ECM Weekly (17 November 2018) - Softbank Corp, Tongcheng-Elong, Junshi Bio, QSR, Sinochem Energy

787 Views17 Nov 2018 17:54
SUMMARY

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

The ECM space is still fairly quiet with no new listings but there is no doubt we are heading into a busy few weeks soon. Tongcheng-Elong Holdings Ltd (780 HK) finally launched its IPO, seeking to raise just US$232m down from the estimated US$800m from earlier news reports. In Australia, Heathley Healthcare REIT has also started its A$225m bookbuild and will close on the 21st of November.

We are also hearing a few Hong Kong companies seeking approval or starting their pre-marketing next week. After a good debut by Innovent Biologics Inc (1801 HK) , Tianjin CanSino Biotechnology Inc (1337013D HK) is looking to pre-market its US$100 - 150m IPO while WuXi AppTec Co Ltd (603259 CH) which is already listed in China is looking to pre-market next Monday. Natural Food, which claims to be the second largest health food company in China, is also looking to pre-market next week. Asiainfo Technologies (1119892D CH), which Ke Yan, CFA, FRM has already covered in AsiaInfo Tech (亚信科技) IPO: Cost Control Is the Key (Part 1), is seeking IPO hearing next week as well.

Whereas, in Singapore, Wearnes Automotive a luxury car distributor which bought from United Engineers (UEM SP) in 2014, has received approval for its US$217m IPO and Ascenda-Singbridge is said to be mulling a US$500m REIT IPO.

In Japan, Softbank Corp (9434 JP) is gearing up towards its massive US$21bn IPO with an estimated share price of JPY1,500 and the company is promising a payout ratio of 85%, which as expected is implying a higher yield than its peers.

While activity is picking up, sentiment has not been good. Canaan Inc. (CANAAN HK) allowed its Hong Kong IPO application lapse as bitcoin falls to lowest level in a year while many of the upcoming IPOs are at much lower valuation than earlier reported such as Babytree Inc (BABYTRE HK) , Tongcheng-Elong Holdings Ltd (780 HK) , and Mogu (MOGU US) .

Accuracy Rate:

Our overall accuracy rate is 71.8% for IPOs and 64.1% for Placements

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

New IPO filings this week

  • Zhaogang.com (Hong Kong, re-file)

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.

Source: Aequitas Research, Smartkarma

News on Upcoming IPOs

Smartkarma Community's this week Analysis on Upcoming IPO

List of pre-IPO Coverage on Smartkarma

NameInsight
Hong Kong
Ant FinancialAnt Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
Asia InfoAsiaInfo Tech (亚信科技) IPO: Cost Control Is the Key (Part 1)
BabyTreeBabytree Group Pre-IPO - Young Moms Need It but Almost All Seem to Have It, Might Be at Peak MAU
BabyTreeBabytree IPO Preview: In Desperate Need of Alibaba to Unleash Its Potential
BitmainBitmain IPO Preview: The Last Hurrah Before Reality Bites
BitmainBitmain IPO Preview (Part 2) - King of Cryptocurrency Mining Rigs but Its Moat Is Shrinking
BitmainBitmain: A Counter Thesis
BitmainBitmain (比特大陆) IPO: Running Out of Steam on Mining Rigs (Part 1)
BitmainBitmain (比特大陆) IPO: Value At Risk of Founder's Belief (Part 2)
BitmainBitmain (比特大陆) IPO: Take-Aways from Founder's Recent Speech at Tsinghua University (Part 3)
BitmainBitmain (比特大陆) IPO: Intense Competition in the 7nm Mining ASIC Market (Part 4)
Canaan Inc.Canaan Inc. IPO Preview (Part 1) - The Biggest Blockchain Related IPO Globally in 2018
Canaan Inc.Canaan Inc. IPO Preview (Part 2) - A Closer Look at ASIC Developments and Competition
Canaan Inc.Canaan Inc. IPO Preview (Part 3): Earnings Forecast & Valuation Analysis
Canaan Inc.Canaan (嘉楠耘智) IPO Quick Take: Beware that ASIC Is a Different Ball Game
CansinoCanSino Biologics (康希诺) IPO: Promising Pre-Clinical Results but Vaccine Scandal Weighs (Part 1)
CenmintangCenmintang IPO Preview: A Beverage and Snack Play Whose Growth Is Hard to Grasp
China FeiheChina Feihe IPO Preview: Goat Bless Infant Formula Milk?
Entertnmt PlusEntertainment Plus – 60% Market Share, Margin Not a Concern
Entertnmt PlusMaoyan IPO Preview: Running Out of Growth Drivers
Entertnmt PlusEntertainment Plus (猫眼娱乐) IPO: The Engineered Movie Ticketing Leader Running Out of Steam (Part 1)
Entertnmt PlusEntertainment Plus (猫眼娱乐) IPO: The Coming Regulatory Bang Isn't That Bad (Part 2)
Fosun TourismFosun Tourism IPO, Part 1: Back to the Beach With Club Med! | But Is This a 'China' Play?
Fosun Tourism

Fosun Tourism IPO Analysis: Quid Pro Quo for the Better of Fosun Group?

