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

<div><p>Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong Kong IPO. According to F&amp;S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.</p></div><div><p>Over 2017-19, Bairong’s revenue expanded by 3.56x or at 88.8% CAGR. While its data analytics revenue increased by 66% over the period, its precision marketing services revenue grew 22.6x, and insurance distribution grew 54.5x. Over the same time, gross profit grew 3.99x and adjusted EBITDA, PAT and OCF all turned positive during that period.</p></div><div>
<p>I've covered the positive aspects of the deal in my earlier notes, <a href="https://www.smartkarma.com/insights/bairong-pre-ipo-the-positives-largest-independent-big-data-analytics-provider" target="_blank" rel="noopener">Bairong Pre-IPO - The Positives - Largest Independent Big-Data Analytics Provider </a>and <a href="https://www.smartkarma.com/insights/bairong-pre-ipo-the-negatives-playing-with-its-own-data" target="_blank" rel="noopener">Bairong Pre-IPO - The Negatives - Playing with Its Own Data.</a></p>
<p>In this note, we’ll provide our earnings forecast for FY20-22 and talk about valuation.</p>
</div>

Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong Kong IPO. According to F&amp;S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.Over 2017-19, Bairong’s revenue expanded by 3.56x or at 88.8% CAGR. While its data analytics revenue increased by 66% over the period, its precision marketing services revenue grew 22.6x, and insurance distribution grew 54.5x. Over the same time, gross profit grew 3.99x and adjusted EBITDA, PAT and OCF all turned positive during that period.
I've covered the positive aspects of the deal in my earlier notes, Bairong Pre-IPO - The Positives - Largest Independent Big-Data Analytics Provider and Bairong Pre-IPO - The Negatives - Playing with Its Own Data.
In this note, we’ll provide our earnings forecast for FY20-22 and talk about valuation.


Bairong Pre-IPO - Earnings Forecast, Peer Comparison and Valuation

<p>Linklogis, a technology solution provider for supply chain finance in China, is aiming to raise around US$500m in its Hong Kong IPO. Its investors include Tencent, GIC and Standard Chartered Bank.</p><p>Linklogis’ cloud-native solutions optimize the payment cycle of supply chain transactions and digitalize the entire workflow of supply chain finance. As per CIC, Linklogis was the leader among technology solution providers in China in terms of supply chain finance transactions processed over 9M20, accounting for 20.5% market share.</p><p>Linklogis overall revenue grew by 83% YoY in FY19 and was up another 52% over 9M20. While its core function of Supply Chain finance has been registering strong growth of 64.4% YoY in FY19 and 53.8% in 9M20, revenue from its Emerging solutions was up nearly 6x in FY19 and grew by another 38% over 9M20.</p><p>In this insight, I'll cover the positive aspects of the deal.</p>

Linklogis, a technology solution provider for supply chain finance in China, is aiming to raise around US$500m in its Hong Kong IPO. Its investors include Tencent, GIC and Standard Chartered Bank.Linklogis’ cloud-native solutions optimize the payment cycle of supply chain transactions and digitalize the entire workflow of supply chain finance. As per CIC, Linklogis was the leader among technology solution providers in China in terms of supply chain finance transactions processed over 9M20, accounting for 20.5% market share.Linklogis overall revenue grew by 83% YoY in FY19 and was up another 52% over 9M20. While its core function of Supply Chain finance has been registering strong growth of 64.4% YoY in FY19 and 53.8% in 9M20, revenue from its Emerging solutions was up nearly 6x in FY19 and grew by another 38% over 9M20.In this insight, I'll cover the positive aspects of the deal.

Linklogis Pre-IPO - The Positives - Fast Growing Blockchain Driven Supply Chain Financier

<div><p>Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong Kong IPO. According to F&amp;S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.</p></div><div>
<p>Over 2017-19, Bairong’s revenue expanded by 3.56x or at 88.8% CAGR. While its data analytics revenue increased by 66% over the period, its precision marketing services revenue grew 22.6x, and insurance distribution grew 54.5x. Over the same time, gross profit grew 3.99x and adjusted EBITDA, PAT and OCF all turned positive during that period.</p>
<p>I've covered the positive aspects of the deal in my earlier note, <a href="https://www.smartkarma.com/insights/bairong-pre-ipo-the-positives-largest-independent-big-data-analytics-provider" target="_blank" rel="noopener">Bairong Pre-IPO - The Positives - Largest Independent Big-Data Analytics Provider</a>.</p>
</div><div><p>In this insight, I'll talk about the not so pleasant aspects.</p></div>

Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong Kong IPO. According to F&amp;S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.
Over 2017-19, Bairong’s revenue expanded by 3.56x or at 88.8% CAGR. While its data analytics revenue increased by 66% over the period, its precision marketing services revenue grew 22.6x, and insurance distribution grew 54.5x. Over the same time, gross profit grew 3.99x and adjusted EBITDA, PAT and OCF all turned positive during that period.
I've covered the positive aspects of the deal in my earlier note, Bairong Pre-IPO - The Positives - Largest Independent Big-Data Analytics Provider.
In this insight, I'll talk about the not so pleasant aspects.

