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

Full Truck Alliance   / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/full-truck-alliance" target="_blank" data-smartkarma-citation="entities:33429:1" rel="noopener">Full Truck Alliance (YMM US)</a> (FTU),  China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is backed by Softbank and Sequoia.Full Truck Alliance (FTA) was formed in 2017 via a merger of Yunmanman and Huochebang, which had been operational since 2013 and 2011, respectively. It is the largest digital freight platform in China and the world, as per CIC. In 2020, 71.7m orders were fulfilled on the platform, with a gross transaction value (GTV) of RMB173.8bn (US$26.6bn), by 2.8m truckers. It had 1.3m active shippers in Dec 2020. Approximately 20% of all China’s heavy-duty and medium-duty truckers fulfilled shipping orders on its platform in 2020, according to CIC.FTA is the leader in its category and appears to be well ahead of other competitors, as per CIC. The company has been working on various means of monetising its user base. While 2020 wasn’t a great year for revenue growth, the company did manage to turn a profit and was cash flow positive as well.

Full Truck Alliance (YMM US) (FTU),  China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is backed by Softbank and Sequoia.Full Truck Alliance (FTA) was formed in 2017 via a merger of Yunmanman and Huochebang, which had been operational since 2013 and 2011, respectively. It is the largest digital freight platform in China and the world, as per CIC. In 2020, 71.7m orders were fulfilled on the platform, with a gross transaction value (GTV) of RMB173.8bn (US$26.6bn), by 2.8m truckers. It had 1.3m active shippers in Dec 2020. Approximately 20% of all China’s heavy-duty and medium-duty truckers fulfilled shipping orders on its platform in 2020, according to CIC.FTA is the leader in its category and appears to be well ahead of other competitors, as per CIC. The company has been working on various means of monetising its user base. While 2020 wasn’t a great year for revenue growth, the company did manage to turn a profit and was cash flow positive as well. 

Full Truck Alliance Pre-IPO - The Positives - Category Leader

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (2618 HK)</a>, the logistics spin-off of <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a>, will <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0517/2021051700101.pdf" target="_blank" rel="noopener">price</a> its shares between HK$39.36 and HK$43.36 each, raising HK$25.2bn using the half-way price, before over-allotment.
Reportedly the retail proportion was 141x oversubscribed on the opening day.
JD.com's stake will decline to 64.4% (63.5% including the over-allotment) from 71.57% currently.
JD.com's shares are down 35% from its recent high in February as Beijing scrutinises large domestic internet players. That's a significant move - and value at the stub level is emerging.
More below the fold.

JD Logistics (2618 HK), the logistics spin-off of JD.com Inc. (9618 HK), will price its shares between HK$39.36 and HK$43.36 each, raising HK$25.2bn using the half-way price, before over-allotment.
Reportedly the retail proportion was 141x oversubscribed on the opening day.
JD.com's stake will decline to 64.4% (63.5% including the over-allotment) from 71.57% currently.
JD.com's shares are down 35% from its recent high in February as Beijing scrutinises large domestic internet players. That's a significant move - and value at the stub level is emerging.
More below the fold.

JD.com's Stub Trading Cheapish Ahead Of Logistics Spin-Off

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

When you go to a live music show in Japan there is almost always an encore. In fact, that is the standard. If an artist has truly done well, there may be a second encore. And if the performance has been legendary, there might even be a third. That is how the last year with Vision Fund has felt...

When you go to a live music show in Japan there is almost always an encore. In fact, that is the standard. If an artist has truly done well, there may be a second encore. And if the performance has been legendary, there might even be a third. That is how the last year with Vision Fund has felt...

Softbank Group: Q4 20 Results – Will There Be an Encore?

Global TMT analyst with Asia ex-Japan focus.

Mitchell Kim

While AML (Anti- Monopoly Law) posed as a share overhang first on <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> starting late 2020, the regulator's recent focus shifted towards the smaller e-commerce platforms, Pin Duo Duo and Meituan. On Monday, 10 May 2021, Shanghai Consumer Council, a quasi-government consumer protection agency, called a meeting with <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/pinduoduo-inc" target="_blank" data-smartkarma-citation="entities:27250:1" rel="noopener">Pinduoduo (PDD US)</a> representatives to address counterfeit goods and consumers' and laborers' complaints, according to Wall Street Journal.  PDD and Meituan shares fell 9% and 7%, respectively, on the day, although PDD shares recovered some grounds on Tuesday.    Unlike the share overhang lifting for Alibaba with the announcement of the historic fine on 10 April, I believe share overhang will continue to plague the PDD shares as the uncertainty persists.  This is one of the reasons I maintain my cautious stance on the stock.  I flagged in my Webinar on PDD, <a href="https://www.smartkarma.com/insights/smartkarma-webinar-pinduoduo-pdd-us-know-when-to-fold" target="_blank" data-smartkarma-citation="insights:49910" rel="noopener">Smartkarma Webinar | Pinduoduo (PDD US): Know When to Fold</a> on 7 April, that AML risk could be even more impactful for the leading group buying platform because of its greater reliance on promotions and marketing subsidies which is one of the target violation investigations.  Moreover, I continue to be cautious about the stock because of its expensive valuation (P/Sales) and the risk of deteriorating investors' sentiment as revenue growth decelerates. My previous reports on Pin Duo Duo: <a href="https://www.smartkarma.com/insights/china-e-commerce-robust-consumption-data-hints-at-online-spending-spree" target="_blank" data-smartkarma-citation="insights:50798" rel="noopener">China E-Commerce: Robust Consumption Data Hints at Online Spending Spree</a> <a href="https://www.smartkarma.com/insights/pin-duo-duo-pdd-us-four-charts-to-make-you-want-to-run" target="_blank" data-smartkarma-citation="insights:49333" rel="noopener">Pin Duo Duo (PDD US): Four Charts To Make You Want to Run</a><a href="https://www.smartkarma.com/insights/pinduoduo-pdd-us-know-when-to-fold-know-when-to-run" target="_blank" data-smartkarma-citation="insights:48659" rel="noopener">Pinduoduo (PDD US): Know When to Fold, Know When to Run</a>

