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.

Equity Capital Markets

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<p><a href="https://www.smartkarma.com/entities/zai-lab-ltd" target="_blank" data-smartkarma-citation="entities:25877:1" rel="noopener">Zai Lab Ltd (ZLAB US)</a> has launched a $0.9 billion secondary listing in Hong Kong. Zai Lab is a commercial-stage biopharmaceutical company which started to generate revenue from sales of commercialized products from 2018. In 1H20, revenue was primarily derived from the sales of both ZEJULA and Optune in Hong Kong and China.</p>
<div class="content-highlight"><p>The H shares will be priced on 22 September (Tuesday) and are scheduled for listing on 28 September.  Zai Lab will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Zai Lab pricing its H-shares around a 2% discount to its ADSs will be reasonable.</p></div>
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Zai Lab Ltd (ZLAB US) has launched a $0.9 billion secondary listing in Hong Kong. Zai Lab is a commercial-stage biopharmaceutical company which started to generate revenue from sales of commercialized products from 2018. In 1H20, revenue was primarily derived from the sales of both ZEJULA and Optune in Hong Kong and China.
The H shares will be priced on 22 September (Tuesday) and are scheduled for listing on 28 September.  Zai Lab will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Zai Lab pricing its H-shares around a 2% discount to its ADSs will be reasonable.


Zai Lab Secondary Listing: HK-ADS Premium/​​(Discount) Views

ZTO Express Cayman  / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/zto-express" target="_blank" data-smartkarma-citation="entities:23628:1" rel="noopener">ZTO Express (ZTO US)</a> has launched a $1.6 billion secondary listing in Hong Kong. We previously <a href="https://www.smartkarma.com/insights/zto-express-secondary-listing-home-delivery" target="_blank" rel="noopener">outlined our views</a> on ZTO Express’ fundamentals and valuation. The H shares will be priced on 22 September (Tuesday) and are scheduled for listing on 29 September.  </p><div class="content-highlight"><p>In this note, we will look at ZTO Express’ potential HK-ADS premium/(discount). ZTO Express will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that ZTO Express pricing its H-shares around a 3% discount to its ADSs will be reasonable.</p></div>

ZTO Express (ZTO US) has launched a $1.6 billion secondary listing in Hong Kong. We previously outlined our views on ZTO Express’ fundamentals and valuation. The H shares will be priced on 22 September (Tuesday) and are scheduled for listing on 29 September.  In this note, we will look at ZTO Express’ potential HK-ADS premium/(discount). ZTO Express will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that ZTO Express pricing its H-shares around a 3% discount to its ADSs will be reasonable.

ZTO Express Secondary Listing: HK-ADS Premium/​(Discount) Views

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.

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<p><a href="https://www.smartkarma.com/entities/zto-express" target="_blank" data-smartkarma-citation="entities:23628:1" rel="noopener">ZTO Express (ZTO US)</a> plans to raise around US$1.4bn in its secondary listing in Hong Kong.</p>
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<p>While the company filed its PHIP on Friday, 11th Sep 2020, it has only launched its deal today. The deal size was smaller than what has been rumoured earlier. </p>
<p>I've covered most aspects of the deal in my previous insight, <a href="https://www.smartkarma.com/insights/zto-express-secondary-listing-fast-growth-but-it-hasn-t-been-flowing-down-to-earnings" target="_blank" rel="noopener">ZTO Express Secondary Listing - Fast Growth but It Hasn’t Been Flowing Down to Earnings.</a></p>
<p>In this insight, I'll provide a quick overview of the deal. </p>
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ZTO Express (ZTO US) plans to raise around US$1.4bn in its secondary listing in Hong Kong.


While the company filed its PHIP on Friday, 11th Sep 2020, it has only launched its deal today. The deal size was smaller than what has been rumoured earlier. 
I've covered most aspects of the deal in my previous insight, ZTO Express Secondary Listing - Fast Growth but It Hasn’t Been Flowing Down to Earnings.
In this insight, I'll provide a quick overview of the deal. 


ZTO Express Secondary Listing - Smaller than Expected

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

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.

<p>Founded by Mr. Ji Qi, a co-founder of <a href="https://www.smartkarma.com/entities/trip-com-group-ltd" target="_blank" data-smartkarma-citation="entities:180:1" rel="noopener">Trip.com (TCOM US)</a>, <a href="https://www.smartkarma.com/entities/huazhu-group-ltd" target="_blank" data-smartkarma-citation="entities:17527:1" rel="noopener">Huazhu Group (HTHT US)</a> is the second-largest hotel chain in China and the ninth-largest in the world. Huazhu has 17 hotel chain brands covering the entire spectrum from budget to upscale hotels.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/159/208/original/image_97971089031600189349309.png?1600189350" class="editor-image img-responsive" data-smartkarma-image-id="159208"></figure><div class="content-caption"><em>Source: Company Disclosures</em></div><p>The company started operations in 2005 as a budget hotel chain and was listed on the NASDAQ stock exchange on 26<sup>th</sup> March 2010.</p><p>Following other US-listed Chinese companies, Huazhu has filed for a secondary listing on the Hong Kong stock exchange to issue 20.4m shares at a maximum offer price of HK$ 368.0 per share.</p><p>The offer commenced on 11<sup>th</sup> September and remains open till 12:00 noon on 16<sup>th</sup> September 2020.</p>

