ECM Weekly (24 January 2021) - Kuaishou, New Horizon Health, Indigo Paints, Home First Fin, IRFC

364 Views24 Jan 2021 09:14

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.

Hong Kong IPO had a short respite this week as we gear up for Beijing Kuaishou Technology Co Ltd (1496219D CH)'s US$6bn mega IPO next week. We also heard that Basecare's IPO is likely to launch its bookbuild in the same week while MicroPort CardioFlow (1844972D HK) which started premarketing this week too, should come to market very soon too.

This week we also covered Cheerwin (CHEER HK) and New Horizon Health (NHH HK) which are likely to come to market soon.

The next busiest market is probably India where there were three IPO bookbuilds ongoing this week. Indian Railway Finance Corporation (INFZ IN) launched its IPO last week while Indigo Paints (IP IN) launched on Tuesday and Home First Finance (HFF IN) launching a day later. We covered this IPOs in:

Despite China ADRs' delisting woes, RLX Technology Inc (RLX US)'s +146% trading debut showed that US market is still an enviable venue to list on. Other potential US listing to come this year includes Tencent-backed online education company, Huohua Siwei, which was reported to have picked banks for its IPO and also Cloopen Group Holding Ltd (RAAS US) which just filed its prospectus with the SEC.

RLX Technology IPO Trading - We Won't Be Chasing

Beyond IPOs, Hong Kong placement was still very active with a handful of capital raise and secondary selldowns. India listed Apollo Hospitals Enterprise (APHS IN) also raised about US$160m in its well-flagged QIP.

Accuracy Rate:

Our overall accuracy rate is 73.6% for IPOs and 67.1% for Placements

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

New IPO filings this week

Cloopen (U.S. , US$500m)
BetterLife (Hong Kong, ~US$100m)
Nazara Tech (India, refiled)

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
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
Dida	Dida Pre-IPO - Making Hay While Big Brother Retreats
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
RemeGen	RemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48
Toplist	Toplist China Pre-IPO - Overwhelmingly More Negatives than Positives
Tasly	Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
WeDoctor	WeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More
WeDoctor	WeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor
India
ASK	ASK Investment Managers Pre-IPO - Riding on a Wave of Wealth
Anmol Ind	Anmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders
Bharat Hotel	Bharat Hotels Pre-IPO - Catching up with Peers
Brookfields REIT	Brookfields India Real Estate Trust Pre-IPO - The Positives- Provides Different Geographic Exposure
Brookfields REIT	Brookfields India Real Estate Trust Pre-IPO- The Negatives- Asset Details Leave Questions Unanswered
Bajaj En	Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It
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
ESAF SFB	ESAF 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 Cem	Emami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO
IRFC	Indian Railway Finance Pre-IPO - Low Risk, Low Margin Business
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
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
Malaysia
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