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

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<p><a href="https://www.smartkarma.com/entities/zai-lab-ltd" target="_blank" data-smartkarma-citation="entities:25877:1" rel="noopener">Zai Lab Ltd (ZLAB US)</a> raised around US$850m in its secondary listing in Hong Kong. I have covered the background of the deal in <a href="https://www.smartkarma.com/insights/zai-lab-hk-secondary-listing-large-deal-to-digest-but-past-deals-have-done-well" target="_blank" rel="noopener">Zai Lab HK Secondary Listing - Large Deal to Digest but past Deals Have Done Well.</a></p>
<p>In this note, I'll talk about the deal dynamics and updates over the past week.</p>
<p></p>
</div><div><p>We have also covered the company's listing and some of its prior deals in:</p></div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/zai-lab-ipo-experienced-team-promising-in-licensing-drug-pipeline-part-1" target="_blank" rel="noopener">Zai Lab IPO: Experienced Team, Promising In-Licensing Drug Pipeline (Part 1)</a></li>
<li><a href="https://www.smartkarma.com/insights/zai-lab-ipo-thoughts-on-valuation-risks-and-upsides-part-2" target="_blank" rel="noopener">Zai Lab IPO: Thoughts on Valuation, Risks and Upsides (Part 2)</a></li>
<li><a href="https://www.smartkarma.com/insights/zai-lab-placement-beware-of-performance-of-last-deal-despite-decent-fundamentals" target="_blank" rel="noopener">Zai Lab Placement: Beware of Performance of Last Deal Despite Decent Fundamentals</a></li>
<li><a href="https://www.smartkarma.com/insights/zai-lab-placement-positive-development-bodes-well-for-the-deal" target="_blank" rel="noopener">Zai Lab Placement: Positive Development Bodes Well for the Deal</a></li>
</ul></div>


Zai Lab Ltd (ZLAB US) raised around US$850m in its secondary listing in Hong Kong. I have covered the background of the deal in Zai Lab HK Secondary Listing - Large Deal to Digest but past Deals Have Done Well.
In this note, I'll talk about the deal dynamics and updates over the past week.

We have also covered the company's listing and some of its prior deals in:
Zai Lab IPO: Experienced Team, Promising In-Licensing Drug Pipeline (Part 1)
Zai Lab IPO: Thoughts on Valuation, Risks and Upsides (Part 2)
Zai Lab Placement: Beware of Performance of Last Deal Despite Decent Fundamentals
Zai Lab Placement: Positive Development Bodes Well for the Deal


Zai Lab HK Trading - Interest and Behaviour in Line with Huazhu, Highest Concentration so Far

Equity Analyst, LightStream Research

Supun Walpola

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p>Chinese e-commerce “service provider”, <a href="https://www.smartkarma.com/entities/baozun-inc" target="_blank" data-smartkarma-citation="entities:24184:1" rel="noopener">Baozun Inc. (BZUN US)</a>, is the latest US-listed Chinese company to launch a secondary listing on the HKEX. In this note, we take a quick look at Baozun’s fundamentals ahead of its HKEX offer.</p><p>Baozun’s HKEX offer will have two tranches; a HongKong offer and an international offer. The maximum offer price for the HongKong offer is set at HKD103.90. Baozun is expected to set the international offer price by September 23, 2020 (Wednesday). The final HongKong offer price will the lower of the international offer price and the maximum offer price above.</p><p>Baozun will issue 40m new shares equivalent to around 17.5% of the company’s ordinary shares outstanding (after the HKEX listing). At the maximum offer price above (for the HongKong tranche), Baozun is expected to raise around HKD 4,156m (USD 536m).</p>

Chinese e-commerce “service provider”, Baozun Inc. (BZUN US), is the latest US-listed Chinese company to launch a secondary listing on the HKEX. In this note, we take a quick look at Baozun’s fundamentals ahead of its HKEX offer.Baozun’s HKEX offer will have two tranches; a HongKong offer and an international offer. The maximum offer price for the HongKong offer is set at HKD103.90. Baozun is expected to set the international offer price by September 23, 2020 (Wednesday). The final HongKong offer price will the lower of the international offer price and the maximum offer price above.Baozun will issue 40m new shares equivalent to around 17.5% of the company’s ordinary shares outstanding (after the HKEX listing). At the maximum offer price above (for the HongKong tranche), Baozun is expected to raise around HKD 4,156m (USD 536m).

