In this briefing:
Since the inception of our IPO research in 2015, the Aequitas Research team has covered over 452 IPOs, which raised over US$100m each, across the Asia Pacific (excluding Korea and China A-shares) and the US (Asia linked listings).
For this insight, we used data from the prospectus, company filings and market data to analyse 52 IPOs in Hong Kong that took place in 2019 and raised at least USD 100 m. We looked at IPO performance for deals under various brackets in the category of the book color for both retail tranche and the institutional tranche. Some of our findings include:
Institutional book coverage was a good indicator of post-listing performance but the classification is vague. Deals that were significantly oversubscribed returned 18.3% on average, more than deals that were barely covered. There were exceptions, i.e. hot deals that didn’t do well on the first day. Top five performers that were significantly subscribed were all Health Care deals.
We studied the correlation between post trade performance and the coverage of institutional and retail investors. Our statistics show that there had been fair opportunities to trade hot deals post listing.
Combining institutional book color and retail book color improved the chance of being profitable in the post listing trade.
Our previous coverage on IPO analytics
- 5 Key Charts to Wrap-Up 2015 HK IPO – Broker, Sector, and Retail Analytics
- Broker, Sector and Retail Analytics of 2016 HK IPOs
- 2017 HK IPOs Analytics: Good Deals Don’t Need Cornerstones
- IPO Analytics: Cut Your Losses and Let Your Profits Run, Holds True for IPOs
- IPO Analytics: Corporate Governance – Alpha Generator, Shortlist of Bookrunners to Avoid/Keep Happy
- HK IPO Analytics 1H2019: Healthcare and Consumer Discretionary Stand Out
- Hong Kong IPO Analytics – Regular Cornerstone Investors and Track Record
- Aequitas 2019 IPOs and Placements Performance – Things we got right/wrong and things we plan to do
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