ECM Weekly (12th September 2021) - Sea, Simplex, PHC Holdings, Kakaopay, Novotech, Airdoc, K Car

280 Views12 Sep 2021 09:30

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

Events next week:

We kicked off the publication of tearsheets to keep investors apprised of the basic information of new IPO filings. The effort will be led by our new analyst, Clarence Chu , who joined us this month. Feel free to drop us a message if there are any things that you would like to be included in the tearsheet.

MREIT and Simplex launched their IPOs this week. The former raised US$272m at the bottom end of its IPO price range after books closed on Thursday while the latter’s shareholders will be selling US$304m worth of shares. Simplex’s books closed on Friday and it was simply reported that books were covered. MREIT and Simplex will debut on 30th and 22nd September, respectively.

Similarly, K Car will open books on Friday and look to debut on 13th October. We covered peer comparison and valuation in this week's note.

On the other hand, Kakaopay’s IPO hit a bump when FSC and FSS put out a press release stating that online financial platforms, namely Naver Pay and Kakao Pay, aren’t acting as simple advertising agencies and have violated regulations. We discussed the likely impact on the company and our expectations heading into bookbuild which was stipulated to open on 23rd September.

In Japan, Phc Holdings (6523 JP) is looking to raise about US$1.6bn from selling a mix of primary and secondary shares. The company is backed by KKR, Mistui, Life Science Institute, and Panasonic.

Back in Hong Kong, Helen’s closed 23% above its IPO price on debut, exceeding our expectations. We also revisited Novotech’s IPO as the company will likely launch its books soon, following its approval from HKEX.

We initiated on Beijing Airdoc, an AI-based medical device company with a focus on AI-empowered retina-based early detection, diagnosis and health risk assessment solutions. The company was earlier reported to be seeking approval this month.

Last, but not least, it was a fairly active week in the placement space. Sea Ltd tested limits with its jumbo US$6bn equity combo. The deal was priced at a decent 7.3% discount from undisturbed price and it was reported to have drawn strong demand from investors.

Accuracy Rate:

Our overall accuracy rate is 74% for IPOs and 67.8% for Placements

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

New IPO filings this week

  • TDCX Inc. (US, US$400m)
  • Healthium Medtech (India, US$491m)
  • Tamilnad Mercantile Bank (India, US$137m)

News on Upcoming IPOs

Hong Kong/China

US/China ADRs




Analysis on Upcoming IPOs

Hong Kong
APM Monaco

APM Monaco Pre-IPO - China’s Resilience Shines


Beijing Airdoc (北京鹰瞳科技) Pre-IPO - A Niche Field with Merits but Can It Sell?


Anjuke Pre-IPO - Mixed (Positive and Negative) Developments


AmbioPharm (昂博制药) Pre-IPO: Peptide CDMO Leader Turning Licensor

Biel Crystal

Biel Crystal (伯恩光学) Pre-IPO - Cash Flow Generative Business but Underlying Trend Is Worrying


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

Cloud Village

Cloud Village (NetEase Music) Pre-IPO - Mixed PHIP Update, Updated Thoughts on Valuation

Cloud Village

Cloud Village (NetEase Music) Pre-IPO - Initial Thoughts on Valuation

Cloud Village

Cloud Village (NetEase Music) Pre-IPO - Tencent Music Peer Comp, Regulatory Impact

Cloud Village

Cloud Village (NetEase Music) Pre-IPO - Was in the Slow Stream, Playing Catch-Up


EDDA Healthcare Pre-IPO - RoboDoc - Has Been Around for a While but Is Just Getting the Robo Going


Dingdang Health Tech (叮当健康) Pre-IPO - Impressive Growth but Not Without Concerns

Intco Med

Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1


Imeik Tech (爱美客) A/H Pre-IPO - Dermal Filler Leader Capitalizing on Its Valuation


Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio

MicroPort Medbot

MicroPort MedBot Pre-IPO - RoboDoc - Pre-Revenue, Has a Large Competitor but a Large Market as Well


NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR

Neusoft Xikang

Neusoft Xikang (东软熙康) Pre-IPO: A Long Way to Profit

Neusoft Med

Neusoft Medical Systems (东软医疗系统) Pre-IPO: Unattractive Fundamentals


Novotech Pre-IPO: Biotech Focused CRO at Hefty Pre-IPO Valuation

WeDoctorWeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More
WeDoctorWeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor
WeDoctorWe Doctor (微医) Pre-IPO - Peer Comparison - Picking Its Battles Wisely
WeDoctorWe Doctor (微医) Pre-IPO - Forecasts, Early Thoughts on Valuation, and Acquisition Gripes
WeilongWeilong Delicious Global Pre-IPO - The Positives - Fast Growth, Strong Backers
WeilongWeilong Delicious Global Pre-IPO - The Negatives - Spicy Valuation
WM TechWM Tech Pre-IPO - Peer Comparison and Pre-IPO Valuation - Some Signs of Advantage
WM TechWM Tech Pre-IPO - Digitalization Efforts Coming Through but Not Well Substantiated
Aadhar HousingAadhar Housing Finance Pre-IPO - Decent past Growth but Comes with Weird Disclosures
Aditya AMCAditya Birla Sun Life AMC Pre-IPO - Strong Profit Growth but It's Losing Market Share
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

Crystal CropCrystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers
ESAF SFBESAF 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 CemEmami 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 CemPenna 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
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
MREITMREIT Pre-IPO - Mediocre Performance, Convoluted Lease, Low Asset Yield
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