Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

Tigermed (泰格医疗) A+H: PHIP Updates and Thoughts on Valuation

Tigermed (泰格医疗) A+H Listing: Hot Deal of the Best China Clinical-CRO Play

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Hangzhou Tigermed Consulting C / Equity Capital Markets

<p>Tigermed, the largest China-based clinical CRO company, launched book building today to raise up to USD 1.4 bn to list in Hong Kong. </p>
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<p>In our previous note, we discussed that the company was listed on the A-share market in 2012. Once listed in Hong Kong, it will be the best CRO company offering exposure to the clinical CRO business in China and therefore will likely receive strong interest from international investors (particularly those who can't invest in the A-share market). The company's A-share already has investments by quality investors, and was widely held by offshore investors via the northbound stock connect. Despite the impact of COVID-19 situation, Tigermed still registered high single-digit revenue growth in 1Q2020.  However, the company also guided that profit in 2020E could be lower than what they have achieved in 2019. Besides the negative impact of COVID-19, the low expectation is also due to the high base of financial gains from financial assets in 2019. </p>
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<p>In this note, we will provide our thoughts on the price range.  We are of the view that the deal offers limited upside for investors though there is hardly any issue for the book to be covered despite no cornerstone investors as the company is well known to the investment community. </p>
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<h2>Our previous coverage on Tigermed A+H:</h2>
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<li><a href="https://www.smartkarma.com/insights/tigermed-a-h-listing-hot-deal-of-the-best-china-clinical-cro-play" target="_blank" rel="noopener">Tigermed (泰格医疗) A+H Listing: Hot Deal of the Best China Clinical-CRO Play</a></li>
<li><a href="https://www.smartkarma.com/insights/tigermed-a-h-phip-updates-and-thoughts-on-valuation" target="_blank" rel="noopener">Tigermed (泰格医疗) A+H: PHIP Updates and Thoughts on Valuation</a></li>
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Tigermed, the largest China-based clinical CRO company, launched book building today to raise up to USD 1.4 bn to list in Hong Kong. 

In our previous note, we discussed that the company was listed on the A-share market in 2012. Once listed in Hong Kong, it will be the best CRO company offering exposure to the clinical CRO business in China and therefore will likely receive strong interest from international investors (particularly those who can't invest in the A-share market). The company's A-share already has investments by quality investors, and was widely held by offshore investors via the northbound stock connect. Despite the impact of COVID-19 situation, Tigermed still registered high single-digit revenue growth in 1Q2020.  However, the company also guided that profit in 2020E could be lower than what they have achieved in 2019. Besides the negative impact of COVID-19, the low expectation is also due to the high base of financial gains from financial assets in 2019. 


In this note, we will provide our thoughts on the price range.  We are of the view that the deal offers limited upside for investors though there is hardly any issue for the book to be covered despite no cornerstone investors as the company is well known to the investment community. 

Our previous coverage on Tigermed A+H:



Tigermed (泰格医疗) A+H Listing: Hot Deal of the Best China Clinical-CRO Play
Tigermed (泰格医疗) A+H: PHIP Updates and Thoughts on Valuation




Tigermed (泰格医疗) A+H: Past A+H Listings Suggest Upside Might Be Limited