bullish

Biel Crystal

ECM Weekly (19th September 2021) - PHC, StarHealth, TDCX, Biel Crystal, DRCBank, Transcenta, Broncus

361 Views19 Sep 2021 10:10
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.


Events next week:

There was a mix of good and bad news this week in the APAC ECM space this week. Starting with the good, Hyundai Heavy Industries (329180 KS) ended its first trading day 85% higher on the back of one of the best subscription rates among Korean IPOs even though we thought valuation was too expensive compared to peers.

But, other Korea IPOs may not be as fortunate. In light of the regulatory backdrop, Kakao Pay (377300 KS) may its IPO again whereas Simone Accessories Collection (381920 KS) which we covered this week, has pushed back its bookbuild dates to mid October.

Japan IPOs aren't looking great either. Our further analysis on PHC Holdings (6523 JP) suggest that the company doesn't standout compared to peers, neither did valuation make much sense given that it seemed to be a messy amalgamation of various unsynergetic businesses.

In Hong Kong, Dongguan Rural Commercial Bank (DRCOBZ HK) opened its books on Friday and will be pricing on this coming Thursday. Shares will trade on 29th September. As with many Chinese banks that came before DRC Bank, valuation is unappealing.

There were two other biotech IPO launches in Hong Kong as well, Transcenta Holding (6628 HK) and Broncus (2216 HK). The latter's bookbuild saw strong demand, closing a day earlier and pricing at the top-end. They will debut on 29th September and 24th September (coming Friday), respectively.

For upcoming IPOs, it was reported that ANE Logistics (1292621D CH) has won HKEX approval and will be pre-marketing its IPO this coming week. We also continued our coverage on Biel Crystal (0924581D HK), comparing the company to other Apple suppliers.

In India and US, we initiated on Star Health (7584769Z IN) and TDCX (TDCX US). The former is looking to raise about US$1bn while the latter is targeting a US$400m IPO.

Last but not least, tearsheets for upcoming IPOs:

It was a fairly busy week in the placement space too for Australia and Japan. The most notable one would be Demae-Can Co., Ltd. (2484 JP)'s massive dilution which raised more than US$700m. Share price ripped higher the day after the announcement of the placement but it is currently sitting right on deal price.

Accuracy Rate:

Our overall accuracy rate is 73.8% for IPOs and 68% for Placements

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

New IPO filings this week

  • Ximalaya (Hong Kong, US$1bn)
  • Aim Vaccine (Hong Kong, US$1bn, refiled)
  • Shui On Xintiandi (Hong Kong, US$500m)
  • Shanghai Bio-heart Biological Technology (Hong Kong, US$300m, refiled)
  • Vedant Fashions (India, US$340m)

News on Upcoming IPOs

Hong Kong/China

US/China ADRs

India

Japan/Korea

Others

Analysis on Upcoming IPOs

NameInsight
Hong Kong
APM Monaco

APM Monaco Pre-IPO - China’s Resilience Shines

Airdoc

Beijing Airdoc (北京鹰瞳科技) Pre-IPO - A Niche Field with Merits but Can It Sell?

Anjuke

Anjuke Pre-IPO - Mixed (Positive and Negative) Developments

Ambio

AmbioPharm (昂博制药) Pre-IPO: Peptide CDMO Leader Turning Licensor

Biel Crystal

Biel Crystal (伯恩光学) Pre-IPO - Cash Flow Generative Business but Underlying Trend Is Worrying

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

ByteDance

ByteDance (字节跳动) Pre-IPO - Globally the Most Downloaded App for Jan 2020 Driven by India

ByteDance

ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges

Cloud Village

Cloud Village (NetEase Music) Pre-IPO - Mixed PHIP Update, Updated Thoughts on Valuation

Cloud Village

Cloud Village (NetEase Music) Pre-IPO - Initial Thoughts on Valuation

Cloud Village

Cloud Village (NetEase Music) Pre-IPO - Tencent Music Peer Comp, Regulatory Impact

Cloud Village

Cloud Village (NetEase Music) Pre-IPO - Was in the Slow Stream, Playing Catch-Up

Edda

EDDA Healthcare Pre-IPO - RoboDoc - Has Been Around for a While but Is Just Getting the Robo Going

Dingdang

Dingdang Health Tech (叮当健康) Pre-IPO - Impressive Growth but Not Without Concerns

Intco Med

Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1

Imeik

Imeik Tech (爱美客) A/H Pre-IPO - Dermal Filler Leader Capitalizing on Its Valuation

Jenscare

Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio

MicroPort Medbot

MicroPort MedBot Pre-IPO - RoboDoc - Pre-Revenue, Has a Large Competitor but a Large Market as Well

NewMed

NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR

Neusoft Xikang

Neusoft Xikang (东软熙康) Pre-IPO: A Long Way to Profit

Neusoft Med

Neusoft Medical Systems (东软医疗系统) Pre-IPO: Unattractive Fundamentals

WeDoctorWeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More
WeDoctorWeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor
WeDoctorWe Doctor (微医) Pre-IPO - Peer Comparison - Picking Its Battles Wisely
WeDoctorWe Doctor (微医) Pre-IPO - Forecasts, Early Thoughts on Valuation, and Acquisition Gripes
WeilongWeilong Delicious Global Pre-IPO - The Positives - Fast Growth, Strong Backers
WeilongWeilong Delicious Global Pre-IPO - The Negatives - Spicy Valuation
WM TechWM Tech Pre-IPO - Peer Comparison and Pre-IPO Valuation - Some Signs of Advantage
WM TechWM Tech Pre-IPO - Digitalization Efforts Coming Through but Not Well Substantiated
India
Aadhar HousingAadhar Housing Finance Pre-IPO - Decent past Growth but Comes with Weird Disclosures
Aditya AMCAditya Birla Sun Life AMC Pre-IPO - Strong Profit Growth but It's Losing Market Share
Anmol IndAnmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders
Bharat Hotel

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

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
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
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

LIC

Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO
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
Malaysia
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
Philippines
MREITMREIT Pre-IPO - Mediocre Performance, Convoluted Lease, Low Asset Yield
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