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

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<p><a href="https://www.smartkarma.com/entities/dingdong-maicia" target="_blank" data-smartkarma-citation="entities:33461:1" rel="noopener">Dingdong Maicia (DDL US) </a>(DM), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global, General Atlantic and Softbank.</p>
<p>Dingdong Maicai is an on-demand e-commerce company in China which provides users and households with fresh produce, meat and seafood and other daily necessities via its self-operated frontline fulfillment grid. As of 1Q21, DM had 6.9m monthly transacting users, who had placed 69.7m orders during the quarter. Its FY20 gross merchandise value was RMB13bn, representing a 10%+ market share for the on-demand ecommerce fresh groceries and daily necessities market.</p>
</div><div><p>In our earlier notes, we have looked at the background and performance the company:</p></div><div><ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/dingdong-maicai-pre-ipo-increasing-market-share-fast-growth-but-no-signs-of-profit" target="_blank" rel="noopener">Dingdong Maicai Pre-IPO - Increasing market share, fast growth but no signs of profit</a></p></li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/dingdong-maicai-vs-miss-fresh-pre-ipo-one-clear-winner" target="_blank" rel="noopener">Dingdong Maicai Vs Miss Fresh Pre-IPO - One Clear Winner</a></li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/dingdong-fresh-food-competition-in-and-outside-of-frontline-warehouse" target="_blank" rel="noopener">Dingdong (叮咚买菜): Fresh Food Competition in and Outside of Frontline Warehouse</a></li>
</ul></div><div><p>In this note we will provide our earnings forecast and talk about valuations.</p></div>


Dingdong Maicia (DDL US) (DM), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global, General Atlantic and Softbank.
Dingdong Maicai is an on-demand e-commerce company in China which provides users and households with fresh produce, meat and seafood and other daily necessities via its self-operated frontline fulfillment grid. As of 1Q21, DM had 6.9m monthly transacting users, who had placed 69.7m orders during the quarter. Its FY20 gross merchandise value was RMB13bn, representing a 10%+ market share for the on-demand ecommerce fresh groceries and daily necessities market.
In our earlier notes, we have looked at the background and performance the company:
Dingdong Maicai Pre-IPO - Increasing market share, fast growth but no signs of profit
Dingdong Maicai Vs Miss Fresh Pre-IPO - One Clear Winner
Dingdong (叮咚买菜): Fresh Food Competition in and Outside of Frontline Warehouse
In this note we will provide our earnings forecast and talk about valuations.

Dingdong Maicai Pre-IPO - Thoughts on Valuation

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

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><a href="https://www.smartkarma.com/entities/missfresh-limited" target="_blank" data-smartkarma-citation="entities:33468:1" rel="noopener">Missfresh (MF US)</a>  is primarily engaged in the business of providing fresh produce and fast-moving consumer goods to customers through the company’s self-owned online e-commerce platform and distributed mini warehouse (DMW) networks. According to iResearch, the company was the first to invent the DMW model by building and operating DMWs in 2015 and was ranked second in China’s DMW retail industry in 2020, based on gross merchandise volume (GMV).</p><p>The company is backed by Tencent and has filed for an IPO to list its shares in the US, and according to news media outlets, Missfresh could raise up to US$500m through the IPO.</p>

Missfresh (MF US)  is primarily engaged in the business of providing fresh produce and fast-moving consumer goods to customers through the company’s self-owned online e-commerce platform and distributed mini warehouse (DMW) networks. According to iResearch, the company was the first to invent the DMW model by building and operating DMWs in 2015 and was ranked second in China’s DMW retail industry in 2020, based on gross merchandise volume (GMV).The company is backed by Tencent and has filed for an IPO to list its shares in the US, and according to news media outlets, Missfresh could raise up to US$500m through the IPO.

Missfresh IPO: Per Unit Analysis Shows the Company Is Far from Profits

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.

