Category

IPOs and Placements

Brief IPOs & Placements: ECM Weekly (27 April 2019) – Luckin, Duiba, Leong Hup, ARA US Hosp, Douyu, So-Young, Yunji and more

By | Daily Briefs, IPOs and Placements

In this briefing:

  1. ECM Weekly (27 April 2019) – Luckin, Duiba, Leong Hup, ARA US Hosp, Douyu, So-Young, Yunji

1. ECM Weekly (27 April 2019) – Luckin, Duiba, Leong Hup, ARA US Hosp, Douyu, So-Young, Yunji

2019 total deals 2019 accuracy rate  chartbuilder

Aequitas Research puts out a weekly update on the deals that have been covered by Smartkarma Insight Providers recently, along with updates for upcoming IPOs.

Placements took a back seat this week and IPO activity came roaring back to life.

Starting in the US, the two highly anticipated IPOs, Luckin Coffee (LK US) and Douyu (DOYU US), filed their prospectus with the SEC. We have already shared our early thoughts on the companies. Look out for more insights as we crunch through the numbers in the following weeks leading up to its IPO launch.

Yunji Inc. (YJ US) and So-Young (SY US) opened their IPOs for bookbuild. We covered their valuation in:

Back in Hong Kong, Shenwan Hongyuan Group (H) (6806 HK) plunged 12% on its debut on Friday. As per Ke Yan, CFA, FRM‘s insight, risk-reward after the plunge implies that Shenwan is trading at a deeper discount to its A-share than it deserves. Considering that there had already been a big potion of adjusted free-float traded, stabilization can easily support the share price from here back to its IPO price.

Duiba Group (1753 HK) also opened its IPO for bookbuild this week. We heard that books are covered as of Friday. Valuation leaned on the expensive side as bankers probably took advantage of the strong rally in advertising peers to offer it at a higher valuation. We think that the IPO will only offer upside from the bottom end of the price range.

Activity is also picking up for Singapore and Malaysia after a long lull. ARA US Hospitality Trust (HOTEL SP) and Eagle Hospitality REIT filed their prospectus with MAS while ARA US Hospitality’s IPO is already taking orders for bookbuild. Sumeet Singh penned his thoughts on the REIT and its valuation in:

Malaysia’s Leong Hup International (LEHUP MK) finally launched its IPO after initial delays. 

Accuracy Rate:

Our overall accuracy rate is 72.1% for IPOs and 64% for Placements 

(Performance measurement criteria is explained at the end of the note)

New IPO filings

  • Ascentage Pharma (Hong Kong, re-filed)

Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.

Source: Aequitas Research, Smartkarma

News on Upcoming IPOs

Analysis on Upcoming IPO

NameInsight
Hong Kong
AB InbevAb InBev Asia Pre-IPO – A Brief History of the Asia Pacific Operations – Eeking Out Growth in China
AscentageAscentage Pharma (亚盛医药) IPO: Too Early for an IPO
Ant FinancialAnt Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
CIMC VehCIMC Vehicle (中集车辆): Market Leader of Semi-Trailers but Little Growth Ahead
ClarityClarity Medical (清晰医疗) IPO: Proxy to HK SMILE Surgery Demand
ByteDance

ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)

ByteDance

ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)

East EduChina East Education (中国东方教育) Pre-IPO – The Company Known for Its Culinary School
China TobacChina Tobacco International (IPO): The Monopolist Will Not Recover
China TobacChina Tobacco Intl (HK) IPO: Proxy For the Chinese Cigarette Consumption
ESRESR Cayman Pre-IPO – A Giant in the Making
ESR

ESR Cayman Pre-IPO – Earnings and Segment Analysis 

ESR

ESR Cayman Pre-IPO- First Stab at Valuation

Frontage

Frontage (方达控股) IPO: More Disclosure Needed to Understand Moat and Growth Prospect

Frontage

Frontage (方达控股) IPO: Updates from 2018 Numbers

Haitong

Haitong UniTrust Intl Leasing Pre-IPO – Shape Shifting

Hujiang Edu

Hujiang Education (沪江教育) Pre-IPO – Spending More than It Earns

Hut Chi-Med

Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities

Jinxin

Jinxin Fertility (锦欣生殖) Pre-IPO: Strong Foothold in Sichuan but Weak Sentiment for Sector

MicuRxMicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
MabPharmMabPharma (迈博医药) IPO: Assembled for a Trade?
MabPharmMabPharm (迈博医药) IPO: Thoughts on Valuation (Part 2)
SH Henlius

Shanghai Henlius (复宏汉霖) IPO: Not an Impressive Biosimilar Portfolio 

TubatuTubatu Group Pre-IPO – Performing Better than Qeeka but Growing Much Slower, US$1bn a Stretch
TubatuTubatu Group Pre-IPO – Online -> Online + Offline -> Online -> ?
South Korea
KMH ShillaKMH Shilla Leisure IPO Preview (Part 1) – Highly Profitable Operator of Public Golf Courses in Korea
KMH ShillaKMH Shilla Leisure IPO Preview (Part 2) – Valuation Analysis
Plakor