Baozun: A Quick Look at Fundamentals Ahead of the HKEX Listing

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/huazhu-group-ltd" target="_blank" data-smartkarma-citation="entities:17527:1" rel="noopener">Huazhu Group (HTHT US)</a> will commence trading in Hong Kong on Tuesday, 22 September. Huazhu priced its Hong Kong secondary listing at HK$297 per share. Huazhu raised net proceeds of HK$5,924.8 million ($0.8 billion).</p></div><div><div class="content-highlight"><p><a href="https://www.smartkarma.com/profiles/rickin-thakrar" target="_blank" data-smartkarma-citation="accounts:1486" rel="noopener">Rickin Thakrar</a> outlined his views on the fundamentals and valuation in <a href="https://www.smartkarma.com/insights/huazhu-secondary-listing-hotel-motel-hanting-hotel" target="_blank" data-smartkarma-citation="insights:43241" rel="noopener">Huazhu Secondary Listing: Hotel, Motel, Hanting Hotel</a>. At the 18 September close price of $42.02 per ADS, the H-share offer price of HK$297 implies a 8.8% discount. We believe that the H-share will likely trade to a slight premium to the ADS on average, broadly similar to the overall median of previous secondary listings.</p></div></div>

Huazhu Group (HTHT US) will commence trading in Hong Kong on Tuesday, 22 September. Huazhu priced its Hong Kong secondary listing at HK$297 per share. Huazhu raised net proceeds of HK$5,924.8 million ($0.8 billion).Rickin Thakrar outlined his views on the fundamentals and valuation in Huazhu Secondary Listing: Hotel, Motel, Hanting Hotel. At the 18 September close price of $42.02 per ADS, the H-share offer price of HK$297 implies a 8.8% discount. We believe that the H-share will likely trade to a slight premium to the ADS on average, broadly similar to the overall median of previous secondary listings.

Huazhu Group Secondary Listing: Trading Debut

<div><p><a href="https://www.smartkarma.com/entities/huazhu-group-ltd" target="_blank" data-smartkarma-citation="entities:17527:1" rel="noopener">Huazhu Group (HTHT US)</a> raised around US$900m in its secondary listing in Hong Kong.</p></div><div><p>I have covered the background of the deal in my earlier notes, <a href="https://www.smartkarma.com/insights/huazhu-hk-secondary-listing-early-look-needs-the-cash-more-than-most-secondary-candidates" target="_blank" rel="noopener">Huazhu HK Secondary Listing - Early Look - Needs the Cash More than Most Secondary Candidates</a> and <a href="https://www.smartkarma.com/insights/huazhu-hk-secondary-listing-needs-the-money-but-looks-toppish" target="_blank" rel="noopener">Huazhu HK Secondary Listing - Needs the Money but Looks Toppish.</a></p></div><div><p>In this insight, I'll talk about the deal dynamics and updates over the past week.</p></div>

Huazhu Group (HTHT US) raised around US$900m in its secondary listing in Hong Kong.I have covered the background of the deal in my earlier notes, Huazhu HK Secondary Listing - Early Look - Needs the Cash More than Most Secondary Candidates and Huazhu HK Secondary Listing - Needs the Money but Looks Toppish.In this insight, I'll talk about the deal dynamics and updates over the past week.

Huazhu HK Secondary Listing Trading - Lowest Coverage, Biggest Correction, Highest Concentration

<div>
<p><a href="https://www.smartkarma.com/entities/zai-lab-ltd" target="_blank" data-smartkarma-citation="entities:25877:1" rel="noopener">Zai Lab Ltd (ZLAB US)</a> has launched a $0.9 billion secondary listing in Hong Kong. Zai Lab is a commercial-stage biopharmaceutical company which started to generate revenue from sales of commercialized products from 2018. In 1H20, revenue was primarily derived from the sales of both ZEJULA and Optune in Hong Kong and China.</p>
<div class="content-highlight"><p>The H shares will be priced on 22 September (Tuesday) and are scheduled for listing on 28 September.  Zai Lab will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Zai Lab pricing its H-shares around a 2% discount to its ADSs will be reasonable.</p></div>
</div>


Zai Lab Ltd (ZLAB US) has launched a $0.9 billion secondary listing in Hong Kong. Zai Lab is a commercial-stage biopharmaceutical company which started to generate revenue from sales of commercialized products from 2018. In 1H20, revenue was primarily derived from the sales of both ZEJULA and Optune in Hong Kong and China.
The H shares will be priced on 22 September (Tuesday) and are scheduled for listing on 28 September.  Zai Lab will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Zai Lab pricing its H-shares around a 2% discount to its ADSs will be reasonable.


Zai Lab Secondary Listing: HK-ADS Premium/​​(Discount) Views

United States

PFSweb Inc., is a provider of management services for traditional commerce and electronic commerce companies.  The Company's services include order management, customer care services, billing services, information management and distribution services. PFSweb offers its management services to clients in a range of markets including apparel, electronics, and computer products.

