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 the team recently along with updates for upcoming IPOs.




Ant Financial (1051260D CH)'s IPO is finally on the home stretch. PHIP has been filed with HKEX this week and more details on the deal structure were revealed in Alibaba Group (BABA US)'s SEC filing. Other Hong Kong IPOs also rushed to launch; Shimao Services Holdings (873 HK) launched on Monday, GDS Holdings (ADR) (GDS US) on Wednesday and JW Therapeutics (2126 HK) on Thursday.  Link to our coverage on these are below.


Ant Group Pre-IPO: Deal Structure, PHIP Updates, Short-Term Trades 

Ant Group Pre-IPO: Quick Take on FTSE and MSCI's Clearer Guidelines 

Shimao Services (世茂服务) IPO - Paying for Growth 

JW Therapeutics (药明巨诺) Pre-IPO: Pricing with In-License Potential 

JW Therapeutics (药明巨诺) IPO: Free Options for Potential License-In 

GDS Holdings Hong Kong Secondary - Going Big. Will Almost Become Net Cash, for a While. 

We are hearing that Sunac Services Holdings (1820476D HK) and Jinke Smart Services (JKS HK) are close to launching their bookbuild soon too as they are in the approval and premarketing phase. We also initiated coverage on upcoming IPOs such as Dida (DIDA HK) and Antengene (ANGENE HK). 


Antengene (德琪医药) Pre-IPO: Proven R&amp;D Track Record by Founder Matters 

Dida Pre-IPO - Making Hay While Big Brother Retreats 

Sunac Services (融创服务) Pre-IPO - Promising Growth &amp; Diversifying Away from Sunac Via Acquisitions 

Jinke Smart Services (金科智慧服务) Pre-IPO - GFA Growth at the Expense of Fees 

Jinke Smart Services (金科智慧服务) Pre-IPO - Peer Comparison and Early Thoughts on Valuation 

In the U.S, Lufax Holdings (LU US) launched its IPO bookbuild on Friday, aiming to raise US$2.4bn ahead of Ant's IPO. Sumeet Singh compared the company to peers and shared his thoughts on assumptions and valuations in:


Lufax Pre-IPO - Peer Review - Bigger than Ant’s CreditTech, in Revenue 

Lufax IPO - Stuck with the Earlier Fundraising Valuation 

In India, Kalyan Jewellers got SEBI's approval for IPO but it is only likely to launch early next year. Burger King India refiled its draft prospectus this week and it is planning to offer more primary shares this time round.


Burger King India Pre-IPO - Has Been Growing Fast and Plans to Grow Even Faster 

Burger King India Pre-IPO - Peer Comparison Yields Interesting Nuggets on Profitability and Capex 

Last, but not least, in Singapore, Nanofilm Technologies International (NTI SP) launched its IPO bookbuild to raise up to US$345m. Books were well covered and reported to be about 19x oversubscription rate. The company will list next Friday.


Nanofilm Technologies IPO - Impressive Growth and Margins 

Nanofilm Technologies IPO - Expensive but Still Justifiable Valuation 

As for  trading debuts, MR D.I.Y. Group (MRDIY MK) and Converge ICT Solutions Inc (ITC PM) will list on Monday while Simcere Pharmaceutical Group (2096 HK) will trade on Tuesday but has already fallen 18% below IPO price in its grey market trading. Finally, Nanofilm Technologies International (NTI SP), Shimao Services Holdings (873 HK), and KWG Living Group (3913 HK) will trade on Friday.


Converge ICT IPO Trading - Long Growth Runway 

MR DIY IPO Trading - Good Demand, Still Very Reasonable Valuation 

Simcere (先声制药) IPO Trading: Mind the Sentiment Changes 

Placements:


Zip Placement - Sorry, It's Not You. It's Me 

Mapletree Logistics Placement - Big Deal, Little Accretion but past Deals Have Done Well 





Accuracy Rate:



Our overall accuracy rate is 73.4% for IPOs and 66.5% for Placements 


(Performance measurement criteria is explained at the end of the note)






New IPO filings this week  





GDS Holding (Hong Kong secondary)
New Oriental Edu (Hong Kong secondary)
Burger King India (refile, India)



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.






