17 March. The secondary listing has received good early demand with the books covered on the first day, according to press reports. The H-shares will begin trading on 23 March. </p><p>In <a href="https://www.smartkarma.com/insights/baidu-secondary-listing-searching-for-the-next-big-thing" target="_blank" data-smartkarma-citation="insights:49043" rel="noopener">Baidu Secondary Listing: Searching for the Next Big Thing</a>, we outlined our views on Baidu’ fundamentals and valuation. Baidu is making great strides in expanding its total addressable market (TAM) through ongoing investments. In combination with the potential valuation upside to the last close price (based on SoTP), we concluded that the equity story is attractive. </p><div class="content-highlight"><p>In this note, we will look at Baidu’s potential HK-ADS premium/(discount). Baidu will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. However, market conditions remain volatile and there remains a possibility of a renewed global equity sell-off. Consequently, Baidu will likely price its H-shares at a wider discount than the median HK-ADS discount of previous secondary listings. Overall, Baidu pricing its H-shares at a discount range of 3% to 4% to its ADSs will be reasonable.</p></div>

Baidu (BIDU US) launched a $3 billion secondary listing in Hong Kong last Thursday evening. Bookbuilding is scheduled to run until the pricing on 17 March. The secondary listing has received good early demand with the books covered on the first day, according to press reports. The H-shares will begin trading on 23 March. In Baidu Secondary Listing: Searching for the Next Big Thing, we outlined our views on Baidu’ fundamentals and valuation. Baidu is making great strides in expanding its total addressable market (TAM) through ongoing investments. In combination with the potential valuation upside to the last close price (based on SoTP), we concluded that the equity story is attractive. In this note, we will look at Baidu’s potential HK-ADS premium/(discount). Baidu will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. However, market conditions remain volatile and there remains a possibility of a renewed global equity sell-off. Consequently, Baidu will likely price its H-shares at a wider discount than the median HK-ADS discount of previous secondary listings. Overall, Baidu pricing its H-shares at a discount range of 3% to 4% to its ADSs will be reasonable.

Baidu Secondary Listing: HK-ADS Premium/​(Discount) Views

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.

Autohome Inc (Adr) / Equity Capital Markets

<div><p>Autohome raised around US$700m in its secondary listing in Hong Kong. </p></div><div>
<p>I have covered most aspects of the deal in my earlier note, <a href="https://www.smartkarma.com/insights/autohome-secondary-listing-doesn-t-need-the-cash-at-all" target="_blank" rel="noopener">Autohome Secondary Listing - Doesn’t Need the Cash at All </a> and <a href="https://www.smartkarma.com/insights/autohome-secondary-listing-going-down-a-different-route" target="_blank" rel="noopener">Autohome Secondary Listing - Going Down a Different Route.</a></p>
<p>In this note, I'll talk about the updates since my last note.</p>
</div>

Autohome raised around US$700m in its secondary listing in Hong Kong. 
I have covered most aspects of the deal in my earlier note, Autohome Secondary Listing - Doesn’t Need the Cash at All  and Autohome Secondary Listing - Going Down a Different Route.
In this note, I'll talk about the updates since my last note.


Autohome Secondary Trading - Strong Retail, Weak Insti Coverage

<p><a href="https://www.smartkarma.com/entities/autohome-inc-adr" target="_blank" data-smartkarma-citation="entities:20234:1" rel="noopener">Autohome Inc (Adr) (ATHM US)</a> has launched a $1 billion secondary listing in Hong Kong. The primary/secondary spilt of the offer is 66.7%/33.3%. The selling shareholder is Yun Chen which is a non-wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/ping-an-insurance-group-co-of-china" target="_blank" data-smartkarma-citation="entities:24682:1" rel="noopener">Ping An Insurance Group Co Of China (601318 CH)</a>.</p><p>In <a href="https://www.smartkarma.com/insights/autohome-secondary-listing-motoring-online" target="_blank" data-smartkarma-citation="insights:48751" rel="noopener">Autohome Secondary Listing: Motoring Online</a> outlined our views on Autohome’ fundamentals and valuation. The H shares will be priced on 9 March (Tuesday) and are scheduled for listing on 15 March.  </p><div class="content-highlight"><p>In this note, we will look at Autohome’s potential HK-ADS premium/(discount). Autohome will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Autohome pricing its H-shares around a 2% discount to its ADSs will be reasonable.</p></div>

Autohome Inc (Adr) (ATHM US) has launched a $1 billion secondary listing in Hong Kong. The primary/secondary spilt of the offer is 66.7%/33.3%. The selling shareholder is Yun Chen which is a non-wholly-owned subsidiary of Ping An Insurance Group Co Of China (601318 CH).In Autohome Secondary Listing: Motoring Online outlined our views on Autohome’ fundamentals and valuation. The H shares will be priced on 9 March (Tuesday) and are scheduled for listing on 15 March.  In this note, we will look at Autohome’s potential HK-ADS premium/(discount). Autohome will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Autohome pricing its H-shares around a 2% discount to its ADSs will be reasonable.

