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

<p><a href="https://www.smartkarma.com/entities/miniso-group-holdings" target="_blank" data-smartkarma-citation="entities:29673:1" rel="noopener">MINISO Group Holdings (MNSO US)</a> is the largest global branded variety retailer of lifestyle products, with a 5.2% market share of the GMV of the global branded variety retail market in 2019, according to Frost &amp; Sullivan. Branded variety retailers of lifestyle products target young consumers and the lifestyle products have a fashionable design, great functionality and affordable prices. Miniso sells products cross 11 major categories which are home decor, small electronics, textile, accessories, beauty tools, toys, cosmetics, personal care, snacks, fragrance and perfumes, and stationery &amp; gifts. </p><div class="content-highlight"><p>Miniso is backed by <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> (5.4% shareholder) and Hillhouse Capital (5.4%). Miniso aims to raise $1 billion through an NYSE IPO, according to press reports. Overall, we believe that Miniso is well placed to capitalise on the post-COVID-19 recovery in retail consumption spend.</p></div>

MINISO Group Holdings (MNSO US) is the largest global branded variety retailer of lifestyle products, with a 5.2% market share of the GMV of the global branded variety retail market in 2019, according to Frost &amp; Sullivan. Branded variety retailers of lifestyle products target young consumers and the lifestyle products have a fashionable design, great functionality and affordable prices. Miniso sells products cross 11 major categories which are home decor, small electronics, textile, accessories, beauty tools, toys, cosmetics, personal care, snacks, fragrance and perfumes, and stationery &amp; gifts. Miniso is backed by Tencent Holdings (700 HK) (5.4% shareholder) and Hillhouse Capital (5.4%). Miniso aims to raise $1 billion through an NYSE IPO, according to press reports. Overall, we believe that Miniso is well placed to capitalise on the post-COVID-19 recovery in retail consumption spend.

MINISO Group IPO Initiation: Chain Reaction

Alpha-Centric ESG Research

Kyle Rudden

<p>Sometimes, the "ESG stuff" can really alter the outcome of an IPO. The <a href="https://www.smartkarma.com/entities/saudi-aramco" target="_blank" data-smartkarma-citation="entities:27317:1" rel="noopener">Saudi Aramco (ARAMCO AB)</a> debut was curbed by Environmental concerns. WeWork's failed IPO is a case study in founder-led Governance risk. Palantir quashed its "adjustable voting power for founders" after an uproar.</p>
<p>ESG impacts IPOs. But not Ant's IPO.</p>
<p>Ant's ESG profile is strong. There a few skeletons in the closet if you look hard enough, but they are bygone and irrelevant . Current ESG blemishes are minor. There isn't much dirt for ESG idealists to wallow in. If they are even looking at all; as a "China deal," ESG has a different relevance for Ant.</p>
<p>Ant's IPO is a momentous ESG event, but not in the traditional and obvious way.</p>
<p>This is not about ESG impacting Ant's IPO. This is about Ant's IPO impacting ESG.</p>
<p>Looking at Ant through a typical ESG lens will make one's head spin. But step back and look again, and it becomes clear that Ant is a strategically-integrated masterpiece at the vanguard of a critical crossroads – the intersection of Fintech, financial inclusion, green finance, and sustainability.</p>
<p>It is all a matter of perspective.</p>
<p>Seeing the forest for the trees.</p>

Sometimes, the "ESG stuff" can really alter the outcome of an IPO. The Saudi Aramco (ARAMCO AB) debut was curbed by Environmental concerns. WeWork's failed IPO is a case study in founder-led Governance risk. Palantir quashed its "adjustable voting power for founders" after an uproar.
ESG impacts IPOs. But not Ant's IPO.
Ant's ESG profile is strong. There a few skeletons in the closet if you look hard enough, but they are bygone and irrelevant . Current ESG blemishes are minor. There isn't much dirt for ESG idealists to wallow in. If they are even looking at all; as a "China deal," ESG has a different relevance for Ant.
Ant's IPO is a momentous ESG event, but not in the traditional and obvious way.
This is not about ESG impacting Ant's IPO. This is about Ant's IPO impacting ESG.
Looking at Ant through a typical ESG lens will make one's head spin. But step back and look again, and it becomes clear that Ant is a strategically-integrated masterpiece at the vanguard of a critical crossroads – the intersection of Fintech, financial inclusion, green finance, and sustainability.
It is all a matter of perspective.
Seeing the forest for the trees.