Plakor IPO Preview (Part 1)

ZinusZinus IPO Preview (Part 1) – An Amazing Comeback Story (#1 Mattress Brand on Amazon)
India
Anmol IndAnmol Industries Pre-IPO Quick Take – No Growth, Generous Payments to Founders
Bharat Hotels

Bharat Hotels Pre-IPO – Catching up with Peers 

CMS InfoCMS Info Systems Pre-IPO – When a PE Sells to Another PE… Only One Gets the Timing Right
Crystal CropCrystal Crop Protection Pre-IPO – DRHP Raises More Questions than in Answers
Flemingo Flemingo Travel Retail Pre-IPO – Its a Different Business in Every Country
NSENSE IPO Preview- Not Only Fast..its Risky and Expensive
NSENational Stock Exchange Pre-IPO Review – Bigger, Better, Stronger but a Little Too Fast for Some
MazagonMazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mrs. BectorMrs. Bectors Food Specialities Pre-IPO Quick Take – Sales for Its Main Segment Have Been Sta

Lodha

Lodha Developers Pre-IPO – Second Time Lucky but Not Really that Much Affordable
LodhaLodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
IndiaMartIndiaMART Pre-IPO – Getting and Retaining Subscribers Seems to Be Difficult
PNB MetPNB Metlife Pre-IPO Quick Take – Doesn’t Stack up Well Versus Its Larger Peers
Malaysia
QSRQSR Brands Pre-IPO – As Healthy as Fast Food
The U.S
DouyuDouyu (斗鱼直播) IPO: Leader At a Cost
LuckinLuckin Coffee (瑞幸咖啡) Early Thoughts – Caffeine Rush
LuckinLuckin Coffee (瑞幸咖啡) App Walk-Through and Channel Checks

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Brief IPOs & Placements: Eagle Hospitality Trust IPO Trading Update – Even Though the Yield Looks Enticing Concerns Remain and more

By | Daily Briefs, IPOs and Placements

In this briefing:

  1. Eagle Hospitality Trust IPO Trading Update – Even Though the Yield Looks Enticing Concerns Remain
  2. ECM Weekly (25 May 2019) – ESR Cayman, Hansoh Pharma, Tai Hing, China East Edu, Haitong UniTrust
  3. Meten International Edu (美联国际教育) Early Thoughts – Unclear Strategies
  4. Sekisui House REIT Placement: Accretive Acquisitions in Line with Strategy
  5. China East Education (中国东方教育) IPO -Preliminary Valuation

1. Eagle Hospitality Trust IPO Trading Update – Even Though the Yield Looks Enticing Concerns Remain

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Eagle Hospitality Trust (EHT SP) (EHT) raised around US$565m via its IPO on SGX. The initial portfolio will comprise of 18 hotels in the US with an overall valuation of US$1.27bn. 

I covered the company’s background and other fundamental aspects in my earlier insights:

In this insight, I will re-visit some of the deal dynamics and provide a table with implied valuations at different share prices.

2. ECM Weekly (25 May 2019) – ESR Cayman, Hansoh Pharma, Tai Hing, China East Edu, Haitong UniTrust

2019 total deals 2019 accuracy rate  chartbuilder%20%283%29

Aequitas Research puts out a weekly update on the deals that have been covered by Smartkarma Insight Providers recently, along with updates for upcoming IPOs.

This will be the third week in a row we are saying: there are more IPOs coming in Hong Kong!Momentum seems to be holding up as we head into the end of Q2. First off, there will be 4 IPOs starting to trade throughout next week. Mulsanne Group Holding Ltd (1817 HK) will debut first on Monday.

This would be interesting to watch because the IPO utilized the new pricing mechanism in Hong Kong to price its IPO below the bottom end of its indicated price range rather than withdraw and refile. This mechanism reminds us of the pricing flexibility of US IPOs wherein companies could price below its indicative price range to ensure that it performs well on its debut despite poor demand during bookbuild. Xinyi Energy Holdings Ltd (3868 HK), Frontage Holdings (1521 HK), and MabPharm (2181 HK) will trade on Tuesday, Thursday, and Friday respectively.

For upcoming bookbuilds, Tai Hing (1719303D HK) and China Tobacco International (GHALPZ CH) have filed their PHIP this week and will be likely be opening their books next week. We are also hearing that CSSC Hong Kong Shipping Co Ltd (0931049D CH) and China East Education (EASTEDU HK) will open books on Monday while Hansoh Pharmaceutical (HANSOH HK) will be on Tuesday.

IPO activity in other countries have been fairly muted. Eagle Hospitality Trust (EAGLEHT SP)  finally started trading in Singapore. Its share price closed 6% down as the IPO was undersubscribed. We will leave the updates on the IPO to Sumeet Singh on Monday.

