Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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

LG Energy Solution / Equity Capital Markets

<ul>
<li>2021 marked our sixth year covering Equity Capital Markets (ECM) in Asia Pacific. </li>
<li>Most markets were in top gear on the ECM front and we ended the year covering the highest number of IPOs and the second highest number of placements since inception.</li>
<li>For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.</li>
</ul>


2021 marked our sixth year covering Equity Capital Markets (ECM) in Asia Pacific. 
Most markets were in top gear on the ECM front and we ended the year covering the highest number of IPOs and the second highest number of placements since inception.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.


Aequitas 2021 IPOs and Placements Performance Review - Busiest Year on Record

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Shanghai MicroPort Endovascula / Equity Bottom-Up

<ul>
<li>Although Endovastec has leading position in aortic products, the growth space of this field in China is relatively limited and is not enough to support the long-term development of Endovastec.</li>
<li>The lack of revolutionary blockbuster product/candidate with global pricing power as well as the current weak international business layout are also the concerns.</li>
<li>Our view is that <a href="https://www.smartkarma.com/entities/shanghai-microport-endovas-a" target="_blank" data-smartkarma-citation="entities:30310:1" rel="noopener">Shanghai Microport Endovascular MedTech (688016 CH)</a> (Endovastec) is a good company, but it is not as attractive as <a href="https://www.smartkarma.com/entities/lifetech-scientific-corp" target="_blank" data-smartkarma-citation="entities:13181:1" rel="noopener">Lifetech Scientific (1302 HK)</a> at the current stage.</li>
</ul>


Although Endovastec has leading position in aortic products, the growth space of this field in China is relatively limited and is not enough to support the long-term development of Endovastec.
The lack of revolutionary blockbuster product/candidate with global pricing power as well as the current weak international business layout are also the concerns.
Our view is that Shanghai Microport Endovascular MedTech (688016 CH) (Endovastec) is a good company, but it is not as attractive as Lifetech Scientific (1302 HK) at the current stage.


Shanghai Microport Endovascular MedTech (688016.CH) - Not as Attractive as Lifetech

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

<p>Broncus raised HKD 1,552 million (USD 199m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, September 23rd.</p>
<p>In our previous note, we discussed that the company's core product, InterVapor, is a minimally invasive surgery that uses heated water vapor to treat the chronic obstructive pulmonary disease (COPD). In addition to the COPD indication, the company plans to further develop the product for the treatment of lung cancer. Another core product, RF-II uses radio frequency to treat lung cancer. Besides InterVapor and RF-II, the company also has a commercialized lung navigation system which has a leading market share in China. However, we believe the market for the lung navigation system is still in the early stage of development in China and hence the small market size.  We think the company has a strong pre-IPO investor line-up with backing from the founder of VenusMedtech and its management team is experienced. We also provided our thoughts on valuation of Broncus.</p>
<p>In this note, we look at the updates since our last note. We re-iterate our view that the company is fairly valued at the top end and will stay away from the company.</p>

Broncus raised HKD 1,552 million (USD 199m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, September 23rd.
In our previous note, we discussed that the company's core product, InterVapor, is a minimally invasive surgery that uses heated water vapor to treat the chronic obstructive pulmonary disease (COPD). In addition to the COPD indication, the company plans to further develop the product for the treatment of lung cancer. Another core product, RF-II uses radio frequency to treat lung cancer. Besides InterVapor and RF-II, the company also has a commercialized lung navigation system which has a leading market share in China. However, we believe the market for the lung navigation system is still in the early stage of development in China and hence the small market size.  We think the company has a strong pre-IPO investor line-up with backing from the founder of VenusMedtech and its management team is experienced. We also provided our thoughts on valuation of Broncus.
In this note, we look at the updates since our last note. We re-iterate our view that the company is fairly valued at the top end and will stay away from the company.

