
In today’s briefing:
- ECM Weekly (18th April 2021) – ByteDance Zhaoke, We Doctor, Medlive, Bio-Thera, Grab, Ngern Tid Lor
- Tencent Holdings – FHC Restructure On Its Way
- Japan Small Cap Growth: TeamSpirit – Better Days Ahead
ECM Weekly (18th April 2021) – ByteDance Zhaoke, We Doctor, Medlive, Bio-Thera, Grab, Ngern Tid Lor
Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
Asia ECM pipeline continued to build up this week. Grab announced the details of its SPAC listing with a target market value of about US$40bn. The company will raise more than US$4bn proceeds from a fully committed PIPE which include BlackRock, MSIM, T. Rowe Price, Fidelity, Janus Henderson, Mubadala, Nuveen, Permodalan Nasional Berhad and Temasek. We shared our initial thoughts in:
In Hong Kong, it was reported that ByteDance has kicked off IPO preparations for some of its main businesses, which includes Douyin. The company was still deliberating on the listing venue but it is likely that it will conduct a separate listing of its overseas assets.
Dida re-filed with HKEX after its initial application from October last year lapsed last week. The company is probably trying to get ahead of Didi Chuxing’s listing as the latter filed confidentially for a US listing last week. There were also news reports of SF REIT looking to pre-market this month and JD Logistics will be seeing listing approval at the end of this month.
- Dida Pre-IPO – Making hay while big brother retreats
- Dida Pre-IPO – Peer Comparison – Lagging in Scale, Leading in Profitability
- Dida Pre-IPO – Earnings Forecast and First Stab at Valuation
- ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire
- ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason
- ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H?
- ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants
- ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok
- ByteDance (字节跳动) Pre-IPO – Globally the Most Downloaded App for Jan 2020 Driven by India
- ByteDance (字节跳动) Pre-IPO: A Winner in 2020 Chinese New Year
Trip.com’s secondary listing in Hong Kong will debut on Monday and the company’s ADR corrected in line with our earlier expectation but the spread out allocation might weigh on near-term performance.
- Trip.com Secondary Listing – Probably Needs to Correct, and
- Trip.com Secondary Listing Quick Take – Doing the Bare Minimum – Needs Some More Correction.
- Trip.com Secondary Trading Note – Delivered a Good Correction but Seems to Be Widely Distributed
Our upcoming IPO coverage this week centered around Healthcare names. Zhaoke Ophthalmology Pharma (6622 HK) launched its bookbuild on Friday and it is expected to price this coming Wednesday.
- Zhaoke Ophthalmic (兆科眼科): Could Be Over-Valued for Pre-IPO Round
- Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Thoughts on Valuation
- Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Beware of Aggressive “Guidance”
- Zhaoke Ophthalmic (兆科眼科) IPO: Rationalize the Valuation
We also looked at We Doctor, Bio-Thera, Medlive, and Edding Group. :
WeDoctor (微医) Pre-IPO – A More Focused Online Medical Svc Provider than Ping An Good Doctor
WeDoctor (微医) Pre-IPO -App Walk Through – The Online Medical Directory and More
We Doctor (微医) Pre-IPO – Peer Comparison – Picking Its Battles Wisely
Medlive (医脉通) Pre-IPO: Internet Hospital a Different Ball Game
Bio-Thera Solutions (百奥泰) A+H: Recent Termination of Drug Candidates
Edding Group (亿腾医药) Pre-IPO: Distributor Turning Pharmaceutical
Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party
In the US, Waterdrop Inc prospectus is publicly filed with the SEC. The online insurance technology company is looking to raise about US$500m but there had been news reports that the company was facing pushback from local regulators.
Aside from Didi Chuxing, Ximalaya FM also filed confidentially for up to US$1bn IPO. Soulgate, a Chinese social networking app operator, and Keep, a Chinese fitness app are looking to file their prospectuses this month.
This week we took a brief look at TuSimple, a pre-commercialization autonomous technology vendor for truck freights, before it debuted on Thursday.
In Thailand, Ngern Tid Lor (NTL TB), launched its US$1bn bookbuild. Books will close on 27th April.
Ngern Tid Lor Pre-IPO – Pre-COVID growth track record has been very strong
Ngern Tid Lor Pre-IPO – Peer Comparison – Playing Catch up After Being Left Behind
Ngern Tid Lor IPO – Not Really at a Large Discount but the Overall Sector Has Been Doing Very Well
In the Philippines, we followed-up with a peer comparison of Monde Nissin against competitors.
Singapore ECM suffered a setback this week. ThaiBev announced on Friday that they have decided to defer the Proposed Spin-off listing of BeerCo citing uncertain market conditions and volatile outlook. We had discussed management’s valuation expectation of BeerCo vs. the likely valuation it can command in our earlier note. Core REIT has also shelved its IPO citing weak demand and volatile market conditions.
ThaiBev BeerCo Pre-IPO – Valuation Updates and Crystallizing Growth Potential for BeerCo
- ThaiBev BeerCo’s Deferred IPO -Beer Comparison – Sober Up
Placements were spread out over the past week, with Regis Resources (RRL AU) in Australia and Lasalle Logiport Reit (3466 JP) in Japan. Kakao Corp (035720 KS)’s founder sold about US$450m worth of shares.
