Daily BriefsIPOs and Placements

Equity Capital Markets: Cloud Village, CarTrade, Devyani International and more

In today’s briefing:

  • ECM Weekly (1st August 2021) – Cloud Village, Li Auto HK, Asymchem, Acotec, Devyani, Del Monte PH
  • CarTrade Tech IPO Initiation: Shifting Gears
  • Devyani IPO – Still Some Upside on Un-Adjusted EBITDA Basis

ECM Weekly (1st August 2021) – Cloud Village, Li Auto HK, Asymchem, Acotec, Devyani, Del Monte PH

By Zhen Zhou, Toh

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

It’s another week of regulatory crackdown in China. This time, Meituan’s share price declined 21% since the start of the week after China issued regulations to tighten oversight of the food delivery sector by asking food delivery operators to respect the rights of delivery staff and to ensure that delivery workers earn at least the local minimum income. 

Then regulators published a statement on Friday afternoon stating that they will look to step up oversight on the property industry and specifically, poor practices like property management fees not being explicitly revealed, or more fees collected than originally stated, will be banned.

In the U.S, it was reported that the SEC has stopped processing registrations of U.S. IPOs and other sales of securities by Chinese companies. This came after CNBC reported on Thursday that China will continue to allow Chinese companies to go public in the U.S. as long as they meet listing requirements, according to people familiar with the matter.

For ongoing IPO coverage, in Hong Kong, we compared Cloud Village (NetEase Music) to peers, mainly Tencent Music, and discussed the impact of the recent regulatory action on Tencent Music. The company is planning to start pre-marketing next week.

Ke Yan continued his coverage of Acotec Scientific with a discussion of assumptions and valuation.

In the U.S, PropertyGuru and Bridgetown 2 announced that they have entered into a business combination agreement which will see PropertyGuru go public at an EV of US$1.35bn and equity value of US$1.78bn.

For A/H-share listings, we took an early look at Shenzhen-listed Asymchem Labs, which is aiming to raise US$1 – 1.5bn. We also shared our thoughts on Li Auto’s Hong Kong dual primary listing which was approved earlier this week and was looking to raise up to US$1.5bn.

In India, Devyani International’s IPO terms were launched. The company is looking to raise US$242m and anchor books will open on 3rd August while the bookbuild for other investors will be open from 4th – 6th August. We have already looked at valuation this week in:

In the Philippines, Del Monte Philippines ended its pre-marketing this week. We looked at peer comparison and shared our thoughts on assumptions and valuation. We also looked at potential proxy trade via Del Monte Pacific.

For placements this week, we covered PointsBet 1 for 9 accelerated, pro rata renouncement entitlement offer and institutional placement that was expected to raise about A$400m. Shares will resume trading on Monday with the company reporting that its institutional offer was well supported by new and existing local and international institutional investors.

Accuracy Rate:

Our overall accuracy rate is 73.8% for IPOs and 67.4% for Placements 

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

New IPO filings this week

  • Imeik Technology  (Hong Kong, US$3bn)
  • Biel Crystal (Hong Kong, US$2bn)
  • HeMo Bioengineering (Hong Kong, >US$100m)
  • ESAF SFB (India, re-file)
  • SJS Enterprise (India, US$108m)

News on Upcoming IPOs

Hong Kong/China

US/China ADRs




Analysis on Upcoming IPOs

Hong Kong

Anjuke Pre-IPO – Mixed (Positive and Negative) Developments 

Betta Pharma

Betta Pharma (贝达医药) A+H: Tier 2 Player Struggled to Break Out 


Broncus (堃博医疗) Pre-IPO: Big Potential to Be Tested 


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


ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


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


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: Global Ambition Meets Regulatory Challenges 


Dida Pre-IPO – Making Hay While Big Brother Retreats 


Dida Pre-IPO – Earnings Forecast and First Stab at Valuation 


Dida Pre-IPO – Peer Comparison – Lagging in Scale, Leading in Profitability 

Edding Grp

Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party 

Edding Grp

Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party 


Shanghai Hanyu (捍宇医疗) Pre-IPO: Not a Straight-A but Listing at Right Time 

Intco Med

Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1 


Kilcoy Global Foods Pre-IPO – Rapid Earnings Growth on the Back of Margin Improvement 


