APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

<p><em>The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.</em></p><p></p><div data-postid="6224057" data-share-method="host" data-width="100%" data-aspect-ratio="2.5408163265306123" data-processed="true"><div><iframe src="https://tenor.com/embed/6224057?canonicalurl=https://www.smartkarma.com/lab/compose/15026/edit" frameborder="0" allowtransparency="true" allowfullscreen="allowfullscreen" scrolling="no" style="width: 100%; height: 100%;"></iframe></div></div><p></p><div class="content-highlight"><p>Just one week away from the office and the Q4 IPO frenzy has already heated up with more exciting IPOs coming soon!!</p><p>I was dead wrong on the US IPO momentum fizzling out because there are more Chinese companies getting listed in the US, namely, <a href="https://www.smartkarma.com/entities/26006" target="_blank" data-smartkarma-citation="entities:26006:1">PPDAI Group</a> (<a href="https://www.smartkarma.com/companies/742" target="_blank" data-smartkarma-citation="companies:742">JL Warren Capital</a> just <a href="https://www.smartkarma.com/insights/ipo-coverage-ppdai-group-inc-nyse-ppdf-achilles-heel-of-p2p-lending" target="_blank">covered it in detail</a>) , <a href="https://www.smartkarma.com/entities/25996" target="_blank" data-smartkarma-citation="entities:25996:1">Sogou Inc (SOGO US)</a> , and most recently <a href="https://www.smartkarma.com/entities/26007" target="_blank" data-smartkarma-citation="entities:26007:1">Jianpu Technology Inc (1547825D US)</a>.</p><p>In Hong Kong, <a href="https://www.smartkarma.com/entities/24388" target="_blank" data-smartkarma-citation="entities:24388:1">China Literature Ltd (772 HK)</a> 's IPO next week on the 8th November will likely going to set the tone and momentum of HK IPOs for the remaining of Q4. This week, <a href="https://www.smartkarma.com/entities/25979" target="_blank" data-smartkarma-citation="entities:25979:1">Crystal International Group (2232 HK)</a> got listed on Friday and held up well, closing just 5% above IPO price. </p><p>In the placement space, there have been a couple of sell-downs by existing shareholders, such as <a href="https://www.smartkarma.com/entities/15640" target="_blank" data-smartkarma-citation="entities:15640:1">Sapura Energy (SAPE MK)</a> , <a href="https://www.smartkarma.com/entities/377" target="_blank" data-smartkarma-citation="entities:377:1">New China Life Insurance Co Ltd (1336 HK)</a> , and <a href="https://www.smartkarma.com/entities/15061" target="_blank" data-smartkarma-citation="entities:15061:1">ASM Pacific Technology (522 HK)</a> . Perhaps shareholders feel like they should be locking in some profits on the back of record rally in the US, bolstering investors' confidence.</p></div><h2>Accuracy Rate:</h2><p>Our overall accuracy rate is<strong> 73.5% for IPOs </strong>and <strong>63.5% for Placements.