Broncus (堃博医疗) IPO Trading: Chilled for a Reason but Mind the Share Concentration

Acotec Scientific Holdings / Equity Capital Markets

<p>Acotec raised HKD 1,529 million (USD 196m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, August 24th.</p>
<p>In our previous note, we looked at two core drug coated balloon products of the company, namely the AcoArt Orchid &amp; Dhalia for the above the knee artery stenosis and AcoArt Tulip &amp; Litos for the below the knee stenosis. Both AcoArt Orchid &amp; Dhalia, and AcoArt Tulip &amp; Litos reported efficacy that could be potentially better than its benchmark product. Thanks to its early mover advantage, the AcoArt Orchid &amp; Dhalia had a dominant market share. The main growth driver of the company's core product will be increasing penetration rate and indication expansion. Besides the DCB products, we think the company's product pipeline is not exciting. The company has a good management team but the pre-IPO investors are overall mediocre.</p>
<p>In this note, we look at the updates since our last note. Similar to HeartCare, the demand for the deal is strong from the retail side but weak on the institution side. We re-iterate our view that the company is fairly valued at the top end. </p>

Acotec raised HKD 1,529 million (USD 196m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, August 24th.
In our previous note, we looked at two core drug coated balloon products of the company, namely the AcoArt Orchid &amp; Dhalia for the above the knee artery stenosis and AcoArt Tulip &amp; Litos for the below the knee stenosis. Both AcoArt Orchid &amp; Dhalia, and AcoArt Tulip &amp; Litos reported efficacy that could be potentially better than its benchmark product. Thanks to its early mover advantage, the AcoArt Orchid &amp; Dhalia had a dominant market share. The main growth driver of the company's core product will be increasing penetration rate and indication expansion. Besides the DCB products, we think the company's product pipeline is not exciting. The company has a good management team but the pre-IPO investors are overall mediocre.
In this note, we look at the updates since our last note. Similar to HeartCare, the demand for the deal is strong from the retail side but weak on the institution side. We re-iterate our view that the company is fairly valued at the top end. 

Acotec (先瑞达) IPO Trading: Expect Poor Debut Performance

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.

<div><p><a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a> is a leading innovative medical device company in China focusing on providing treatment solutions for vascular diseases, particularly in the fields of drug-coated balloons (DCB) and thrombus aspiration catheters. The two core products are <em>AcorArt Orchid &amp; Dhalia</em> and <em>AcorArt Tulip &amp; Litos</em>. </p></div><div><p>Acotec has launched an HKEx IPO to raise net proceeds of HK$1,473.6 million ($189 million) at the mid-point of the IPO price range of HK$22.20-23.80 per share. Thirteen Chinese cornerstone investors will subscribe for $105 million worth of the offer shares. Pricing will be finalised on 17 August and the shares will list on 24 August.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/acotec-scientific-ipo-living-right" target="_blank" data-smartkarma-citation="insights:56006" rel="noopener">Acotec Scientific IPO: Living Right</a>, we opined that Acotec has an established commercialisation track record with <em>AcorArt Orchid &amp; Dhalia</em> launched in China in 2016. The growth story is supported by ongoing market growth, the recent commercial launch of its second core product, indication expansion for the core products and ambition to commercialise all of the product candidates in the pipeline before the end of 2025. We concluded that Acotec’s product portfolio is attractive.  </p></div><div><div><div class="content-highlight"><p>Our base-case DCF valuation is HK$21.65 per share, which is a -6% downside to the mid-point of the IPO price range of HK$22.20-23.80 per share. Consequently, we think the shares are fully priced at the IPO price range. In combination with the lack of blue-chip cornerstone investors, we would wait on the sidelines for a lower entry point. </p></div></div></div>

