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/netjoy" target="_blank" data-smartkarma-citation="entities:29729:1" rel="noopener">Netjoy (2131 HK)</a> is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. At the proposed IPO price range of HK$5.56-7.08 per share, Netjoy will have a market cap of HK$4,448-5,664 million ($574-731 million). At the mid-point of the IPO price range, the total net proceeds are HK$1,166.6 million ($151 million). </p></div><div><p>Six cornerstone investors will subscribe for $39 million of the offer shares (23.91% of the offer shares at the mid-point of the price range). The cornerstone investors are Affin Hwang Asset Management, HSBC Global Asset Management, Pacific Asset Management, Seedlings Fund, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> and SenseTime.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/netjoy-ipo-initiation-joy-divisions" target="_blank" data-smartkarma-citation="insights:46112" rel="noopener">Netjoy IPO Initiation: Joy Divisions</a>, we stated that for investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. Overall, we would participate in the IPO due to an attractive IPO price range.</p></div></div></div>

Netjoy (2131 HK) is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. At the proposed IPO price range of HK$5.56-7.08 per share, Netjoy will have a market cap of HK$4,448-5,664 million ($574-731 million). At the mid-point of the IPO price range, the total net proceeds are HK$1,166.6 million ($151 million). Six cornerstone investors will subscribe for $39 million of the offer shares (23.91% of the offer shares at the mid-point of the price range). The cornerstone investors are Affin Hwang Asset Management, HSBC Global Asset Management, Pacific Asset Management, Seedlings Fund, Xiaomi Corp (1810 HK) and SenseTime.In Netjoy IPO Initiation: Joy Divisions, we stated that for investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. Overall, we would participate in the IPO due to an attractive IPO price range.

<p><a href="https://www.smartkarma.com/entities/netjoy" target="_blank" data-smartkarma-citation="entities:29729:1" rel="noopener">Netjoy (2131 HK)</a> is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. Netjoy has launched a Hong Kong IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point of the IPO price range. </p><div class="content-highlight"><p>The IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. </p></div>

Netjoy (2131 HK) is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. Netjoy has launched a Hong Kong IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point of the IPO price range. The IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. 

Joy Spreader Interactive Technology / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/joy-spreader-interactive-technology" target="_blank" data-smartkarma-citation="entities:29271:1" rel="noopener">Joy Spreader Interactive Technology (6988 HK)</a> is an ad tech company which connect marketers (namely, product providers and merchants) with we-media publishers. Joy Spreader has launched a Hong Kong IPO to raise around net proceeds of $140-210 million. </p><div class="content-highlight"><p>The post-IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese ad tech exposure, we think Joy Spreader’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. </p></div>

Joy Spreader Interactive Technology (6988 HK) is an ad tech company which connect marketers (namely, product providers and merchants) with we-media publishers. Joy Spreader has launched a Hong Kong IPO to raise around net proceeds of $140-210 million. The post-IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese ad tech exposure, we think Joy Spreader’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. 

Joy Spreader IPO Initiation: For the Joy of It

APAC IPOs & Placements

Zhen Zhou, Toh

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.

<p><a href="https://www.smartkarma.com/entities/amtd-international-inc" target="_blank" data-smartkarma-citation="entities:28137:1" rel="noopener">AMTD International Inc (HKIB US)</a> is looking to raise up to US$176m in its upcoming IPO in the US. We have previously covered the company in:</p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/amtd-international-pre-ipo-avoid-at-all-costs" target="_blank" data-smartkarma-citation="insights:30621" rel="noopener">AMTD International (尚乘国际) Pre-IPO - Avoid at All Costs</a> </li>
</ul>
<p>In this insight, we will go through our assumptions, valuation forecast, run the deal through our ECM framework.</p>

AMTD International Inc (HKIB US) is looking to raise up to US$176m in its upcoming IPO in the US. We have previously covered the company in:


AMTD International (尚乘国际) Pre-IPO - Avoid at All Costs 

In this insight, we will go through our assumptions, valuation forecast, run the deal through our ECM framework.

AMTD International (尚乘国际) IPO Review - Still an Avoid

<p><a href="https://www.smartkarma.com/entities/weimob-com" target="_blank" data-smartkarma-citation="entities:27394:1" rel="noopener">Weimob.com (2013 HK)</a> is a combination of a SaaS software and an ad tech (targeted marketing) business. Weimob has launched an HK$1.2 billion ($157 million) top-up placement at a range of HK$4.60-4.80.</p><div class="content-highlight"><p>Weimob’s financial performance is solid due to an accelerating revenue growth accompanied by operational leverage. However, as pointed out in <a href="https://www.smartkarma.com/insights/weimob-ipo-preview-aggressive-accounting-makes-a-big-dent-in-the-growth-story" target="_blank" rel="noopener">our previous notes</a>, investors need to be wary that the reported margins need to be adjusted for the material capitalisation of expenses. Overall, we believe that while Weimob’s financial performance is solid, it is far from attractive at the proposed placement price.</p></div>

Weimob.com (2013 HK) is a combination of a SaaS software and an ad tech (targeted marketing) business. Weimob has launched an HK$1.2 billion ($157 million) top-up placement at a range of HK$4.60-4.80.Weimob’s financial performance is solid due to an accelerating revenue growth accompanied by operational leverage. However, as pointed out in our previous notes, investors need to be wary that the reported margins need to be adjusted for the material capitalisation of expenses. Overall, we believe that while Weimob’s financial performance is solid, it is far from attractive at the proposed placement price.

Weimob Placement: Opportunistic and Unattractive

China

Mobvista Inc. operates as a holding company. The Company, through its subsidiaries, offers technology platform that provides mobile advertising and mobile analytics services to the application developers. Mobvista serves clients worldwide.

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Mobvista (1860 HK)

Netjoy IPO: Valuation Insights

At the mid-point of the IPO price range, the total net proceeds are $151 million. We would participate in the IPO due to an attractive IPO price...

Arun George

Netjoy IPO Initiation: Joy Divisions

Netjoy has launched an HK IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point. For investors seeking Chinese adtech...

Arun George

Joy Spreader IPO Initiation: For the Joy of It

Joy Spreader is an ad tech company which connect marketers (namely, product providers and merchants) with we-media publishers. Joy Spreader is set...

Arun George

AMTD International (尚乘国际) IPO Review - Still an Avoid

AMTD International Inc (HKIB US) is looking to raise up to US$176m in its upcoming IPO in the US. We have previously covered the company in: AMTD...

Zhen Zhou, Toh

Weimob Placement: Opportunistic and Unattractive

Weimob.com (2013 HK) is a combination of a SaaS software and an ad tech (targeted marketing) business. Weimob has launched an HK$1.2 billion ($157...

Arun George

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