</strong></p><p><em>(Performance measurement criteria is explained at the end of the note)</em></p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/037/269/original/Total-Deals-Since-Inception-Accuracy-Rate-Since-Inception-_chartbuilder%20%282%29.png?1509768283" class="editor-image img-responsive" data-smartkarma-image-id="37269"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/037/270/original/2017-Total-Deals-2017-Accuracy-Rate-_chartbuilder.png?1509768295" class="editor-image img-responsive" data-smartkarma-image-id="37270"></figure><h2><strong>New IPO filings this week<br><br></strong></h2><ul><li><strong>China Xinhua Education (Hong Kong, ~US$100m)</strong></li></ul><p>Below is a snippet of our IPO tool on upcoming events for the next week. Our IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool <a href="https://www.smartkarma.com/tools/ipos" target="_blank">here </a>or through the tools menu.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/037/272/original/upcoming.PNG?1509769946" class="editor-image img-responsive" data-smartkarma-image-id="37272"></figure><div class="content-caption">Source: Smartkarma</div><h2><strong>News on Upcoming IPOs<br><br></strong></h2><ul><li><a href="https://economictimes.indiatimes.com/markets/stocks/news/mahindra-logistics-ipo-subscribed-1-70-times-on-day-3/articleshow/61444943.cms" target="_blank">Mahindra Logistics oversubscribed 7.9 times</a></li><li><a href="http://www.businesstimes.com.sg/technology/tencents-red-hot-e-book-ipo-sets-stage-for-music-arms-debut" target="_blank">Tencent's red-hot e-book IPO sets stage for music arm's debut</a></li><li><a href="https://www.dealstreetasia.com/stories/thai-power-producer-gulf-to-raise-fund-via-ipo-in-q4-85583/?utm_source=DealStreetAsia%3A+The+Daily+Brief&amp;utm_campaign=04b73f6126-RSS_EMAIL_CAMPAIGN+%2A%7CRSSFEED%3ADATE%3A+F+j%2C+Y%7C%2A&amp;utm_medium=email&amp;utm_term=0_0fa50e40c1-04b73f6126-239139321&amp;mc_cid=04b73f6126&amp;mc_eid=28c8c22a08" target="_blank">Thai power producer GULF to tap IPO market to raise funds in Q4</a></li><li><a href="https://www.dealstreetasia.com/stories/85410-85410/" target="_blank">PP Energi aims $369m via 2018 IPO, secondary offering</a></li><li><a href="http://www.nasdaq.com/article/chinas-financial-planning-platform-jianpu-technology-sets-terms-for-214-million-us-ipo-cm871708" target="_blank">China's financial planning platform: Jianpu Technology sets terms for $214 million US IPO</a></li></ul><h2><strong>Smartkarma Community's Analyses on Upcoming IPOs<br><br></strong></h2><ul><li><a href="https://www.smartkarma.com/insights/ipo-coverage-ppdai-group-inc-nyse-ppdf-achilles-heel-of-p2p-lending" target="_blank" data-smartkarma-citation="insights:15023">IPO Coverage - PPDAI Group Inc (NYSE: PPDF) - Achilles’ Heel of P2P Lending</a></li><li><a href="https://www.smartkarma.com/insights/mecaro-ipo-part-1-ipo-prospectus-summary" target="_blank" data-smartkarma-citation="insights:14767">Mecaro IPO Part 1 - IPO Prospectus Summary</a></li></ul><div><h2>List of pre-IPO Coverage on Smartkarma</h2></div><div><table class="table table-striped"><tbody><tr><td>Name</td><td>Insight</td></tr><tr><td colspan="2"><strong>Hong Kong</strong></td></tr><tr><td>Cenmintang</td><td><a href="https://www.smartkarma.com/insights/cenmintang-ipo-preview-a-beverage-and-snack-play-whose-growth-is-hard-to-grasp" target="_blank" data-smartkarma-citation="insights:9282">Cenmintang IPO Preview: A Beverage and Snack Play Whose Growth Is Hard to Grasp</a></td></tr><tr><td>China Feihe</td><td><a href="https://www.smartkarma.com/insights/china-feihe-ipo-preview-goat-bless-infant-formula-milk" target="_blank" data-smartkarma-citation="insights:12751">China Feihe IPO Preview: Goat Bless Infant Formula Milk?