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

<ul>
<li>We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 118.2% as of Nov 25th.</li>
<li>The average A-H premium changed by -3.2ppt weeok on week, led by real estate, financials, information technology and offset by consumer discretionary.</li>
<li>We highlight weekly changes in A-H premium for China Longyuan, GF securities, Cosco Ship, CCCC, Cansino, Great Wall Motor.</li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 118.2% as of Nov 25th.
The average A-H premium changed by -3.2ppt weeok on week, led by real estate, financials, information technology and offset by consumer discretionary.
We highlight weekly changes in A-H premium for China Longyuan, GF securities, Cosco Ship, CCCC, Cansino, Great Wall Motor.


A-H Premium Weekly (Nov 25th): China Longyuan, GF Securities, Cosco Ship, CCCC, Cansino

<ul>
<li>We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 121.4% as of Nov 18th.</li>
<li>The average A-H premium changed by -7.0ppt weeok on week, led by consumer discretionary, industrials, communication services and offset by consumer staples.</li>
<li>We highlight weekly changes in A-H premium for China Longyuan, GF Securities, Great Wall Motor, COSCO Shipping Energy. </li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 121.4% as of Nov 18th.
The average A-H premium changed by -7.0ppt weeok on week, led by consumer discretionary, industrials, communication services and offset by consumer staples.
We highlight weekly changes in A-H premium for China Longyuan, GF Securities, Great Wall Motor, COSCO Shipping Energy. 


A-H Premium Weekly (Nov 18th): China Longyuan, GF Securities, Great Wall Motor

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kingston-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:3566:1" rel="noopener">Kingston Financial (1031 HK)</a> announced a privatisation offer from Mrs Chu, the controlling shareholder, at HK$0.30 per share, a 47.8% premium to the undisturbed price. The offer price is final.</li>
<li>Key conditions include approval by at least 75% of disinterested shareholders (&lt;10% of disinterested shareholders rejection) and the headcount test. No shareholder holds a blocking stake.</li>
<li>The offer is light and the offeror is betting that the grim market conditions will sway the headcount test in its favour. Scheme document despatched by 21 December. </li>
</ul>



Kingston Financial (1031 HK) announced a privatisation offer from Mrs Chu, the controlling shareholder, at HK$0.30 per share, a 47.8% premium to the undisturbed price. The offer price is final.
Key conditions include approval by at least 75% of disinterested shareholders (&lt;10% of disinterested shareholders rejection) and the headcount test. No shareholder holds a blocking stake.
The offer is light and the offeror is betting that the grim market conditions will sway the headcount test in its favour. Scheme document despatched by 21 December. 


Kingston Financial’s HK$0.30 Privatisation Bid from Mrs Chu

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kingston-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:3566:1" rel="noopener">Kingston Financial (1031 HK)</a> entered a trading halt pending an announcement under the Hong Kong Code on Takeovers and Mergers on 14 October. The shares are at all-time lows. </li>
<li>It is likely that Pollyanna Chu Yuet Wah (CEO and co-founder), the largest shareholder representing 75.61% of ordinary shares (80.09% of diluted shares), is seeking to privatise Kingston.</li>
<li>As privatisation through a Bermuda scheme involves the headcount test, a decent premium is required - an offer at the 1-year average price of HK$0.33 implies a 63% premium.</li>
</ul>



Kingston Financial (1031 HK) entered a trading halt pending an announcement under the Hong Kong Code on Takeovers and Mergers on 14 October. The shares are at all-time lows. 
It is likely that Pollyanna Chu Yuet Wah (CEO and co-founder), the largest shareholder representing 75.61% of ordinary shares (80.09% of diluted shares), is seeking to privatise Kingston.
As privatisation through a Bermuda scheme involves the headcount test, a decent premium is required - an offer at the 1-year average price of HK$0.33 implies a 63% premium.


Kingston’s All-Time Lows to Draw an Offer from Mrs Chu?

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/magic-empire-global" target="_blank" data-smartkarma-citation="entities:36219:1" rel="noopener">Magic Empire Global (MEGL US)</a> shares are currently up 45x since its listing at US$4.00 per share on 5 August. Its market cap currently stands at US$3.6 billion.</li>
<li>Just like <a href="https://www.smartkarma.com/entities/amtd-digital" target="_blank" data-smartkarma-citation="entities:36214:1" rel="noopener">AMTD Digital (HKD US)</a>, it is hard to pinpoint the real reason for MEGL’s share price surge. MEGL’s financials are uninspiring and cannot justify the share price ramp.</li>
<li>MEGL has no unique competitive advantage which could justify it's current large premium multiple compared to larger and better-established peers.    </li>
</ul>



Magic Empire Global (MEGL US) shares are currently up 45x since its listing at US$4.00 per share on 5 August. Its market cap currently stands at US$3.6 billion.
Just like AMTD Digital (HKD US), it is hard to pinpoint the real reason for MEGL’s share price surge. MEGL’s financials are uninspiring and cannot justify the share price ramp.
MEGL has no unique competitive advantage which could justify it's current large premium multiple compared to larger and better-established peers.    


Magic Empire Global: More Trick than Treat

China

GF Securities Co Ltd. is a securities firm. The Company offers investment banking services including equity and bond underwriting, mergers and acquisitions consulting, financial consulting, brokerage services, and asset management services.

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GF Securities (H) (1776 HK)

A-H Premium Weekly (Nov 25th): China Longyuan, GF Securities, Cosco Ship, CCCC, Cansino

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan, GF securities, Cosco Ship, CCCC, Cansino,...

Ke Yan, CFA, FRM

A-H Premium Weekly (Nov 18th): China Longyuan, GF Securities, Great Wall Motor

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan, GF Securities, Great Wall Motor, COSCO...

Ke Yan, CFA, FRM

Kingston Financial’s HK$0.30 Privatisation Bid from Mrs Chu

The key risk is the headcount test. Despite the large premium, the offer is underwhelming to peer multiples and historical share prices. A 60% deal...

Arun George

Kingston’s All-Time Lows to Draw an Offer from Mrs Chu?

Mrs Chu (CEO and co-founder) is likely seeking to privatise Kingston. A decent premium is required as privatisation through a Bermuda scheme (most...

Arun George

Magic Empire Global: More Trick than Treat

It is hard to pinpoint the real reason for MEGL’s share price surge. While it is difficult to predict when the share price will reflect...

Arun George

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52-week Range

Market Cap (USDm)

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