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

JD.com Inc (ADR) / 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.



ECM activity in Hong Kong still looks strong and were mainly in the biotech space. We've had Kangji Medical (1498779D CH) and Hygeia Healthcare Group (1702613D CH) open their Hong Kong bookbuilds earlier this week and they are expected to debut on the 29th of June. JD.com Inc (ADR) (JD US) also started trading in Hong Kong and has been holding up above its deal price. 


Hygeia Healthcare (海吉亚) IPO: Hot Deal but Expect Tiny Allocation 

Kangji Medical (康基医疗) IPO: Hot Deal with Some Room for Non-Cornerstone 

JD Secondary Trading Update - Strong Demand but Won't Have Any Index Flows 

Considering how well most of the recent IPOs have traded, there will likely be more deals in the coming few weeks. We are hearing that GreenTown Management Holdings (GTMH HK) has started pre-marketing this week while China Bohai Bank (BOHAIBZ HK) and Ocumension Therapeutics are starting their pre-marketing next week. Bohai and Ocumension will be likely be raising about US$2bn and US$300m in their respective IPOs. There was also news that Huazhu Group (HTHT US) is exploring a Hong Kong secondary listing and Yum China Holdings, Inc (YUMC US) has already filed confidentially with HKEX for its secondary listing as well.
It has been a quiet year for India's ECM space but Sumeet Singh shared this thoughts on what are some of the upcoming deals that to come and what to expect in the pipeline in:


India ECM 2020 Mid-Year Review - A Year of Secondary and Rights Issues 

Other upcoming IPO coverage and trade ideas setup for upcoming lock-up:


Archosaur Games (祖龙娱乐) Pre-IPO - Dragon Raja Will Continue to Drive Revenue - Walkthrough &amp; Thoughts 

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

Happiest Minds Pre-IPO - Decent Growth, Reputed Founder but Less than Reassuring Metrics 


JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation 



In the U.S., Genetron Holdings (GTH US) closed its bookbuild this week and debuted on Friday but returns were nowhere as good as Burning Rock Biotech (BNR US) last Friday. Genetron traded up about 10% initially but struggled to stay above its IPO price over rest of the day.


Genetron (泛生子) IPO: Metrics Inferior to Burning Rock 

Genetron (泛生子) IPO Trading: Priced at Our Fair Value, yet There Could Be Upside 

Since markets have traded well in the past week, there were also plenty of placements. We've had a couple of deals come our way and most of them have traded well. 


Shandong Gold Placement: Almost a Clean Up Trade 

SkyCity Placement: Past Performance and the Relative Value Trade 

JMDC Placement: Discovery of Japanese Ali-Health and Ping'an Good Doctor 

HDFC AMC Placement/OFS - Forced to Sell, but It's Not the Best of Times to Be Selling or Buying 





 Accuracy Rate:



Our overall accuracy rate is 73.3% for IPOs and 65.6% for Placements 


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






New IPO filings this week  





Ming Yuan Cloud Group Holdings (Hong Kong, &gt;US$100m)



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  





Yum China Confidentially Files for $2 Billion Hong Kong IPO
‘Very healthy’ pipeline of IPOs are flocking to Hong Kong as U.S.-China tensions ramp up
Decks cleared for ‘largest ever’ LIC IPO 






Name
Insight


Hong Kong


Archosaur

Archosaur (祖龙娱乐) Pre-IPO - Short Life Cycle, Volatile Revenue, but It May Look Different Soon 


Archosaur

Archosaur Games (祖龙娱乐) Pre-IPO - Dragon Raja Will Continue to Drive Revenue - Walkthrough &amp; Thoughts 


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


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 



GTMH

GreenTown Mgt (绿城管理) Pre-IPO - Sacrificed Margins in Pursuit of Growth, Muddled by JVs 



Helenbergh

Helenbergh (海伦堡) Early Thoughts - The Usual Red Flag - Related Party Transactions



Hepalink

Shenzhen Hepalink (海瑞普) A+H: A Heparin-API King but Nothing Too Exciting 



Hepalink

Shenzhen Hepalink (海瑞普) A+H: FY2019 Results Snippet and Valuation Update 



Kangji

Kangji Medical (康基医疗) Pre-IPO: Track Record of Growth but Products Too Concentrated 



Kangji

Kangji Medical (康基医疗) Pre-IPO: Superior Financial Metrics, Warrants a Premium 



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 


Nongfu

Nongfu Spring Pre-IPO - The Positives - Leaves One Thirsty for More 


Nongfu

Nongfu Spring Pre-IPO - The Negatives - Doesn't Need to List or Expand Production Facilities 


