ECM Weekly (16 Feb 2020) - ThaiBev Brewery, ByteDance, China Bright Culture, Equitas SFB, LIC

315 Views16 Feb 2020 09:58

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.

ECM activity has been slow this week. We saw some signs of life earlier this week with the launch of a handful of placements such Innovent Biologics Inc (1801 HK) and Prime US REIT (PRIME SP) which Ke Yan, CFA, FRM covered in:

Lion Air has decided push back its IPO to Q2 citing uncertainty from the coronavirus outbreak, according to news report. The company was said to be pre-marketing earlier towards the end of January. 58 Home has also decided to delay its US IPO plans citing the similar reasons. The company was supposed to list in 1H of 2020 as per news reports. In Hong Kong, Japanese restaurant chain Daikiya has also pulled its Hong Kong IPO

That said, UOB Hampshire REIT, which comprised of US-based grocery stores, is still moving ahead with pre-marketing for a Singapore listing to gauge demand. SPH was also said to be picking banks for the REIT listing of its UK student accommodation asset.

In anticipation of ThaiBev's potential IPO of its brewery business, we looked at the unit in an early note to understand its past performance, estimated valuation, and implications.

Sumeet Singh also shared some early thoughts on the upcoming mega IPO, LIC, in India as well as Equitas SFB's listing in:

Last, but not least, Ke Yan, CFA, FRM covered the recently approved IPO, China Bright Culture, and continued his coverage on ByteDance which was rumored to be exploring listing options.

Accuracy Rate:

Our overall accuracy rate is 73.6% for IPOs and 65.1% for Placements

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

New IPO filings this week

Ayala REIT (Philippines, US$300m)

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

Name	Insight
Hong Kong
Akeso Bio	Akesobio (康方生物) Pre-IPO: Late in the PD-1 Game but Products Are Promising
Ant Financial	Ant Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
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
Helenbergh	Helenbergh (海伦堡) Early Thoughts - The Usual Red Flag - Related Party Transactions
Innocare	InnoCare (诺诚健华) Pre-IPO: A Decent Team but Short of Clinical Stage Candidates
Innocare	InnoCare (诺诚健华) Pre-IPO: Thoughts on Valuation
Jiumaojiu	Jiumaojiu (九毛九) Pre-IPO Early Thoughts - New Brand Driving Growth
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
Megvii	Megvii (旷视) Pre-IPO - Remarkable Growth (Part 1)
Megvii	Megvii (旷视) Pre-IPO - A Bet on the Future - Segments, Revenue Drivers and Growth Potential
Megvii	Megvii (旷视) Pre-IPO - The Real Race Is in Research - Founders' Profile and Talent
Megvii	Megvii (旷视) Pre-IPO - Competitive Landscape and Peer Analysis
Megvii	Megvii (旷视) Pre-IPO - Initial Thoughts on Valuation
MicuRx	MicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
Smoore	Smoore Tech (麦克韦尔) IPO: Hidden E-Cigarette Player Behind the FEELM Technology
Smoore	Smoore Tech (麦克韦尔) Pre-IPO: 6Y and 1H2019 Financials Show Technology Driven Growth
Smoore	Smoore Intl (思摩尔国际) Pre-IPO: Tripling Capacity in Three Years
Smoore	Smoore Intl (思摩尔国际) Pre-IPO: Thoughts on E-Cig Regulation
Tasly	Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
Yeahka	Yeahka (移卡) Pre-IPO Review - Growing in an Increasingly Competitive Space
Yeahka	Yeahka (移卡) Pre-IPO - Peer Analysis and Early Thoughts on Valuation
India
ASK	ASK Investment Managers Pre-IPO - Riding on a Wave of Wealth
Aakash Edu	Aakash Education Pre-IPO - Fast Growth in an Attractive Sector
Anmol Ind	Anmol 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
CAMS	CAMS Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance
CMS Info	CMS Info Systems Pre-IPO - When a PE Sells to Another PE... Only One Gets the Timing Right
Crystal Crop	Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers
Equitas SFB	Equitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing
Equitas SFB	Equitas 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 Cem	Emami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO
NSE	NSE IPO Preview- Not Only Fast..its Risky and Expensive
NSE	National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some
Mazagon	Mazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mindspace	Mindspace Business Parks REIT Pre-IPO - Decent Growth but Not All Assets Are Equal
Mrs. Bector	Mrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta
LIC	Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO
Lodha	Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
Lodha	Lodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
Penna Cem	Penna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid
PNB Met	PNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers
Samhi Hotels	Samhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace
SBI Cards	SBI Cards and Payments Pre-IPO - The Positives - Ticks a Lot of Boxes
SBI Cards	SBI Cards and Payments Pre-IPO - The Negatives - Banking on a Single Growth Driver
SBI Cards	SBI Cards and Payments Pre-IPO - Valuations - A Tale of Two Revenue Streams
Malaysia
Mr DIY	Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia
Mr DIY	Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition
Mr DIY	Mr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share
Mr DIY	Mr D.I.Y. Pre-IPO - Assumptions and Thoughts on Valuation
QSR	QSR Brands Pre-IPO - As Healthy as Fast Food
The U.S
CDP	CDP Holdings Pre-IPO Review - Highly Reliant on Best Inc.
CloudMinds	CloudMinds Inc Early Thoughts - Still Nascent
Huize	Huize (慧择) Pre-IPO - Insurance Agency Masquerading as a Platform Business
Kingsoft Cloud	Kingsoft Cloud (金山云) Pre-IPO: The Leading Cloud Provider in China