In the U.S, GSX Techedu (GSX US) will launch its book next week while Meten (MEDU US) which just filed its US$100m IPO with the SEC will be premarketing next week.

Accuracy Rate:

Our overall accuracy rate is 72.4% for IPOs and 63.9% for Placements 

(Performance measurement criteria is explained at the end of the note)

New IPO filings

  • Sinic Holdings (Hong Kong, >US$100m)
  • Meten International Edu (the U.S, US$100m)

Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.

Source: Aequitas Research, Smartkarma

News on Upcoming IPOs

Analysis on Upcoming IPOs

NameInsight
Hong Kong
AB InbevAb InBev Asia Pre-IPO – A Brief History of the Asia Pacific Operations – Eeking Out Growth in China
AB InbevAb InBev Asia Pre-IPO – Quick Note – More like CR Beer Rather than Tsingtao
AB InbevAb InBev Asia Pre-IPO – On Its Way to Potentially Being the Biggest HK IPO This Year
AB Inbev

Budweiser Brewing APAC Pre-IPO – It Will Be a US$5bn+ Raise Owing to Its Clean Balance Sheet

AscentageAscentage Pharma (亚盛医药) IPO: Too Early for an IPO
Ant FinancialAnt Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
CIMC VehCIMC Vehicle (中集车辆): Market Leader of Semi-Trailers but Little Growth Ahead
ClarityClarity Medical (清晰医疗) IPO: Proxy to HK SMILE Surgery Demand
ByteDance

ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)

ByteDance

ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)

East EduChina East Education (中国东方教育) Pre-IPO – The Company Known for Its Culinary School
China TobacChina Tobacco International (IPO): The Monopolist Will Not Recover
China TobacChina Tobacco Intl (HK) IPO: Proxy For the Chinese Cigarette Consumption
CSSCCSSC (HK) Shipping IPO: A Cyclical Business Masked as an Income Stock
ESRESR Cayman Pre-IPO – A Giant in the Making
ESR

ESR Cayman Pre-IPO – Earnings and Segment Analysis 

ESR

ESR Cayman Pre-IPO- First Stab at Valuation

ESR

ESR Cayman Pre-IPO – Updates from PHIP – Growth Remains on Track 

ESR

ESR Cayman Pre-IPO – Updated Valuation and Key Risks

ESR

ESR Cayman Pre-IPO – Peer Comparison Quick Take – Bigger than Some, Much Smaller than Others 

Hansoh

Hansoh Pharma (翰森制药) IPO: New Numbers, Pre-IPO Dividend and Boyu Investment (Part 3)

Hansoh

Hansoh Pharma (翰森制药) IPO: Thoughts on Valuation

Hansoh

Hansoh Pharma (翰森制药) IPO: Competitive Landscape of HS-10296

Helenbergh

Helenbergh (海伦堡) Early Thoughts – The Usual Red Flag – Related Party Transactions

Hut Chi-Med

Hutchison-China Med (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities

Jinxin

Jinxin Fertility (锦欣生殖) Pre-IPO: Strong Foothold in Sichuan but Weak Sentiment for Sector

MicuRxMicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
MabPharmMabPharma (迈博医药) IPO: Assembled for a Trade?
MabPharmMabPharm (迈博医药) IPO: Thoughts on Valuation (Part 2)
SH Henlius

Shanghai Henlius (复宏汉霖) IPO: Not an Impressive Biosimilar Portfolio 

TubatuTubatu Group Pre-IPO – Performing Better than Qeeka but Growing Much Slower, US$1bn a Stretch
TubatuTubatu Group Pre-IPO – Online -> Online + Offline -> Online -> ?
South Korea
KMH ShillaKMH Shilla Leisure IPO Preview (Part 1) – Highly Profitable Operator of Public Golf Courses in Korea
KMH ShillaKMH Shilla Leisure IPO Preview (Part 2) – Valuation Analysis
Plakor

Plakor IPO Preview (Part 1)

ZinusZinus IPO Preview (Part 1) – An Amazing Comeback Story (#1 Mattress Brand on Amazon)
India
Aakash EduAakash Education Pre-IPO – Fast Growth in an Attractive Sector
Anmol IndAnmol Industries Pre-IPO Quick Take – No Growth, Generous Payments to Founders
Bharat Hotels

Bharat Hotels Pre-IPO – Catching up with Peers 

CMS InfoCMS Info Systems Pre-IPO – When a PE Sells to Another PE… Only One Gets the Timing Right
Crystal CropCrystal Crop Protection Pre-IPO – DRHP Raises More Questions than in Answers
Flemingo Flemingo Travel Retail Pre-IPO – Its a Different Business in Every Country
NSENSE IPO Preview- Not Only Fast..its Risky and Expensive
NSENational Stock Exchange Pre-IPO Review – Bigger, Better, Stronger but a Little Too Fast for Some
MazagonMazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mrs. BectorMrs. Bectors Food Specialities Pre-IPO Quick Take – Sales for Its Main Segment Have Been Sta

