ECM Weekly (20th June 2021) - Didi, Nayuki, Soulgate, Hutchmed, Full Truck, CTOS, Cloud Village

384 Views20 Jun 2021 09:57

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

It has been a busy week in the ECM space.

For ongoing/live IPOs, in the U.S, Chinese freight-as-a-service provider, Full Truck Alliance, launched its bookbuild on Wednesday and closed a day earlier on the back of strong demand. It had obtained indications of interest for up to 40% of the total deal. Pricing is expected to come in on Monday, after the US market closes.

Soulgate Inc, which operates Soul app, an algorithmic-driven online social playground, launched its US$198m IPO bookbuild. Shares will trade on Thursday.

In Hong Kong, Nayuki, launched its US$656m bookbuild this week. Books will close on Wednesday and shares will debut on 30th June.

US and London-listed bio pharma company, Hutchmed (China), launched its bookbuild for its US$590m Hong Kong secondary listing. The deal will price on Wednesday and debut on 30th June. We covered the firm’s earlier attempt to list back in 2019:

Chinese property management company, Yuexiu Services, also launched its US$300m bookbuild on Tuesday. Books were reportedly covered. The deal will price on Monday and debut on 28th June.

For upcoming IPOs, in Hong Kong, medical devices company, Zylox-Tonbridge, and ophthalmic medical services group, Chaoyu Eye Care, began pre-marketing their respective US$400m and US$300m IPOs.

Shanghai Bio-Heart, a medical devices provider, is currently pre-marketing its US$300m IPO as well. The firm manufactures devices to treat artery diseases and hypertension. We covered the deal earlier.

Kindstar Globalgene Technology, an independent esoteric clinical testing service provider has also begun pre-marketing its US$400m IPO. Pre-marketing will end on Wednesday and we have covered the deal earlier:

Chinese beauty brand e-commerce service provider, eBeauty Holdings, and Chinese biotech company Brii Biosciences, are both seeking listing approval for their respective US$600 and US$400m IPOs, respectively.

Other HK IPOs seeking listing approval include real estate developer, Sanxun Holdings Group, property management company, Ling Yue Services, and automobile dealership, BetterLife Services. They are each looking to raise US$100m, US$100m, US$150m, respectively.

We also continued our coverage on Didi’s expected US$10bn IPO with a competitive outlook note. We took a look at segment margins for its main and international business.

Following our ongoing coverage of fresh food retailers, Dingdong Maicai and MissFresh, where both are seeking a US$500m IPO each, Ming Lu went on the ground to compare these two peers with Meituan as well.

For initiation coverage, we looked at LinkDoc Technology, a medical data company backed by Alibaba Health. The company filed earlier this week and has begun pre-marketing.

Also in the U.S, we initiated on Chinese boutique hotel operator, Atour Lifestyle’s which was said to be looking to raise US$300m.

In Hong Kong, we initiated on music streaming service, Cloud Village (Netease Music). It is expected to raise about US$1bn. The firm boasts a strong lineup of backers which includes Baidu, Alibaba, Yunfeng Capital and Boyu Capital.

In Malaysia, Creador-backed credit reporting agency, CTOS Digital managed to secure strong participation from 20 cornerstones for its US$291m IPO. The deal size is a step up from the initial planned US$150m. The deal will come later this month.

For debuts, IPOs in Hong Kong flopped. China Youran declined as low as 21% below its IPO price before recovering to close 11% below. CARsgen did slightly better. It opened about 10% below IPO price, clawed back most of its lost grounds intraday before closing 8% below. Things were better in the U.S, AiHuiShou closed 22.9% higher on its Friday debut.

Credits to Clarence Chu for helping with the note.

Accuracy Rate:

Our overall accuracy rate is 73.8% for IPOs and 67.6% for Placements

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

New IPO filings this week

  • Huitongda Network (Hong Kong, US$1bn)
  • Abbisko Cayman Limited (Hong Kong, US$250m)
  • Yonghe Medical Group (Hong Kong, >US$100m)
  • LinkDoc Technology (US, US$500m)
  • PEXA Group (Australia, US$909m)

News on Upcoming IPOs

Hong Kong/China

US/China ADRs



Analysis on Upcoming IPOs

Hong Kong

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

Betta Pharma

Betta Pharma (贝达医药) A+H: Tier 2 Player Struggled to Break Out


Broncus (堃博医疗) Pre-IPO: Big Potential to Be Tested


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


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


Chaoju Eye Care (朝聚眼科) Pre-IPO: Growth Prospect Far from Being Impressive


Dida Pre-IPO - Making Hay While Big Brother Retreats


Dida Pre-IPO - Earnings Forecast and First Stab at Valuation


Dida Pre-IPO - Peer Comparison - Lagging in Scale, Leading in Profitability

Edding Grp

Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party

Edding Grp

Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party


Shanghai Hanyu (捍宇医疗) Pre-IPO: Not a Straight-A but Listing at Right Time

Intco Med

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


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


Keymed (康诺亚生物) Pre-IPO: Differentiated Products but Far from Commercialization


Kindstar (康圣环球) Pre-IPO: Issues with Scalability


Kindstar (康圣环球) Pre-IPO: Is It Worth the Premium?


Novotech Pre-IPO: Biotech Focused CRO at Hefty Pre-IPO Valuation

RemeGenRemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48
SH Bio-heartShanghai Bio-Heart (上海百心安) Pre-IPO: Needs a Long Runway
ToplistToplist China Pre-IPO - Overwhelmingly More Negatives than Positives
TaslyTasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
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 - Digitalization Efforts Coming Through but Not Well Substantiated
Aadhar HousingAadhar Housing Finance Pre-IPO - Decent past Growth but Comes with Weird Disclosures
ASKASK Investment Managers Pre-IPO - Riding on a Wave of Wealth
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

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
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


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
Samhi HotelsSamhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace
Sona ComstarSona Comstar Pre-IPO - Inconsistent Growth, Patchy Disclosures
ZomatoZomato Pre-IPO - Filings Lack Narrative, a Little Bit of History Helps
ZomatoZomato Pre-IPO - Food Delivery Revenue Was Probably up 16x
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
The U.S.
Dingdong MCDingdong Maicai Pre-IPO - Increasing Market Share, Fast Growth but No Signs of Profit
ForUForU Worldwide Pre-IPO - Mostly Negatives
Hello IncHello Inc (哈罗出行) Pre-IPO - Nowhere near Being Sustainable
MissFreshMissfresh Limited (每日优鲜) Pre-IPO - Worrying and Unsustainable Trend
QiniuQiniu Cloud (七牛云) Pre-IPO: PaaS Doesn't Warrant a Premium
XimalayaXimalaya Pre-IPO - The Positives - A Whole Lot of Listening
XimalayaXimalaya Pre-IPO - The Negatives
XimalayaXimalaya Pre-IPO - Peer Comparison
XimalayaXimalaya Pre-IPO - Earnings Forecast and Valuation
XimalayaXimalaya (XIMA): Has Large Market Share, But Small Competitors Have Big Bosses.
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