Acotec Scientific Holdings (6669 HK) is a leading innovative medical device company in China focusing on providing treatment solutions for vascular diseases, particularly in the fields of drug-coated balloons (DCB) and thrombus aspiration catheters. The two core products are AcorArt Orchid &amp; Dhalia and AcorArt Tulip &amp; Litos. Acotec has launched an HKEx IPO to raise net proceeds of HK$1,473.6 million ($189 million) at the mid-point of the IPO price range of HK$22.20-23.80 per share. Thirteen Chinese cornerstone investors will subscribe for $105 million worth of the offer shares. Pricing will be finalised on 17 August and the shares will list on 24 August.In Acotec Scientific IPO: Living Right, we opined that Acotec has an established commercialisation track record with AcorArt Orchid &amp; Dhalia launched in China in 2016. The growth story is supported by ongoing market growth, the recent commercial launch of its second core product, indication expansion for the core products and ambition to commercialise all of the product candidates in the pipeline before the end of 2025. We concluded that Acotec’s product portfolio is attractive.  Our base-case DCF valuation is HK$21.65 per share, which is a -6% downside to the mid-point of the IPO price range of HK$22.20-23.80 per share. Consequently, we think the shares are fully priced at the IPO price range. In combination with the lack of blue-chip cornerstone investors, we would wait on the sidelines for a lower entry point. 

Acotec Scientific IPO: Valuation Insights

China

PW Medtech Group Ltd is a medical device developer, manufacturer and marketer in China.  The Company's products include infusion products and orthopedic implant products.

Guangdong Biolight Meditech Company Limited develops, manufactures and sells medical monitor and related equipment. The Company's multi-parameter monitors include handheld monitor, conventional integrated monitor and plug-in monitor.

Venus MedTech (HangZhou) Inc. develops and sells cardiovascular devices. The Company offers products including aorta, compression loading and conveying systems, and pulmonary artery. Venus MedTech (HangZhou) markets its products throughout China.

Shanghai Conant Optics Co Ltd manufactures hard resin lens, glasses and accessories.  The Company's products include single vision lens, bifocal lens, progressive lens, middle to high index lens, polarized lens, and photochromic lens.

Jiangsu Skyray Instrument Company Limited develops, produces and sells chemical analysis equipment and application software. The Company's main products included X-ray fluorescence spectrometers, Inductively Coupled Plasma Spectrometers, atomic absorption spectrophotometers, gas chromatography, liquid chromatography, etc.

Shanghai Kinetic Medical Company Ltd. develops and manufactures orthopedic devices.  The Company produces a kyphoplasty tool kit, which includes guide pins, introducer cannula, bone filler devices, dilator and bone drill; a balloon catheter; and a puncture needle.

Beijing Chunlizhengda Medical Instruments Co.,Ltd. designs, develops, manufactures and markets patented implants and instruments for joint replacement, spinal fixation and trauma.

Beijing Chunlizhengda Medical Instruments (1858 HK)

Beijing Chunlizhengda Medical Instruments

Ningbo David Medical Device Company Limited develops, produces and sales infant care equipments. The Company's main products include infant incubators, infant radiant warmers, and neonatal jaundice therapy equipments.

Jiang Xi Sanxi Medtec Co., Ltd. designs and manufactures disposable and sterile medical products and devices including medical tubes and syringes.

China Isotope & Radiation Corporation develops, manufactures, distributes nuclear products. The Company provides nuclear reactors and cyclotron, radio-pharmaceuticals, radioactive sources, radiation engineering, and other related services. China Isotope & Radiation markets its products cross worldwide.

Utah Medical Products, Inc. develops, manufactures, assembles, and markets a broad range of disposable and reusable specialty medical devices. The Company's products are designed to provide better health outcomes for patients and their care-providers. Utah Medical's primary focus is healthcare for women and their babies.

INTEROJO CO LTD manufactures and markets contact lens.  The Company's main brands are Clalen, Morning-Q, Festival-II, Bandage, Multivision.

InBody Co., Ltd. manufactures and markets a body composition analyzer and other related medical instruments.  The Company supplies its products to the hospitals, clinics, fitness clubs, and households.  Biospace also exports its products to overseas markets, such as America, Europe, and Asia.

United Orthopedic Corporation manufactures orthopedic implants and precision medical devices.  The Company's products include hip replacement system, knee replacement system, as well as oncology and custom implants.  UOC also acts as an OEM (Original Equipment Manufacturer) supplier.

