IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/remegen-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Ltd (1788976D CH)</a> is a biopharmaceutical company with a focus on the development and commercialisation of innovative and differentiated biologics for the treatment of autoimmune, oncology and ophthalmic diseases. RemeGen has launched a Hong Kong IPO to raise net proceeds of HK$3,710.5 million ($479 million) at the mid-point of the IPO price range of HK$50.30-52.10 per share.</p></div><div><p>Nineteen cornerstone investors have agreed to invest about $227.5 million in the IPO (44.99% of the offer shares at the mid-point of the IPO price range). Cornerstone investors which are not existing shareholders include Fidelity International, BlackRock, Matthews Funds, Hillhouse Capital, GIC, Cormorant Asset Management and <a href="https://www.smartkarma.com/entities/sino-biopharmaceutical" target="_blank" data-smartkarma-citation="entities:230:1" rel="noopener">Sino Biopharmaceutical (1177 HK)</a>. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/remegen-ipo-initiation-seeking-a-cure" target="_blank" rel="noopener">our initiation note</a>, we stated that the prospectus RemeGen’s core drug assets are favourable. Overall, a strong cornerstone investor lineup and our valuation analysis suggest that the IPO price range is attractive. </p></div></div></div>

Remegen Ltd (1788976D CH) is a biopharmaceutical company with a focus on the development and commercialisation of innovative and differentiated biologics for the treatment of autoimmune, oncology and ophthalmic diseases. RemeGen has launched a Hong Kong IPO to raise net proceeds of HK$3,710.5 million ($479 million) at the mid-point of the IPO price range of HK$50.30-52.10 per share.Nineteen cornerstone investors have agreed to invest about $227.5 million in the IPO (44.99% of the offer shares at the mid-point of the IPO price range). Cornerstone investors which are not existing shareholders include Fidelity International, BlackRock, Matthews Funds, Hillhouse Capital, GIC, Cormorant Asset Management and Sino Biopharmaceutical (1177 HK). In our initiation note, we stated that the prospectus RemeGen’s core drug assets are favourable. Overall, a strong cornerstone investor lineup and our valuation analysis suggest that the IPO price range is attractive. 

Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Quality-first, Business-perspective Strategy

Thematic (Sector/Industry)

<ul>
<li>Founder-led businesses are supposed to receive more appreciation among investors;</li>
<li>It would be intriguing to explore how Chinese founders and business owners pay themselves, as executive compensation is a significant part of corporate governance, a common weakness among most Chinese public companies;</li>
<li>We examine a pool of selected value-generative, founder-led, Chinese businesses across industries, and market caps to demonstrate the similarity and any dissimilarity.</li>
</ul>


Founder-led businesses are supposed to receive more appreciation among investors;
It would be intriguing to explore how Chinese founders and business owners pay themselves, as executive compensation is a significant part of corporate governance, a common weakness among most Chinese public companies;
We examine a pool of selected value-generative, founder-led, Chinese businesses across industries, and market caps to demonstrate the similarity and any dissimilarity.


Simcere Pharmaceutical Group / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical Group (2096 HK)</a> is engaged in the R&amp;D, production and commercialisation of pharmaceuticals and is primarily focused on generic pharmaceuticals.  At the proposed IPO price range of HK$12.10-13.70 per share, Simcere will have a market cap of HK$31,528.8-35,697.9 million ($4.1-4.6 billion). At the mid-point of the IPO price range, Simcere will raise net proceeds of HK$3,191.3 million ($412 million). </p></div><div id="ember2866">Seven cornerstone investors will subscribe for 43.81% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Hillhouse Capital, Jiangbei Investment Group, Shenzhen Capital Group, Lake Bleu Capital, OrbiMed, Sage Partners and Jericho Capital. </div><div id="ember2871"></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/simcere-pharmaceutical-ipo-initiation-a-rough-patch" target="_blank" rel="noopener">our initiation note</a>, we highlighted that for investors willing to look past the 2020 results, Simcere is putting in place the right measures to ensure that the weak 1H20 was an exception rather than the rule. Overall, we think that an attractive PEG valuation and solid cornerstone support makes Simcere tempting at the proposed pricing range. </p></div></div></div>

