bullish

Tencent Music

ECM Weekly (13 October 2018) - Tencent Music Delays IPO

672 Views13 Oct 2018 16:02
SUMMARY

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.

The market correction this week was quick to claim its first victim, Tencent Music Entertainment (TME US). It was reported that the company is delaying its IPO, probably to November, in hopes that the market will be more stable then. Nevertheless, Insight Providers on Smartkarma have already done plenty of work done on this mega IPO to help clients and readers to understand the business. Scroll down to the table of pre-IPO coverage below to get all the insights.

This week's debuts have not done well either. Aavas Financiers Ltd (AAVAS IN) , Midea Real Estate (3990 HK) , and Jiangxi Ganfeng Lithium (1772 HK) have all opened below their IPO price on their first day of trading and has failed to claw back any of its losses even as the market rebounded on Friday. We might see bookrunner support coming in next week for the Hong Kong IPOs. We think that liquidity will be thin going forward for Midea Real Estate because this is likely a friends-and-family type of IPO and, according to the latest HKEX filing, its top 10 placees hold 87% of the total IPO shares.

On the other hand, Aavas Financiers Ltd (AAVAS IN) had surprisingly shallow price correction despite India non-banking financial companies (NBFCs) and housing finance companies (HFCs) taking a big hit to their share price due to the IL&FS default. On average peers have corrected 27%, with the worst, Dewan, having corrected by 63% while Lic Housing Finance (LICHF IN) seems to have fared the best having corrected only 15%.

For upcoming IPO activities, next week Osotspa Co Ltd (OSP TB) will be listing on the 17th while the two US IPOs will be closing their books. Thailand Future Fund (TFFIF TB) has already opened its book this week and we have heard that Innovent Biologics Inc (1641475D HK) will open its books on Monday.

Ke Yan, CFA, FRM has already covered the IPO in detail through his two insights, Innovent Biologics (信达生物) IPO: A Major PD-1 MAb Competitor Might Have Just Emerged (Part 1) and Innovent Biologics (信达生物) IPO: Pricing the PD-1 and Biosimilars Competition (Part 2).

Accuracy Rate:

Our overall accuracy rate is 71.8% for IPOs and 64.2% for Placements

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

No new IPO filings this week

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: Aequitas Research, Smartkarma

News on Upcoming IPOs

Smartkarma Community's this week Analysis on Upcoming IPO

List of pre-IPO Coverage on Smartkarma

NameInsight
Hong Kong
Ant FinancialAnt Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
Asia InfoAsiaInfo Tech (亚信科技) IPO: Cost Control Is the Key (Part 1)
BabyTreeBabytree Group Pre-IPO - Young Moms Need It but Almost All Seem to Have It, Might Be at Peak MAU
BitmainBitmain IPO Preview: The Last Hurrah Before Reality Bites
BitmainBitmain IPO Preview (Part 2) - King of Cryptocurrency Mining Rigs but Its Moat Is Shrinking
BitmainBitmain: A Counter Thesis
BitmainBitmain (比特大陆) IPO: Running Out of Steam on Mining Rigs (Part 1)
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?
Entertnmt PlusEntertainment Plus – 60% Market Share, Margin Not a Concern
Entertnmt PlusMaoyan IPO Preview: Running Out of Growth Drivers
Entertnmt PlusEntertainment Plus (猫眼娱乐) IPO: The Engineered Movie Ticketing Leader Running Out of Steam (Part 1)
Entertnmt PlusEntertainment Plus (猫眼娱乐) IPO: The Coming Regulatory Bang Isn't That Bad (Part 2)
Fosun TourismFosun Tourism IPO, Part 1: Back to the Beach With Club Med! | But Is This a 'China' Play?
Fosun Tourism

Fosun Tourism IPO Analysis: Quid Pro Quo for the Better of Fosun Group?

China KepeiChina Kepei Edu (科培教育) Pre-IPO Review - A Well Run Private Higher Education Company
Innovent BioInnovent Biologics (信达生物) IPO: A Major PD-1 MAb Competitor Might Have Just Emerged (Part 1)
Innovent Bio

Innovent Biologics IPO Preview: Limited Upside on China's PD-1 Drug Market Compared to BeiGene

MicuRxMicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
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
TongchengTongcheng-Elong IPO Preview: When Unequals Try to Merge as Equals
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
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
Livent

Livent IPO Preview (Part 1): A Profitable Company that Produces Lithium

Plakor

Plakor IPO Preview (Part 1)

Robotis

Robotis IPO Preview (Part 1) - An Innovative Provider of Robotic Solutions in Korea

ZinusZinus IPO Preview (Part 1) - An Amazing Comeback Story (#1 Mattress Brand on Amazon)
India
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

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.
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
Tencent Music

Tencent Music IPO: A Deep-Dive on Why Tencent Music Is Profitable and Spotify Is Not

Tencent Music

Tencent Music (TME): Only 29% Spotify-Like, But the Other Business Produces Profits

Tencent Music

Tencent Music IPO: A Deep-Dive on Why Tencent Music Is Profitable and Spotify Is Not

Tencent Music

Tencent Music Entertainment Group - Much Ado Nah Music About Nothing!

Tencent Music

Tencent Music Entertainment Group: Part 2 -The Curious Case of Acquiring Ultimate Music Inc

Tencent MusicTencent Music Pre-IPO - This Is How We Do It - A Quick Look at How the Apps Work
Tencent MusicTencent Music Pre-IPO Review - The Final Countdown - Growth Doesn't Seem to Be Slowing Down
Tencent Music

Tencent Music Entertainment Group– Competitors Aplenty Imply No Differentiation Except Moniker

Tencent Music

Tencent Music:We Estimate Value at USD 3.77 Per Share; Lower Than Many Expect - $11.7 B for TME

Tencent MusicTencent Music Pre-IPO - Valuations Estimates - Leaving on a Jet Plane - $30bn Was Quite Stretched
Tencent MusicTencent Music Pre-IPO - Quick Peer Analysis - If I Was You, I’d Wanna Be Me Too - Bigger and Fast
Tencent MusicTencent Music Pre-IPO - Industry - Don't Cry - In 2010 a Little Red Dot Almost Overtook the Dragon
WeidaiWeidai IPO Preview: Robust Foundations in Turbulent Times
Australia
Latitude financialLatitude Financial Group Pre-IPO Review - Credit Prospectus Throw up Some Interesting Data Points
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