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.

Equity Capital Markets

Aequitas Research puts out a weekly update on the deals that have been covered by Smartkarma Insight Providers recently, along with updates for upcoming IPOs.
Unsurprisingly, shortly after markets in the U.S. made new all-time highs, companies are rushing to get themselves onto the market to ride on the momentum. Another round of IPO filings and live IPOs are starting to trickle in as we ramp up towards Q4. 
First of all, starting with what we have heard on the street, there are news reporting that Meituan Dianping (MEITUAN HK) is setting its IPO valuation at up to US$55bn which is close the the upper range of Ke Yan, CFA, FRM's conservative fair value estimate in his latest note, Meituan Dianping (美团点评) IPO: Thoughts on Valuation - The Market Structure and the Variables (Part 3). In India, Aavas Financiers Ltd (AAVAS IN) is targeting a Rs20bn IPO in September while Lodha Developers (LODHA IN) trimmed its targets after IPO delay.
There are also a handful of live deals ongoing and investors are probably spoilt for choice as to which IPO to subscribe to. Starting off with the largest deal size, NIO Inc (NIO US) is raising up to US$1.3bn and will be closing its book on the 11th of September. As per our analysis, NIO's valuation is only at a small discount to peers even after we used blue sky assumptions to work out the company's valuation.
In Hong Kong, China Chunlai Education (CHUNLAI HK)'s US$113m IPO will be closing on the 6th of September while Hua Medicine Ltd (2552 HK) will be closing on the 7th.
Accuracy Rate:Our overall accuracy rate is 71.3% for IPOs and 63.6% for Placements (Performance measurement criteria is explained at the end of the note).New IPO filings this week  
Luzhou City Commercial Bank (Hong Kong, ~US$1bn)
Alpha Smart (Hong Kong, ~US$200m)
Tubatu (Hong Kong, ~US$200m)
Impro Precision (Hong Kong, re-filed)
Ganfeng Lithium (Hong Kong, re-filed)
X Financial (the U.S., ~US$250m)
Viomi Technology (the U.S., ~US$150m)
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.Source: Smartkarma IPO AnalyzerNews on Upcoming IPOs  
Huatai plans US listing for AssetMark
Private equity firm plans $730 million IPO of Coronado Coal in Australia
CDH-backed Yunji plans US IPO in 2019
Grindr's Chinese Owner Plans Overseas IPO for the Gay Dating App
Smartkarma Community's this week Analysis on Upcoming IPO   
Nio IPO (Part 2- Valuation): The Issue Looks Reasonably Priced
NIO IPO Valuation: Competitive Pricing Does Not Apply to the IPO Pricing
Meituan-Dianping IPO, Part 3: Sum-Of-Parts Approach Suggests US$50 Bn Valuation Quite Unrealistic
Meituan Dianping IPO Preview: Unpalatable Valuation Due to Structural Limitations
S-Fuelcell Co IPO Preview (Part 1) - A Leading Provider of Fuel Cell Systems in Korea
S-Fuelcell Co IPO Preview (Part 2) - Valuation Analysis &amp; Korean Fuel Cell Industry Dynamics
111 Inc IPO Valuation: Pricing Does Not Adequately Reflect the Risks
IPO Radar: SISB...International Schools = License to Print Money
List of pre-IPO Coverage on Smartkarma

Name
Insight

Hong Kong

Ant Financial
Ant Financial IPO Early Thought: Understand Fintech Empire, Growth &amp; Risk Factors


BabyTree
Babytree Group Pre-IPO - Young Moms Need It but Almost All Seem to Have It, Might Be at Peak MAU


Canaan Inc.
Canaan Inc. IPO Preview (Part 1) - The Biggest Blockchain Related IPO Globally in 2018


Canaan Inc.
Canaan Inc. IPO Preview (Part 2) - A Closer Look at ASIC Developments and Competition


Canaan Inc.
Canaan Inc. IPO Preview (Part 3): Earnings Forecast &amp; Valuation Analysis


Canaan Inc.
Canaan (嘉楠耘智) IPO Quick Take: Beware that ASIC Is a Different Ball Game


Cenmintang
Cenmintang IPO Preview: A Beverage and Snack Play Whose Growth Is Hard to Grasp


China Feihe
China Feihe IPO Preview: Goat Bless Infant Formula Milk?


China Kepei
China Kepei Edu (科培教育) Pre-IPO Review - A Well Run Private Higher Education Company


Ganfeng Lithium
Ganfeng Lithium IPO: Present Perfect, Future Tense


Haidilao
Haidilao IPO First Glance: Legendary Hot Pot Restaurant that Will Be Hot (Part 1)


Haidilao
Haidilao (海底捞) IPO: Superior Metrics in a Scalable Segment (Part 2)


Haidilao
Haidilao IPO Preview– High on Pot


Haidila
Haidilao 海底捞 IPO: No Little Sheep


Meituan
Meituan-Dianping IPO, Part 1: Role in China's Travel Segment, Comparison to Incumbent Ctrip.com


Meituan
Meituan-Dianping IPO, Part 2: Food Delivery Segment Boasts Amazing Growth &amp; Unclear Path to Profits


Meituan
Meituan Dianping IPO Preview: The China O2O Powerhouse


Meituan
Meituan Dianping IPO: The "Next Big Thing"?


