APAC IPOs & Placements

Zhen Zhou, Toh

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<a href="https://www.smartkarma.com/entities/27249" target="_blank" data-smartkarma-citation="entities:27249:1" rel="noopener">7Road Holdings Ltd (797 HK)</a> is looking to raise up to US$189m in its upcoming IPO. Proceeds will be mainly used to fund R&amp;D efforts to produce the proprietary online games and IP, M&amp;A of other games, IP, and related assets, and other general working capital.
In 2015, 7Road was bought out by the management for US$205m and went on to pay out US$121m worth of dividends. Now, it is trying to list at 6 - 9x of its dividend-adjusted 2015 valuation when its profits have only grown by 69% since FY2015.
The company has also been trying to list since 2012. It first tried to list on NASDAQ just one year after the company was acquired by Changyou but canceled due to unfavorable market conditions. Following that, the management bought out the company from Changyou and attempted to get backdoor listed on the A-shares market, not once but twice, and failed. It makes their option to IPO in Hong Kong looks like the last resort. 
In this insight, we look at the company's operating and financial performance, compare it with other listed game developers and publishers. We will also run the deal through our ECM framework.

7Road Holdings Ltd (797 HK) is looking to raise up to US$189m in its upcoming IPO. Proceeds will be mainly used to fund R&amp;D efforts to produce the proprietary online games and IP, M&amp;A of other games, IP, and related assets, and other general working capital.
In 2015, 7Road was bought out by the management for US$205m and went on to pay out US$121m worth of dividends. Now, it is trying to list at 6 - 9x of its dividend-adjusted 2015 valuation when its profits have only grown by 69% since FY2015.
The company has also been trying to list since 2012. It first tried to list on NASDAQ just one year after the company was acquired by Changyou but canceled due to unfavorable market conditions. Following that, the management bought out the company from Changyou and attempted to get backdoor listed on the A-shares market, not once but twice, and failed. It makes their option to IPO in Hong Kong looks like the last resort. 
In this insight, we look at the company's operating and financial performance, compare it with other listed game developers and publishers. We will also run the deal through our ECM framework.

7Road IPO Review - Listing in Hong Kong Is Probably the Last Resort

China

Jiangsu Liba Enterprise Joint Stock Co., Ltd. specializes in the production of composite materials for home appliances. The Company produces VCM metal sheets and PCM metal sheets that are used in home appliances such as refrigerators, washers, water heaters, microwave ovens and air-conditions.

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Jiangsu Liba Enterprise Js-A (603519 CH)

7Road IPO Review - Listing in Hong Kong Is Probably the Last Resort

7Road Holdings Ltd (797 HK) is looking to raise up to US$189m in its upcoming IPO. Proceeds will be mainly used to fund R&D efforts to produce...

Zhen Zhou, Toh

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52-week Range

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