Daily BriefsIPOs and Placements

Equity Capital Markets: Linklogis, WeDoctor Holdings, Lodha Developers, Trip.com, AppLovin Corp, Kindstar Globalgene Technology and more

In today’s briefing:

  • ECM Weekly (5th April 2021) – Nayuki, Peter Warren, Linklogis, Zhaoke Ophthalmic, Macrotech Dev
  • We Doctor IPO Initiation: Patient Revolution
  • Macrotech (Lodha) Developers IPO – One Too Many Issues
  • Trip.com Secondary Listing – Probably Needs to Correct
  • AppLovin IPO Preview
  • Pre-IPO Kindstar Globalgene Technology – A New Start with More Challenges

ECM Weekly (5th April 2021) – Nayuki, Peter Warren, Linklogis, Zhaoke Ophthalmic, Macrotech Dev

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.

The IPO pipeline in Hong Kong looks even stronger as of last week, after numerous draft prospectuses were filed. Notable deals include WeDoctor (1737089D HK), WM Tech (owner of Wumart Stores in China, and Medlive Tech (online professional physician network in China).

For upcoming debuts, Linklogis (LINK HK)  closed a day earlier and priced above the midpoint of its IPO price range. The company is due to trade this coming Friday. We covered the IPO earlier in:

We initiated coverage on Nayuki Holdings (NYK HK), a popular premium teahouse chain in China, and Zhaoke Ophthalmology Pharmaceutical (ZKO HK), a China-based ophthalmic pharmaceutical company, earlier this week:

In the US, bookbuild for Smart Share Global (EM US)  was short. Books opened Monday, priced on Wednesday, ADS debuted on Thursday. SSG’s share price struggled in early hours of trading and closed flat, even after pricing below their initial price range. We covered the IPO in:

In India this week, we initiated coverage on Power Grid Corporation Of India (PWGR IN) and revisited Macrotech Developers (LODHA IN), which was previously known as Lodha Developers. Anchor books are set to open this coming Tuesday:

Last, but not least, in Australia, we covered Peter Warren’s IPO which is set to list close to the end of the month.

Accuracy Rate:

Our overall accuracy rate is 73.9% for IPOs and 67.1% for Placements 

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

New IPO filings this week

  • WM Tech Corporation Limited (Hong Kong, US$1bn)
  • We Doctor Holdings Limited (Hong Kong, US$1bn)
  • Medlive Technology Co., Ltd. (Hong Kong, US$500m)
  • Green Tea Group Limited (Hong Kong, US$200m)
  • Transcenta Holding Limited (Hong Kong, >US$100m)
  • eBeauty Holdings (Cayman) Limited (Hong Kong, >US$100m)
  • Helens International (Hong Kong, >US$100m) 
  • Edding Group Company Limited (Hong Kong, refiled)

News on Upcoming IPOs

Hong Kong

U.S. China ADRs






Analysis on Upcoming IPOs

Hong Kong
Betta Pharma

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


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 


Chaoju Eye Care (朝聚眼科) Pre-IPO: Growth Prospect Far from Being Impressive 


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 

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 


Kindstar (康圣环球) Pre-IPO: Issues with Scalability 


Kindstar (康圣环球) Pre-IPO: Is It Worth the Premium? 

RemeGen RemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48 
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 
Youran Dairy China Youran Dairy(悠然牧业) Pre-IPO – A Leader Pulling Ahead in a Fragmented Market 
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
ThaiBev Beer ThaiBev BeerCo Pre-IPO – Declining Rev and Mkt Share Concerns but Good Cost Control 
ThaiBev Beer ThaiBev BeerCo Pre-IPO – Thoughts on BeerCo and ThaiBev HoldCo Valuation 

We Doctor IPO Initiation: Patient Revolution

By Arun George

WeDoctor Holdings (1737089D HK) is the largest digital medical service platform in China as measured by both the number of internet hospitals as of 31 December 2020 and the volume of digital medical consultations provided in 2019, according to Frost & Sullivan. We Doctor was filed for an HKEx IPO to raise around $2-3 billion, according to press reports. We Doctor counts Tencent Holdings (700 HK), Hillhouse Capital, AIA Group Ltd (1299 HK), Sequoia Capital, Goldman Sachs Group (GS US) and Qiming Venture Partners as shareholders. 

