ECM Weekly (7 Sep 2019) - China Merchants Comm REIT, Immunotech Bio, Bank of Guizhou, XD, Huize

484 Views07 Sep 2019 14:15

SUMMARY

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

Momentum is holding up well for Hong Kong's ECM activity. China Merchants Commercial CMC Reit (CMCREIT HK) and Immunotech Biopharm (IMMBIO HK) filed with HKEX while Home Credit (HC HK) is filed its PHIP and will start pre-marketing of its IPO. We also heard that TOT Biopharm International Co Ltd (1366893D HK) and Bank of Guizhou Co Ltd (1147131D CH) have started pre-marketing and Shanghai Henlius Biotech (1566213D HK) will open bookbuild next Monday. Our team has covered these IPOs in:

Activity in other South-east Asia countries are looking up too. Indonesia is looking to boost IPO activity by cutting taxes for companies that sell shares. Listed companies would enjoy lower corporate tax rate in the first five years after their listing.

Thailand, on the other hand, has already prepped up a few IPOs with Asset World Corporation (AWC TB) expected to open its books for US$1.5bn next week while Singha Hotel and Resorts is expected to list this quarter too.

In the Philippines, we are hearing that AllHome (AHM PM) has already started pre-marketing for its US$340m IPO and Axelum Resources (1729371D PM) is also set to list in October. We have covered both IPOs in:

Lendlease REIT has already started pre-marketing but we have yet to see any prospectus filed on the MAS website which seems unusually late.

IPOs in the U.S seemed to have stalled. CloudMinds have filed its prospectus in July but we have yet to hear progress on it. On the other hand, Huize Holding Limited (HUIZ US), an independent online insurance product and service platform operating in China, has filed for US$150m IPO this week.

Huize (慧择) Pre-IPO - Insurance Agency Masquerading as a Platform Business

In India, there had been media reporting that Ebix Inc (EBIX US) will be looking to list its Indian subsidiary, EbixCash, by Q2 of 2020. Bajaj Energy has also been approved by Sebi for its US$700m IPO.

Accuracy Rate:

Our overall accuracy rate is 72.5% for IPOs and 64.7% for Placements

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

New IPO filings this week

China Merchants Commercial REIT (Hong Kong, ~US$800m)
Immunotech Biopharm (Hong Kong, ~US$100m)
Huize (the U.S., ~US$150m)

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.

Source: Aequitas Research, Smartkarma

News on Upcoming IPOs

Analysis on Upcoming IPOs

Name	Insight
Hong Kong
Alibaba	Alibaba IPO/Secondary Listing - The Real IPO Only Begins on the 11th Day Post Listing
Alphamab	Alphamab (康宁杰瑞) IPO: Strong R&D Capability and Innovative Platforms
Ascentage	Ascentage Pharma (亚盛医药) IPO: Too Early for an IPO
Ascentage	Ascentage Pharma (亚盛医药) IPO: Updates and Thoughts on HQP1351 (3rd Gen Bcr-Abl TKI)
Ant Financial	Ant Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
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) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)
Clarity	Clarity Medical (清晰医疗) IPO: Proxy to HK SMILE Surgery Demand
Broad Home	Changsha Broad Homes IPO - Exposure to Prefabricated Construction in China
China Feihe	China Feihe (中国飞鹤) IPO: New Numbers, New Red Flag, and Demographic Risk
China Feihe	China Feihe (中国飞鹤) IPO: Thoughts on Valuation
Helenbergh	Helenbergh (海伦堡) Early Thoughts - The Usual Red Flag - Related Party Transactions
Home Credit	Home Credit Pre-IPO (Part I) - The Positives - Lots to Like
Home Credit	Home Credit Pre-IPO (Part II) - The Negatives - A Lot More to Dislike
Home Credit	Home Credit Pre-IPO - Bigger but Not Necessarily Better than Peers
Home Credit	Home Credit Pre-IPO - Thoughts on Valuation and the Curious Case of Expanding Equity Base
Huali	Huali University (华立大学) IPO Early Thoughts - Risks Abound
Hut Chi-Med	Hutchison-China Med (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities
JS Global	JS Global Lifestyle (JS 环球生活) Early Thoughts - Declaring US$470m Dividend Before IPO
JS Global	JS Global Lifestyle (JS 环球生活) Quick Note - Questions About Corporate Structure & Reorganization
Megvii	Megvii (旷视) Pre-IPO - Remarkable Growth (Part 1)
Megvii	Megvii (旷视) Pre-IPO - A Bet on the Future - Segments, Revenue Drivers and Growth Potential
Megvii	Megvii (旷视) Pre-IPO - The Real Race Is in Research - Founders' Profile and Talent
MicuRx	MicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
Pharmaron	Pharmaron (康龙化成) A+H Listing: A Leading Drug Discovery Company
Poly Prp	Poly Property Development (保利物业发展) IPO Early Thoughts - Well-Rounded Company
Renrui	Renrui Human Resources (人瑞人才) Pre-IPO Review - Riding on China's Unicorns
SH Henlius	Shanghai Henlius (复宏汉霖) IPO: Not an Impressive Biosimilar Portfolio
SH Henlius	Shanghai Henlius (复宏汉霖) IPO: Valuation of Four Biosimilars
SH Henlius	Shanghai Henlius (复宏汉霖) IPO: Thoughts on Valuation
SinoMab	SinoMab (中国抗体): Pipeline Concentrated on Autoimmune Therapy
Smoore	Smoore Tech (麦克韦尔) IPO: Hidden E-Cigarette Player Behind the FEELM Technology
Smoore	Smoore Tech (麦克韦尔) Pre-IPO: 6Y and 1H2019 Financials Show Technology Driven Growth
Tasly	Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
Topsports	Topsports International Holdings Pre-IPO - Performing Well but All Proceeds Will Likely Go to Belle
Topsports	Topsports Pre-IPO - Quick Take - Nike & Adidas Data Throws up Some Interesting Nuggets
Topsports	Topsports Pre-IPO - Way Ahead of Its Peer on Most Counts
Topsports	Topsports Pre-IPO - Thoughts on Valuation
TOT Bio	TOT Biopharm (东曜药业) IPO: An Unimpressive Pipeline
Tubatu	Tubatu Group Pre-IPO - Performing Better than Qeeka but Growing Much Slower, US$1bn a Stretch
Tubatu	Tubatu Group Pre-IPO - Online -> Online + Offline -> Online -> ?
Venus	Venus Medtech (启明医疗) IPO: Has the Elements for a Hot Healthcare Deal
India
ASK	ASK Investment Managers Pre-IPO - Riding on a Wave of Wealth
Aakash Edu	Aakash Education Pre-IPO - Fast Growth in an Attractive Sector
Anmol Ind	Anmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders
Bharat Hotels	Bharat Hotels Pre-IPO - Catching up with Peers
CMS Info	CMS Info Systems Pre-IPO - When a PE Sells to Another PE... Only One Gets the Timing Right
Crystal Crop	Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers
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 Emami 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
Mazagon	Mazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mrs. Bector	Mrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta
Lodha	Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
Lodha	Lodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
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
The U.S
CloudMinds	CloudMinds Inc Early Thoughts - Still Nascent
Meten	Meten International Edu (美联国际教育) Early Thoughts - Unclear Strategies