Founded by Mr. Ji Qi, a co-founder of Trip.com (TCOM US), Huazhu Group (HTHT US) is the second-largest hotel chain in China and the ninth-largest in the world. Huazhu has 17 hotel chain brands covering the entire spectrum from budget to upscale hotels.Source: Company DisclosuresThe company started operations in 2005 as a budget hotel chain and was listed on the NASDAQ stock exchange on 26th March 2010.Following other US-listed Chinese companies, Huazhu has filed for a secondary listing on the Hong Kong stock exchange to issue 20.4m shares at a maximum offer price of HK$ 368.0 per share.The offer commenced on 11th September and remains open till 12:00 noon on 16th September 2020.

Huazhu Group Secondary Listing: Consensus Ignores COVID Even as The Business Goes Asset-Heavy

IPO and L/S equity, 2015 Starmine top stock picker, Global Equity Research Ltd

Rickin Thakrar

IPO and L/S equity, 2015 Starmine top stock picker

<p><a href="https://www.smartkarma.com/entities/huazhu-group-ltd" target="_blank" data-smartkarma-citation="entities:17527:1" rel="noopener">Huazhu Group (HTHT US)</a> , a leading hotel chain in China has filed for a secondary listing in order to raise 970mn USD. We provide an initial assessment of the financial and operating dynamics of the business below the fold.</p>

Huazhu Group (HTHT US) , a leading hotel chain in China has filed for a secondary listing in order to raise 970mn USD. We provide an initial assessment of the financial and operating dynamics of the business below the fold.

Huazhu Secondary Listing: Hotel, Motel, Hanting Hotel

China

Huazhu Group Limited operates a hotel operator and franchisor. The Company provides hotel leasing, directly hotel operation, and co-development services. Huazhu Group mainly conducts businesses in China.

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Huazhu Group (HTHT US)

Zai Lab Secondary Listing: HK-ADS Premium/(Discount) Views

ZTO Express (ZTO US) has launched a $1.6 billion secondary listing in Hong Kong. We previously outlined our views on ZTO Express’ fundamentals and...

Arun George

ZTO Express Secondary Listing: HK-ADS Premium/(Discount) Views

ZTO Express (ZTO US) has launched a $1.6 billion secondary listing in Hong Kong. We previously outlined our views on ZTO Express’ fundamentals and...

Arun George

ZTO Express Secondary Listing - Smaller than Expected

ZTO Express (ZTO US) plans to raise around US$1.4bn in its secondary listing in Hong Kong. While the company filed its PHIP on Friday, 11th Sep...

Sumeet Singh

Huazhu Group Secondary Listing: Consensus Ignores COVID Even as The Business Goes Asset-Heavy

Founded by Mr. Ji Qi, a co-founder of Trip.com, Huazhu Group Limited is the second largest hotel chain in China and the nineth largest in the...

Oshadhi Kumarasiri

Huazhu Secondary Listing: Hotel, Motel, Hanting Hotel

Huazhu Group (HTHT US) , a leading hotel chain in China has filed for a secondary listing in order to raise

Rickin Thakrar

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Zai Lab Secondary Listing: HK-ADS Premium/​​(Discount) Views

ZTO Express (ZTO US) has launched a $1.6 billion secondary listing in Hong Kong. We previously outlined our views on ZTO Express’ fundamentals and...

Arun George

ZTO Express Secondary Listing: HK-ADS Premium/​(Discount) Views

ZTO Express (ZTO US) has launched a $1.6 billion secondary listing in Hong Kong. We previously outlined our views on ZTO Express’ fundamentals and...

Arun George

ZTO Express Secondary Listing - Smaller than Expected

ZTO Express (ZTO US) plans to raise around US$1.4bn in its secondary listing in Hong Kong. While the company filed its PHIP on Friday, 11th Sep...

Sumeet Singh

Huazhu Group Secondary Listing: Consensus Ignores COVID Even as The Business Goes Asset-Heavy

Founded by Mr. Ji Qi, a co-founder of Trip.com, Huazhu Group Limited is the second largest hotel chain in China and the nineth largest in the...

Oshadhi Kumarasiri

Huazhu Secondary Listing: Hotel, Motel, Hanting Hotel

Huazhu Group (HTHT US) , a leading hotel chain in China has filed for a secondary listing in order to raise

Rickin Thakrar

Zai Lab Secondary Listing: HK-ADS Premium/(Discount) Views

ZTO Express Secondary Listing: HK-ADS Premium/(Discount) Views