ECM Weekly (24 November 2018) - Koolearn, IDreamsky, Tongcheng, Babytree, Fosun Tourism, Wuxi Apptec

464 Views24 Nov 2018 13:42
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.

Before the IPO rush even started, the market has already claimed two victims in the ECM space. This week, we heard that Sinochem Energy (1644249D HK) has put its listing preparation on hold in light of recently dampened market and oil price decline. Heathley Healthcare REIT (HHR AU)'s IPO was also put on hold, citing poor market sentiment. Australia IPOs have been quite consistent this past two years. That is, consistent in launching their IPO and getting it pulled before it trades.

Next week there will finally be two IPOs, Tongcheng-Elong Holdings Ltd (780 HK) and Babytree Group (1761 HK), debuting in Hong Kong. Babytree was priced at the low end while Tongcheng managed to price slightly above the low end. Tongcheng's institutional and retail books were slightly oversubscribed, suggesting poor sentiment but its share price rose to close at HK$11.32 on PhilipMart's gray market trading, 15.5% above IPO price.

In deal approvals, we heard that Xinyi Energy is gauging demand for its IPO while iDreamsky and Natural Food are set to open their IPOs book build on Monday and Tuesdau respectively. Beijing Hujiang which is a close competitor to Koolearn has also been approved and filed its PHIP on HKEX with Koolearn.

Meanwhile, in the US, Tencent Music Entertainment (TME US) is said to be planning for a December IPO after delaying its IPO last month. A Chinese article circulating on WeChat said that the company is raising less than US$1bn and it is aiming for a US$22 - 25bn valuation. Mogu (MOGU US) has also set its IPO terms of 4.75m ADS at US$14 - 16 per share. That will imply a US$76m deal size, down from the initial guided deal size of US$200m. The company said in its update F-1/A filing that JD.com Inc (ADR) (JD US) will buy US$30m of shares in Mogu through either a concurrent placement or from the IPO.

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

  • Shanghai Dongzheng Automotive Finance (Hong Kong, >US$100m)

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
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
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

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
Malaysia
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
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