News on Upcoming IPOs  





Singapore's Nanofilm IPO hugely oversubscribed 
Didi lines up 2021 IPO in Hong Kong, targets more than $60 billion valuation
Lufax Seeks Up to $2.36 Billion in IPO 
Nanofilm IPO shares priced at S$2.59; subscribed 19 times




Analysis on Upcoming IPOs






Name
Insight


Hong Kong


Antengene

Antengene (德琪医药) Pre-IPO: Proven R&amp;D Track Record by Founder Matters 


Ant Group

Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles 


Ant Group

Ant Group (蚂蚁集团) IPO: Numbers Suggest It's More Tech than Financials 


Ant Group

Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/Questions to Ask - Falling Fees, Margins, Cash Flow 


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


Ant Group

Ant Financial (蚂蚁金服) IPO Early Thought: What's New About the Listing News 


Ant Group

Ant Group - Index Inclusion Possibilities &amp; Timeline 


Blue Moon

Blue Moon Group Pre-IPO - The Positives - Dominant Market Share, Strong Online Sales 



Blue Moon

Blue Moon Group Pre-IPO - The Negatives - Flagging Offline Sales, Not Really a Primary Raising 



Blue Moon

Blue Moon: No. 1 But No Exclusive Advantage, Observation on the Ground 



Blue Moon

Blue Moon Group Pre-IPO - Online Reviews and Peer Comparison 



ByteDance

ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)



ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 



ByteDance

ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)



ByteDance

ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H? 



ByteDance

ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants 



ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 



ByteDance

ByteDance (字节跳动) Pre-IPO - Globally the Most Downloaded App for Jan 2020 Driven by India 



ByteDance

ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges 



Dida

Dida Pre-IPO - Making Hay While Big Brother Retreats 



E-Star Comm

E-Star Commercial Management Pre-IPO - Better Disclosure in New Prospectus 



E-Star Comm

E-Star Commercial Management Pre-IPO - Still Largely Reliant on Galaxy, Poor Disclosure Doesn’t Help 



Genor

Genor (嘉和生物) Pre-IPO: Slow R&amp;D Progress in the past but that Might Change 



Jiayuan Svcs

Jiayuan Services (佳源服务) Pre-IPO - Another Small Property Management Company 



Jinke Svcs

Jinke Smart Services (金科智慧服务) Pre-IPO - GFA Growth at the Expense of Fees 



Kilcoy

Kilcoy Global Foods Pre-IPO - Rapid Earnings Growth on the Back of Margin Improvement 



Kilcoy

Kilcoy Global Foods Pre-IPO - A Lot of Things Still Remain Unexplained 



Megvii

Megvii (旷视) Pre-IPO - Remarkable Growth (Part 1) 


Megvii

Megvii (旷视) Pre-IPO - A Bet on the Future - Segments, Revenue Drivers and Growth Potential 


Megvii

Megvii (旷视) Pre-IPO - The Real Race Is in Research - Founders' Profile and Talent 


Megvii

Megvii (旷视) Pre-IPO - Competitive Landscape and Peer Analysis 


Megvii

Megvii (旷视) Pre-IPO -  Initial Thoughts on Valuation 


Ocumension

Ocumension (欧康维视) Pre-IPO: All Ready for a Great Listing Except a Block Buster 


Pop Mart

Pop Mart Pre-IPO - The Negatives - Is It a Brand Owner or Just a Retailer? 


