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DiDi Global

ECM Weekly (27th June 2021) - Didi, Xpeng, Zylox, Dingdong, EBeauty, Chaoju Eye Care, Keymed Bio

402 Views27 Jun 2021 11:39
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 and China ADR ECM continue their momentum from last week. For quicker reference, here are the IPOs that will trade next week:

For ongoing/live IPOs, in the US, Didi launched its bookbuild, aiming to raise up to US$4bn. The IPO valuation range lies close to our earlier estimates.

Atour Lifestyle Holdings also launched its US$305m bookbuild. Notably, Hillhouse has indicated interest to take up to US$120m in the IPO, almost half of the deal size. The IPO will price on Wednesday.

On-demand grocery/e-commerce delivery companies, Dingdong Maicai and MissFresh, launched their bookbuilds this week. Despite launching at the same time, the latter closed its bookbuild early, priced at the bottom-end, and traded on Friday, ahead of Dingdong. But, this wasn’t the case of overwhelming demand, hence, the accelerated timeline. Rather, it seemed like the company/bookrunners just wanted to get the IPO over with because it traded about -36% intraday and ended the day at -25%. In comparison, we liked Dingdong better and the company is looking to close its bookbuild on Monday. Shares will debut on Tuesday.

In Hong Kong, Xpeng launched its US$1.74bn bookbuild and will price on Wednesday. The deal comes after reports in March stating that US-listed Chinese EV makers are seeking HK dual listings so Nio and Li Auto could follow suit shortly after Xpeng.

Nayuki Holdings raised about US$656m at the top-end of its IPO price range and its shares will debut on Wednesday. Even though valuation isn’t cheap, given that it's the first premium modern teahouse chain to be listed, it should still be able to hold its own on debut.

Keymed Biosciences launched its US$400m bookbuild this week. Pricing will come on Wednesday and shares are to debut on 8 July. We updated our coverage this week with updates from its bookbuild:

Zylox-Tonbridge, a neuro- and peripheral-vascular interventional device company, closed its US$330m bookbuild a day earlier due to strong demand. Twelve cornerstones, consisting of reputable investors such as Hillhouse, Fidelity, Boyu Capital and Lake Bleu Prime, took up US$145m of the deal. Shares will debut on 5 July.

Ophthalmic medical services group, Chaoju Eye Care, began its US$233m bookbuild as well, where pricing is expected to come on Tuesday, with shares debuting on 7 July.

US and London-listed bio pharma company, Hutchmed (China), raised US$537m at a 0.27% discount to US close on Tuesday. Shares will debut on Wednesday.

Property management companies, Yuexiu Services and SCE Commercial Management, launched and swiftly closed their bookbuilds this week. Both companies priced at the bottom end of their respective price range. The former traded flat in the grey market and will debut on Monday, while the latter will trade on Friday.

For upcoming/pre-marketing IPOs, in Hong Kong, Shanghai Bio-Heart, a medical devices provider, began pre-marketing its US$300m IPO last week. We updated our coverage this week with a note on valuation:

Other companies currently in the midst of pre-marketing include Medlive Technology, Brii Biosciences, Edding Group, Acotec Scientific Holdings, Transcenta Holding, BetterLife, UNQ, Kangqiao Service Group and South China Vocational Education Group. We have covered Medlive Technology, Brii Biosciences and Edding Group, earlier and they are looking to raise US$500m, US$400m and US$300m, respectively.

We also initiated on eBeauty Holdings, e-commerce enablement service provider, where it is currently in the midst of pre-marketing its US$600m IPO.

Notable new filings this week include Shanghai-listed, China Tourism Group Duty Free Corporation Limited, where they are aiming to raise between US$7-10bn. They own over 200 duty free shops in China. Other filings include AI-empowered business solutions provider, Qingdao Ainnovation Technology Group, where they are looking to raise more than US$100m in its Hong Kong float. A list of healthcare and biotech firms that filed this week have also been included in our list below.

For halted/deferred IPOs, Soulgate, which operates the Soul app, an algorithmic-driven online social playground, halted its IPO citing other capital and financing options as the reason. The company said its bookbuild was hot. A day after, Hello Inc, a local services platform, reportedly halted its planned US$1bn IPO as well.

In Malaysia, glove maker Harp Holdings deferred its US$500m listing as interests and valuations initially boosted by the pandemic fell short of expectations. Other Malaysian glove makers have also seen their shares tanking this year due to falling valuations. This came after Top Glove delayed its US$1bn Hong Kong due to a US import ban, just two weeks ago.

Credits to Clarence Chu for helping with the note.

Accuracy Rate:

Our overall accuracy rate is 74% for IPOs and 67.6% for Placements

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

New IPO filings this week

  • China Tourism Group Duty Free Corporation Limited (Hong Kong, US$10bn)
  • Jenscare Scientific (Hong Kong, >US$100m)
  • Dingdang Health Technology Group (Hong Kong, >US$100m)
  • Sinohealth Technology Limited (Hong Kong, >US$100m)
  • Beijing Airdoc Technology (Hong Kong, >US$100m)
  • Qingdao Ainnovation Technology Group (Hong Kong, >US$100m)
  • Ambio Pharmaceuticals (Hong Kong, >US$100m)

News on Upcoming IPOs

Hong Kong/China

Others

Analysis on Upcoming IPOs

NameInsight
Hong Kong
Anjuke

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

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

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

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

Hanyu

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

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?

Novotech

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
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
ZomatoZomato Pre-IPO - Filings Lack Narrative, a Little Bit of History Helps
ZomatoZomato Pre-IPO - Food Delivery Revenue Was Probably up 16x
Malaysia
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
The U.S.
ForUForU Worldwide Pre-IPO - Mostly Negatives
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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