Nongfu

Nongfu Spring Pre-IPO - Peer Comparison - Superior Margins and Growth 


Nongfu

Nongfu Spring (农夫山泉) IPO: Beverage for the Young, In-Store Photos 


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 


Smoore

Smoore Tech (麦克韦尔) IPO: Hidden E-Cigarette Player Behind the FEELM Technology 



Smoore

Smoore Tech (麦克韦尔) Pre-IPO: 6Y and 1H2019 Financials Show Technology Driven Growth 



Smoore

Smoore Intl (思摩尔国际) Pre-IPO: Tripling Capacity in Three Years 



Smoore

Smoore Intl (思摩尔国际) Pre-IPO: Thoughts on E-Cig Regulation 



Tasly

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


Zhenro Svc

Zhenro Services (正荣服务) Pre-IPO - Diversifying Away from Zhenro Property Group 


Zhenro Svc

Zhenro Services (正荣服务) Pre-IPO - Peer Comparison and Thoughts on Valuation 


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 



CAMS

CAMS Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance 


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


Mazagon
Mazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending


Mindspace

Mindspace Business Parks REIT Pre-IPO - Decent Growth but Not All Assets Are Equal 


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 


UTI AMC

UTI Asset Management Company Pre-IPO - Well past Its Remote Glory Days 



Malaysia


Mr DIY

Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia 


Mr DIY

Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition 


Mr DIY

Mr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share  


Mr DIY

Mr D.I.Y. Pre-IPO - Assumptions and Thoughts on Valuation 


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 


SCGP

SCGP Pre-IPO - Shift to Packaging Has Been Aiding Margins but Acquisition Drove up Leverage 


The U.S


Agora

Agora Pre-IPO - Voicing Out Concerns on Data Disclosure 


CDP

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


CloudMinds
CloudMinds Inc Early Thoughts - Still Nascent





ECM Weekly (20 June 2020) - Hygeia, Kangji, Genetron, JD.com, Archosaur, Pop Mart

GreenTown Management Holdings / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/greentown-management-holdings" target="_blank" data-smartkarma-citation="entities:28895:1" rel="noopener">GreenTown Management Holdings (GTMH HK)</a> is looking to raise US$300m in its upcoming Hong Kong IPO.GTMH is a project management company in China with presence in 84 cities across 25 provinces, municipalities, and autonomous regions. It was the largest project management company in China in terms of accumulated contracted GFA between 2016 to 2018.The company’s YoY revenue growth accelerated over 2018 and 9M 2019 owing to a shift in strategy to focus on securing more commercial projects with business partners. As a result, it has captured significant market share and it is well-positioned to ride the industry tailwind.However, the cost of rapid expansion is its declining margins which stemmed from commercial projects with business partners. It is hard to fathom that one or two years into providing services, these joint ventures are still making losses. To make matters worse, there is no transparency around the financials of these JVs since they are considered to not have control over these JVs.

GreenTown Management Holdings (GTMH HK) is looking to raise US$300m in its upcoming Hong Kong IPO.GTMH is a project management company in China with presence in 84 cities across 25 provinces, municipalities, and autonomous regions. It was the largest project management company in China in terms of accumulated contracted GFA between 2016 to 2018.The company’s YoY revenue growth accelerated over 2018 and 9M 2019 owing to a shift in strategy to focus on securing more commercial projects with business partners. As a result, it has captured significant market share and it is well-positioned to ride the industry tailwind.However, the cost of rapid expansion is its declining margins which stemmed from commercial projects with business partners. It is hard to fathom that one or two years into providing services, these joint ventures are still making losses. To make matters worse, there is no transparency around the financials of these JVs since they are considered to not have control over these JVs. 

GreenTown Management (绿城管理) Pre-IPO - Sacrificed Margins in Pursuit of Growth, Muddled by JVs

China

GTMH is a project management company in China with presence in 84 cities across 25 provinces, municipalities, and autonomous regions. It was the largest project management company in China in terms of accumulated contracted GFA between 2016 to 2018.


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GreenTown Management Holdings (9979 HK)

ECM Weekly (20 June 2020) - Hygeia, Kangji, Genetron, JD.com, Archosaur, Pop Mart

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

Zhen Zhou, Toh

GreenTown Management (绿城管理) Pre-IPO - Sacrificed Margins in Pursuit of Growth, Muddled by JVs

GreenTown Management Holdings (GTMH HK) is looking to raise US$300m in its upcoming Hong Kong IPO.GTMH is a project management company in China...

Zhen Zhou, Toh

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