Daily BriefsIPOs and Placements

Equity Capital Markets: ESR Cayman , Playtika Holding Corp, Ocumension Therapeutics, New Horizon Health, Hong Kong Medical Consultants Holdings, Yang Ming Marine Transport and more

In today’s briefing:

  • ESR Cayman Placement – Past Deals Have Generally Done Well
  • Playtika IPO – Doubling Down on DoubleDown’s Failed IPO
  • Ocumension Theraputics Placement – IPO Was Hot, Deal Should Be Supported Despite Lock-Up Expiry
  • New Horizon Health IPO: Aiming to Become Pioneer in Cancer Screening
  • Pre-IPO Hong Kong Medical Consultants – Promising Future Despite Short-Term Declining Profitability
  • Planned ZIM IPO: Opportunistic Listing Near Cycle Peak for Minor Industry Player

ESR Cayman Placement – Past Deals Have Generally Done Well

By Sumeet Singh

Warburg Pincus (WP) is looking to raise around US$219m by selling about 2.1% of ESR Cayman (1821 HK). This is a clean-up trade.

We have covered the IPO and previous placements, links to which are below. In this insight, we will discuss the deal dynamics and run the deal through our ECM framework.

June, September and November 2020 placement:

Links to our earlier insights, from its IPO:


Playtika IPO – Doubling Down on DoubleDown’s Failed IPO

By Mio Kato

In our initial note on Playtika we were positive on its steady growth and healthy margins despite some misgivings about the roll-up model which was driving that growth. After examining the proposed valuations for the IPO, however, we are much more comfortable giving this a pass, just like with DoubleDown Interactive which had to postpone its IPO in the middle of last year.


Ocumension Theraputics Placement – IPO Was Hot, Deal Should Be Supported Despite Lock-Up Expiry

By Sumeet Singh

Ocumension Therapeutics (1477 HK) aims to raise around US$103m to commercialize new products, fund clinical trials and develop new facilities. 

We have covered the IPO in our previous notes, links to which are below. In this note, I’ll talk about the updates since then.

Our previous coverage


New Horizon Health IPO: Aiming to Become Pioneer in Cancer Screening

By Shifara Samsudeen, ACMA, CGMA

New Horizon Health (NHH HK) , the pioneer in China’s colorectal cancer screening market has filed for an IPO on the Hong Kong Stock Exchange and according to Bloomberg, the company plans to raise about US$300m through the IPO.

The company is a commercial stage biotech company with two proprietary cancer screening products, ColoClear and Pupu Tube developed for screening colorectal cancer.

ColoClear is the first and only molecular cancer screening test approved by NMPA, and as of the latest practicable date, there was no other colorectal cancer screening candidate in the market or carried out prospective clinical trial in China.

China has the highest colorectal cancer incidence in the world thus presenting huge market opportunity for screening tests. If detected early, colorectal cancer is one of the most curable and preventable cancers which creates huge demand for colorectal cancer screening tests.

In addition to the company’s two core proprietary screening tests, there are two other screening product candidates that are in the development pipeline.


Pre-IPO Hong Kong Medical Consultants – Promising Future Despite Short-Term Declining Profitability

By Xinyao (Criss) Wang

Hong Kong Medical Consultants Holdings (MCH HK) is a comprehensive private healthcare provider, and is also one of Hong Kong’s leading multi-specialties medical centre operators, providing specialty healthcare services supplemented by various allied medical services and medical management services. On October 29th 2020, the Company submitted an application for listing on the main board of the Hong Kong Stock Exchange. Although Hong Kong Medical Consultants has declining profitability in the short-term, its long-term performance could still be promising.


Planned ZIM IPO: Opportunistic Listing Near Cycle Peak for Minor Industry Player

By Daniel Hellberg

Israel’s ZIM Integrated Shipping Services (proposed ticker ZIM US) has filed documents to launch an IPO in the US. Media reports have speculated the container shipping company hopes to raise at least US$100 mn in the deal; some reports say ZIM could try to raise US$300 mn or more.

The objective of this note is to provide some context for the company and the global container shipping industry. After all, it has been over two decades since a global container ship operator has traded in the US (Matson Inc (MATX US) focuses on niche domestic US markets, generally).

ZIM is a small player in global container shipping, and contrary to its claims the company mainly operates in highly competitive segments. Its “asset-light” model is unusual, but it represents a double-edged sword: chartering in the majority of its capacity offers flexibility, but it also means operating costs may rise in tandem with freight rates over the cycle, limiting margin expansion. 

Fortunately, Europe and Asia offer several direct comps for ZIM, including AP Moeller – Maersk A/S (MAERSKB DC) of Denmark and Evergreen Marine Corp (2603 TT) of Taiwan. These two companies — both of them far larger than ZIM, and more profitable over the cycle — will serve as useful benchmarks once ZIM and its bankers announce details regarding deal size and pricing. 


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