bullish

Meituan

ECM Weekly (25th April 2021) - Meituan, China Gas, Futu, Zai Lab, Anta, We Doctor, Brii Biosci

309 Views25 Apr 2021 10:15
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.


Asia ECM activity has been relentless and, this week, it is all about placements. Following close on the steps of Tencent linked US$14bn placement, a lot of companies came forward with US$1bn+ deals. This trend could continue as most of these deals have done well, so far.

Hong Kong placements totaled up to about US$13.2bn in deal size with Meituan (3690 HK) accounting for the bulk of it. The company raised about US$10bn via a combination of equity (top-up) placement and convertible bond issuance; confirming a rumor that had been floating around in the past one or two weeks prior to the placement. The placement traded well likely due to strong demand from investors as news reported indicated that demand was about 10x covered.

JS Global Lifestyle (1691 HK), China Gas Holdings (384 HK), Anta Sports Products (2020 HK), and Kingboard Holdings (148 HK) also raised capital this week. China Gas struggled to hold up above its deal price while Anta closed about 4.6% above. Both deals were priced at/close to the low-end of their respective price ranges.

In this U.S, Zai Lab Ltd (ZLAB US) and Futu Holdings Ltd (FUTU US) also came to market with US$750m and US$1.2bn of follow-on offerings. Both deals managed to price at a decent discount to undisturbed price which allowed them to trade well above their deal price post offering.

Lastly, in Australia, Seven Group Holdings (SVW AU) raised about US$380m in its institutional placement to improve its gearing. The deal is large compared to its past three month ADV and had struggled earlier this week post placement and only managed to end the week just 0.4% above its deal price.

Back to IPOs, in Hong Kong, we continued our coverage of upcoming Healthcare IPOs which include Angelalign Technology (AAT HK), CARSgen Therapeutics (1186504D CH), Brii Biosciences (1621985D US), and WeDoctor Holdings (1737089D HK).

We also heard that SF Real Estate Investment Trust (SF HK) is seeking approval for its IPO while Zhaoke Ophthalmology Pharmaceutical (6622 HK)'s will be priced at the top-end and the company will debut on Thursday. In Thailand, Ngern Tid Lor (NTL TB)'s IPO got good demand and IPO bookbuild closed earlier than stipulated.

In India, we covered Sona Comstar, a Blackstone-backed automotive technology company, looking to raise US$800m.

Last, but not least, we also covered Waterdrop Inc (WDH US)'s upcoming IPO. The company had just publicly filed its prospectus with the SEC last week.

Credits to Clarence Chu for helping out with the Weekly Update.

Accuracy Rate:

Our overall accuracy rate is 74% for IPOs and 67.2% for Placements

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

New IPO filings this week

  • Dongguan Rural Commercial Bank (Hong Kong, US$1bn, refiled)
  • Clover Biopharma (Hong Kong, US$200m)
  • Ocean Spring Prosperity Holdings (Hong Kong, >US$100m)
  • Aditya Birla Sun Life AMC (India, US$500m)
  • Glenmark Life Sciences (India, US$150m)

News on Upcoming IPOs

Hong Kong/China

US/China ADRs

India

Others

Analysis on Upcoming IPOs

NameInsight
Hong Kong
Betta Pharma

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

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

Chaoju

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

Dida

Dida Pre-IPO - Making Hay While Big Brother Retreats

Dida

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

Dida

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

Intco Med

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

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

Kindstar

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

Kindstar

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

RemeGenRemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48
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
Youran DairyChina Youran Dairy(悠然牧业) Pre-IPO - A Leader Pulling Ahead in a Fragmented Market
India
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

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