bullish

DiDi Global

ECM Weekly (13th June 2021) - Didi, AiHuiShou, Dingdong Maicai, MissFresh, Full Truck, Nayuki

258 Views13 Jun 2021 10:43
SUMMARY

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


It was a busy week for the ECM space where multiple IPOs were filed the past week. Topping in deal size was Didi Chuxing. The company is looking to raise up to US$10bn in the US which would be one of the largest IPOs globally this year. We published a preliminary tearsheet discussing their background, financial overview, along with a follow-up piece looking at the revenue accounting and touching on valuations:

On-demand e-commerce and groceries firms, Dingdong Maicai and MissFresh, both filed for their US IPO, looking to raise US$500m. We initiated coverage on these two firms and compared their performance.

Boutique hotel operator, Atour Lifestyle Holdings, also filed for its US$300m IPO in the US. There were two new filings in India namely, integrated diagnostics chain Vijaya Diagnostic Centre, and component manufacturer, Sansera Engineering, where both are seeking US$225m and US$200m, respectively. This is the latter’s second attempt to go public.

Hong Kong's new IPO filings this week include surgical robotic solutions, Microport Medbot, Chinese medicine clinic chain, Gushengtang, and pharmacy chain, Quanyuantang Pharmacy,looking to raise US$1bn, US$400m, US$300m, respectively.

For ongoing IPOs, in the U.S, AiHuiShou launched its bookbuild on Friday. The company is looking to raise up to US$243m, which is significantly lower than the US$500 - 1bn deal size that was reported earlier.

In Hong Kong, Clear aligner player, Angelalign, closed its books a day earlier and was priced at the top end. The deal raised US$375m and comes off the back of overwhelming demand from institutional and retail investors. Shares will debut on Wednesday.

PAG-backed dairy producer, China Youran Dairy, launched their bookbuild over the week and was priced at the bottom end. Shares will begin trading on Friday.

Biopharmeceutical company, CARsgen, closed its books early and was reportedly priced at the top end, where nine cornerstones took up 58% of the deal. Shares will also debut on Friday.

Online recruitment platform, Kanzhun, priced its IPO at the top-end and almost doubled on its Friday debut, closing 95% higher. This brought an end to the China ADR listing slump.

For upcoming IPOs, we discussed forecasts, assumptions and valuation of digital freight platform, Full Truck Alliance.

Continuing our coverage on Nayuki, we compared the company to industry and listed peers and shared our thoughts on assumptions and valuation.

We also initiated on Keymed Biosciences Inc. The firm focuses on therapeutic areas of autoimmune and oncology and is seeking US$300m from its planned float.

Ophthalmic medical services group, Chaoju Eye Care, and biopharmaceutical company, Hutchison Med, both secured listing approval for their respective US$300m and US$500m IPOs. The duo will begin pre-marketing next week. Our coverage from earlier:

Chinese property management companies, SCE Intelligent Commercial Management and Ronshine, are also currently in the midst of pre-marketing their respective US$300m and US$100m IPOs.

In India, automotive technology company Sona Comstar launched its US$761m IPO (downsized from US$829m), where anchor books opened on Friday and the rest of the offer will last this coming Monday to Wednesday. This will be India’s first EV-related IPO..

We also followed up on the Holding Foreign Companies Accountable act, which seeks to stop China ADRs from being traded on the US exchanges. We discussed the implications in:

For placements, in Japan, semiconductor manufacturer, Renesas Electronics, raised US$3.6bn from a global follow-on. It was priced at a 3% discount to Wednesday’s close price. Books were multiple times oversubscribed, consisting of mainly long-only funds and sovereign wealth funds.

Ganfeng Lithium raised US$628m in Hong Kong to fund capacity expansion plans and for potential investment. Shares were sold at a 5% discount to undisturbed price and closed 10.1% above deal price.

Convertible bond holders of Pharmaron, sold shares to hedge their exposure, raising just US$67m (initially US$125m). It has since traded higher to close 10.6% above deal price on Friday.

Up Fintech (Tiger Brokers) raised US$159min its follow-on offering. Shares were priced at 2.35% discount to undisturbed price and have since traded higher to close 16.4% above deal price on Friday.