Edgio, Inc. operates content delivery network for internet distribution of video, music, games, and download. The Company offers content delivery network provides digital media and software via the Internet. Edgio serves customers worldwide.

Unisys Corporation is a worldwide information technology services and solutions company.  The Company's services include systems integration, outsourcing, infrastructure, server technology and consulting.  The Company primarily serves the financial services, public sector, communications, transportation, commercial and media markets.

Forrester Research, Inc. is an independent research firm that analyzes the future of technology change and its impact on businesses, consumers, and society. The Company's research products include internet commerce, corporate technology, and technographics data and analysis. Forrester advisory services include partnership programs, web site review, and strategy workshops.

TTEC Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides customer engagement, experience consulting, care, and technology solutions. TTEC Holdings serves customers worldwide.

DHI Group, Inc. is a provider that specialize in career sites and career fairs for high growth vertical sectors. The Company provides services to help recruiters, consultants and businesses hire and train highly qualified professionals.

Travelzoo Inc. provides online marketing solutions to the travel industry.  The Company publishes deals from travel, entertainment, and local companies. Travelzoo researches, evaluates, and tests numerous deals and recommends deals whose accuracy and availability can be confirmed.

Brightcove Inc. provides video hosting and publishing services. The Company operates a video platform whose services include uploading and encoding, content management, players and styling, delivery, and live streaming. Brightcove offers its services globally.

Veritone, Inc. operates as a cloud-based artificial intelligence media technology company. The Company develops a cloud-based ecosystem that enables real-time audio and video processing, audience analytics, search, retrieval, replay, and share capabilities. Veritone offers visual and audio discovery applications.

LivePerson, Inc. provides technology that facilitates real-time sales and customer service for companies doing business on the Internet.  The Company, an application service provider, offers its real-time interaction technology as an outsourced service.  The LivePerson service enables its clients to communicate directly with Internet users via text-based chat.

KGMobilians Co Ltd develops and offers electronic payment solutions. The Company's services include agency business for payment settlement through general phone, cellular phone, and Internet.

CROSS CAT CO., LTD.develops application software for financial companies and government.  The Company also develops network software.  Cross Cat provides various type of services including information technology consulting and support services.

Wins Co Ltd. provides security network services. The Company provides various se curity solutions to protect networks from cyber threats and viruses.

P.T. Multipolar Technology Tbk provides IT solutions. The Company offers services in hardware infrastructure, software solutions, and consulting services.

BrainPad Inc. collects and analyzes large amount of data and provides statistics and insights with data mining technology.  The Company also offers Website-related services.

Hi Sun Technology (China) Limited provides business and technology consulting services and solutions.  The Company delivers a range of specialized services and solutions to its banking, insurance, securities, telecommunications, and utilities clients.  In addition, Hi Sun, through its subsidiaries, provides consulting and information technology outsourcing services and payment solution.

Hearts United Group Co.,Ltd. is a holding company established through reorganization.  The Company manages its subsidiaries which provide software testing services.

Quantum Solutions Co.,Ltd. provides Internet related consulting services.  The Company also provides project management services for system development and develops business application software such as document management tool.

CWT International Limited operates as a holding company. The Company through its subsidiaries engages in digital network operation, Hi-Tech value added services, and energy-saving products manufacturing and services.

Interactive Digital Technologies Inc is focused on the core business of Telecom, IT & Cloud, Media, and geographical information system (GIS) related professional consulting and implementation end-to-end services.

Baozun Inc. provides e-commerce solutions. The Company's services include website design, development and hosting, information technology infrastructure, customer service, warehousing, and logistics services, as well as digital marketing. Baozun serves customers in China.

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Baozun Inc. (BZUN US)

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Zai Lab HK Trading - Interest and Behaviour in Line with Huazhu, Highest Concentration so Far

Zai Lab Ltd (ZLAB US) plans to raise around US$1bn in its secondary listing in Hong Kong. We have covered the company's listing and some of its...

Sumeet Singh

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Chinese e-commerce “service provider”, $baoz, is the latest US-listed Chinese company to launch a secondary listing on the HKEX. In this note, we...

Supun Walpola

Huazhu Group Secondary Listing: Trading Debut

Yum China Holdings Inc (9987 HK) will commence trading in Hong Kong on Thursday, 10 September. Yum China Holdings, Inc (YUMC US) priced its Hong...

Arun George

Huazhu HK Secondary Listing Trading - Lowest Coverage, Biggest Correction, Highest Concentration

Huazhu Group (HTHT US) raised around US$900m in its secondary listing in Hong Kong. I have covered the background of the deal in my earlier...

Sumeet Singh

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