ECM Weekly (15 Mar 2020) - SBI Cards, SCG Package, Innocare, Akesobio, Zhenro Services

352 Views15 Mar 2020 13:26

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

Asia IPOs were not spared from the volatile global markets this week.

China Bright Culture Group (1859 HK) crashed to HK$1.75 per share (-22.6% from IPO) on its Friday trading debut before bouncing back to close at HK$2.10 per share (-7%).\

United Hampshire US REIT (UHUS SP) didn't get the same support. It debuted on Thursday, bounced briefly but continue to trade lower the next day and closed at SGD0.62 per share, about 22.5% below its IPO price. At the level, the selling seemed a tad overdone as FY2020 yield without top-up is above 7.5% and with top-up is around 9%,as per Sumeet Singh in this trading note. Also. there are about 14m greenshoe shares available for support and so far, it has traded about 14m shares over the last two days but there didn't seem to be any end of day ramp up support in share price. Some support could come in over the next week if and when Aisa markets can sustain US' markets relief rally on Friday.

The upcoming IPO to keep look out for is SBI Cards (SBICARDS IN) as it will be listing on Monday. As per Sumeet Singh's trading update note, the unofficial grey market for the IPO had already cooled off from a high of INR335/share (44% above the IPO price) to INR150/share (20% above IPO price) by the end of book building but some are now reporting about INR-50/share, indicating a listing below the IPO price.

The IPO that have braved the market is InnoCare Pharma Ltd (9969 HK) which is expected to close its books on Monday and will list the following Monday (23rd March). Ke Yan, CFA, FRM updated his thoughts on the IPO.

Our other early IPO coverage this week:

Accuracy Rate:

Our overall accuracy rate is 73.6% for IPOs and 65.2% 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.

News on Upcoming IPOs

Analysis on Upcoming IPOs

Hong Kong
Akeso BioAkesobio (康方生物) Pre-IPO: Late in the PD-1 Game but Products Are Promising
Akeso BioAkesobio (康方生物) Pre-IPO: Thoughts on Valuation
Ant FinancialAnt Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors

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


GreenTown Mgt (绿城管理) Pre-IPO - Sacrificed Margins in Pursuit of Growth, Muddled by JVs


Helenbergh (海伦堡) Early Thoughts - The Usual Red Flag - Related Party Transactions


Shenzhen Hepalink (海瑞普) A+H: A Heparin-API King but Nothing Too Exciting


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


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

MegviiMegvii (旷视) Pre-IPO - Remarkable Growth (Part 1)
MegviiMegvii (旷视) Pre-IPO - A Bet on the Future - Segments, Revenue Drivers and Growth Potential
MegviiMegvii (旷视) Pre-IPO - The Real Race Is in Research - Founders' Profile and Talent
MegviiMegvii (旷视) Pre-IPO - Competitive Landscape and Peer Analysis
MegviiMegvii (旷视) Pre-IPO - Initial Thoughts on Valuation
PeijiaPeijia Medical (沛嘉医疗) Pre-IPO: Reminiscence of Venus Medtech?

Smoore Tech (麦克韦尔) IPO: Hidden E-Cigarette Player Behind the FEELM Technology


Smoore Tech (麦克韦尔) Pre-IPO: 6Y and 1H2019 Financials Show Technology Driven Growth


Smoore Intl (思摩尔国际) Pre-IPO: Tripling Capacity in Three Years


Smoore Intl (思摩尔国际) Pre-IPO: Thoughts on E-Cig Regulation

TaslyTasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
YeahkaYeahka (移卡) Pre-IPO Review - Growing in an Increasingly Competitive Space
YeahkaYeahka (移卡) Pre-IPO - Peer Analysis and Early Thoughts on Valuation
Zhenro SvcZhenro Services (正荣服务) Pre-IPO - Diversifying Away from Zhenro Property Group
Zhenro SvcZhenro Services (正荣服务) Pre-IPO - Peer Comparison and Thoughts on Valuation
ASKASK Investment Managers Pre-IPO - Riding on a Wave of Wealth
Aakash EduAakash Education Pre-IPO - Fast Growth in an Attractive Sector
Anmol IndAnmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders
Bharat Hotel

Bharat Hotels Pre-IPO - Catching up with Peers

Burger King

Burger King India Pre-IPO - Has Been Growing Fast and Plans to Grow Even Faster

Burger King

Burger King India Pre-IPO - Peer Comparison Yields Interesting Nuggets on Profitability and Capex

Bajaj En

Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It

CAMSCAMS Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance
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
Equitas SFBEquitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing
Equitas SFBEquitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing
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
IRFCIndian Railway Finance Pre-IPO - Low Risk, Low Margin Business
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
MazagonMazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
MindspaceMindspace Business Parks REIT Pre-IPO - Decent Growth but Not All Assets Are Equal
Mrs. BectorMrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta


Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO


Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
LodhaLodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
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
Mr DIYMr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia
Mr DIYMr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition
Mr DIYMr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share
Mr DIYMr D.I.Y. Pre-IPO - Assumptions and Thoughts on Valuation
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
SCGPSCGP Pre-IPO - Shift to Packaging Has Been Aiding Margins but Acquisition Drove up Leverage
The U.S
CDPCDP Holdings Pre-IPO Review - Highly Reliant on Best Inc.
CloudMindsCloudMinds Inc Early Thoughts - Still Nascent
Kingsoft CloudKingsoft Cloud (金山云) Pre-IPO: The Leading Cloud Provider in China
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