Accuracy Rate:

Our overall accuracy rate is 73.9% for IPOs and 67.6% for Placements

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

New IPO filings this week

  • Microport Medbot (Hong Kong, US$1bn)
  • Gushengtang (Hong Kong, US$400m)
  • Chengdu Quanyuantang Pharmacy (Hong Kong, US$300m)
  • Vijaya Diagnostic Centre (India, US$225m)
  • Sansera Engineering (India, US$200m)
  • Didi Chuxing (US, US$10bn)
  • Dingdong Maicai (US, US$500m)
  • MissFresh (US, US$500m)
  • Atour Lifestyle Holdings (US, US$300m)

News on Upcoming IPOs

Hong Kong/China

US/China ADRs

India

Others

Analysis on Upcoming IPOs

NameInsight
Hong Kong
Anjuke

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

Broncus (堃博医疗) Pre-IPO: Big Potential to Be Tested

ByteDance

ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)

ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok

ByteDance

ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)

ByteDance

ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H?

ByteDance

ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants

ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok

ByteDance

ByteDance (字节跳动) Pre-IPO - Globally the Most Downloaded App for Jan 2020 Driven by India

ByteDance

ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges

Chaoju

Chaoju Eye Care (朝聚眼科) Pre-IPO: Growth Prospect Far from Being Impressive

Dida

Dida Pre-IPO - Making Hay While Big Brother Retreats

Dida

Dida Pre-IPO - Earnings Forecast and First Stab at Valuation

Dida

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

Hanyu

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

Kilcoy Global Foods Pre-IPO - Rapid Earnings Growth on the Back of Margin Improvement

Kilcoy

Kilcoy Global Foods Pre-IPO - A Lot of Things Still Remain Unexplained

Keymed

Keymed (康诺亚生物) Pre-IPO: Differentiated Products but Far from Commercialization

Kindstar

Kindstar (康圣环球) Pre-IPO: Issues with Scalability

Kindstar

Kindstar (康圣环球) Pre-IPO: Is It Worth the Premium?

Novotech

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

RemeGenRemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48
SH Bio-heartShanghai Bio-Heart (上海百心安) Pre-IPO: Needs a Long Runway
ToplistToplist China Pre-IPO - Overwhelmingly More Negatives than Positives
TaslyTasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
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 - Digitalization Efforts Coming Through but Not Well Substantiated
India
Aadhar HousingAadhar Housing Finance Pre-IPO - Decent past Growth but Comes with Weird Disclosures
ASKASK 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 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

LIC

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
Samhi HotelsSamhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace
Sona ComstarSona Comstar Pre-IPO - Inconsistent Growth, Patchy Disclosures
ZomatoZomato Pre-IPO - Filings Lack Narrative, a Little Bit of History Helps
ZomatoZomato Pre-IPO - Food Delivery Revenue Was Probably up 16x
Malaysia
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
The U.S.
Dingdong MCDingdong Maicai Pre-IPO - Increasing Market Share, Fast Growth but No Signs of Profit
ForUForU Worldwide Pre-IPO - Mostly Negatives
Full Truck AllFull Truck Alliance Pre-IPO - The Positives - Category Leader
Full Truck AllFull Truck Alliance Pre-IPO - The Negatives - Still a Mixed Bag
Hello IncHello Inc (哈罗出行) Pre-IPO - Nowhere near Being Sustainable
MissFreshMissfresh Limited (每日优鲜) Pre-IPO - Worrying and Unsustainable Trend
SoulgateSoulgate Pre-IPO - Unsustainable Virtual Connection
QiniuQiniu Cloud (七牛云) Pre-IPO: PaaS Doesn't Warrant a Premium
XimalayaXimalaya Pre-IPO - The Positives - A Whole Lot of Listening
XimalayaXimalaya Pre-IPO - The Negatives
XimalayaXimalaya Pre-IPO - Peer Comparison
XimalayaXimalaya Pre-IPO - Earnings Forecast and Valuation
XimalayaXimalaya (XIMA): Has Large Market Share, But Small Competitors Have Big Bosses.
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