bullish

ECM Weekly (16 Nov 2019) - Alibaba, Freee, Megvii, Pharmaron, Canaan, XD

406 Views16 Nov 2019 13:12
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.

Even as tensions rise in Hong Kong, Alibaba Group Holding (BABA US) is pushing ahead with its listing in Hong Kong. We heard the deal is already covered just one day after books were opened. Fundamentally, the deal is unlikely to change anything for the company and even in terms of trading dynamics, the deal size is small considering its market cap, the number of shares that will be issued, and the deal size versus average daily volume. Sumeet Singh covered the details and flows from passive buying in his previous insights. Books will close on 19th and price on the 20th of November (before US opens).

Other ongoing bookbuilds include Pharmaron Beijing Co Ltd-H (3759 HK), Huali University Group (1756 HK) and Heaven-Sent Gold (1342 HK) and their bookbuilds will close on the 21st, 19th, and 18th of November next week respectively. Out of which, we heard that Pharmaron's books have already been covered. We also heard that China Merchants Commercial (CMC) REIT is pre-marketing its US$400m IPO.

In the U.S., OneConnect Financial Technology (OCFT US)'s IPO filing is finally made public while CDP Holdings, a China-based firm providing human resources, outsourcing and consulting services, has also filed with an expected deal size of US$100m. Canaan Inc. (CAN US) also launched its bookbuild with a much smaller deal size of up to US$110, down from US$400m.

In India, State Bank Of India (SBIN IN)'s board has approved the sale of SBI Cards shares in an IPO. SBI Cards is targeting to launch its IPO in January 2020 and it will be the first IPO by a credit card company in India. The other upcoming IPO in India is Ujjivan Small Finance Bank plans to launch its IPO towards end November or early Decemberas per news reports.

In Thailand, we heard that Bangkok Commercial Asset Management (BAM) is premarketing its US$700m IPO and will be targeting to launch its bookbuild towards the end of the month.

Accuracy Rate:

Our overall accuracy rate is 72.7% for IPOs and 64.8% for Placements

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

New IPO filings this week

  • OneConnect (U.S., ~US$100m)
  • CDP Holdings (U.S., ~US$100m)

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

NameInsight
Hong Kong
Alphamab

Alphamab (康宁杰瑞) IPO: Strong R&D Capability and Innovative Platforms

Ant FinancialAnt 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

Home Credit

Home Credit Pre-IPO (Part I) - The Positives - Lots to Like

Home Credit

Home Credit Pre-IPO (Part II) - The Negatives - A Lot More to Dislike

Home Credit

Home Credit Pre-IPO - Bigger but Not Necessarily Better than Peers

Home Credit

Home Credit Pre-IPO - Thoughts on Valuation and the Curious Case of Expanding Equity Base

Innocare

InnoCare (诺诚健华) Pre-IPO: A Decent Team but Short of Clinical Stage Candidates

Jiumaojiu

Jiumaojiu (九毛九) Pre-IPO Early Thoughts - New Brand Driving Growth

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
MicuRxMicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
PharmaronPharmaron (康龙化成) A+H Listing: A Leading Drug Discovery Company
PharmaronPharmaron (康龙化成) A+H Listing: 3Q2019 Numbers and Thoughts on Valuation
Poly PrpPoly Property Development (保利物业发展) IPO Early Thoughts - Well-Rounded Company
Renrui

Renrui Human Resources (人瑞人才) Pre-IPO Review - Riding on China's Unicorns

SinoMab

SinoMab (中国抗体): Pipeline Concentrated on Autoimmune Therapy

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

TaslyTasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
VenusVenus Medtech (启明医疗) IPO: Has the Elements for a Hot Healthcare Deal
VenusVenus Medtech (启明医疗) IPO: Technical Comparison of VenusA-Valve and Peers
India
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 Hotels

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
Flemingo Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country
Emami CemEmami Cement Pre-IPO - Still in Ramp Up Phase but Emami 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
MazagonMazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mrs. BectorMrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta

Lodha

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
UjjivanUjjivan Small Finance Bank Pre-IPO - Shouldn't Be Forced to List
Malaysia
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
The U.S
CloudMindsCloudMinds Inc Early Thoughts - Still Nascent
FangDDFangDD (房多多) IPO: Reminiscence of SFUN?
HuizeHuize (慧择) Pre-IPO - Insurance Agency Masquerading as a Platform Business
I-MabI-Mab (天境生物) Pre-IPO: Strong Management and Investor Backing with Differentiated Products
MetenMeten International Edu (美联国际教育) Early Thoughts - Unclear Strategies
Phoenix TreePhoenix Tree (Danke) Pre-IPO - Another WeWork - Nothing Is Improving Apart from Revenue
Q&KQ&K Intl (青客) IPO: Yet Another WeWork Model that Will Not Work
Australia
Tyro Tyro Payments IPO - A Lot to like Apart from Its Earnings Profile and Churn Rate
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