Lodha

Lodha Developers Pre-IPO – Second Time Lucky but Not Really that Much Affordable
LodhaLodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
IndiaMartIndiaMART Pre-IPO – Getting and Retaining Subscribers Seems to Be Difficult
PNB MetPNB Metlife Pre-IPO Quick Take – Doesn’t Stack up Well Versus Its Larger Peers
Malaysia
QSRQSR Brands Pre-IPO – As Healthy as Fast Food
The U.S
DouyuDouyu (斗鱼直播) IPO: Leader At a Cost
DouyuDouyu (斗鱼直播) IPO: Comparison with Huya (Part 2)
GSXGSX Techedu (跟谁学) IPO Early Thoughts – Successful Pivot Away from Marketplace Model
MetenMeten International Edu (美联国际教育) Early Thoughts – Unclear Strategies

3. Meten International Edu (美联国际教育) Early Thoughts – Unclear Strategies

Map

Meten (MEDU US) recently filed for a US listing and is looking to raise US$100m.

Meten is a general English language training (ELT) service provider in China. It has grown its revenue at a decent 25.7% CAGR between FY2016 to FY2018 while margins made modest improvements.

However, its 1Q 2019 results signals near-term weakness across its major segments as the company seemed to be making strategic changes to its operations. The F-1 filing indicated that existing shareholders will sell in the IPO, suggesting their intention to exit or, at least, partially monetize their stake which could potentially affect sentiment going into the IPO.

4. Sekisui House REIT Placement: Accretive Acquisitions in Line with Strategy

Asset%20target

Sekisui House Reit (3309 JP) (SHR) unveiled plans to raise up to JPY41.0 billion ($373 million) through a placement of new units. SHR is a diversified REIT with core assets of high-quality residential properties and office buildings in Japan.

The proceeds from the placement will be used to partly fund the JPY70.1 billion ($637 million) acquisitions of seven properties. The properties are developed by Sekisui House (1928 JP), its sponsor, and comprise of three office buildings (two of which are additional acquisitions) and four residential properties. Overall, we would be tempted to participate in the placement.

5. China East Education (中国东方教育) IPO -Preliminary Valuation

Vocational%20education%20system

China East Education (CEE HK) was reported to be pre-marketing for its IPO and the company was previously expected to raise US$400m. We have covered the company in:

In this insight, we will compare the company against Hong Kong-listed education peers and provide our preliminary thoughts on valuation.

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Brief IPOs & Placements: Leong Hup IPO – Privatization Was at Lower Multiples and Key Subsidiary Too Is Trading Cheaper and more

By | Daily Briefs, IPOs and Placements

In this briefing:

  1. Leong Hup IPO – Privatization Was at Lower Multiples and Key Subsidiary Too Is Trading Cheaper
  2. Shenwan Hongyuan (申万宏源) A+H: A/H Premium and Liquidity Suggest a Quick Trade

1. Leong Hup IPO – Privatization Was at Lower Multiples and Key Subsidiary Too Is Trading Cheaper

Growth in indonesia picked up while malaysia and singapore slowed yoy 2016 2017 6m18 10m18 chartbuilder

Leong Hup International (LEHUP MK) plans to raise up to US$250m in its Malaysian IPO. The deal seems to have been downsized from the earlier touted US$400m raising. Although the company has managed to get cornerstone investors to take up 45% of the deal.

I’ve covered the fundamental aspects of the deal in my earlier insight:

In this insight, I’ll talk about the updates since the previous filing, comment on valuations and run the deal through our ECM framework.

2. Shenwan Hongyuan (申万宏源) A+H: A/H Premium and Liquidity Suggest a Quick Trade

First%20day%20trading

Shenwan Hongyuan Group (H) (218 HK) raised USD 1.1 billion at HKD 3.63/share at the low end of price guidance. We have previously covered the IPO in:

In this insight, we will update on the deal dynamics, valuation and provide our thoughts on a post-IPO trade.

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Brief IPOs & Placements: Leong Hup IPO – Privatization Was at Lower Multiples and Key Subsidiary Too Is Trading Cheaper and more

By | Daily Briefs, IPOs and Placements

In this briefing:

  1. Leong Hup IPO – Privatization Was at Lower Multiples and Key Subsidiary Too Is Trading Cheaper
  2. Shenwan Hongyuan (申万宏源) A+H: A/H Premium and Liquidity Suggest a Quick Trade
  3. Luckin Coffee IPO: Wake up and Smell the Coffee

1. Leong Hup IPO – Privatization Was at Lower Multiples and Key Subsidiary Too Is Trading Cheaper

Growth in indonesia picked up while malaysia and singapore slowed yoy 2016 2017 6m18 10m18 chartbuilder

Leong Hup International (LEHUP MK) plans to raise up to US$250m in its Malaysian IPO. The deal seems to have been downsized from the earlier touted US$400m raising. Although the company has managed to get cornerstone investors to take up 45% of the deal.

