ECM Weekly (24 May 2020) - NetEase and JD Homecoming, Legend Biotech, Nongfu Spring, Yeahka
Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
The talk of the town this week is probably the homecoming of China companies listed in the U.S. The markets have been abuzz with news of companies launching secondary listings in Hong Kong, following the footsteps of Alibaba Group (9988 HK). There were more details on Friday that NetEase Inc (NTES US) is aiming to list in Hong Kong next month on June 11th and JD.com Inc (ADR) (JD US) the week after. Sumeet Singh gave his thoughts and updates on the situation:
That said, a few China companies are still looking to list in the U.S. Burning Rock Biotech filed with the SEC one week after Legend Biotech (BLG US), a unit of Genscript Biotech (1548 HK), filed its prospectus. Ke Yan, CFA, FRM covered the upcoming IPO in:
Hong Kong IPOs have been looking up lately. Kintor Pharmaceutical (9939 HK)'s traded well on debut, continuing the momentum from Peijia and Central China New Life. The week after next, there will also be Yeahka Limited (9923 HK) listing on the 1st of June. Other Hong Kong IPO coverage include:
- Kintor Pharma (开拓药业) IPO Trading: Limited Upside Despite Retail Chasing
- Nongfu Spring Pre-IPO - Peer Comparison - Superior Margins and Growth
- Yeahka (移卡) IPO - Expensive Small Payments Player
Placement deal flow has been fairly active too and mostly secondary sell downs. There was the sell down of Softbank Corp (9434 JP) by Softbank Group (9984 JP) to raise about US$3bn for the latter's US$41bn buyback and the sell down of Telekom Malaysia (T MK) by Khazanah. Wuxi Biologics (Cayman) Inc (2269 HK)'s shareholder was back on the block earlier than usual to sell some shares which got upsized but broke deal price on Friday as Hong Kong shares sold off strongly after China signaled that it would impose new national-security laws on Hong Kong.
Accuracy Rate:
Our overall accuracy rate is 73.5% for IPOs and 65.4% for Placements
(Performance measurement criteria is explained at the end of the note)
New IPO filings this week
- Burning Rock Biotech (~US$100m, the U.S.)
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.
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