In response to the COVID-19 outbreak, individuals have become increasingly focused on personal health and wellbeing which has driven user acceptance of online healthcare platforms. The proportion of digitalisation in the Chinese health market is expected to increase rapidly from 3.3% in 2019 to 24.0% of total healthcare expenditure in 2030, according to Frost and Sullivan.

Consequently, and despite the choppy markets and waning enthusiasm for Chinese tech, the shares of Ping An Healthcare and Technology Company Limited (1833 HK), Alibaba Health Information Technology (241 HK) and JD Health (6618 HK) are up 10%, 1% and 62% YTD, respectively. Overall, for investors willing to brave the IPO markets, we believe that We Doctor is an attractive play on the accelerating digitalisation of China’s healthcare market.

Macrotech (Lodha) Developers IPO – One Too Many Issues

By Sumeet Singh

Macrotech Developers (Lodha) aims to raise around US$345m in its India IPO. It is the largest real estate developer in India, by residential sales over FY14-20. In FY20, it had a share of 24% of total supply (by units), 32% of total absorption (by units) and 46% of total absorption (by value) in the Top Seven Indian Markets. 

Lodha is primarily a residential developer with most of its operations restricted to the Mumbai Metropolitan Region (MMR). It has projects across the value spectrum from the affordable segment to ultra-luxury high-end residential projects. 

As of Dec 2020, it had completed 91 projects with a developable area of 77.22m sqft. As of Dec 2020, it also had 36 ongoing and 18 planned projects in India with a developable area of 28.78m sqft and 45.08m sqft, respectively.

This will be the company’s third listing attempt, after 2009/10 and 2018. The size of the deal is expected to be much smaller as well versus the US$800m that it was hoping to raise in 2018. We have looked at its previous listing attempt in our prior note, Lodha Developers Pre-IPO – Second Time Lucky but Not Really that Much Affordable . We covered the details of the current attempt in Macrotech (Lodha) developers Pre-IPO – New name but up to some of the same old tricks.

In this note, we will talk about the valuations.

Trip.com Secondary Listing – Probably Needs to Correct

By Sumeet Singh

Trip.com plans to raise around US$1-2bn in its secondary listing in Hong Kong. The company is said to have won listing approval last week and will look to launch its secondary offering soon.

In our previous notes, along with covering all of the past listings, we have also looked at the overall drivers for the secondary listings in our earlier notes, links to which are below: 

In this note, we’ll take a look at the deal and talk about the impact of the raising.

AppLovin IPO Preview

By Douglas Kim

  • Founded in 2011, AppLovin Corp (APP US) is getting ready to complete its IPO in 2Q 2021. The company is aiming to raise about $1 billion in this IPO. KKR purchased a minority stake in the company in 2018 at about $2 billion valuation. The IPO valuation is likely to be much higher.
  • The company originally started its business helping customers to improve the smartphone customer experiences for all the users. In recent years, the company has become a much bigger player in the mobile gaming segment and it also helps developers to grow their users and improve monetization of their apps. 
  • AppLovin’s income statement shows strong sales growth in the past three years but declining profit margins. AppLovin generated sales of $1,451.1 million and an operating loss of $62.1 million in 2020. The company’s sales have nearly tripled from 2018 to 2020. Despite the company’s strong sales growth, one of the things that is not so clear in the prospectus is what percentage of the company’s sales growth in the past three years has been driven by organic growth versus acquisitions.

Pre-IPO Kindstar Globalgene Technology – A New Start with More Challenges

By Xinyao (Criss) Wang

On February 23, 2021, Kindstar Globalgene Technology (1868874D HK), a leading independent esoteric clinical testing service provider, filed its prospectus with the Hong Kong Stock Exchange to be listed on the main board. The Company, founded in 2003 and once considered one of the top 10 China’s independent clinical laboratories, has finally taken a key step towards the public capital market after experiencing several setbacks. Compared with the IPO plan in the United States about seven years ago, would CEO Huang Shiang be successful this time?

Before it’s here, it’s on Smartkarma