ECM Weekly (9 Feb 2020) - Mr. DIY, Kingsoft Cloud, SBI Cards, CAMS, Equitas SFB, Akeso Bio

351 Views09 Feb 2020 13:17

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.

Even though equity capital markets have been fairly quiet in Asia, there had been a few interesting IPOs coming up this year.

Starting off in India, we get more information on Life Insurance Corp of India (LIC)'s mega IPO. It was reported that estimates is putting LIC's IPO at India's next financial year which is from April 2020 to March 2021 and the deal will likely raise about US$11.2bn–$14bn if one assumes that 10% stake is sold in the IPO. Regardless, it will be the largest IPO in India to date.

Aside for mega deals, we are also hearing that SBI Cards (SBICARDS IN) is looking to get regulatory approval for its IPO in the upcoming week and will likely target to list towards the end of the month or in March. Sumeet Singh has already shared his thoughts on SBI Cards' valuation.

SBI Cards and Payments Pre-IPO - Valuations - A Tale of Two Revenue Streams

Other India IPO early coverage:

In Hong Kong, Ke Yan, CFA, FRM covered Akeso Biopharma Inc (1495016D CH)'s IPO. The company made headlines for getting rejected by HKEX. It was reported by FT that the rejection was the result of a typo in the draft prospectus which gave a prospective listing date in the second quarter, rather than the first quarter as intended. The company has already re-filed its draft prospectus shortly after the rejection.

Akesobio (康方生物) Pre-IPO: Late in the PD-1 Game but Products Are Promising

We are also hearing that Mr. DIY will be looking to list by Q1. We have covered the deal extensively with peer comparison and thoughts on valuation this week:

Other IPOs we have covered this week include Kingsoft Cloud's potential IPO which was earlier said to have confidentially filed with the SEC for a US listing:

Accuracy Rate:

Our overall accuracy rate is 73.6% for IPOs and 65.1% for Placements

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

New IPO filings this week

Akeso Biopharma (Hong Kong, re-filed)

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
Akeso Bio	Akesobio (康方生物) Pre-IPO: Late in the PD-1 Game but Products Are Promising
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
Innocare	InnoCare (诺诚健华) Pre-IPO: Thoughts on Valuation
Jiumaojiu	Jiumaojiu (九毛九) Pre-IPO Early Thoughts - New Brand Driving Growth
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
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
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
Smoore	Smoore Intl (思摩尔国际) Pre-IPO: Tripling Capacity in Three Years
Smoore	Smoore Intl (思摩尔国际) Pre-IPO: Thoughts on E-Cig Regulation
Tasly	Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
Yeahka	Yeahka (移卡) Pre-IPO Review - Growing in an Increasingly Competitive Space
Yeahka	Yeahka (移卡) Pre-IPO - Peer Analysis and Early Thoughts on Valuation
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
Burger King	Burger King India Pre-IPO - Has Been Growing Fast and Plans to Grow Even Faster
Burger King	Burger King India Pre-IPO - Peer Comparison Yields Interesting Nuggets on Profitability and Capex
Bajaj En	Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It
CAMS	CAMS Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance
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
Equitas SFB	Equitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing
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
Mazagon	Mazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mindspace	Mindspace Business Parks REIT Pre-IPO - Decent Growth but Not All Assets Are Equal
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
SBI Cards	SBI Cards and Payments Pre-IPO - The Positives - Ticks a Lot of Boxes
SBI Cards	SBI Cards and Payments Pre-IPO - The Negatives - Banking on a Single Growth Driver
SBI Cards	SBI Cards and Payments Pre-IPO - Valuations - A Tale of Two Revenue Streams
Malaysia
Mr DIY	Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia
Mr DIY	Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition
Mr DIY	Mr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share
Mr DIY	Mr D.I.Y. Pre-IPO - Assumptions and Thoughts on Valuation
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
Huize	Huize (慧择) Pre-IPO - Insurance Agency Masquerading as a Platform Business
Kingsoft Cloud	Kingsoft Cloud (金山云) Pre-IPO: The Leading Cloud Provider in China