Regis Resources Placement – A Big, Pricey Quality Purchase but Not Set in Stone
LaSalle Logiport REIT Placement – Well-Flagged Property with Upside Potential
Credits to Clarence Chu for helping out with the Weekly Update.
Accuracy Rate:
Our overall accuracy rate is 73.9% for IPOs and 67.2% for Placements
(Performance measurement criteria is explained at the end of the note)

New IPO filings this week
- Dida (HK, US$500m, refiled)
- Shanghai Hanyu Medical Technology Co., Ltd (HK, US$500m)
- Waterdrop Inc (The U.S, US$500m)
- Shriram Properties (India, US$100m)
- G R Infraprojects (India, US$100m)
News on Upcoming IPOs
Hong Kong/China
- eBeauty plans US$600m HK IPO in third quarter
- Hanyu Medical plans HK IPO of up to US$500m
- Chinese tech start-ups pull IPO plans as Beijing tightens scrutiny
- Trip.com guides HK listing pricing at HK$268 per share
- Chinese Ride-Hailing Firm Dida Re-files for Hong Kong Listing
- China’s Ride-Hailing Firms Face Frosty H.K. Welcome
- Yango Group to spin off property management unit for H-share IPO
- TikTok Owner ByteDance Silent on Rumored Hong Kong IPO Plan
- ByteDance raises stock-option offer for employees amid talk of Hong Kong IPO, sources say
- ByteDance Kicks Off IPO Prep for China’s Most Popular Video App, Other Assets
- Leaked ByteDance Memo Shows Blockbuster Revenue Projections
- SF REIT aims to pre-market HK IPO this month
- JD Logistics targets end-April listing hearing
- Zhaoke Ophthalmology launches HK$2.08bn IPO
- ByteDance Kicks Off IPO Prep for China’s Most Popular Video App, Other Assets
- Tencent-backed Waterdrop faces pushback on IPO
U.S.
- Vingroup seeks US beachhead
- Ximalaya files confidentially for US IPO
- Didi Chuxing Has Filed Confidentially for U.S. IPO
- Singapore’s Grab to List in U.S. in Record $40 Billion SPAC Deal
- Chinese Auto Giant Geely Explores SPAC Deals
- Korean Digital Comics Firm Eyes U.S. IPO After Coupang’s Success
- Tencent-backed Waterdrop faces pushback on IPO
- Soulgate plans to pre-market US IPO this month
- Asian unicorns hail a ride to the US
- Chinese Fitness App Keep to File for US IPO as Soon as Month’s End
India
- Shriram Properties lowers IPO target, reshuffles syndicate
- TPG-Backed Beauty Startup Said to Tap Banks for $500 Million IPO
- Aditya Birla Capital Board Approves IPO of Asset Management Unit
- Vendors to sell 13.5% stake in Aditya Birla Sun Life AMC IPO
Others
- Aus Clinical Labs lifts bonnet for IPO, investors take early look
- Australian Clinical Labs worth up to $1.7b: IPO broker research
- Dayamitra seeks banks for US$1bn IPO
- Visional prices ¥67bn TSE IPO at top
- Krafton targets July KRX listing
- South Korea’s construction firm Hyundai Engineering prepares for IPO
- KakaoBank files for KRX listing
- SK IET attracts upbeat demand for KRX IPO
- Ngern Tid Lor launches Bt33bn IPO
- Telkom Indonesia Unit Mitratel Is Said to Weigh $1 Billion IPO
- Avia Avian plans US$500m IPO with changes in syndicate
- Vietnam’s Bamboo Airways plans to raise US$200m in US IPO
- Core REIT shelves S$410m SGX IPO
- South Korea’s construction firm Hyundai Engineering prepares for IPO
Analysis on Upcoming IPOs
Tencent Holdings – FHC Restructure On Its Way
*One Reorganization Down, One More To Go: Tencent Holdings (700.HK) [Tencent] announced a new round of organizational and employee adjustments in its Platform and Content Group (PCG) – the largest reshuffle since it began in 2018. With Alibaba Holdings (BABA] agreeing to form a financial holding company. Tencent cannot be far behind; and
*Earnings To Decline, Capital Requirements To Increase: For Tencent, WeChat Pay and the broader lending/deposit taking business are likely to be reined-in. At CNY 38.5 bn, FinTech represents a growing 28.8% of revenue – and are key component of Tencent’s current and future results. No matter what spin that Tencent wants to place on its other businesses, an FHC represents significant downside risks. Earnings will compress, as capital requirements increase.
Japan Small Cap Growth: TeamSpirit – Better Days Ahead
Q2 Trading update
- TeamSpirit Inc (4397 JP) reported 2Q FY8/21 earnings after the April 9 close. The stock price fell by around 20% following that and a full-year guidance cut.
- The market reacted to the slower than anticpated growth in licences, which is the key revenue driver. Full year sales estimates were cut 8% to ¥2.9b.
- We take a positive view of management reaffirming its growth strategy and stepping up marketing activities for the new enterprise product, TeamSpirit EX.
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