Pop Mart

Pop Mart Pre-IPO - The Positives - Expanding Portfolio+Wider Distribution= Explosive Earnings Growth 


Pop Mart

Pop Mart Pre-IPO - Peer Set and Valuation 


Pop Mart

Pop Mart Pre-IPO Quick Note - On the Ground - Pop-Up Stores Are Effective 


Radiance

Radiance Holdings (金辉控股) Pre-IPO - Property Mgt Svc Sold Out at a Ridiculously Cheap Valuation 


Sunac Svcs

Sunac Services (融创服务) Pre-IPO - Promising Growth &amp; Diversifying Away from Sunac Via Acquisitions 


RemeGen

RemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48 


Simcere

Simcere (先声制药) Pre-IPO: Long History but Products Concentrated 


Toplist

Toplist China Pre-IPO - Overwhelmingly More Negatives than Positives 


Tasly

Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters 


WeDoctor

WeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More 


WeDoctor

WeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor 


India


ASK

ASK Investment Managers Pre-IPO - Riding on a Wave of Wealth 


Anmol Ind
Anmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders


Bharat Hotel

Bharat Hotels Pre-IPO - Catching up with Peers 



Burger King

Burger King India Pre-IPO - Has Been Growing Fast and Plans to Grow Even Faster 



Burger King

Burger King India Pre-IPO - Peer Comparison Yields Interesting Nuggets on Profitability and Capex 



Bajaj En

Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It 



CMS Info
CMS Info Systems Pre-IPO - 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


ESAF SFB

ESAF Small Finance Bank Pre-IPO - Growing Fast but Remains Highly Dependant on a Related Party 


Equitas SFB

Equitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing 


Equitas SFB

Equitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing 


Flemingo 
Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country


Emami Cem

Emami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO 


IRFC

Indian Railway Finance Pre-IPO - Low Risk, Low Margin Business 


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


Mrs. Bector
Mrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta



LIC


Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO 



Lodha

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


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


Penna Cem

Penna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 


PNB Met
PNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers


Samhi Hotels

Samhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace 


Malaysia


QSR
QSR Brands Pre-IPO - As Healthy as Fast Food


Thailand


PTTOR

PTT Oil and Retail IPO - F&amp;B Business Is the Profit Driver 


The U.S


CDP

CDP Holdings Pre-IPO Review - Highly Reliant on Best Inc. 


CloudMinds
CloudMinds Inc Early Thoughts - Still Nascent





ECM Weekly (25 October 2020) - Ant Group, Lufax, JW Thera, Shimao Svcs, GDS Secondary, Nanofilm

Equity Analyst, LightStream Research

Aqila Ali

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.

<a href="https://www.smartkarma.com/entities/didi-chuxing-inc" target="_blank" data-smartkarma-citation="entities:27467:1" rel="noopener">DiDi Chuxing (1284375D CH)</a>’s rival <a href="https://www.smartkarma.com/entities/dida-inc" target="_blank" data-smartkarma-citation="entities:29701:1" rel="noopener">Dida (DIDA HK)</a> has taken the lead to file for an IPO, being the first Asian ride-hailing company to go public. In this note, we have taken a look at the company’s business model and its growth prospects by comparing the company with its rival Didi. Based on our first look, the key points we highlight are:<ul>
<li>85% of Dida’s revenue is from Carpooling where it holds a 66.5% market share which appears to be a defensible share.</li>
<li>Dida became the leading player specialising in Carpooling services when Didi had to suspend its carpooling app due to two murder incidents. Dida claims their app has better safety features.</li>
<li>Though the company is exposed to the growth potential of ride-sharing through the niche of carpooling, we believe the risks from COVID are higher for carpooling because the number of strangers per ride is higher. This is likely to be highly negative in the short-term and our question is, will it really get easier over time?</li>
<li>For ride-hailing services (around 5% of revenue), Dida mainly partners with taxi companies but is still struggling to keep pace with Didi. Thus, we question whether the company can ever benefit from the major segment of the ride-sharing market?</li>
<li>The company claims its asset-light model will help them reach profitability soon and it did generate a positive adjusted NP in 2019, and in 1H FY12/2020. However, given the struggles of most companies in the sector and the use of items below the operating line to generate a NP, we believe some caution is warranted. We are sceptical about this claim and intend to investigate the path to profitability more closely in a follow-up note.</li>
</ul>