St.Shine Optical Co., Ltd. specializes in manufacturing cast-molding soft contact lens, including disposable and frequent replacement contact lens.  The Company also produces lathe-cutting contact lens.  St.Shine Optical markets its products under the brand name Ticon.

Value Added Technology Co., Ltd. develops, manufactures, and engages in sales of digital radiography medical equipments for dental clinics.  The Company also supplies digital sensor for X-ray equipments.

AngioDynamics, Inc. designs, develops, manufactures, and markets therapeutic and diagnostic devices.  The Company's products enable interventional physicians to treat peripheral vascular disease and other non-coronary diseases. AngioDynamic's product lines consist of angiographic catheters, hemodialysis catheters, image guided vascular access products, and thrombolytic products.

RION CO., LTD. manufactures acoustic and acoustic/vibration measuring instruments, such as hearing aids, noise meters, and seismometers.  The Company also produces medical measuring instruments as well as environmental measuring equipment.  Rion exports mainly to other countries in Asia.

Huons Co., Ltd. manufactures pharmaceutical products.  The Company produces medical drugs in the fields of nervous system, sensory organs, anti-histamines, circulatory system, respiratory system, digestive system, metabolic agents and hormones.

Bioteque Corporation manufactures and markets disposable medical products. The Company's products include hemodialysis blood line sets, AV (arteriovenous) fistula needles, IV (intravenous) infusion bags, IV infusion sets, drainage bags, precision infusion sets, surgical drainage tubes, medical catheters. medical components, and homecare items.

Acotec Scientific Holdings Limited develops medical equipment. The Company develops, manufactures and markets thrombus aspiration catheter, drug-coated ballon, and other products. Acotec Scientific Holdings markets its products throughout China.

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Acotec Scientific Holdings (6669 HK)

Aequitas 2021 IPOs and Placements Performance Review - Busiest Year on Record

2021 marked our sixth year of Asia ECM coverage. Most markets were in top gear on the ECM front and we ended the year covering the highest number...

Sumeet Singh

Shanghai Microport Endovascular MedTech (688016.CH) - Not as Attractive as Lifetech

This insight analyzed Endovastec about the industry characteristics of aortic and peripheral products, the business layout, and the concerns on...

Xinyao (Criss) Wang

Acotec (先瑞达) IPO Trading: Expect Poor Debut Performance

We look at the updates of Acotec IPO since our last note. We think the institutional demand is week for the price and we re-iterate our view that...

Ke Yan, CFA, FRM

Acotec Scientific IPO: Valuation Insights

Our base-case DCF valuation is HK$21.65 per share, which is a -6% downside to the mid-point of the IPO price range. Consequently, we think the...

Arun George

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52-week Range

Market Cap (USDm)

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Aequitas 2021 IPOs and Placements Performance Review - Busiest Year on Record

2021 marked our sixth year of Asia ECM coverage. Most markets were in top gear on the ECM front and we ended the year covering the highest number...

Sumeet Singh

Shanghai Microport Endovascular MedTech (688016.CH) - Not as Attractive as Lifetech

This insight analyzed Endovastec about the industry characteristics of aortic and peripheral products, the business layout, and the concerns on...

Xinyao (Criss) Wang

Broncus (堃博医疗) IPO Trading: Chilled for a Reason but Mind the Share Concentration

We look at the updates since our last note for Broncus IPO. We re-iterate our view that the company is fairly valued at the top end and will stay...

Ke Yan, CFA, FRM

Acotec (先瑞达) IPO Trading: Expect Poor Debut Performance

We look at the updates of Acotec IPO since our last note. We think the institutional demand is week for the price and we re-iterate our view that...

Ke Yan, CFA, FRM

Acotec Scientific IPO: Valuation Insights

Our base-case DCF valuation is HK$21.65 per share, which is a -6% downside to the mid-point of the IPO price range. Consequently, we think the...

Arun George