Autohome Secondary Listing: HK-ADS Premium/(Discount) Views

<p>Autohome plans to raise around US$864m in its secondary listing in Hong Kong. Unlike the prior secondary listing, this one contains a sell down as well</p>
<p>I have covered most aspects of the deal in my earlier note, <a href="https://www.smartkarma.com/insights/autohome-secondary-listing-doesn-t-need-the-cash-at-all" target="_blank" rel="noopener">Autohome Secondary Listing - Doesn’t Need the Cash at All. </a>In this note, I'll only touch upon the updates since my last note.</p>

Autohome plans to raise around US$864m in its secondary listing in Hong Kong. Unlike the prior secondary listing, this one contains a sell down as well
I have covered most aspects of the deal in my earlier note, Autohome Secondary Listing - Doesn’t Need the Cash at All. In this note, I'll only touch upon the updates since my last note.

Autohome Secondary Listing - Going Down a Different Route

<div><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. JD Logistics is seeking to raise up to $4 billion at a $40 billion valuation, according to press reports. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/jd-logistics-ipo-initiation-the-flow-of-things" target="_blank" data-smartkarma-citation="insights:48279" rel="noopener">JD Logistics IPO Initiation: The Flow of Things</a>, we opined that JD Logistics' fundamentals are attractive and remain well-placed to address consumers' demand for faster and more flexible supply chain logistics services. In this note, we take a first look at JD Logistics' valuation. Overall, based on our valuation analysis, we think that the rumoured IPO valuation can be justified.</p></div></div></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 Logistics is seeking to raise up to $4 billion at a $40 billion valuation, according to press reports. In JD Logistics IPO Initiation: The Flow of Things, we opined that JD Logistics' fundamentals are attractive and remain well-placed to address consumers' demand for faster and more flexible supply chain logistics services. In this note, we take a first look at JD Logistics' valuation. Overall, based on our valuation analysis, we think that the rumoured IPO valuation can be justified.

China

ZTO Express (Cayman) Inc. operates as an express delivery company. The Company provides express delivery service through their nationwide network, as well as other value-added logistics services. ZTO Express serves customers globally.

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ZTO Express Cayman (ZTO US)

Baidu Secondary Listing: HK-ADS Premium/(Discount) Views

Baidu has launched a $3 bn secondary listing in Hong Kong. Due to choppy market conditions, Baidu pricing its H-shares at a discount range of 3% to...

Arun George

Autohome Secondary Trading - Strong Retail, Weak Insti Coverage

Autohome raised around US$700m in its secondary listing in Hong Kong. I have covered most aspects of the deal in my earlier note. In this note,...

Sumeet Singh

Autohome Secondary Listing: HK-ADS Premium/(Discount) Views

Autohome will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. We think that a 2% discount...

Arun George

Autohome Secondary Listing - Going Down a Different Route

Autohome plans to raise around US$864m in its secondary listing in Hong Kong. Unlike the prior secondary listing, this one contains a sell down as...

Sumeet Singh

JD Logistics IPO: Valuation First Look

JD Logistics is seeking to raise up to $4 billion at a $40 billion valuation, according to press reports. We think that the rumoured IPO valuation...

Arun George

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Baidu Secondary Listing: HK-ADS Premium/​(Discount) Views

Baidu has launched a $3 bn secondary listing in Hong Kong. Due to choppy market conditions, Baidu pricing its H-shares at a discount range of 3% to...

Arun George

Autohome Secondary Trading - Strong Retail, Weak Insti Coverage

Autohome raised around US$700m in its secondary listing in Hong Kong. I have covered most aspects of the deal in my earlier note. In this note,...

Sumeet Singh

Autohome Secondary Listing: HK-ADS Premium/(Discount) Views

Autohome will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. We think that a 2% discount...

Arun George

Autohome Secondary Listing - Going Down a Different Route

Autohome plans to raise around US$864m in its secondary listing in Hong Kong. Unlike the prior secondary listing, this one contains a sell down as...

Sumeet Singh

JD Logistics IPO: Valuation First Look

JD Logistics is seeking to raise up to $4 billion at a $40 billion valuation, according to press reports. We think that the rumoured IPO valuation...

Arun George

Baidu Secondary Listing: HK-ADS Premium/(Discount) Views