Daily BriefsIPOs and Placements

Equity Capital Markets: Beijing Kuaishou Technology Co Ltd, New Oriental Education, Remegen Ltd and more

In today’s briefing:

  • Kuaishou IPO Initiation: Dancing to Its Own Tune
  • New Oriental Hong Kong Secondary Trading – Largest ADR/HK Listing Premium Yet
  • A Different Angle – RemeGen Vs Akeso (Insights on Valuation)

Kuaishou IPO Initiation: Dancing to Its Own Tune

By Arun George

Beijing Kuaishou Technology Co Ltd (1496219D CH) is the second-largest short video platform by average DAUs (daily active users) in 1H20, according to iResearch. Users access the platform primarily through a family of mobile apps comprising Kuaishou Flagship, Kuaishou Express and Kuaishou Concept, which is collectively referred to as the Kuaishou App. Kuaishou is backed by Tencent Holdings (700 HK) (21.57% shareholder), Morningside Venture Capital, DCM Capital (9.23%), Baidu (BIDU US) (3.78%), Sequoia Capital (3.20%), Boyu Capital (2.29%) and Temasek (0.86%). In January 2020, Kuaishou raised $3 billion through a Series F round at a valuation of $28 billion, according to press reports. Kuaishou has filed for a Hong Kong IPO to raise up to $5 billion as early as January 2021, according to Reuters. 

As a key competitor to ByteDance (1460967D CH)’s Douyin, Kuaishou offers public market investors the first opportunity to gain direct exposure to China’s short-video platform market. While Kuaishou’s performance over the track record period is distorted due to various factors, we believe that the underlying fundamentals are attractive.


New Oriental Hong Kong Secondary Trading – Largest ADR/HK Listing Premium Yet

By Sumeet Singh

New Oriental Education (EDU US) raised around US$1.5bn in its secondary listing in Hong Kong.

I have covered the background of the deal in my earlier insight, New Oriental Hong Kong Secondary – Might Be Relatively Small.

In this note, I’ll talk about the deal dynamics and updates over the past week.


A Different Angle – RemeGen Vs Akeso (Insights on Valuation)

By Xinyao (Criss) Wang

Remegen Ltd (1788976D CH) is an innovative bio-pharmaceutical company dedicated to the development and commercialization of first-in-class and best-in-class biological drugs. The two core products of Remegen Ltd (1788976D CH)  are RC18 and RC48 (Related article: Pre-IPO RemeGen – Insights on Two Core Products RC18 & RC48. Read more: https://skr.ma/sxMEQ). It is said that the Company is going to be listed on HKEX at a price of HK$52.1/share in November. In terms of valuation, is RemeGen overvalued? 


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