Hutchmed China Ltd / Equity Capital Markets

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<p><a href="https://www.smartkarma.com/entities/hutchmed-china-ltd" target="_blank" data-smartkarma-citation="entities:133:1" rel="noopener">Hutchmed China Ltd (13 HK)</a> has launched a $603 million secondary listing on HKEx by offering 104.0 million ordinary shares at a maximum offer price of HK$45.00 per share. Bookbuilding is scheduled to run until the pricing on 23 June. The net proceeds will be used to fund the late-stage clinical programs (<em>savolitinib, surufatinib, fruquintinib</em>, HMPL-689 and HMPL-523), to support further proof-of-concept studies and strengthen commercialisation capabilities.</p>
<p>HutchMed has primary listings on Nasdaq and on UK AIM. The HKEx secondary listing will be supported by five cornerstone investors which will subscribe for HK$2,535 million ($325 million) of the offer shares (54.17% of the offer shares at the maximum offer price). The cornerstone investors are <a href="https://www.smartkarma.com/entities/carlyle-group-inc" target="_blank" data-smartkarma-citation="entities:33402:1" rel="noopener">Carlyle Group Inc (CG US)</a>, CPP Investments, General Atlantic, <a href="https://www.smartkarma.com/entities/hbm-healthcare-investments-ag" target="_blank" data-smartkarma-citation="entities:22373:1" rel="noopener">HBM Healthcare Investments AG (HBMN SW)</a> and CICC Capital.</p>
<p>HutchMed is a China-based, globally focused, biopharma company, active in discovery, development, manufacturing, and commercialisation. The investment case centres on the<br>success of its oncology/immunology platform, which has several near-term clinical and regulatory catalysts from the novel highly selective small molecule (tyrosine kinase inhibitor) pipeline. Notably, in-house discovered drugs, <em>Elunate (fruquintinib)</em> and <em>Sulanda (surufatinib)</em>, together with a likely approval for <em>savolitinib</em>, are transforming China prospects. <em>Elunate</em> is performing well in China, with NRDL inclusion boosting volumes. The first global launch is likely to be <em>surufatinib </em>with a US launch targeted for late 2021 or early 2022.</p>
</div><div><div class="content-highlight"><p>In this note, we will look at HutchMed’s potential HK-ADS premium/(discount). As per the norm, HutchMed will price its H-shares at a discount to its ADSs/UK shares to entice investors to participate in the secondary listing. HutchMed pricing its H-shares at a discount of 2-3% to its ADSs will be reasonable, in our view.</p></div></div>


Hutchmed China Ltd (13 HK) has launched a $603 million secondary listing on HKEx by offering 104.0 million ordinary shares at a maximum offer price of HK$45.00 per share. Bookbuilding is scheduled to run until the pricing on 23 June. The net proceeds will be used to fund the late-stage clinical programs (savolitinib, surufatinib, fruquintinib, HMPL-689 and HMPL-523), to support further proof-of-concept studies and strengthen commercialisation capabilities.
HutchMed has primary listings on Nasdaq and on UK AIM. The HKEx secondary listing will be supported by five cornerstone investors which will subscribe for HK$2,535 million ($325 million) of the offer shares (54.17% of the offer shares at the maximum offer price). The cornerstone investors are Carlyle Group Inc (CG US), CPP Investments, General Atlantic, HBM Healthcare Investments AG (HBMN SW) and CICC Capital.
HutchMed is a China-based, globally focused, biopharma company, active in discovery, development, manufacturing, and commercialisation. The investment case centres on the success of its oncology/immunology platform, which has several near-term clinical and regulatory catalysts from the novel highly selective small molecule (tyrosine kinase inhibitor) pipeline. Notably, in-house discovered drugs, Elunate (fruquintinib) and Sulanda (surufatinib), together with a likely approval for savolitinib, are transforming China prospects. Elunate is performing well in China, with NRDL inclusion boosting volumes. The first global launch is likely to be surufatinib with a US launch targeted for late 2021 or early 2022.
In this note, we will look at HutchMed’s potential HK-ADS premium/(discount). As per the norm, HutchMed will price its H-shares at a discount to its ADSs/UK shares to entice investors to participate in the secondary listing. HutchMed pricing its H-shares at a discount of 2-3% to its ADSs will be reasonable, in our view.

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

<div><p><a href="https://www.smartkarma.com/entities/aihuishou" target="_blank" data-smartkarma-citation="entities:33426:1" rel="noopener">Aihuishou (RERE US)</a> (AHS), China’s largest pre-owned consumer electronics transactions and services platform, raised around US$230m via a US listing. It is backed by <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a>, Morningside and Tiger Global.</p></div><div><p>We covered some aspects of the deal in our earlier notes:</p></div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/aihuishou-pre-ipo-mostly-positive-pre-owned-but-well-loved" target="_blank" rel="noopener">AiHuiShou Pre-IPO - Mostly Positive - Pre-Owned but Well Loved</a>. </li>
<li><a href="https://www.smartkarma.com/insights/aihuishou-pre-ipo-first-stab-at-valuation" target="_blank" rel="noopener">AiHuiShou Pre-IPO - First Stab at Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/aihuishou-pre-ipo-pricing-my-mobile-handset-at-physical-stores" target="_blank" rel="noopener">Aihuishou (爱回收) Pre-IPO: Pricing My Mobile Handset at Physical Stores</a></li>
</ul></div><div>
<ul><li><a href="https://www.smartkarma.com/insights/aihuishou-ipo-priced-to-go-but-won-t-do-a-kanzhun" target="_blank" rel="noopener">AiHuiShou IPO - Priced to Go but Won’t Do a Kanzhun</a></li></ul>
<p>In this note, we will talk about the trading dynamics.</p>
</div>

Aihuishou (RERE US) (AHS), China’s largest pre-owned consumer electronics transactions and services platform, raised around US$230m via a US listing. It is backed by JD.com Inc (ADR) (JD US), Morningside and Tiger Global.We covered some aspects of the deal in our earlier notes:

AiHuiShou Pre-IPO - Mostly Positive - Pre-Owned but Well Loved. 
AiHuiShou Pre-IPO - First Stab at Valuation
Aihuishou (爱回收) Pre-IPO: Pricing My Mobile Handset at Physical Stores

AiHuiShou IPO - Priced to Go but Won’t Do a Kanzhun
In this note, we will talk about the trading dynamics.