Meituan
Meituan Dianping – Alibaba Investing Billions to Reach 50% Market Share


Shandong Gold
Shandong Gold Mining IPO Preview: Largest Pure Play Gold Miner to Be Listed in Hong Kong


Shandong Gold
Shandong Gold IPO: Buyers Beware


Sinochem Energy
Sinochem Energy (中化能源) IPO First Impression: Trophy Asset Mixed with Volatile Trading Business


STX 
STX IPO Preview– a One-Hit Wonder


STX 
STX Entertainment (胜图娱乐) IPO: Legendary Founder but Results Matter


Tongcheng
Tongcheng-ELong (同程艺龙) Pre-IPO Review - A Force to Be Reckoned With


Qilu Express
Qilu Expressway IPO Preview: Concentration Risk and Recent News May Mean Discount to Peers


WeLab
WeLab Pre-IPO - Stuck in a Regulatory Quagmire; Not the Right Time to List

South Korea

Creas
Creas Fashion Co. IPO Preview (Part 1)


Daeyu
Daeyu Co. IPO Preview (Part 1)


Ebang
Ebang IPO Preview (Part 1): Lower Sales but Higher Operating Profit Versus Canaan Inc.


Foodnamoo
Foodnamoo Inc IPO Preview (Part 1) - A Leader in Home Meal Replacement Products in Korea


Icure Pharm
Icure Pharm (175250 KS): Post IPO Short Selling Opportunity Checkup


Icure Pharm
Icure Pharm IPO Summary - Front Runner of Dementia Patch Development Race


Zinus
Zinus IPO Preview (Part 1) - An Amazing Comeback Story (#1 Mattress Brand on Amazon)

India

Aavas
Aavas Financiers Pre-IPO - Over-Capitalisation Leading to Higher Profitability


CMS Info
CMS Info Systems Pre-IPO Review - 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


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 Dock
Mazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending


Lodha
Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable


Lodha
Lodha Developers IPO: Large Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt

The U.S.

111 Inc
111 Inc IPO Preview: A New Business Papers over the Cracks


CNFinance
CNFinance (泛华金融) IPO First Impression: Beware Rising Credit Risk and Slowing Loan Origination


CNFinance
CNFinance IPO Preview: A Renaissance that May Not Come


Qutoutiao
Qutoutiao Pre-IPO - Cash Payments Driving Downloads but Aren't as Effective with Usage


Qutoutiao
Qutoutiao 趣头条 (QTT) – A Spendthrift Who Pays News Readers Generously


Qutoutiao
Qutoutiao IPO Preview: Facing an Inescapable Catch-22

Australia

Latitude financial
Latitude Financial Group Pre-IPO Review - Credit Prospectus Throw up Some Interesting Data Points



ECM Weekly (1 September 2018) - Meituan, NIO, Aavas, Hua Medicine, Qutoutiao

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Aavas Financiers Ltd / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/27422" target="_blank" data-smartkarma-citation="entities:27422:1">Aavas Financiers Ltd (AAVAS IN)</a> plans to raise around US$250m in its IPO via a mix of primary and secondary shares offering.The company has grown rapidly over the past few years and has found a niche for itself in servicing self-employed customers in semi-urban and rural areas. Operating in this niche has allowed it to charge a higher rate on its loans while at the same time it has been able to keep its asset quality in check.Aavas was earlier a part of <a href="https://www.smartkarma.com/entities/24196" target="_blank" data-smartkarma-citation="entities:24196:1">Au Small Finance Bank (AUBANK IN)</a> before it was bought by a group of private equity investors. Since then the PE investors have put in more money leading to its capital adequacy ratio (CAR) rising up to 62% in FY18 from 27% at the time of purchase. The higher proportion of lending stemming from equity leads to higher reported NIM and profitability. A truer picture emerges once the impact of the higher CAR is neutralized which implies than NIM would have declined and cost-to-income moved higher over the past few years. Furthermore, if one uses p/b multiple to arrive at valuations, the excess capitalization would result in the market cap being a lot higher, if one doesn't adjust the multiple lower to account for the higher capitalization.

Aavas Financiers Ltd (AAVAS IN) plans to raise around US$250m in its IPO via a mix of primary and secondary shares offering.The company has grown rapidly over the past few years and has found a niche for itself in servicing self-employed customers in semi-urban and rural areas. Operating in this niche has allowed it to charge a higher rate on its loans while at the same time it has been able to keep its asset quality in check.Aavas was earlier a part of Au Small Finance Bank (AUBANK IN) before it was bought by a group of private equity investors. Since then the PE investors have put in more money leading to its capital adequacy ratio (CAR) rising up to 62% in FY18 from 27% at the time of purchase. The higher proportion of lending stemming from equity leads to higher reported NIM and profitability. A truer picture emerges once the impact of the higher CAR is neutralized which implies than NIM would have declined and cost-to-income moved higher over the past few years. Furthermore, if one uses p/b multiple to arrive at valuations, the excess capitalization would result in the market cap being a lot higher, if one doesn't adjust the multiple lower to account for the higher capitalization.

Aavas Financiers Pre-IPO - Over-Capitalisation Leading to Higher Profitability

India

Aavas Financiers Limited provides consumer finance services. The Company offers home, land purchase, construction, home improvement, balance transfer, and business loans. Aavas Financiers serves customers in India.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Aavas Financiers Ltd (AAVAS IN)

ECM Weekly (1 September 2018) - Meituan, NIO, Aavas, Hua Medicine, Qutoutiao

Aequitas Research puts out a weekly update on the deals that have been covered by Smartkarma Insight Providers recently, along with updates for...

Zhen Zhou, Toh

Aavas Financiers Pre-IPO - Over-Capitalisation Leading to Higher Profitability

Aavas Financiers Ltd (AAVAS IN) plans to raise around US$250m in its IPO via a mix of primary and secondary shares offering.The company has grown...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)