bullish

ECM Weekly (28th March 2021) - Bairong, Bilibili HK, Linklogis, Energy Monster, Zhihu, Monde Nissin

348 Views28 Mar 2021 09:05
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.


In Hong Kong, Bairong (1569395D CH) closed a day earlier and was priced at the top end, raising HK$3.94bn (US$508m). Bilibili Inc (9626 HK) raised US$2.6bn at HK$808 per share. Bilibili will list on Monday while Bairong on Wednesday.

Tencent-backed Linklogis (LINK HK) launched its IPO on Friday and boasts an impressive cornerstone line-up. The deal will price this coming Wednesday:

We also looked at two upcoming Hong Kong biotech IPOs, namely Shanghai Bio-Heart Biological Technology (BHT HK) and Kindstar Globalgene Technology (1868874D HK) :

In the US, China ADRs have been hammered in the past week due to the Holding Foreign Companies Accountable Act by the SEC. Sumeet addressed the market’s knee jerk reaction and how the sentiment might have been exaggerated in the note:

Affected by poor sentiment, Zhihu Technology (ZH US) priced its IPO at the bottom end. Peers took another leg down on Friday on the back of rumors of education policies likely to be changed. Zhihu’s share price opened 15.3% below IPO price and went on to trade lower intraday. We published an update regarding a rumoured document. We thought the selldown for Zhihu was overdone.

We also shared our thoughts on competitive landscape and valuation of Smart Share Global (EM US) :

The previous week, we initiated coverage on Monde Nissin Corp (0191881D PM), which is expected to raise US$1bn in its upcoming IPO in the Philippines. This week, we focused on the negatives of the company which can be found:

Kalyan Jewellers traded down 15% on its debut despite having a decently strong line-up of investors backing the deal, which included GIC. As per Sumeet’s earlier notes, this seemed to be a case of mispricing as we see no reason to pay an expensive valuation for company with no track record of any growth.:

On placements the past week, we covered Japan’s freee (4478 JP) placement, that was priced at the bottom end on 25th Mar 21:

Accuracy Rate:

Our overall accuracy rate is 73.9% for IPOs and 67.2% for Placements

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

New IPO filings this week

  • Bio-Thera Solutions (Hong Kong, re-filed)
  • Zylox-Tonbridge (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.

News on Upcoming IPOs

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
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
Malaysia
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
Singapore
ThaiBev BeerThaiBev BeerCo Pre-IPO - Declining Rev and Mkt Share Concerns but Good Cost Control
ThaiBev BeerThaiBev BeerCo Pre-IPO - Thoughts on BeerCo and ThaiBev HoldCo Valuation
The U.S.
Smart ShareSmart Share Global (怪兽充电) Pre-IPO - Growing Fast and Is Profitable but Competition Is Picking Up
Smart ShareSmart Share Global (怪兽充电) Pre-IPO - Pulling Ahead in a Highly Competitive Landscape
Smart ShareSmart Share Global (怪兽充电) Pre-IPO - Forecasts, Assumptions, and Valuation
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