</a></td></tr><tr><td>Bank of Jiujiang</td><td><a href="https://www.smartkarma.com/insights/scraping-the-bottom-of-the-barrel-bank-of-jiujiang" target="_blank">Scraping the Bottom of the Barrel: Bank of JiuJiang</a></td></tr><tr><td>Shandong Int'l Trust</td><td><a href="https://www.smartkarma.com/insights/shandong-international-trust-pre-ipo-faltering-growth-and-profitability-despite-aid-from-prop-book" target="_blank">Shandong Int'l Trust Pre-IPO - Faltering Growth and Profitability Despite Aid from Prop Book</a></td></tr><tr><td colspan="2"><strong>South Korea</strong></td></tr><tr><td>Bodyfriend</td><td><a href="https://www.smartkarma.com/insights/bodyfriend-ipo-preview-part-i-goodbye-osim-hello-bodyfriend" target="_blank">Bodyfriend IPO Preview: Part I (Goodbye Osim, Hello Bodyfriend) Bodyfriend) </a></td></tr><tr><td>CJ OliveNetworks</td><td><a href="https://www.smartkarma.com/insights/cj-olivenetworks-on-a-fast-track-to-an-ipo-in-2017" target="_blank">CJ OliveNetworks - On A Fast Track to an IPO in 2017? </a></td></tr><tr><td>Cafe24</td><td><a href="https://www.smartkarma.com/insights/cafe-24-ipo-preview-part-1-korea-s-shopify-leading-contender-for-tesla-requirements-based-ipo" target="_blank" data-smartkarma-citation="insights:13665">Cafe 24 IPO Preview (Part 1): Korea’s Shopify - Leading Contender For “Tesla” Requirements Based IPO</a></td></tr><tr><td>Data Solution</td><td><a href="https://www.smartkarma.com/insights/datasolution-ipo-summary-questions-remain-on-growth-but-market-seems-excited" target="_blank" data-smartkarma-citation="insights:12519">Datasolution IPO Summary - Questions Remain on Growth, but Market Seems Excited</a></td></tr><tr><td>Gentle Monster</td><td><a href="https://www.smartkarma.com/insights/gentle-monster-ipo-a-monster-growth" target="_blank" data-smartkarma-citation="insights:8630">Gentle Monster IPO - A Monster Growth</a></td></tr><tr><td>Korea Exchange</td><td><a href="https://www.smartkarma.com/insights/korea-exchange-ipo-question-is-when-not-if" target="_blank">Korea Exchange IPO - Question Is When, Not If</a></td></tr><tr><td>Mecaro</td><td><a href="https://www.smartkarma.com/insights/mecaro-ipo-part-1-ipo-prospectus-summary" target="_blank" data-smartkarma-citation="insights:14767">Mecaro IPO Part 1 - IPO Prospectus Summary</a></td></tr><tr><td>Outin Futures</td><td><a href="https://www.smartkarma.com/insights/outin-futures-corp-ipo-preview-part-1" target="_blank" data-smartkarma-citation="insights:11212">Outin Futures Corp IPO Preview (Part 1)</a>,  <a href="https://www.smartkarma.com/insights/outin-futures-corp-ipo-valuations-part-2" target="_blank" data-smartkarma-citation="insights:11736">Valuations (Part 2)</a></td></tr><tr><td>Studio Drag</td><td><a href="https://www.smartkarma.com/insights/studio-dragon-ipo-preview-part-1-beneficiary-of-the-addictive-korean-dramas" target="_blank" data-smartkarma-citation="insights:12300">Studio Dragon IPO Preview (Part 1) - Beneficiary of the Addictive Korean Dramas</a></td></tr><tr><td>Studio Drag</td><td><a href="https://www.smartkarma.com/insights/studio-dragon-ipo-preview-part-2-biggest-korean-entertainment-ipo-in-2017" target="_blank" data-smartkarma-citation="insights:14525">Studio Dragon IPO Preview (Part 2) - Biggest Korean Entertainment IPO in 2017</a></td></tr><tr><td>Tapex</td><td><a href="https://www.smartkarma.com/insights/tapex-ipo-preview-part-1" target="_blank" data-smartkarma-citation="insights:13543">Tapex IPO Preview (Part 1)</a></td></tr><tr><td>Tapex</td><td><a href="https://www.smartkarma.com/insights/tapex-ipo-valuation-analysis-a-market-leader-in-rechargeable-batteries-tapes" target="_blank" data-smartkarma-citation="insights:14486">Tapex IPO (Valuation Analysis) - A Market Leader in Rechargeable Batteries Tapes</a></td></tr><tr><td>Woowa Bro</td><td><a href="https://www.smartkarma.com/insights/woowa-brothers-corp-ipo-preview-part-1-the-most-popular-food-delivery-service-in-korea" target="_blank" data-smartkarma-citation="insights:11104">Woowa Brothers Corp IPO Preview (Part 1) - The Most Popular Food Delivery Service in Korea</a></td></tr><tr><td>V-One Tech</td><td><a href="https://www.smartkarma.com/insights/v-one-tech-ipo-summary-another-oled-stock-ipo" target="_blank" data-smartkarma-citation="insights:11689">V-One Tech IPO Summary - Another OLED Stock IPO</a>,  <a href="https://www.smartkarma.com/insights/v-one-tech-ipo-part-2-ipo-bookbuilding-results" target="_blank" data-smartkarma-citation="insights:11806">IPO Bookbuilding Results</a></td></tr><tr><td>Zinus</td><td><a href="https://www.smartkarma.com/insights/zinus-ipo-preview-part-1-an-amazing-comeback-story-1-mattress-brand-on-amazon" target="_blank" data-smartkarma-citation="insights:13698">Zinus IPO Preview (Part 1) - An Amazing Comeback Story (#1 Mattress Brand on Amazon)</a></td></tr><tr><td colspan="2"><strong>India</strong></td></tr><tr><td>NSE</td><td><a href="https://www.smartkarma.com/insights/national-stock-exchange-pre-ipo-review-bigger-better-stronger-but-a-little-too-fast-for-some" target="_blank">National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some</a></td></tr><tr><td>NSE</td><td><a href="https://www.smartkarma.com/insights/nse-ipo-preview-not-only-fast-its-risky-and-expensive" target="_blank">NSE IPO Preview- Not Only Fast..its Risky and Expensive</a></td></tr><tr><td colspan="2"><strong>US</strong></td></tr><tr><td>Four Seasons Ed</td><td><a href="https://www.smartkarma.com/insights/four-seasons-education-ipo-early-thoughts-a-small-player-in-a-highly-fragmented-market" target="_blank" data-smartkarma-citation="insights:14488">Four Seasons Education IPO Early Thoughts: A Small Player in a Highly Fragmented Market</a></td></tr></tbody></table></div>