AiHuiShou IPO Trading - Probably Close to Fair Value but Has a Long Runway

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China Logistics Property Holdings / Event-Driven

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<p>On the 9 June, <a href="https://www.smartkarma.com/entities/china-logistics-property-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:22799:1" rel="noopener">China Logistics Property Holdings (1589 HK)</a> (CLPH) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0609/2021060900007.pdf" target="_blank" rel="noopener">announced</a> a placement of 220mn new shares at a placing price of $3.54/share, an 18.24% discount to last close. </p>
</div>
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<p>Given the market anticipated a possible change of control after CLPH <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1229/2020122901322.pdf" target="_blank" rel="noopener">announced</a> on the 29 December 2020 Li Shifa (chairman, holding ~28.2%) and RRJ Capital (~23.35%), were "<em>conducting a preliminary strategic review of their stakes</em>", the market response was swift. Shares closed down ~20% at HK$3.45.</p>
<p>That seemed like an overly harsh knee-jerk reaction given a post-money book value of ~HK$3.90. </p>
<p>Yesterday CLPH announced it had completed the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0617/2021061701380.pdf" target="_blank" rel="noopener">placement</a>. What <em>is </em>interesting is that <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> bumped its stake to 10.11%, on a fully diluted basis, from 9.87% (pre-placement), the result of which sees CLPH in breach of Hong Kong's public float.</p>
<p>Evidently, JD.com is still keen to increase its stake. And perhaps take a dig at the company for the placement.</p>
<p>Separately, Li and RRJ didn't participate in the placement. But I think they remain sellers.</p>
<p>CLPH remains attractive here. </p>
</div>
<div>
<p>More below the fold.</p>
</div>


On the 9 June, China Logistics Property Holdings (1589 HK) (CLPH) announced a placement of 220mn new shares at a placing price of $3.54/share, an 18.24% discount to last close. 


Given the market anticipated a possible change of control after CLPH announced on the 29 December 2020 Li Shifa (chairman, holding ~28.2%) and RRJ Capital (~23.35%), were "conducting a preliminary strategic review of their stakes", the market response was swift. Shares closed down ~20% at HK$3.45.
That seemed like an overly harsh knee-jerk reaction given a post-money book value of ~HK$3.90. 
Yesterday CLPH announced it had completed the placement. What is interesting is that JD.com Inc. (9618 HK) bumped its stake to 10.11%, on a fully diluted basis, from 9.87% (pre-placement), the result of which sees CLPH in breach of Hong Kong's public float.
Evidently, JD.com is still keen to increase its stake. And perhaps take a dig at the company for the placement.
Separately, Li and RRJ didn't participate in the placement. But I think they remain sellers.
CLPH remains attractive here. 


More below the fold.


CLPH (1589 HK): Free Float Breached As JD.com Bumps Stake

China

JD.com Inc is an online direct sales company in China.  The Company offers a wide selection of products through its website and mobile applications.  JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com Inc (ADR) (JD US)

Dingdong Maicai Pre-IPO - Thoughts on Valuation

Dingdong Maicia (DDL US), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global,...

Sumeet Singh

Missfresh IPO: Per Unit Analysis Shows the Company Is Far from Profits

Having analysed Missfresh’s per unit revenue and margins, we remain concerned about the company’s ability to turn profitable in the near future.

Shifara Samsudeen, ACMA, CGMA

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

HutchMed has launched a $603 million secondary listing on HKEx. In this note, we will look at HutchMed’s potential HK-ADS premium/(discount).

Arun George

AiHuiShou IPO Trading - Probably Close to Fair Value but Has a Long Runway

Aihuishou (RERE US), China’s largest pre-owned consumer electronics transactions and services platform, raised up to US$243m via a US listing. It...

Sumeet Singh

CLPH (1589 HK): Free Float Breached As JD.com Bumps Stake

Shares have over-corrected: trading around the placement price; 9% below the level where CLPH was trading ahead of the news of Li/RRJ exploring an...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Dingdong Maicai Pre-IPO - Thoughts on Valuation

Dingdong Maicia (DDL US), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global,...

Sumeet Singh

Missfresh IPO: Per Unit Analysis Shows the Company Is Far from Profits

Having analysed Missfresh’s per unit revenue and margins, we remain concerned about the company’s ability to turn profitable in the near future.

Shifara Samsudeen, ACMA, CGMA

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

HutchMed has launched a $603 million secondary listing on HKEx. In this note, we will look at HutchMed’s potential HK-ADS premium/(discount).

Arun George

AiHuiShou IPO Trading - Probably Close to Fair Value but Has a Long Runway

Aihuishou (RERE US), China’s largest pre-owned consumer electronics transactions and services platform, raised up to US$243m via a US listing. It...

Sumeet Singh

CLPH (1589 HK): Free Float Breached As JD.com Bumps Stake

Shares have over-corrected: trading around the placement price; 9% below the level where CLPH was trading ahead of the news of Li/RRJ exploring an...

David Blennerhassett

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