Daily BriefsIPOs and Placements

Equity Capital Markets: Zomato, BeiGene Ltd and more

In today’s briefing:

  • ECM Weekly (25th July 2021) – China Tourism, APM Monaco, Paytm, CTOS, Zomato, Kuaishou Lock-Up
  • Pre-IPO BeiGene Ltd – Concerns on Commercialization

ECM Weekly (25th July 2021) – China Tourism, APM Monaco, Paytm, CTOS, Zomato, Kuaishou Lock-Up

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.

Tencent Music was the latest victim of China’s regulatory crackdown. The company was fined and had to relinquish its exclusive music licensing rights with global record labels in the next 30 days. Daojia also announced that it would halt its US$300m US IPO following similar announcements by Lalamove, Xiaohongshu, and others. 

China ADRs took another leg down on Friday led by education companies falling by more than 50%. This was due to policies that will seek to ban companies that teach the school curriculum from raising capital, going public, and converting them into non-profit entities. Needless to say, China ADR market will take a back seat for a while.

Hong Kong IPO activity remains subdued and we are taking this time to cover upcoming IPOs. This week, we initiated on China Tourism Group Duty Free Corp Ltd. and its secondary listing of up to US$10bn. The firm is the largest travel retail operator in the world and is currently listed in Shanghai. 

We also covered APM Monaco’s US$300m IPO. The company is a contemporary fashion jewelry brand that is popular in China. It designs, manufactures and sells fashion jewelry products such as earrings, necklaces, rings, and bracelets.

We continued our coverage on Transcenta and Shanghai HeartCare which are looking to raise US$200m and US$100m, respectively.

In India, Zomato’s strong debut on Friday should help pave the way for other upcoming large IPOs like PayTM’s which we covered this week. The company boasts an impressive list of pre-IPO investors such as Ant Financial, Softbank and Berkshire Hathaway. The deal will be a combination of both primary and secondary shares. 

We continued our coverage on Yum Brand’s largest franchisor in India, Devyani International, comparing it to other listed competitors. The IPO was approved by SEBI last week.

In Korea, we initiated on Lotte Rental’s US$740m IPO. The company was the largest car rental provider in South Korea. Bookbuild will run between 3-4 August, and shares are expected to list on 19 August. 

Kakao Bank, South Korea’s largest digital bank, priced its books at the top end of the IPO price range. It was reported that its institutional tranche was about 1,700x covered. Shares will debut on 6 August and we have covered the deal earlier.

In Malaysia, Creador-backed CTOS Digital debuted on Monday and closed 47.2% above deal price. Share price has been tapered off from its first day high but still held up well, closing 39% above IPO price on Friday. 

For lock-up expiry, we circled back to Kuaishou which was listed on 5th Feb 2021. Lock-up will expire on 5th August and there had been large CCASS movement that saw JPM holding 638m shares, worth about US$10bn.

On placements this week, Wuxi Biologics Holdings raised US$1.3bn from selling 1.8% of its stake in Wuxi Biologics. The deal had been widely anticipated since this was not its first selldown. Shares were priced at a 6.5% discount but share price struggled to stay above deal price, closing just 0.5% above deal price. 

In Australia, Evolution Mining raised US$294m to acquire assets from its rival, Northern Star Resources. Strong interests came from existing shareholders and new investors. Shares closed 10.4% above deal price on Friday.

In Korea, TongYang Life Insurance raised around US$261m from selling its 3.7% stake in Woori Financial Group. This was a clean-up trade but we think that KDIC could come to market to sell as well. The deal was priced at a 4.29% discount and has traded flat, closing just 0.4% above deal price on Friday. 

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

  • Adlai Nortye Ltd. (Hong Kong, >US$100m)
  • Huayuan Medical Group Holding (Hong Kong, >US$100m)
  • Star Health and Allied Insurance Company (India, US$1bn)
  • Anand Rathi Wealth Limited (India, US$135m)

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
The U.S.
ForU ForU Worldwide Pre-IPO – Mostly Negatives 
Qiniu Qiniu Cloud (七牛云) Pre-IPO: PaaS Doesn’t Warrant a Premium 

Pre-IPO BeiGene Ltd – Concerns on Commercialization

By Xinyao (Criss) Wang

After listing on NASDAQ and HKEX, BeiGene Ltd (6160 HK) will be listed on the SSE STAR market again in the near future. Meanwhile, after successive years of losses, BeiGene finally turned profitable for the first time in the first quarter of 2021. By the end of July 23, 2021, the market value of BeiGene in HKEX and NASDAQ was about HK$226.5 billion and US$29.2 billion, respectively. It is highly probable that the market value of the BeiGene in the SSE STAR market would exceed RMB200 billion after its listing as well. Behind the successful capital operation, what challenges would BeiGene face in the future?

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