Simcere Pharmaceutical Group (2096 HK) is engaged in the R&amp;D, production and commercialisation of pharmaceuticals and is primarily focused on generic pharmaceuticals.  At the proposed IPO price range of HK$12.10-13.70 per share, Simcere will have a market cap of HK$31,528.8-35,697.9 million ($4.1-4.6 billion). At the mid-point of the IPO price range, Simcere will raise net proceeds of HK$3,191.3 million ($412 million). Seven cornerstone investors will subscribe for 43.81% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Hillhouse Capital, Jiangbei Investment Group, Shenzhen Capital Group, Lake Bleu Capital, OrbiMed, Sage Partners and Jericho Capital. In our initiation note, we highlighted that for investors willing to look past the 2020 results, Simcere is putting in place the right measures to ensure that the weak 1H20 was an exception rather than the rule. Overall, we think that an attractive PEG valuation and solid cornerstone support makes Simcere tempting at the proposed pricing range. 

Simcere Pharmaceutical IPO: Valuation Insights

<p><a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical Group (SIMCERE HK)</a> is engaged in the R&amp;D, production and commercialisation of pharmaceuticals and is primarily focused on generic pharmaceuticals. The products are focused on three main therapeutic areas which are oncology (including cell therapy), central nervous system diseases and autoimmune diseases. Simcere will shortly launch a Hong Kong IPO to raise $500 million, according to press reports.  </p><div class="content-highlight"><p>The timing of the IPO is not ideal as Simcere is coming off a weak 1H20. However, for investors willing to look past the 2020 results, Simcere is putting in place the right measures to ensure that the 1H20 was an exception rather than the rule. </p></div>

Simcere Pharmaceutical Group (SIMCERE HK) is engaged in the R&amp;D, production and commercialisation of pharmaceuticals and is primarily focused on generic pharmaceuticals. The products are focused on three main therapeutic areas which are oncology (including cell therapy), central nervous system diseases and autoimmune diseases. Simcere will shortly launch a Hong Kong IPO to raise $500 million, according to press reports.  The timing of the IPO is not ideal as Simcere is coming off a weak 1H20. However, for investors willing to look past the 2020 results, Simcere is putting in place the right measures to ensure that the 1H20 was an exception rather than the rule. 

Simcere Pharmaceutical IPO Initiation: A Rough Patch?

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Jardines, Keppel, FamilyMart, Toshiba, Sogo/Sogou, Chinese Toll Roads

Hong Kong

Sino Biopharmaceutical Limited, through its subsidiaries, researches, develops, produces, and sells biopharmaceutical products for the medical treatment of ophthalmia, as well as modernized Chinese medicine and chemical medicine for the treatment of hepatitis.

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Sino Biopharmaceutical (1177 HK)

RemeGen IPO: Valuation Insights

RemeGen has launched a Hong Kong IPO to raise net proceeds of HK$3,710.5 million ($479 million). Overall, a strong cornerstone lineup and our...

Arun George

How Chinese Founders Pay Themselves

Take a look at how Chinese founders and business owners pay themselves and gauge the soundness of corporate governance among founder-operated and...

Steven Chen

Simcere Pharmaceutical IPO: Valuation Insights

We think that an attractive PEG valuation and solid cornerstone support makes Simcere tempting at the proposed pricing range

Arun George

Simcere Pharmaceutical IPO Initiation: A Rough Patch?

The timing of the IPO is not ideal as Simcere is coming off a weak 1H20. However, Simcere is putting in place the right measures to ensure that the...

Arun George

Last Week in Event SPACE: Jardines, Keppel, FamilyMart, Toshiba, Sogo/Sogou, Chinese Toll Roads

Last Week in Event SPACE ... At extreme discounts to NAV for both Jardine Matheson Holdings (JM SP) & Jardine Strategic Holdings (JS SP),...

David Blennerhassett

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