Kilcoy Global Foods Pre-IPO – A Lot of Things Still Remain Unexplained 


Novotech Pre-IPO: Biotech Focused CRO at Hefty Pre-IPO Valuation 

RemeGen RemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48 
SH Bio-heart Shanghai Bio-Heart (上海百心安) Pre-IPO: Needs a Long Runway 
Toplist Toplist China Pre-IPO – Overwhelmingly More Negatives than Positives 
Tasly Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters 
WeDoctor WeDoctor (微医) Pre-IPO -App Walk Through – The Online Medical Directory and More 
WeDoctor WeDoctor (微医) Pre-IPO – A More Focused Online Medical Svc Provider than Ping An Good Doctor 
WeDoctor We Doctor (微医) Pre-IPO – Peer Comparison – Picking Its Battles Wisely 
WeDoctor We Doctor (微医) Pre-IPO – Forecasts, Early Thoughts on Valuation, and Acquisition Gripes 
Weilong Weilong Delicious Global Pre-IPO – The Positives – Fast Growth, Strong Backers 
Weilong Weilong Delicious Global Pre-IPO – The Negatives – Spicy Valuation 
WM Tech WM Tech Pre-IPO – Digitalization Efforts Coming Through but Not Well Substantiated 
WM Tech WM Tech Pre-IPO – Peer Comparison and Pre-IPO Valuation – Some Signs of Advantage 
Aadhar Housing Aadhar Housing Finance Pre-IPO – Decent past Growth but Comes with Weird Disclosures 
ASK ASK Investment Managers Pre-IPO – Riding on a Wave of Wealth 
Anmol IndAnmol Industries Pre-IPO Quick Take – No Growth, Generous Payments to Founders
Bharat Hotel

Bharat Hotels Pre-IPO – Catching up with Peers 

Bajaj En

Bajaj Energy Pre-IPO – Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It 

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
ESAF SFB ESAF Small Finance Bank Pre-IPO – Growing Fast but Remains Highly Dependant on a Related Party 
Flemingo Flemingo Travel Retail Pre-IPO – Its a Different Business in Every Country
Emami Cem Emami Cement Pre-IPO – Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO 
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


Life Insurance Corporation of India Pre-IPO – Early Take on India’s Largest IPO 
Penna Cem Penna Cement – Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 
PNB MetPNB Metlife Pre-IPO Quick Take – Doesn’t Stack up Well Versus Its Larger Peers
Samhi Hotels Samhi Hotels Pre-IPO – Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace 
QSRQSR Brands Pre-IPO – As Healthy as Fast Food

CarTrade Tech IPO Initiation: Shifting Gears

By Arun George

Cartrade (0056989Z IN) is a leading online destination for auto consumers in India. CarWale and BikeWale, key brands owned by CarTrade, ranked number one on relative online search popularity when compared to their key competitors over the last three years, according to Google Trends data. CarTrade’s shareholders include Warburg Pincus (34.44% of fully diluted shares), Temasek (26.48%), JP Morgan (11.93%) and March Capital (7.09%). 

CarTrade is looking to raise Rs28 billion ($375 million) through an IPO in India, according to press reports. The IPO comprises a pure offer for sale of 18.53 million shares by its existing shareholders and promoters. The IPO is set to launch on 9 August.  

India was the fifth largest car market in the world in 2019 and is forecasted to become the third-largest auto market in the world as measured by volume in 2025, according to RedSeer. The COVID-19 pandemic has also resulted in a shift in preference towards used cars as people limit their use of public transportation. Indian auto OEMs spent only 14% of their total ad budgets on digital advertising, which is significantly lower than the global average of 42% in 2020, according to RedSeer. 

The growing auto market combined with the rising penetration of digital ad spend presents an attractive opportunity for auto transaction platforms such as CarTrade. CarTrade is capitalising on this market opportunity as evidenced by its highly popular platforms, solid organic growth, strong margins and healthy cash generation. Overall, we think that CarTrade is an attractive play on India’s new economy sector.

Devyani IPO – Still Some Upside on Un-Adjusted EBITDA Basis

By Sumeet Singh

Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$250m via its Indian IPO. The IPO will be a mix of primary and secondary shares. 

DIL operates a chain of quick service restaurants (QSRs) in India. Its core business is to operate KFC, Pizza Hut and Costa Coffee in India. It operated 655 stores across 155 cities in India, as of Mar 2021. These include 264 KFC stores, 297 Pizza Hut stores and 44 Costa Coffee stores. It also operates stores in Nepal and Nigeria for KFC and Pizza Hut. In addition, it also runs its own brands Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar in India. Yum owns over 4% stake in the company.

In this note, we will talk about the IPO pricing.

Before it’s here, it’s on Smartkarma