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.Just one week away from the office and the Q4 IPO frenzy has already heated up with more exciting IPOs coming soon!!I was dead wrong on the US IPO momentum fizzling out because there are more Chinese companies getting listed in the US, namely, PPDAI Group (JL Warren Capital just covered it in detail) , Sogou Inc (SOGO US) , and most recently Jianpu Technology Inc (1547825D US).In Hong Kong, China Literature Ltd (772 HK) 's IPO next week on the 8th November will likely going to set the tone and momentum of HK IPOs for the remaining of Q4. This week, Crystal International Group (2232 HK) got listed on Friday and held up well, closing just 5% above IPO price. In the placement space, there have been a couple of sell-downs by existing shareholders, such as Sapura Energy (SAPE MK) , New China Life Insurance Co Ltd (1336 HK) , and ASM Pacific Technology (522 HK) . Perhaps shareholders feel like they should be locking in some profits on the back of record rally in the US, bolstering investors' confidence.Accuracy Rate:Our overall accuracy rate is 73.5% for IPOs and 63.5% for Placements.(Performance measurement criteria is explained at the end of the note)New IPO filings this week  China Xinhua Education (Hong Kong, ~US$100m)Below is a snippet of our IPO tool on upcoming events for the next week. Our IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.Source: SmartkarmaNews on Upcoming IPOs  Mahindra Logistics oversubscribed 7.9 timesTencent's red-hot e-book IPO sets stage for music arm's debutThai power producer GULF to tap IPO market to raise funds in Q4PP Energi aims $369m via 2018 IPO, secondary offeringChina's financial planning platform: Jianpu Technology sets terms for $214 million US IPOSmartkarma Community's Analyses on Upcoming IPOs  IPO Coverage - PPDAI Group Inc (NYSE: PPDF) - Achilles’ Heel of P2P LendingMecaro IPO Part 1 - IPO Prospectus SummaryList of pre-IPO Coverage on SmartkarmaNameInsightHong KongCenmintangCenmintang IPO Preview: A Beverage and Snack Play Whose Growth Is Hard to GraspChina FeiheChina Feihe IPO Preview: Goat Bless Infant Formula Milk?Bank of JiujiangScraping the Bottom of the Barrel: Bank of JiuJiangShandong Int'l TrustShandong Int'l Trust Pre-IPO - Faltering Growth and Profitability Despite Aid from Prop BookSouth KoreaBodyfriendBodyfriend IPO Preview: Part I (Goodbye Osim, Hello Bodyfriend) Bodyfriend) CJ OliveNetworksCJ OliveNetworks - On A Fast Track to an IPO in 2017? Cafe24Cafe 24 IPO Preview (Part 1): Korea’s Shopify - Leading Contender For “Tesla” Requirements Based IPOData SolutionDatasolution IPO Summary - Questions Remain on Growth, but Market Seems ExcitedGentle MonsterGentle Monster IPO - A Monster GrowthKorea ExchangeKorea Exchange IPO - Question Is When, Not IfMecaroMecaro IPO Part 1 - IPO Prospectus SummaryOutin FuturesOutin Futures Corp IPO Preview (Part 1),  Valuations (Part 2)Studio DragStudio Dragon IPO Preview (Part 1) - Beneficiary of the Addictive Korean DramasStudio DragStudio Dragon IPO Preview (Part 2) - Biggest Korean Entertainment IPO in 2017TapexTapex IPO Preview (Part 1)TapexTapex IPO (Valuation Analysis) - A Market Leader in Rechargeable Batteries TapesWoowa BroWoowa Brothers Corp IPO Preview (Part 1) - The Most Popular Food Delivery Service in KoreaV-One TechV-One Tech IPO Summary - Another OLED Stock IPO,  IPO Bookbuilding ResultsZinusZinus IPO Preview (Part 1) - An Amazing Comeback Story (#1 Mattress Brand on Amazon)IndiaNSENational Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for SomeNSENSE IPO Preview- Not Only Fast..its Risky and ExpensiveUSFour Seasons EdFour Seasons Education IPO Early Thoughts: A Small Player in a Highly Fragmented Market

