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

Phoenix Tree Holdings Ltd / Equity Capital Markets

Phoenix Tree (Danke) is looking to raise about US$200-300m in its US IPO.  Danke is a co-living accommodation provider. According to iResearch, Danke is now one of the largest co-living platforms in China. As of Sep 2019, the company had operations in 13 cities in China with 406,746 apartment units.Danke only began operations in 2015 but it has scaled very fast. Over FY17-9M19, the number of apartments being run by the company have increased by 7.8x while its revenue too increased by 7.6x. Unfortunately, that is about the only thing to like about the company’s operations.The company’s rental spread has been under pressure even by its own measure. If we adjust the spread to try and arrive at gross profit margin, the results aren’t very encouraging. Furthermore, given its rapid expansion, the company is devouring capital, but it hasn’t been generating any cash flows.

Phoenix Tree (Danke) is looking to raise about US$200-300m in its US IPO.  Danke is a co-living accommodation provider. According to iResearch, Danke is now one of the largest co-living platforms in China. As of Sep 2019, the company had operations in 13 cities in China with 406,746 apartment units.Danke only began operations in 2015 but it has scaled very fast. Over FY17-9M19, the number of apartments being run by the company have increased by 7.8x while its revenue too increased by 7.6x. Unfortunately, that is about the only thing to like about the company’s operations.The company’s rental spread has been under pressure even by its own measure. If we adjust the spread to try and arrive at gross profit margin, the results aren’t very encouraging. Furthermore, given its rapid expansion, the company is devouring capital, but it hasn’t been generating any cash flows.  

Phoenix Tree (Danke) Pre-IPO - Another WeWork - Nothing Is Improving Apart from Revenue

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Q&amp;K International, a leading apartment rental platform in China, is planning to raise up to USD 100 million via a listing in the US. In this insight, we will take a brief look at the company's business model. Similar to WeWork, Q&amp;K makes a spread between the landlords and tenants. Having said that, our calculation suggests that this is a very capex heavy business model and it will not work out economically.

Q&amp;K International, a leading apartment rental platform in China, is planning to raise up to USD 100 million via a listing in the US. In this insight, we will take a brief look at the company's business model. Similar to WeWork, Q&amp;K makes a spread between the landlords and tenants. Having said that, our calculation suggests that this is a very capex heavy business model and it will not work out economically. 

Q&K Intl (青客) IPO: Yet Another WeWork Model that Will Not Work

China

FLJ Group Limited provides real estate services. The Company offers apartment on rental basis. FLJ Group serves customers in China.

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FLJ Group (FLJ US)

Phoenix Tree (Danke) Pre-IPO - Another WeWork - Nothing Is Improving Apart from Revenue

Phoenix Tree (Danke) is looking to raise about US$200-300m in its US IPO. Danke is a co-living accommodation provider. According to iResearch,...

Sumeet Singh

Q&K Intl (青客) IPO: Yet Another WeWork Model that Will Not Work

Q&K International, a leading apartment rental platform in China, is planning to raise up to USD 100 million via a listing in the US. In this...

Ke Yan, CFA, FRM

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