ECM Weekly (8 Dec 2019) - OneConnect, JS Global, Renrui, Poly Property, Freee, Burger King India

406 Views08 Dec 2019 13:19

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.

This coming week is still looking fair busy with a handful of trading debuts across different geographies. In Hong Kong, CMC Reit (CMCREIT HK), Venus MedTech (2500 HK), Alphamab Co Ltd (9966 HK), XD Inc. (2400 HK), and Renrui Human Resources (6919 HK) will be listing. For their respective trading dates, see the snippet of upcoming events below.

There were reports that JS Global Lifestyle (1691 HK) is looking to relaunch its IPO this coming Monday after pulling it in October just three days before its IPO. We are also expecting Poly Property Development (POLY HK), Times Neighborhood, and Powerlong Commercial Management to launch their bookbuild soon since they have received approval and filed their respective PHIP. Notably, all three companies are property management companies.

In the U.S, OneConnect launched its bookbuild and will be listing on Friday at a discounted valuation from its previous round of funding but valuation still looked too expensive despite its strong parentage and has ample growth runway. It remains far from being profitable and continues to depend on its parent, Ping An, for the bulk of its revenue.

OneConnect Financial IPO - Even the Sizeable Down Round Might Not Be Enough

In India, Ujjivan Small Finance Bank (USFB IN) will be listing on the 12th of December. Indicators all point towards a strong trading debut. The bank's grey market premium at Rs26 per share and IPO was 165x oversubscribed. For upcoming IPOs, there were news reporting that SAMHI Hotels (SAMHI IN) will be launching their IPO bookbuild this month.

Ujjivan SFB IPO - Might Not Be as Good as the Previous Listing but It Has an Alternative as Well

Accuracy Rate:

Our overall accuracy rate is 73.2% for IPOs and 65.5% for Placements

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

New IPO filings this week

Akesobio (Hong Kong, ~US$300m)

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

Name	Insight
Hong Kong
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) 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
Helenbergh	Helenbergh (海伦堡) Early Thoughts - The Usual Red Flag - Related Party Transactions
Innocare	InnoCare (诺诚健华) Pre-IPO: A Decent Team but Short of Clinical Stage Candidates
Jiumaojiu	Jiumaojiu (九毛九) Pre-IPO Early Thoughts - New Brand Driving Growth
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
Megvii	Megvii (旷视) Pre-IPO - Competitive Landscape and Peer Analysis
Megvii	Megvii (旷视) Pre-IPO - Initial Thoughts on Valuation
MicuRx	MicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
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
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
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 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 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
Samhi Hotels	Samhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace
Malaysia
QSR	QSR Brands Pre-IPO - As Healthy as Fast Food
The U.S
CDP	CDP Holdings Pre-IPO Review - Highly Reliant on Best Inc.
CloudMinds	CloudMinds Inc Early Thoughts - Still Nascent
EHang	EHang Holdings (亿航) Pre-IPO - Not Taking off yet and Probably Not Any Time Soon
Huize	Huize (慧择) Pre-IPO - Insurance Agency Masquerading as a Platform Business
I-Mab	I-Mab (天境生物) Pre-IPO: Strong Management and Investor Backing with Differentiated Products
Meten	Meten International Edu (美联国际教育) Early Thoughts - Unclear Strategies
OneConnect	OneConnect Financial Pre-IPO - The Positives - Prospects Appear Promising
OneConnect	OneConnect Financial Pre-IPO - The Negatives - Previous Valuation Might Have Been Too Demanding
Phoenix Tree	Phoenix Tree (Danke) Pre-IPO - Another WeWork - Nothing Is Improving Apart from Revenue
Australia
Tyro	Tyro Payments IPO - A Lot to like Apart from Its Earnings Profile and Churn Rate
Tyro	Tyro Payments IPO - Updates from the Prospectus - Some Good, Some Bad
Tyro	Tyro Payments IPO - Probably Fairly Valued at the High-End but There Is Still the Banking Wild Card
Japan
Freee	Freee Pre-IPO - Has Been Growing Fast but Missing Data Points Leave Niggling Doubts
Freee	Freee K. K. Pre-IPO - The Battle Is Far from Over