Bairong Pre-IPO - The Negatives - Playing with Its Own Data

APAC IPOs & Placements

Zhen Zhou, Toh

Cloopen Group Holding Ltd / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/cloopen-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:31315:1" rel="noopener">Cloopen Group Holding Ltd (RAAS US)</a> raised about US$320m at US$16 per ADS, which is above the initial price range.</p>
<div>
<p>Cloopen is a multi-capability cloud-based communications solution provider in China. The company offers communications platform as a services (CPaaS), cloud-based contact center (CC), cloud-based UC&amp;C  solutions to customers.</p>
<p>In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.</p>
</div>
<div>
<p>Our previous coverage:</p>
</div>
<div>
<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-thematically-favorable-but-not-showing-results-for-now" target="_blank" data-smartkarma-citation="insights:47520" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Thematically Favorable but Not Showing Results for Now</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-peer-comparison-and-thoughts" target="_blank" data-smartkarma-citation="insights:47608" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Peer Comparison and Thoughts</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-forecast-assumptions-and-valuation" target="_blank" data-smartkarma-citation="insights:47651" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Forecast, Assumptions, and Valuation</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-pre-ipo-investments-in-cloopen-pax-global-hi-sun-tech-market-cap" target="_blank" data-smartkarma-citation="insights:47655" rel="noopener">Cloopen (容联.云通讯) Pre-IPO - Investments in Cloopen + Pax Global &gt; Hi Sun Tech Market Cap</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cloopen-ipo-hi-sun-tech-angle-gets-more-attractive" target="_blank" data-smartkarma-citation="insights:47785" rel="noopener">Cloopen (容联.云通讯) IPO - Hi Sun Tech Angle Gets More Attractive</a> </li>
</ul>
</div>

Cloopen Group Holding Ltd (RAAS US) raised about US$320m at US$16 per ADS, which is above the initial price range.

Cloopen is a multi-capability cloud-based communications solution provider in China. The company offers communications platform as a services (CPaaS), cloud-based contact center (CC), cloud-based UC&amp;C  solutions to customers.
In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.


Our previous coverage:




Cloopen (容联.云通讯) Pre-IPO - Thematically Favorable but Not Showing Results for Now 

Cloopen (容联.云通讯) Pre-IPO - Peer Comparison and Thoughts 

Cloopen (容联.云通讯) Pre-IPO - Forecast, Assumptions, and Valuation 

Cloopen (容联.云通讯) Pre-IPO - Investments in Cloopen + Pax Global &gt; Hi Sun Tech Market Cap 

Cloopen (容联.云通讯) IPO - Hi Sun Tech Angle Gets More Attractive 



Cloopen (容联.云通讯) IPO Trading - Set for a Strong Debut

<p>Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong Kong IPO. According to F&amp;S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.</p><p>Bairong has three main revenue generating segments: data analytics services, precision marketing services and insurance distribution services. As of FY19, data analytics accounted for 41.4% of revenue, with the next largest segment being precision marketing at 32.1% of revenue and insurance distribution making up for the rest.</p><p>Over 2017-19, Bairong’s revenue expanded by 3.56x or at 88.8% CAGR. While its data analytics revenue increased by 66% over the period, its precision marketing services revenue grew 22.6x, and insurance distribution grew 54.5x. Over the same time, gross profit grew 3.99x and adjusted EBITDA, PAT and OCF all turned positive during that period.</p><p>In this insight, I'll talk about the positive aspects of the deal. </p>

Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong Kong IPO. According to F&amp;S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.Bairong has three main revenue generating segments: data analytics services, precision marketing services and insurance distribution services. As of FY19, data analytics accounted for 41.4% of revenue, with the next largest segment being precision marketing at 32.1% of revenue and insurance distribution making up for the rest.Over 2017-19, Bairong’s revenue expanded by 3.56x or at 88.8% CAGR. While its data analytics revenue increased by 66% over the period, its precision marketing services revenue grew 22.6x, and insurance distribution grew 54.5x. Over the same time, gross profit grew 3.99x and adjusted EBITDA, PAT and OCF all turned positive during that period.In this insight, I'll talk about the positive aspects of the deal. 

Bairong Pre-IPO - The Positives - Largest Independent Big-Data Analytics Provider

China

Oneconnect Financial Technology Co., Ltd. software as a services. The Company offers technological applications for financial institutes such as digital transformations, revenue increase, and risk management. Oneconnect Financial Technology serves customers in China.

OneConnect Financial Technology (OCFT US)

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OneConnect Financial Technology (OCFT US)

Bairong Pre-IPO - Earnings Forecast, Peer Comparison and Valuation

Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong...

Sumeet Singh

Linklogis Pre-IPO - The Positives - Fast Growing Blockchain Driven Supply Chain Financier

Linklogis, a technology solution provider for supply chain finance in China, is aiming to raise around US$500m in its Hong Kong IPO. Its investors...

Sumeet Singh

Bairong Pre-IPO - The Negatives - Playing with Its Own Data

Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong...

Sumeet Singh

Cloopen (容联.云通讯) IPO Trading - Set for a Strong Debut

Cloopen is a multi-capability cloud-based communications solution provider in China. In this note, we will look at the deal dynamics and provide a...

Zhen Zhou, Toh

Bairong Pre-IPO - The Positives - Largest Independent Big-Data Analytics Provider

Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$300m in its Hong...

Sumeet Singh

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