DiDi Chuxing (1284375D CH)’s rival Dida (DIDA HK) has taken the lead to file for an IPO, being the first Asian ride-hailing company to go public. In this note, we have taken a look at the company’s business model and its growth prospects by comparing the company with its rival Didi. Based on our first look, the key points we highlight are:
85% of Dida’s revenue is from Carpooling where it holds a 66.5% market share which appears to be a defensible share.
Dida became the leading player specialising in Carpooling services when Didi had to suspend its carpooling app due to two murder incidents. Dida claims their app has better safety features.
Though the company is exposed to the growth potential of ride-sharing through the niche of carpooling, we believe the risks from COVID are higher for carpooling because the number of strangers per ride is higher. This is likely to be highly negative in the short-term and our question is, will it really get easier over time?
For ride-hailing services (around 5% of revenue), Dida mainly partners with taxi companies but is still struggling to keep pace with Didi. Thus, we question whether the company can ever benefit from the major segment of the ride-sharing market?
The company claims its asset-light model will help them reach profitability soon and it did generate a positive adjusted NP in 2019, and in 1H FY12/2020. However, given the struggles of most companies in the sector and the use of items below the operating line to generate a NP, we believe some caution is warranted. We are sceptical about this claim and intend to investigate the path to profitability more closely in a follow-up note.


Dida Pre-IPO: Carpool-Focused, But Is Main Business in Short-Term Risk?

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<a href="https://www.smartkarma.com/entities/dida-inc" target="_blank" data-smartkarma-citation="entities:29701:1" rel="noopener">Dida (DIDA HK)</a> (Dida), a technology driven mobility platform in China, aims to raise around US$400m in its Hong Kong IPO. The company is backed by JD.com, Hillhouse, Ctrip, Bitauto and a host of other investors.Dida claims to operate the largest carpooling marketplace in China with a market share of 66.5% in terms of the number of carpooling rides in 2019, as per Frost &amp; Sullivan (F&amp;S) report. Over 2017-19, Dida’s total revenue increased by 11.87x. Revenue was up another 66% over 6M20. Revenue coming from carpooling has grown 19x over 2017 to 2019 and was up another 66% over 6M20.

Dida (DIDA HK) (Dida), a technology driven mobility platform in China, aims to raise around US$400m in its Hong Kong IPO. The company is backed by JD.com, Hillhouse, Ctrip, Bitauto and a host of other investors.Dida claims to operate the largest carpooling marketplace in China with a market share of 66.5% in terms of the number of carpooling rides in 2019, as per Frost &amp; Sullivan (F&amp;S) report. Over 2017-19, Dida’s total revenue increased by 11.87x. Revenue was up another 66% over 6M20. Revenue coming from carpooling has grown 19x over 2017 to 2019 and was up another 66% over 6M20. 

Dida Pre-IPO - Making Hay While Big Brother Retreats

China

Dida offers carpooling and online taxi hailing services in China

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Dida (DIDA HK)

ECM Weekly (25 October 2020) - Ant Group, Lufax, JW Thera, Shimao Svcs, GDS Secondary, Nanofilm

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs. This week...

Zhen Zhou, Toh

Dida Pre-IPO: Carpool-Focused, But Is Main Business in Short-Term Risk?

Didi’s rival Dida takes the lead to file for an IPO, and would be the first Asian ride-hailing company to go public. We compare Dida's business...

Aqila Ali

Dida Pre-IPO - Making Hay While Big Brother Retreats

Dida, a technology driven mobility platform in China, aims to raise around US$400m in its Hong Kong IPO. The company is backed by JD.com,...

Sumeet Singh

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