DiDi Global

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

402 Views27 Jun 2021 11:39

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


Analysis on Upcoming IPOs

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