Smartkarma: ECM Coverage Weekly Update (04 November 2017)

Investment Advisors, JL Warren Capital

Junheng Li

Investment Advisors

JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

FinVolution Group / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/26006" target="_blank" data-smartkarma-citation="entities:26006:1">PPDAI Group Inc (PPDF US)</a> was the first online consumer loan marketplace and according to <a href="http://wdzj.com/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=http://wdzj.com&amp;source=gmail&amp;ust=1509826159604000&amp;usg=AFQjCNGB26ExuvITgMfUb5VGSC_c6SiT-g">wdzj.com</a> (the leading industry media) PPDai was ranked #4 largest P2P lending platform in China by loan origination value as of Oct 2017.  Its borrower base is young consumers between the ages of 20-40.  Lenders are almost all retail investors (90.6%, to be precise), receiving on average ~14% annualized return, ~9% higher than the yield on the WMPs (wealth management products) offered by Chinese commercial banks.  PPDai is an intermediary between borrowers and lenders.  It does not have a balance sheet therefore in theory it does not nor is capable of underwriting loans that it originates and services for a fee of ~6%[1] of value of the loans.</p><p>PPDai is one of the Chinese P2P lending platforms that are to be listed in the US in Q4. The IPO share price is expected to be between $16-$19. The market capitalization is therefore in the range of USD 4.9-5.8 billion. In H1 2017, the company reported a net loss of $60 million on $255 million revenue.  Credit Suisse, Citigroup, and Keefe, Bruyette &amp; Woods are the IPO underwriters. Shares are expected to trade on Nov 10<sup>th</sup>, 2017.</p><p>In this note, we analyze the mechanism of the P2P lending business model, mainly focusing on its structural challenges and risks.  We also look into some unique features of P2P lending players in China.  The industry has experienced explosive growth in China since 2010, with (legit) number of players reaching 3,437 in 2015 according to Wangdaizhijia, the most authoritative industry media in China.  Since the blow-up of Ezubao – a Ponzi schemed P2P platform robbing USD 7 billion completely away from investors – in 2015, the authorities in China started to crack down on the reckless practices rampant in the industry.  1,400 out of 3,400 platforms that existed in 2015 are now not in operation. During the past 2-3 years, the growth of transaction volume and operating profit for the whole industry have moderated, as the market consolidates.  Yet there are still over 2,000 P2P lending platforms in China today, competing for both borrowers and lenders.  Policy makers are said to be closely monitoring industry movements and new regulation is like a time bomb.</p>

PPDAI Group Inc (PPDF US) was the first online consumer loan marketplace and according to wdzj.com (the leading industry media) PPDai was ranked #4 largest P2P lending platform in China by loan origination value as of Oct 2017.  Its borrower base is young consumers between the ages of 20-40.  Lenders are almost all retail investors (90.6%, to be precise), receiving on average ~14% annualized return, ~9% higher than the yield on the WMPs (wealth management products) offered by Chinese commercial banks.  PPDai is an intermediary between borrowers and lenders.  It does not have a balance sheet therefore in theory it does not nor is capable of underwriting loans that it originates and services for a fee of ~6%[1] of value of the loans.PPDai is one of the Chinese P2P lending platforms that are to be listed in the US in Q4. The IPO share price is expected to be between $16-$19. The market capitalization is therefore in the range of USD 4.9-5.8 billion. In H1 2017, the company reported a net loss of $60 million on $255 million revenue.  Credit Suisse, Citigroup, and Keefe, Bruyette &amp; Woods are the IPO underwriters. Shares are expected to trade on Nov 10th, 2017.In this note, we analyze the mechanism of the P2P lending business model, mainly focusing on its structural challenges and risks.  We also look into some unique features of P2P lending players in China.  The industry has experienced explosive growth in China since 2010, with (legit) number of players reaching 3,437 in 2015 according to Wangdaizhijia, the most authoritative industry media in China.  Since the blow-up of Ezubao – a Ponzi schemed P2P platform robbing USD 7 billion completely away from investors – in 2015, the authorities in China started to crack down on the reckless practices rampant in the industry.  1,400 out of 3,400 platforms that existed in 2015 are now not in operation. During the past 2-3 years, the growth of transaction volume and operating profit for the whole industry have moderated, as the market consolidates.  Yet there are still over 2,000 P2P lending platforms in China today, competing for both borrowers and lenders.  Policy makers are said to be closely monitoring industry movements and new regulation is like a time bomb.

IPO Coverage - PPDAI Group Inc (NYSE: PPDF) - Achilles' Heel of P2P Lending

United States

FinVolution Group develops online consumer finance platform. The Company offers credit risk assessment, fraud detection, big data, automated loan transaction, and artificial intelligence solutions. FinVolution Group serves clients in China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

FinVolution Group (FINV US)

Smartkarma: ECM Coverage Weekly Update (04 November 2017)

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs. Just one week away...

Zhen Zhou, Toh

IPO Coverage - PPDAI Group Inc (NYSE: PPDF) - Achilles' Heel of P2P Lending

PPDAI Group Inc (PPDF US) was the first online consumer loan marketplace and according to wdzj.com (the leading industry media) PPDai was ranked #4...

JL Warren Capital

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)