ECM Weekly (1 September 2018) - Meituan, NIO, Aavas, Hua Medicine, Qutoutiao

424 Views01 Sep 2018 10:37

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

Unsurprisingly, shortly after markets in the U.S. made new all-time highs, companies are rushing to get themselves onto the market to ride on the momentum. Another round of IPO filings and live IPOs are starting to trickle in as we ramp up towards Q4.

First of all, starting with what we have heard on the street, there are news reporting that Meituan Dianping (MEITUAN HK) is setting its IPO valuation at up to US$55bn which is close the the upper range of Ke Yan, CFA, FRM's conservative fair value estimate in his latest note, Meituan Dianping (美团点评) IPO: Thoughts on Valuation - The Market Structure and the Variables (Part 3). In India, Aavas Financiers Ltd (AAVAS IN) is targeting a Rs20bn IPO in September while Lodha Developers (LODHA IN) trimmed its targets after IPO delay.

There are also a handful of live deals ongoing and investors are probably spoilt for choice as to which IPO to subscribe to. Starting off with the largest deal size, NIO Inc (NIO US) is raising up to US$1.3bn and will be closing its book on the 11th of September. As per our analysis, NIO's valuation is only at a small discount to peers even after we used blue sky assumptions to work out the company's valuation.

In Hong Kong, China Chunlai Education (CHUNLAI HK)'s US$113m IPO will be closing on the 6th of September while Hua Medicine Ltd (2552 HK) will be closing on the 7th.

Accuracy Rate:

Our overall accuracy rate is 71.3% for IPOs and 63.6% for Placements

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

New IPO filings this week

  • Luzhou City Commercial Bank (Hong Kong, ~US$1bn)
  • Alpha Smart (Hong Kong, ~US$200m)
  • Tubatu (Hong Kong, ~US$200m)
  • Impro Precision (Hong Kong, re-filed)
  • Ganfeng Lithium (Hong Kong, re-filed)
  • X Financial (the U.S., ~US$250m)
  • Viomi Technology (the U.S., ~US$150m)

Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.

Source: Smartkarma IPO Analyzer

News on Upcoming IPOs

Smartkarma Community's this week Analysis on Upcoming IPO

List of pre-IPO Coverage on Smartkarma

Hong Kong
Ant FinancialAnt Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
BabyTreeBabytree Group Pre-IPO - Young Moms Need It but Almost All Seem to Have It, Might Be at Peak MAU
Canaan Inc.Canaan Inc. IPO Preview (Part 1) - The Biggest Blockchain Related IPO Globally in 2018
Canaan Inc.Canaan Inc. IPO Preview (Part 2) - A Closer Look at ASIC Developments and Competition
Canaan Inc.Canaan Inc. IPO Preview (Part 3): Earnings Forecast & Valuation Analysis
Canaan Inc.Canaan (嘉楠耘智) IPO Quick Take: Beware that ASIC Is a Different Ball Game
CenmintangCenmintang IPO Preview: A Beverage and Snack Play Whose Growth Is Hard to Grasp
China FeiheChina Feihe IPO Preview: Goat Bless Infant Formula Milk?
China KepeiChina Kepei Edu (科培教育) Pre-IPO Review - A Well Run Private Higher Education Company
Ganfeng LithiumGanfeng Lithium IPO: Present Perfect, Future Tense
HaidilaoHaidilao IPO First Glance: Legendary Hot Pot Restaurant that Will Be Hot (Part 1)
HaidilaoHaidilao (海底捞) IPO: Superior Metrics in a Scalable Segment (Part 2)
HaidilaoHaidilao IPO Preview– High on Pot
HaidilaHaidilao 海底捞 IPO: No Little Sheep
MeituanMeituan-Dianping IPO, Part 1: Role in China's Travel Segment, Comparison to Incumbent Ctrip.com

Meituan-Dianping IPO, Part 2: Food Delivery Segment Boasts Amazing Growth & Unclear Path to Profits

MeituanMeituan Dianping IPO Preview: The China O2O Powerhouse

Meituan Dianping IPO: The "Next Big Thing"?


Meituan Dianping – Alibaba Investing Billions to Reach 50% Market Share

Shandong GoldShandong Gold Mining IPO Preview: Largest Pure Play Gold Miner to Be Listed in Hong Kong
Shandong GoldShandong Gold IPO: Buyers Beware
Sinochem EnergySinochem Energy (中化能源) IPO First Impression: Trophy Asset Mixed with Volatile Trading Business
STX STX IPO Preview– a One-Hit Wonder
STX STX Entertainment (胜图娱乐) IPO: Legendary Founder but Results Matter
TongchengTongcheng-ELong (同程艺龙) Pre-IPO Review - A Force to Be Reckoned With
Qilu ExpressQilu Expressway IPO Preview: Concentration Risk and Recent News May Mean Discount to Peers
WeLabWeLab Pre-IPO - Stuck in a Regulatory Quagmire; Not the Right Time to List
South Korea
CreasCreas Fashion Co. IPO Preview (Part 1)
DaeyuDaeyu Co. IPO Preview (Part 1)
EbangEbang IPO Preview (Part 1): Lower Sales but Higher Operating Profit Versus Canaan Inc.
FoodnamooFoodnamoo Inc IPO Preview (Part 1) - A Leader in Home Meal Replacement Products in Korea
Icure PharmIcure Pharm (175250 KS): Post IPO Short Selling Opportunity Checkup
Icure PharmIcure Pharm IPO Summary - Front Runner of Dementia Patch Development Race
ZinusZinus IPO Preview (Part 1) - An Amazing Comeback Story (#1 Mattress Brand on Amazon)
AavasAavas Financiers Pre-IPO - Over-Capitalisation Leading to Higher Profitability
CMS InfoCMS Info Systems Pre-IPO Review - 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
Flemingo Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country
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
Mazagon DockMazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending


Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
LodhaLodha Developers IPO: Large Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
The U.S.
111 Inc111 Inc IPO Preview: A New Business Papers over the Cracks
CNFinanceCNFinance (泛华金融) IPO First Impression: Beware Rising Credit Risk and Slowing Loan Origination
CNFinanceCNFinance IPO Preview: A Renaissance that May Not Come
QutoutiaoQutoutiao Pre-IPO - Cash Payments Driving Downloads but Aren't as Effective with Usage
QutoutiaoQutoutiao 趣头条 (QTT) – A Spendthrift Who Pays News Readers Generously
QutoutiaoQutoutiao IPO Preview: Facing an Inescapable Catch-22
Latitude financialLatitude Financial Group Pre-IPO Review - Credit Prospectus Throw up Some Interesting Data Points
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