I’ve covered the fundamental aspects of the deal in my earlier insight:

In this insight, I’ll talk about the updates since the previous filing, comment on valuations and run the deal through our ECM framework.

2. Shenwan Hongyuan (申万宏源) A+H: A/H Premium and Liquidity Suggest a Quick Trade

First%20day%20trading

Shenwan Hongyuan Group (H) (218 HK) raised USD 1.1 billion at HKD 3.63/share at the low end of price guidance. We have previously covered the IPO in:

In this insight, we will update on the deal dynamics, valuation and provide our thoughts on a post-IPO trade.

3. Luckin Coffee IPO: Wake up and Smell the Coffee

Luckin%20response

Luckin Coffee (LK US), a high growth coffee chain in China, has filed for an IPO to raise 800mn USD (Source: Reuters).  We note the following points. 

Intro to Luckin IPO

Slowing exit rate and high cash burn amidst financials in our view

A great growth market beset by tough competition

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Brief IPOs & Placements: Leong Hup IPO – Privatization Was at Lower Multiples and Key Subsidiary Too Is Trading Cheaper and more

By | Daily Briefs, IPOs and Placements

In this briefing:

  1. Leong Hup IPO – Privatization Was at Lower Multiples and Key Subsidiary Too Is Trading Cheaper
  2. Shenwan Hongyuan (申万宏源) A+H: A/H Premium and Liquidity Suggest a Quick Trade
  3. Luckin Coffee IPO: Wake up and Smell the Coffee
  4. Yunji (云集) IPO Review – Expensive Goods

1. Leong Hup IPO – Privatization Was at Lower Multiples and Key Subsidiary Too Is Trading Cheaper

Growth in indonesia picked up while malaysia and singapore slowed yoy 2016 2017 6m18 10m18 chartbuilder

Leong Hup International (LEHUP MK) plans to raise up to US$250m in its Malaysian IPO. The deal seems to have been downsized from the earlier touted US$400m raising. Although the company has managed to get cornerstone investors to take up 45% of the deal.

I’ve covered the fundamental aspects of the deal in my earlier insight:

In this insight, I’ll talk about the updates since the previous filing, comment on valuations and run the deal through our ECM framework.

2. Shenwan Hongyuan (申万宏源) A+H: A/H Premium and Liquidity Suggest a Quick Trade

First%20day%20trading

Shenwan Hongyuan Group (H) (218 HK) raised USD 1.1 billion at HKD 3.63/share at the low end of price guidance. We have previously covered the IPO in:

In this insight, we will update on the deal dynamics, valuation and provide our thoughts on a post-IPO trade.

3. Luckin Coffee IPO: Wake up and Smell the Coffee

Luckin%20response

Luckin Coffee (LK US), a high growth coffee chain in China, has filed for an IPO to raise 800mn USD (Source: Reuters).  We note the following points. 

Intro to Luckin IPO

Slowing exit rate and high cash burn amidst financials in our view

A great growth market beset by tough competition

4. Yunji (云集) IPO Review – Expensive Goods

Gmv%20to%20revenue

Yunji Inc. (YJ US) is raising up to US$176m in its upcoming IPO in the US. We have covered most aspects of the IPO in Yunji (云集) Pre-IPO Review – Poor Disclosure on Data

In this insight, we will look at the recent 1Q 2019 data provided by the company, compare its valuation to listed e-commerce peers and run the deal through our IPO framework.

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Brief IPOs & Placements: Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities and more

By | Daily Briefs, IPOs and Placements

In this briefing:

  1. Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities

1. Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities

Fruquintinib%20 %20crc

Hutchison-China Meditech, China-based AIM and NASDAQ dual listed pharmaceutical company, is seeking to raise up to USD 500 million via a Hong Kong listing. In this insight, we will discuss the following topics:

  • Company background
  • Progress of clinical trials of its three key drug candidates
  • Key licensing agreements
  • Key takeaways from its financials
  • Shareholders of the company

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Brief IPOs & Placements: Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities and more

By | Daily Briefs, IPOs and Placements

In this briefing:

  1. Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities
  2. Duiba (兑吧) IPO Review – Interactive Ad Leader

1. Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities

Fruquintinib%20 %20crc

Hutchison-China Meditech, China-based AIM and NASDAQ dual listed pharmaceutical company, is seeking to raise up to USD 500 million via a Hong Kong listing. In this insight, we will discuss the following topics:

  • Company background
  • Progress of clinical trials of its three key drug candidates
  • Key licensing agreements
  • Key takeaways from its financials
  • Shareholders of the company

2. Duiba (兑吧) IPO Review – Interactive Ad Leader

Series%20c%20investors

Duiba Group (1753 HK) is looking to raise up to US$115m in its upcoming IPO. We have covered the fundamentals of the company in Duiba (兑吧) Pre-IPO Review – A Case of Successful Pivot – Gamification of Ads

In this insight, we will look at the company’s valuation and how it compares to recently-listed advertising peers and the deal dynamics, and run the deal through our IPO framework.

