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

Shimao Services Holdings Limited / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/shimao-services-holdings-limited" target="_blank" data-smartkarma-citation="entities:29199:1" rel="noopener">Shimao Services Holdings (SSH HK)</a> is a Chinese property management company which is a subsidiary of <a href="https://www.smartkarma.com/entities/shimao-property-holdings-limited" target="_blank" data-smartkarma-citation="entities:8375:1" rel="noopener">Shimao Property Holdings (813 HK)</a> and backed by Sequoia China and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>. Shimao ranked third among the Top 20 Property Management Companies in China as measured by the revenue growth rate in 2019, according to China Index Academy. Shimao Group, the parent, will shortly launch the spin-off and Hong Kong IPO of Shimao to raise up to $1 billion, according to press reports. </p><div class="content-highlight"><p>Property management IPOs are popular due to the strong post-IPO share price performance of recent listings. The property management sector has a long-term recurring business model and is capital-light. Overall, Shimao’s fundamentals over the track record period are attractive, in our view.</p></div>

Shimao Services Holdings (SSH HK) is a Chinese property management company which is a subsidiary of Shimao Property Holdings (813 HK) and backed by Sequoia China and Tencent Holdings (700 HK). Shimao ranked third among the Top 20 Property Management Companies in China as measured by the revenue growth rate in 2019, according to China Index Academy. Shimao Group, the parent, will shortly launch the spin-off and Hong Kong IPO of Shimao to raise up to $1 billion, according to press reports. Property management IPOs are popular due to the strong post-IPO share price performance of recent listings. The property management sector has a long-term recurring business model and is capital-light. Overall, Shimao’s fundamentals over the track record period are attractive, in our view.

Shimao Services IPO Initiation: At Your Service

Excellence Commercial Property & Facilities Management / Equity Capital Markets

Excellence Commercial Property & Facilities Management

<div><p><a href="https://www.smartkarma.com/entities/excellence-commercial-property-facilities-management" target="_blank" data-smartkarma-citation="entities:29249:1" rel="noopener">Excellence Commercial Property (1611267D CH)</a> is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. At the proposed IPO price range of HK$9.30-10.68 per share, Excellence will have a market cap of HK$11,160.0-12,816.0 million ($1.4-1.7 billion).</p></div><div><p>Nine cornerstone investors will subscribe for 38.79% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a>, China Southern Asset Management, Snow Lake Capital, 3W Fund, OP Capital, Orient Asset Management, J-Stone Capital and Matthews Funds. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/excellence-commercial-property-facilities-mgmt-ipo-initiation-facilities-facilitate" target="_blank" rel="noopener">our initiation note</a>, we highlighted that Excellence’s fundamentals over the track record period are attractive. Overall, we think that an attractive valuation and solid cornerstone support makes Excellence tempting at the proposed pricing range. </p></div></div></div>

Excellence Commercial Property (1611267D CH) is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. At the proposed IPO price range of HK$9.30-10.68 per share, Excellence will have a market cap of HK$11,160.0-12,816.0 million ($1.4-1.7 billion).Nine cornerstone investors will subscribe for 38.79% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Tencent Holdings (700 HK), JD.com Inc (ADR) (JD US), China Southern Asset Management, Snow Lake Capital, 3W Fund, OP Capital, Orient Asset Management, J-Stone Capital and Matthews Funds. In our initiation note, we highlighted that Excellence’s fundamentals over the track record period are attractive. Overall, we think that an attractive valuation and solid cornerstone support makes Excellence tempting at the proposed pricing range. 

Excellence Commercial Property & Facilities Mgmt IPO: Valuation Insights

<p><a href="https://www.smartkarma.com/entities/excellence-commercial-property-facilities-management" target="_blank" data-smartkarma-citation="entities:29249:1" rel="noopener">Excellence Commercial Property (1611267D CH)</a> is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. It has launched a Hong Kong IPO to raise up to HK$3.2 billion ($410 million), according to press reports. </p><div class="content-highlight"><p>Property management IPOs are popular as the property management sector is asset-light and has a long-term recurring business model. Overall, Excellence’s fundamentals over the track record period are attractive, in our view.</p></div>

Excellence Commercial Property (1611267D CH) is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. It has launched a Hong Kong IPO to raise up to HK$3.2 billion ($410 million), according to press reports. Property management IPOs are popular as the property management sector is asset-light and has a long-term recurring business model. Overall, Excellence’s fundamentals over the track record period are attractive, in our view.

