Daily BriefsIPOs and Placements

Equity Capital Markets: Big Hit Entertainment, MINISO Group Holdings, JD Health, APlus Asset Advisor and more

In today’s briefing:

  • Big Hit First Trading Day: Market Reception & Immediate-Term Ceiling Price
  • MINISO (名创优品) IPO Trading – Not Much Value Left After Pricing Above Range
  • Pre-IPO JD Health (JDH.HK) – A Better Candidate of Online Healthcare Business In China?
  • JD Health Pre-IPO: Poised to Benefit from Structural Changes in Healthcare in China and the Pandemic
  • APlus Asset Advisor IPO Preview

Big Hit First Trading Day: Market Reception & Immediate-Term Ceiling Price

By Sanghyun Park

Big Hit doubled the IPO price at the opening on this market debut day.

It then immediately hit the daily ceiling (30%). But the glory didn’t last long. It now falls back to ₩278,000, only +3% from the opening price.

It sits on a market cap of ₩9.4T, taking the 31st spot on KOSPI.

Big Hit Ent. market debut performance (₩B) Price MC Ranking
IPO price ₩135,000 4,569.2
Opening ₩270,000 9,138.5
Daily high ₩351,000 11,880.0
Current ₩278,000 9,409.2 31
Source: KRX

The final allocation number to overseas institutions was 1,431,617, representing 4.23% of SO and 20.08% of the IPO. The initial estimate was 1.1M. So, it may explain a more aggressive selling force than initially anticipated this morning.

Allocation by type (₩B) Qty. – initial % – initial Qty. – final % – final
Institutional 4,278,000 60.00% 4,282,309 60.06%
– Local (est.) 2,850,692 39.98%
– Overseas (est.) 1,431,617 20.08%
Retail 1,426,000 20.00% 1,426,000 20.00%
ESOP 1,426,000 20.00% 1,421,691 19.94%
Total 7,130,000 100.00% 7,130,000 100.00%
Source: DART

MINISO (名创优品) IPO Trading – Not Much Value Left After Pricing Above Range

By Zhen Zhou, Toh

MINISO Group Holdings (MNSO US) raised about US$608m at US$20 per ADS, above the top-end of the initial price range.

MINISO is a value retailer with a focus on offering products that are aesthetically pleasing, good-quality, and affordable. It operates its flagship brand “MINISO” and has a global presence with about 2,500 stores in China and over 1,680 stores across 80 other countries. 

We have earlier covered various aspects of the IPO in:


Pre-IPO JD Health (JDH.HK) – A Better Candidate of Online Healthcare Business In China?

By Xinyao (Criss) Wang

According to Analysys, the market size of China’s online healthcare business was RMB133.7 billion in 2019, up 35.6% YoY. Due to the epidemic, the market size is expected to reach RMB200 billion in 2020, with a growth rate of 49.6%, which is the highest growth rate since 2015. With huge growth potential of the online healthcare business, JD Health (JDH HK) filed its IPO prospectus with the Hong Kong Stock Exchange on September 27. The Company is planning to raise at least $3 billion in the IPO. 


JD Health Pre-IPO: Poised to Benefit from Structural Changes in Healthcare in China and the Pandemic

By Shifara Samsudeen, ACMA, CGMA

JD Health International, the largest online healthcare platform and retail pharmacy in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company is backed by the Chinese online retail giant JD.Com, and is planning to raise about US$3bn through the IPO.

In this insight, we examine the company’s business model and its financials.


APlus Asset Advisor IPO Preview

By Douglas Kim

Established in 2007, APlus Asset Advisor is getting ready to complete its IPO in the Korean stock market in November. Aplus Asset Advisory is the Korean market leader in the independent corporate insurance agency (GA) business that compares and analyzes various products of insurance companies and provides optimal insurance and financial services to its customers. 

The IPO price range is from 10,500 won to 12,300 won. The IPO base deal size is from $26 million to $30 million. According to the bankers’ valuation, the expected market cap after the IPO is from 237 billion won to 278 billion won. NH Investment Securities is the lead underwriter of this IPO. The book-building for the institutional investors starts on 5 November. 

Aplus Asset Advisor generated revenue of 269.4 billion won (up 16% YoY) and an operating profit of 20.9 billion won (up 24.9% YoY) in 2019. The company’s operating margin averaged 7.1% from 2016 to 1H 2020. From 2016 to 2019, the company’s sales increased at a CAGR of 9.3%.


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