Ant Group Pre-IPO ESG Assessment: Seeing the Forest for the Trees

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Equity Bottom-Up

<ul>
<li>Meituan Dianping ownership surges among Asia Ex-Japan active funds.</li>
<li>Average holding weights have since risen to 0.99%, with 32.7% of funds invested. </li>
<li>MSCI inclusion has driven weights higher, but active managers find themselves well short of the benchmark MSCI Asia Ex-Japan index level, on average. </li>
<li>Meituan has now become a key underweight holding for the majority of Asia Ex-Japan managers, exacerbated by the ongoing outperformance in 2020.</li>
</ul>


Meituan Dianping ownership surges among Asia Ex-Japan active funds.
Average holding weights have since risen to 0.99%, with 32.7% of funds invested. 
MSCI inclusion has driven weights higher, but active managers find themselves well short of the benchmark MSCI Asia Ex-Japan index level, on average. 
Meituan has now become a key underweight holding for the majority of Asia Ex-Japan managers, exacerbated by the ongoing outperformance in 2020.


Meituan Dianping:  From Nowhere to Key Underweight

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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.

<ul>
<li>The largest business, consumer loan, is slowing down.</li>
<li>The second largest business, cash loan, grew fast, but pulled down the margin.</li>
<li>JD Digits is trying to acquire users outside JD.com.</li>
<li>JD is also trying to get banking licenses.</li>
</ul>


The largest business, consumer loan, is slowing down.
The second largest business, cash loan, grew fast, but pulled down the margin.
JD Digits is trying to acquire users outside JD.com.
JD is also trying to get banking licenses.


JD Digits: Dependence on JD.com - A Bottleneck

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<div><p><a href="https://www.smartkarma.com/entities/baozun-inc" target="_blank" data-smartkarma-citation="entities:24184:1" rel="noopener">Baozun Inc. (BZUN US)</a> raised around US$500m in its secondary listing in Hong Kong.</p></div><div><p>I've covered the background of the deal in <a href="https://www.smartkarma.com/insights/baozun-hk-secondary-listing-large-dilution-needs-a-large-correction" target="_blank" rel="noopener">Baozun HK Secondary Listing - Large Dilution Needs a Large Correction</a>.</p></div><div><p>In this insight, I'll talk about the deal dynamics and updates over the past week. </p></div>

Baozun Inc. (BZUN US) raised around US$500m in its secondary listing in Hong Kong.I've covered the background of the deal in Baozun HK Secondary Listing - Large Dilution Needs a Large Correction.In this insight, I'll talk about the deal dynamics and updates over the past week. 

Baozun HK Secondary Trading - Weakest Link of the Current Lot

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 (9618 HK)

MINISO Group IPO Initiation: Chain Reaction

MINISO Group Holdings (MNSO US) is the largest global branded variety retailer of lifestyle products, with a 5.2% market share of the GMV of the...

Arun George

Ant Group Pre-IPO ESG Assessment: Seeing the Forest for the Trees

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Kyle Rudden

Meituan Dianping: From Nowhere to Key Underweight

Meituan Dianping ownership among Asia Ex-Japan investors has surged since its addition to the MSCI indices earlier this year. After a less than...

Steven Holden

JD Digits: Dependence on JD.com - A Bottleneck

The largest business, consumer loan, is slowing down. The second largest business, cash loan, grew fast, but pulled down the margin. JD Digits is...

Ming Lu

Baozun HK Secondary Trading - Weakest Link of the Current Lot

Baozun Inc. (BZUN US) plans to raise around US$490m in its secondary listing in Hong Kong. The company was said to have won approval for listing...

Sumeet Singh

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