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Brief IPOs & Placements: Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities and more

By | Daily Briefs, IPOs and Placements

In this briefing:

  1. Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities
  2. Duiba (兑吧) IPO Review – Interactive Ad Leader
  3. ARA US Hospitality Trust IPO – Performance of Past Overseas Linked Listings Doesn’t Bode Well

1. Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities

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Hutchison-China Meditech, China-based AIM and NASDAQ dual listed pharmaceutical company, is seeking to raise up to USD 500 million via a Hong Kong listing. In this insight, we will discuss the following topics:

  • Company background
  • Progress of clinical trials of its three key drug candidates
  • Key licensing agreements
  • Key takeaways from its financials
  • Shareholders of the company

2. Duiba (兑吧) IPO Review – Interactive Ad Leader

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Duiba Group (1753 HK) is looking to raise up to US$115m in its upcoming IPO. We have covered the fundamentals of the company in Duiba (兑吧) Pre-IPO Review – A Case of Successful Pivot – Gamification of Ads

In this insight, we will look at the company’s valuation and how it compares to recently-listed advertising peers and the deal dynamics, and run the deal through our IPO framework.

3. ARA US Hospitality Trust IPO – Performance of Past Overseas Linked Listings Doesn’t Bode Well

Price performance in first thirty days post listing rebased to 100 at ipo price must sp cert sp chartbuilder

ARA US Hospitality Trust (HOTEL SP) (ARAHT) plans to raise up to US$450m via its IPO on SGX. The initial portfolio comprises of 38 hotels in the US and was recently purchased by ARA from Lone Star. 

I covered the company background and other fundamental aspects in my earlier insight:

In this insight, I’ll run the deal through out ECM framework, comment on valuations and compare it to other similar past listings.

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Brief IPOs & Placements: Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities and more

By | Daily Briefs, IPOs and Placements

In this briefing:

  1. Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities
  2. Duiba (兑吧) IPO Review – Interactive Ad Leader
  3. ARA US Hospitality Trust IPO – Performance of Past Overseas Linked Listings Doesn’t Bode Well
  4. Suntec REIT Placement: For a Sensible Cause

1. Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities

Fruquintinib%20 %20crc

Hutchison-China Meditech, China-based AIM and NASDAQ dual listed pharmaceutical company, is seeking to raise up to USD 500 million via a Hong Kong listing. In this insight, we will discuss the following topics:

  • Company background
  • Progress of clinical trials of its three key drug candidates
  • Key licensing agreements
  • Key takeaways from its financials
  • Shareholders of the company

2. Duiba (兑吧) IPO Review – Interactive Ad Leader

Series%20c%20investors

Duiba Group (1753 HK) is looking to raise up to US$115m in its upcoming IPO. We have covered the fundamentals of the company in Duiba (兑吧) Pre-IPO Review – A Case of Successful Pivot – Gamification of Ads

In this insight, we will look at the company’s valuation and how it compares to recently-listed advertising peers and the deal dynamics, and run the deal through our IPO framework.

3. ARA US Hospitality Trust IPO – Performance of Past Overseas Linked Listings Doesn’t Bode Well

Price performance in first thirty days post listing rebased to 100 at ipo price must sp cert sp chartbuilder

ARA US Hospitality Trust (HOTEL SP) (ARAHT) plans to raise up to US$450m via its IPO on SGX. The initial portfolio comprises of 38 hotels in the US and was recently purchased by ARA from Lone Star. 

I covered the company background and other fundamental aspects in my earlier insight:

In this insight, I’ll run the deal through out ECM framework, comment on valuations and compare it to other similar past listings.

4. Suntec REIT Placement: For a Sensible Cause

On Wednesday, Suntec REIT (SUN SP) unveiled plans to raise around S$150 million through a placement of 84.7 million new units at a placing price range of S$1.77-1.81 per unit.

We believe Suntec’s fundamentals are improving due to the sustained turnaround in Suntec City Mall, favourable Singapore office rental environment and the potential for acquisitions to offset the reliance on capital distributions. Overall, we would be tempted to participate in the proposed placement at the low-end of the pricing range.

