Weibo Corp

ECM Weekly (5th December 2021) - Weibo, Asymchem, Grab, Yonghe, Gushengtang, Siam Makro, SF Intra

Equity Capital Markets
190 Views, 05 Dec 2021 10:49
EXECUTIVE 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 ECM took yet another hit with China Tourism Group deciding to delay its H-Share listing citing poor market condition
  • On 2nd Dec 2021, SEC issued the final amendments for implementation of HFCAA which will China ADRs going forward. 
detail

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.


Events next week:

Hong Kong ECM took yet another hit with China Tourism Group Duty Free Corp Ltd (601888 CH) deciding to delay its H-Share listing citing poor market condition; share price has traded down significantly since its peak in January this year. That said, others have mustered on. Asymchem Laboratories (002821 CH) and Weibo Corp (WB US) will be listing this coming Wednesday and Friday.

Aside from A/H and secondary listings, Yonghe Medical Group (2279 HK), Gushengtang (GUS HK), and SF Intra-City (9699 HK) launched their bookbuilds this week and they are all raising less than what was reported earlier; signs of a weak sentiment. We also initiated on Qingci Games (QCG HK) which received approval for its US$150m IPO last week.

U.S. listings were in focus this week as well. It started with an article, reported by Bloomberg, saying that China was looking to close loophole used by tech firms for foreign IPOs. It was swiftly dispelled by CSRC. Then on Thursday, 2nd December, SEC issued the final amendments for implementation of HFCAA. We look at the details and potential trades coming out of this new update.

Then there was also the disastrous debut of Grab (GRAB US) which isn't exactly a surprise given its incredibly expensive valuation and upcoming lock-up expiry.

In India, Star Health (7584769Z IN)'s IPO failed to garner enough demand even after getting an extension of the bookbuild period. The company has since then cut the size of its IPO to ensure the deal gets done. RateGain's launched its IPO and it will open its anchor books for a day on 6th December and the IPO bookbuild is scheduled to be from 7th to 9th December.

In Japan, Net Protections (7383 JP) closed its IPO bookbuild this week and will be looking to debut on 15th December. We shared our thoughts on valuation in:

In Indonesia, Cisarua Mountain Dairy (1939092D IJ) (Cimory) and PT Avia Avian (AVIA IJ) will be debuting on this coming Monday and Tuesday, respectively. They will be the last two large IPOs to list in Indonesia this year.

It is also a busy week in the placement space. Siam Makro Public (MAKRO TB) reduced its deal size by more than half to US$1.8bn and fixed the deal price at THB43.50, about 4% discount from Thursday's close price.  

Tearsheets for the week:

Accuracy Rate:

Our overall accuracy rate is 73.8% for IPOs and 67.9% for Placements 

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

New IPO filings this week

  • Betta Pharmaceuticals (Hong Kong, US$800m, refiled)
  • Neusoft Medical Systems (Hong Kong, US$400m, refiled)

News on Upcoming IPOs

Hong Kong/China

US/China ADR

Japan/Korea

Others

Analysis on Upcoming IPOs

Name Insight
Hong Kong
4Paradigm

4Paradigm (第四范式智能) Pre-IPO - Stupendous Growth but Needs Better Disclosure of Certain Data 

APM Monaco

APM Monaco Pre-IPO - China’s Resilience Shines 

Anjuke

Anjuke Pre-IPO - Mixed (Positive and Negative) Developments 

Ambio

AmbioPharm (昂博制药) Pre-IPO: Peptide CDMO Leader Turning Licensor 

Biel Crystal

Biel Crystal (伯恩光学) Pre-IPO - Cash Flow Generative Business but Underlying Trend Is Worrying 

Biel Crystal

Biel Crystal (伯恩光学) Pre-IPO - Industry Landscape & Peer Comparison -  Auto Is the Wildcard 

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 

Edda 

EDDA Healthcare Pre-IPO - RoboDoc - Has Been Around for a While but Is Just Getting the Robo Going 

Dingdang

Dingdang Health Tech (叮当健康) Pre-IPO - Impressive Growth but Not Without Concerns 

Intco Med

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

HeMo

HeMo Bioengineering (禾木生物工程) Pre-IPO: Signs of Lacking Innovation 

Imeik

Imeik Tech (爱美客) A/H Pre-IPO - Dermal Filler Leader Capitalizing on Its Valuation 

Jenscare

Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio 

Medbanks

Medbanks (思派健康) Pre-IPO - Caught a Lucky Break 

NewMed

NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR 

Neusoft Xikang

Neusoft Xikang (东软熙康) Pre-IPO: A Long Way to Profit 

Neusoft Med

Neusoft Medical Systems (东软医疗系统) Pre-IPO: Unattractive Fundamentals 

WeDoctor WeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More 
WeDoctor WeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor 
WeDoctor We Doctor (微医) Pre-IPO - Peer Comparison - Picking Its Battles Wisely 
WeDoctor We Doctor (微医) Pre-IPO - Forecasts, Early Thoughts on Valuation, and Acquisition Gripes 
Weilong Weilong Delicious Global Pre-IPO - The Positives - Fast Growth, Strong Backers 
Weilong Weilong Delicious Global Pre-IPO - The Negatives - Spicy Valuation 
India
Aadhar Housing Aadhar Housing Finance Pre-IPO - Decent past Growth but Comes with Weird Disclosures 
Anmol Ind Anmol 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 

Crystal Crop Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers
ESAF SFB ESAF 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 Cem Emami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO 
NSE NSE IPO Preview- Not Only Fast..its Risky and Expensive
NSE National 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 Cem Penna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 
PNB Met PNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers
Malaysia
QSR QSR Brands Pre-IPO - As Healthy as Fast Food
U.S.
FWD FWD Pre-IPO - Thoughts on Valuation 
FWD FWD Pre-IPO - The Positives - Growing Fast 
FWD FWD Pre-IPO - The Negatives - Strategy Remains Unclear 

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Sumeet Singh
Head of Research, IPOs & Placements
Aequitas Research
EquitiesEquity Capital Markets

Head of IPO & Placements for Aequitas Research. At Aequitas we cover all IPOs and placements across Asia-Pac with a deal... 

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