Frontage

Frontage Holding (方达控股) IPO: More Disclosure Needed to Understand Moat and Growth Prospect

Junshi Bio

Junshi Bioscience (君实医药) IPO: Early in Application but Behind in Key Indications (Part 1)

MicuRxMicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
Stealth BioStealth Biotherapeutics IPO: Cure the Symptoms but Not the Cause (Part 1)
TubatuTubatu Group Pre-IPO - Performing Better than Qeeka but Growing Much Slower, US$1bn a Stretch
TubatuTubatu Group Pre-IPO - Online -> Online + Offline -> Online -> ?
Qilu ExpressQilu Expressway IPO Preview: Concentration Risk and Recent News May Mean Discount to Peers
WankaWanka Online Pre-IPO - Listing Too Early but It Needs the Cash
WankaWanka Online IPO Preview: Rapid but Unsustainable Growth
WeLabWeLab Pre-IPO - Stuck in a Regulatory Quagmire; Not the Right Time to List
YancoalYancoal Australia IPO: Just Turned Profitable But Is It Sustainable Against Industry Headwinds
South Korea
AsianaAsiana IDT IPO Preview (Part 1)
AsianaAsiana IDT IPO Preview (Part 2) - Valuation Analysis
DaeyuDaeyu Co. IPO Preview (Part 1)
EbangEbang IPO Preview (Part 1): Lower Sales but Higher Operating Profit Versus Canaan Inc.
FoodnamooFoodnamoo Inc IPO Preview (Part 1) - A Leader in Home Meal Replacement Products in Korea
KMH ShillaKMH Shilla Leisure IPO Preview (Part 1) - Highly Profitable Operator of Public Golf Courses in Korea
KMH ShillaKMH Shilla Leisure IPO Preview (Part 2) - Valuation Analysis
Livent

Livent IPO Preview (Part 1): A Profitable Company that Produces Lithium

Plakor

Plakor IPO Preview (Part 1)

Robotis

Robotis IPO Preview (Part 1) - An Innovative Provider of Robotic Solutions in Korea

VespaVespa Inc IPO Preview (Part 1)
T-RoboticsT-Robotics IPO Preview (Part 1) - Following the Explosive Demand of Robotis IPO?
ZinusZinus IPO Preview (Part 1) - An Amazing Comeback Story (#1 Mattress Brand on Amazon)
India
CMS InfoCMS Info Systems Pre-IPO Review - 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
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
Mazagon DockMazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending

Lodha

Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
LodhaLodha Developers IPO: Large Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
IndiaMartIndiaMART Pre-IPO - Getting and Retaining Subscribers Seems to Be Difficult
The U.S.
360 Finance360 Finance (360金融) IPO First-Take: Too Late into Cash Loan Game
360 Finance360 Finance IPO Preview: Pluses and Minuses
Tencent Music

Tencent Music IPO: A Deep-Dive on Why Tencent Music Is Profitable and Spotify Is Not

Tencent Music

Tencent Music (TME): Only 29% Spotify-Like, But the Other Business Produces Profits

Tencent Music

Tencent Music IPO: A Deep-Dive on Why Tencent Music Is Profitable and Spotify Is Not

Tencent Music

Tencent Music Entertainment Group - Much Ado Nah Music About Nothing!

Tencent Music

Tencent Music Entertainment Group: Part 2 -The Curious Case of Acquiring Ultimate Music Inc

Tencent MusicTencent Music Pre-IPO - This Is How We Do It - A Quick Look at How the Apps Work
Tencent MusicTencent Music Pre-IPO Review - The Final Countdown - Growth Doesn't Seem to Be Slowing Down
Tencent Music

Tencent Music Entertainment Group– Competitors Aplenty Imply No Differentiation Except Moniker

Tencent Music

Tencent Music:We Estimate Value at USD 3.77 Per Share; Lower Than Many Expect - $11.7 B for TME

Tencent MusicTencent Music Pre-IPO - Valuations Estimates - Leaving on a Jet Plane - $30bn Was Quite Stretched
Tencent MusicTencent Music Pre-IPO - Quick Peer Analysis - If I Was You, I’d Wanna Be Me Too - Bigger and Fast
Tencent MusicTencent Music Pre-IPO - Industry - Don't Cry - In 2010 a Little Red Dot Almost Overtook the Dragon
WeidaiWeidai IPO Preview: Robust Foundations in Turbulent Times
Australia
Latitude financialLatitude Financial Group Pre-IPO Review - Credit Prospectus Throw up Some Interesting Data Points
Malaysia
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
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