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Brief IPOs & Placements: ECM Weekly (25 May 2019) – ESR Cayman, Hansoh Pharma, Tai Hing, China East Edu, Haitong UniTrust and more

By | Daily Briefs, IPOs and Placements

In this briefing:

  1. ECM Weekly (25 May 2019) – ESR Cayman, Hansoh Pharma, Tai Hing, China East Edu, Haitong UniTrust
  2. Meten International Edu (美联国际教育) Early Thoughts – Unclear Strategies
  3. Sekisui House REIT Placement: Accretive Acquisitions in Line with Strategy
  4. China East Education (中国东方教育) IPO -Preliminary Valuation
  5. LaSalle Logiport REIT Placement – Accretive Deal, Valuations Lag Peers

1. ECM Weekly (25 May 2019) – ESR Cayman, Hansoh Pharma, Tai Hing, China East Edu, Haitong UniTrust

Upcoming

Aequitas Research puts out a weekly update on the deals that have been covered by Smartkarma Insight Providers recently, along with updates for upcoming IPOs.

This will be the third week in a row we are saying: there are more IPOs coming in Hong Kong!Momentum seems to be holding up as we head into the end of Q2. First off, there will be 4 IPOs starting to trade throughout next week. Mulsanne Group Holding Ltd (1817 HK) will debut first on Monday.

This would be interesting to watch because the IPO utilized the new pricing mechanism in Hong Kong to price its IPO below the bottom end of its indicated price range rather than withdraw and refile. This mechanism reminds us of the pricing flexibility of US IPOs wherein companies could price below its indicative price range to ensure that it performs well on its debut despite poor demand during bookbuild. Xinyi Energy Holdings Ltd (3868 HK), Frontage Holdings (1521 HK), and MabPharm (2181 HK) will trade on Tuesday, Thursday, and Friday respectively.

For upcoming bookbuilds, Tai Hing (1719303D HK) and China Tobacco International (GHALPZ CH) have filed their PHIP this week and will be likely be opening their books next week. We are also hearing that CSSC Hong Kong Shipping Co Ltd (0931049D CH) and China East Education (EASTEDU HK) will open books on Monday while Hansoh Pharmaceutical (HANSOH HK) will be on Tuesday.

IPO activity in other countries have been fairly muted. Eagle Hospitality Trust (EAGLEHT SP)  finally started trading in Singapore. Its share price closed 6% down as the IPO was undersubscribed. We will leave the updates on the IPO to Sumeet Singh on Monday.

In the U.S, GSX Techedu (GSX US) will launch its book next week while Meten (MEDU US) which just filed its US$100m IPO with the SEC will be premarketing next week.

Accuracy Rate:

Our overall accuracy rate is 72.4% for IPOs and 63.9% for Placements 

(Performance measurement criteria is explained at the end of the note)

New IPO filings

  • Sinic Holdings (Hong Kong, >US$100m)
  • Meten International Edu (the U.S, US$100m)

Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.

Source: Aequitas Research, Smartkarma

News on Upcoming IPOs

Analysis on Upcoming IPOs

NameInsight
Hong Kong
AB InbevAb InBev Asia Pre-IPO – A Brief History of the Asia Pacific Operations – Eeking Out Growth in China
AB InbevAb InBev Asia Pre-IPO – Quick Note – More like CR Beer Rather than Tsingtao
AB InbevAb InBev Asia Pre-IPO – On Its Way to Potentially Being the Biggest HK IPO This Year
AB Inbev

Budweiser Brewing APAC Pre-IPO – It Will Be a US$5bn+ Raise Owing to Its Clean Balance Sheet

AscentageAscentage Pharma (亚盛医药) IPO: Too Early for an IPO
Ant FinancialAnt Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
CIMC VehCIMC Vehicle (中集车辆): Market Leader of Semi-Trailers but Little Growth Ahead
ClarityClarity Medical (清晰医疗) IPO: Proxy to HK SMILE Surgery Demand
ByteDance

ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)

ByteDance

ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)

East EduChina East Education (中国东方教育) Pre-IPO – The Company Known for Its Culinary School
China TobacChina Tobacco International (IPO): The Monopolist Will Not Recover
China TobacChina Tobacco Intl (HK) IPO: Proxy For the Chinese Cigarette Consumption
CSSCCSSC (HK) Shipping IPO: A Cyclical Business Masked as an Income Stock
ESRESR Cayman Pre-IPO – A Giant in the Making
ESR

ESR Cayman Pre-IPO – Earnings and Segment Analysis 

ESR

ESR Cayman Pre-IPO- First Stab at Valuation

ESR

ESR Cayman Pre-IPO – Updates from PHIP – Growth Remains on Track 

ESR

ESR Cayman Pre-IPO – Updated Valuation and Key Risks

ESR

ESR Cayman Pre-IPO – Peer Comparison Quick Take – Bigger than Some, Much Smaller than Others 

Hansoh

Hansoh Pharma (翰森制药) IPO: New Numbers, Pre-IPO Dividend and Boyu Investment (Part 3)

Hansoh

Hansoh Pharma (翰森制药) IPO: Thoughts on Valuation

Hansoh

Hansoh Pharma (翰森制药) IPO: Competitive Landscape of HS-10296

Helenbergh

Helenbergh (海伦堡) Early Thoughts – The Usual Red Flag – Related Party Transactions

