ECM Weekly (14 Dec 2019) - SBI Cards, Poly Property, JS Global, OneConnet
Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
The Q4 IPO rush is finally slowing down but we still have a few more trading debuts in the coming week.
There is just one bookbuild ongoing in Hong Kong- Bank of Guizhou Co Ltd (1147131D CH) which launched its US$800m IPO on Friday. This week's listings in Hong Kong have generally done well. Venus Medtech and Alphamab didn't disappoint, closing 22% and 40% higher than their IPO price as of Friday, respectively. XD did well too. It closed 16% above its IPO price, outperforming our expectation on the back of good cornerstone investors and despite the lower subscription rate compared to CMGE.
- Alphamab (康宁杰瑞) IPO: Allocation and Buy-Level for the Hot Deal
- Venus Medtech (启明医疗) IPO Trading: Allocation and Buy-Level
- XD Inc. (心动有限公司) Trading - Subscription Rate Pales in Comparison to CMGE
News on upcoming IPOs are also starting to trickle in. There were news reports of two Hillhouse-backed companies, Blue Moon and Genecor, looking/mulling to list next year.
In India, Ujjivan SFB didn't disappoint trading more than 50% higher on debut as expected. But its holding company Ujjivan Bank seems to lagging behind, as per Sumeet Singh note.
India IPOs are also starting to look up as we are getting news of more big IPO filings or looking to list. This includes Home First Financials, Equitas SFB, Fincare SFB, UTI AMC.
In the U.S, we continue to see Chinese companies push through to list despite valuation cuts and bookrunners pulling from the deals. OneConnect traded flat after significant valuation cut while Ucommune, China's WeWork, is filed after two bookrunners pulled from the IPO.
Accuracy Rate:
Our overall accuracy rate is 73.6% for IPOs and 65.5% for Placements
(Performance measurement criteria is explained at the end of the note)
New IPO filings this week
- Bank of Guizhou (Hong Kong, re-filed and approved)
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.
News on Upcoming IPOs
Analysis on Upcoming IPOs
- OneConnect Financial IPO - Getting Closer to Fair Value but Not There Yet
- Poly Property Development (保利物业发展) IPO - Good Cornerstone with Some Upside from the Low-End
- JS Global (JS 环球生活) Re-IPO - Little Upside After Applying Holding Company Discount
- SBI Cards and Payments Pre-IPO - The Positives - Ticks a Lot of Boxes
- SBI Cards and Payments Pre-IPO - The Negatives - Banking on a Single Growth Driver
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- ECM Weekly (12 Jan 2020) - Jiumaojiu, I-Mab, Phoenix Tree, Burger King India12 Jan 2020
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- ECM Weekly (23 Dec 2019) - Bank of Guizhou, Powerlong Commercial Management23 Dec 2019
- ECM Weekly (14 Dec 2019) - SBI Cards, Poly Property, JS Global, OneConnet14 Dec 2019
- OneConnect Financial IPO - Getting Closer to Fair Value but Not There Yet12 Dec 2019
- Alphamab (康宁杰瑞) IPO: Allocation and Buy-Level for the Hot Deal11 Dec 2019
- ECM Weekly (8 Dec 2019) - OneConnect, JS Global, Renrui, Poly Property, Freee, Burger King India08 Dec 2019