While AML (Anti- Monopoly Law) posed as a share overhang first on Alibaba Group (BABA US) starting late 2020, the regulator's recent focus shifted towards the smaller e-commerce platforms, Pin Duo Duo and Meituan. On Monday, 10 May 2021, Shanghai Consumer Council, a quasi-government consumer protection agency, called a meeting with Meituan (3690 HK) and Pinduoduo (PDD US) representatives to address counterfeit goods and consumers' and laborers' complaints, according to Wall Street Journal.  PDD and Meituan shares fell 9% and 7%, respectively, on the day, although PDD shares recovered some grounds on Tuesday.    Unlike the share overhang lifting for Alibaba with the announcement of the historic fine on 10 April, I believe share overhang will continue to plague the PDD shares as the uncertainty persists.  This is one of the reasons I maintain my cautious stance on the stock.  I flagged in my Webinar on PDD, Smartkarma Webinar | Pinduoduo (PDD US): Know When to Fold on 7 April, that AML risk could be even more impactful for the leading group buying platform because of its greater reliance on promotions and marketing subsidies which is one of the target violation investigations.  Moreover, I continue to be cautious about the stock because of its expensive valuation (P/Sales) and the risk of deteriorating investors' sentiment as revenue growth decelerates. My previous reports on Pin Duo Duo: China E-Commerce: Robust Consumption Data Hints at Online Spending Spree Pin Duo Duo (PDD US): Four Charts To Make You Want to RunPinduoduo (PDD US): Know When to Fold, Know When to Run        

Pin Duo Duo (PDD US): Whipping in the Wind

A 3% NASDAQ correction is a challenge for Softbank Group as it prepares to announce FY20 results later this week. The key takeaway for the quarter ended March is a $26bn gain for Vision Fund public companies led by the January IPO of Coupang which contributed $25bn of the upside as of quarter-end. But that same portfolio has given up almost half those gains QTD whilst sustained weakness would also impact the ability to get a Didi Chuxing IPO attractively placed even as the value of c. $22bn invested in public tech shares and derivatives could be at risk. The silver lining is that the chances of a new share buyback program have increased.

A 3% NASDAQ correction is a challenge for Softbank Group as it prepares to announce FY20 results later this week. The key takeaway for the quarter ended March is a $26bn gain for Vision Fund public companies led by the January IPO of Coupang which contributed $25bn of the upside as of quarter-end. But that same portfolio has given up almost half those gains QTD whilst sustained weakness would also impact the ability to get a Didi Chuxing IPO attractively placed even as the value of c. $22bn invested in public tech shares and derivatives could be at risk. The silver lining is that the chances of a new share buyback program have increased.

Softbank Group - Tech Weakness Hits on Multiple Levels but Boosts Chances of New Buybacks

China

DiDi Chuxing Incorporated operates passenger transportation platforms. The Company provides mobility solutions, cloud computing and other application based services. DiDi Chuxing serves customers worldwide.

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DiDi Global (DIDI US)

Full Truck Alliance Pre-IPO - The Positives - Category Leader

Full Truck Alliance, China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is...

Sumeet Singh

JD.com's Stub Trading Cheapish Ahead Of Logistics Spin-Off

Given its reliance on its parent, I'd prefer to play JD.com; yet a 35% discount to NAV doesn't appear overly stretched, and may further widen amid...

David Blennerhassett

Softbank Group: Q4 20 Results – Will There Be an Encore?

Softbank reported record earnings but this was anticipated and what happens moving forward is more relevant. It has high exposure to a tech sell...

Kirk Boodry

Pin Duo Duo (PDD US): Whipping in the Wind

Pin Duo Duo shares were rocked on Monday by the news that regulators called PDD to warn about counterfeit goods. Find out why regulatory risk and...

Mitchell Kim

Softbank Group - Tech Weakness Hits on Multiple Levels but Boosts Chances of New Buybacks

Softbank's is highly exposed to tech volatility which impacts current values in Vision Fund/Northstar and future values in the form of IPOs/SPACs....

Kirk Boodry

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