Equity Capital Markets: WuXi AppTec Co. Ltd., KE Holdings Inc, Industrial & Infrastructure Fund Investment, KE Holdings Inc and more

In today’s briefing:

  • Wuxi Apptec (药明康德) Placement: Well-Flagged Deal in the Hot Sector
  • KE Holdings/Beike Pre-IPO – The Positives – Fast Growth, High Market Share
  • Industrial and Infra REIT Placement: Cheap Purchase Aids DPU Accretive
  • KE Holdings IPO (Beike): Dreams Come Home

Wuxi Apptec (药明康德) Placement: Well-Flagged Deal in the Hot Sector

By Ke Yan, CFA, FRM

Wuxi Apptec launched a USD 950 million placement after it obtained CSRC approval for its proposed A+H placement today after market close. We have discussed this placement in our earlier note in March (Wuxi Apptec (药明康德) Proposed USD1.7bn Placement: Liquidity Matters). In this note we will cover the details of the deal and recap our thoughts on the placement. 


KE Holdings/Beike Pre-IPO – The Positives – Fast Growth, High Market Share

By Sumeet Singh

KE Holdings Inc (BEKE US) (BEKE), a company backed by Tencent Holdings (700 HK), Softbank Group (9984 JP) and Hillhouse, aims to raise around US$2bn in its US listing.

BEKE combines Lianjia, China’s leading real estate brokerage brand with more than 18 years of history, and Beike, China’s leading integrated online and offline platform for housing transactions and services with two years of history.

In 2019, the company generated a gross transaction value (GTV) of RMB2.1tn (US$300bn) and facilitated over 2.2m housing transactions on its platform, making it China’s largest housing transaction and services platform. As of Jun 2020, its platform had over 260 real estate brokerage brands, over 42,000 community-centric stores and over 456,000 agents across 103 cities in China. In terms of transactions assisted by real estate brokers, it appears to have over 20% market share in both new and existing home sales.

BEKE’s gross transaction value (GTV) has grown at 44.8% CAGR over FY17-19, while revenue grew at 34.32% CAGR over FY17-19.

In this insight, I’ll talk about the positive aspects of the deal.


Industrial and Infra REIT Placement: Cheap Purchase Aids DPU Accretive

By Ke Yan, CFA, FRM

Industrial and Infrastructure Fund Investment Corporation (IIF) announced a share placement plan to raise up to USD 354 million for the acquisition of three properties. In this note, we will look at details of the placement and the impact of the deal and acquisition. 


KE Holdings IPO (Beike): Dreams Come Home

By Shifara Samsudeen, ACMA, CGMA

KE Holdings (also known as Beike) has filed to list its shares on the New York Stock Exchange and aims to raise about US$1bn. Beike is a leading integrated online and offline platform for housing transactions and services in China.

The residential real estate market in China has grown significantly over the past few years mainly driven by continuous urbanisation, increasing demand for quality housing and favourable government policy towards providing stable housing for citizens. However, the residential real estate brokerage market is underpenetrated in China which offers significant opportunities for companies such as Beike.

Historically, the company’s revenue growth was driven by Lianjia stores, however, with the launch of the company’s Beike platform, which connects property agents and home buyers, the revenues of the company has grown rapidly over the last two years.

In this insight, we take a look at the company’s business segments, financials and future outlook. We aim to cover the company’s balance sheet and cashflow analysis in a follow-up insight.


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