Hut Chi-Med

Hutchison-China Med (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities

Jinxin

Jinxin Fertility (锦欣生殖) Pre-IPO: Strong Foothold in Sichuan but Weak Sentiment for Sector

MicuRxMicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
MabPharmMabPharma (迈博医药) IPO: Assembled for a Trade?
MabPharmMabPharm (迈博医药) IPO: Thoughts on Valuation (Part 2)
SH Henlius

Shanghai Henlius (复宏汉霖) IPO: Not an Impressive Biosimilar Portfolio 

TubatuTubatu Group Pre-IPO – Performing Better than Qeeka but Growing Much Slower, US$1bn a Stretch
TubatuTubatu Group Pre-IPO – Online -> Online + Offline -> Online -> ?
South Korea
KMH ShillaKMH Shilla Leisure IPO Preview (Part 1) – Highly Profitable Operator of Public Golf Courses in Korea
KMH ShillaKMH Shilla Leisure IPO Preview (Part 2) – Valuation Analysis
Plakor

Plakor IPO Preview (Part 1)

ZinusZinus IPO Preview (Part 1) – An Amazing Comeback Story (#1 Mattress Brand on Amazon)
India
Aakash EduAakash Education Pre-IPO – Fast Growth in an Attractive Sector
Anmol IndAnmol Industries Pre-IPO Quick Take – No Growth, Generous Payments to Founders
Bharat Hotels

Bharat Hotels Pre-IPO – Catching up with Peers 

CMS InfoCMS Info Systems Pre-IPO – When a PE Sells to Another PE… Only One Gets the Timing Right
Crystal CropCrystal Crop Protection Pre-IPO – DRHP Raises More Questions than in Answers
Flemingo Flemingo Travel Retail Pre-IPO – Its a Different Business in Every Country
NSENSE IPO Preview- Not Only Fast..its Risky and Expensive
NSENational Stock Exchange Pre-IPO Review – Bigger, Better, Stronger but a Little Too Fast for Some
MazagonMazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mrs. BectorMrs. Bectors Food Specialities Pre-IPO Quick Take – Sales for Its Main Segment Have Been Sta

Lodha

Lodha Developers Pre-IPO – Second Time Lucky but Not Really that Much Affordable
LodhaLodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
IndiaMartIndiaMART Pre-IPO – Getting and Retaining Subscribers Seems to Be Difficult
PNB MetPNB Metlife Pre-IPO Quick Take – Doesn’t Stack up Well Versus Its Larger Peers
Malaysia
QSRQSR Brands Pre-IPO – As Healthy as Fast Food
The U.S
DouyuDouyu (斗鱼直播) IPO: Leader At a Cost
DouyuDouyu (斗鱼直播) IPO: Comparison with Huya (Part 2)
GSXGSX Techedu (跟谁学) IPO Early Thoughts – Successful Pivot Away from Marketplace Model
MetenMeten International Edu (美联国际教育) Early Thoughts – Unclear Strategies

2. Meten International Edu (美联国际教育) Early Thoughts – Unclear Strategies

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Meten (MEDU US) recently filed for a US listing and is looking to raise US$100m.

Meten is a general English language training (ELT) service provider in China. It has grown its revenue at a decent 25.7% CAGR between FY2016 to FY2018 while margins made modest improvements.

However, its 1Q 2019 results signals near-term weakness across its major segments as the company seemed to be making strategic changes to its operations. The F-1 filing indicated that existing shareholders will sell in the IPO, suggesting their intention to exit or, at least, partially monetize their stake which could potentially affect sentiment going into the IPO.

3. Sekisui House REIT Placement: Accretive Acquisitions in Line with Strategy

Transactions

Sekisui House Reit (3309 JP) (SHR) unveiled plans to raise up to JPY41.0 billion ($373 million) through a placement of new units. SHR is a diversified REIT with core assets of high-quality residential properties and office buildings in Japan.

The proceeds from the placement will be used to partly fund the JPY70.1 billion ($637 million) acquisitions of seven properties. The properties are developed by Sekisui House (1928 JP), its sponsor, and comprise of three office buildings (two of which are additional acquisitions) and four residential properties. Overall, we would be tempted to participate in the placement.

4. China East Education (中国东方教育) IPO -Preliminary Valuation

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China East Education (CEE HK) was reported to be pre-marketing for its IPO and the company was previously expected to raise US$400m. We have covered the company in:

In this insight, we will compare the company against Hong Kong-listed education peers and provide our preliminary thoughts on valuation.

5. LaSalle Logiport REIT Placement – Accretive Deal, Valuations Lag Peers

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Lasalle Logiport Reit (3466 JP) (LLR) plans to raise up to US$110m to part fund the acquisition of five assets.

The deal scores well on our framework in all categories. In addition, the revised estimates provided by the company point to a decent accretion to DPU despite the nearly 9% dilution owing to the share issuance. The stock has been performing well off-late but valuations still lag those of its larger peers.

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