Excellence Commercial Property & Facilities Mgmt IPO Initiation: Facilities Facilitate

Sunac Services Holdings / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/sunac-services-holdings" target="_blank" data-smartkarma-citation="entities:29239:1" rel="noopener">Sunac Services Holdings (1820476D HK)</a> is a Chinese property management company. Sunac is the fastest-growing large-scale property management service provider in China, according to China Index Academy. On 6 August, <a href="https://www.smartkarma.com/entities/sunac-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:240:1" rel="noopener">Sunac China Holdings (1918 HK)</a>, the controlling shareholder, announced the proposed spin-off and listing of Sunac on the HKEX. Post the IPO, Sunac China will have an interest of not less than 50% in Sunac and Sunac will remain a subsidiary of Sunac China. Sunac is seeking to raise $1 billion, according to press reports.</p><div class="content-highlight"><p>A key attraction of the property management sector is its asset-light and long-term recurring business model. Also, IPOs in the property management sector has been red-hot this year with <a href="https://www.smartkarma.com/entities/central-china-new-life" target="_blank" data-smartkarma-citation="entities:28953:1" rel="noopener">Central China New Life (9983 HK)</a> and <a href="https://www.smartkarma.com/entities/zhenro-services-group" target="_blank" data-smartkarma-citation="entities:28869:1" rel="noopener">Zhenro Services (6958 HK)</a> trading 52% and 46% above their IPO price, respectively. Overall, we believe that Sunac is a worthy addition to this group as its fundamentals over the track record period are attractive, in our view.</p></div>

Sunac Services Holdings (1820476D HK) is a Chinese property management company. Sunac is the fastest-growing large-scale property management service provider in China, according to China Index Academy. On 6 August, Sunac China Holdings (1918 HK), the controlling shareholder, announced the proposed spin-off and listing of Sunac on the HKEX. Post the IPO, Sunac China will have an interest of not less than 50% in Sunac and Sunac will remain a subsidiary of Sunac China. Sunac is seeking to raise $1 billion, according to press reports.A key attraction of the property management sector is its asset-light and long-term recurring business model. Also, IPOs in the property management sector has been red-hot this year with Central China New Life (9983 HK) and Zhenro Services (6958 HK) trading 52% and 46% above their IPO price, respectively. Overall, we believe that Sunac is a worthy addition to this group as its fundamentals over the track record period are attractive, in our view.

Sunac Services IPO Initiation: Next in Line

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<p>Hong Kong SFC reported on today for aggregate short position on Jul 03. The aggregate short value for equities increased by $2,633m (+4.4%) WoW and increased by $2,337m (+3.9%) over the preceding four weeks.</p><p>Most shorted stocks by aggregate short value of positions are Ping An Insurance (Group) Company Of China, Ltd./2318 HK($9,327m, +8.1% WoW), Tencent Holdings Limited/700 HK($3,518m, +5.2% WoW), Meituan Dianping/3690 HK($2,252m, -5.4% WoW), Zhongsheng Group Holdings Limited/881 HK($1,292m, +8.7% WoW), Xiaomi Corporation/1810 HK($1,068m, +8.5% WoW).</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/145/455/original/image_21898409821594522544123.png?1594522545" class="editor-image img-responsive" data-smartkarma-image-id="145455"></figure>

Hong Kong SFC reported on today for aggregate short position on Jul 03. The aggregate short value for equities increased by $2,633m (+4.4%) WoW and increased by $2,337m (+3.9%) over the preceding four weeks.Most shorted stocks by aggregate short value of positions are Ping An Insurance (Group) Company Of China, Ltd./2318 HK($9,327m, +8.1% WoW), Tencent Holdings Limited/700 HK($3,518m, +5.2% WoW), Meituan Dianping/3690 HK($2,252m, -5.4% WoW), Zhongsheng Group Holdings Limited/881 HK($1,292m, +8.7% WoW), Xiaomi Corporation/1810 HK($1,068m, +8.5% WoW).

HK Short Report: Meituan Short Stayed at USD 2.2bn

China

Country Garden Services Holdings Company Limited provides real estate development services. The Company develops residential apartments, multi-functional complex buildings, government and public facilities, industrial parks, highway service stations, and schools. Country Garden Services Holdings serves clients in China.

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Country Garden Services (6098 HK)

Shimao Services IPO Initiation: At Your Service

Property management IPOs are popular due to the strong post-IPO share price performance of recent listings. Overall, Shimao’s fundamentals over the...

Arun George

Excellence Commercial Property & Facilities Mgmt IPO: Valuation Insights

Converge ICT Solutions Inc (ITC PM) is the only major pure-play fixed broadband provider, with an exclusive focus on serving the Philippine fixed...

Arun George

Excellence Commercial Property & Facilities Mgmt IPO Initiation: Facilities Facilitate

Excellence is a leading commercial operational service provider in China and ranked fourth among the commercial property management service...

Arun George

Sunac Services IPO Initiation: Next in Line

Sunac Services Holdings (1820476D HK) is a Chinese property management company. Sunac is the fastest-growing large-scale property management...

Arun George

HK Short Report: Meituan Short Stayed at USD 2.2bn

Hong Kong SFC reported on today for aggregate short position on Jul 03. The aggregate short value for equities increased by $2,633m (+4.4%) WoW and...

Ke Yan, CFA, FRM

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