APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bionote-inc" target="_blank" data-smartkarma-citation="entities:36446:1" rel="noopener">Bionote (377740 KS)</a> is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown.</li>
<li>Bionote is an integrated producer of diagnostics test products and biocontent products. Based on its unique recombinant antigen and antibody manufacturing technology, the firm researches and develops diagnostic reagent products. </li>
<li>In this note, we look at peers and undertake a peer comparison.</li>
</ul>



Bionote (377740 KS) is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown.
Bionote is an integrated producer of diagnostics test products and biocontent products. Based on its unique recombinant antigen and antibody manufacturing technology, the firm researches and develops diagnostic reagent products. 
In this note, we look at peers and undertake a peer comparison.


Bionote Pre-IPO Peer Comp - Larger Segment Leads in Margins, but Trend Could Be Reversing

Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>Despite the macroeconomic headwinds, Q3 results from the large medtech companies showed some encouraging signs including healthy procedure volume growth depicting recovery in the medtech sector globally.</li>
<li>Amidst fear of recession, most of these companies reported healthy system placement and no order cancellation. Diabetes, with a large underpenetrated addressable population, remains one of the most resilient segments.</li>
<li>Financial performances of APAC medtech companies are expected to be driven by healthy global procedure volume growth and Fx, partially offset by macroeconomic headwinds including inflation and supply constraints.</li>
</ul>


Despite the macroeconomic headwinds, Q3 results from the large medtech companies showed some encouraging signs including healthy procedure volume growth depicting recovery in the medtech sector globally.
Amidst fear of recession, most of these companies reported healthy system placement and no order cancellation. Diabetes, with a large underpenetrated addressable population, remains one of the most resilient segments.
Financial performances of APAC medtech companies are expected to be driven by healthy global procedure volume growth and Fx, partially offset by macroeconomic headwinds including inflation and supply constraints.


Global Medtech Trends: Readouts from Early Birds of Q3 Earnings Season- Positives and Negatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bionote-inc" target="_blank" data-smartkarma-citation="entities:36446:1" rel="noopener">Bionote (377740 KS)</a> is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown.</li>
<li>Bionote is an integrated producer of diagnostics test products and biocontent products. Based on its unique recombinant antigen and antibody manufacturing technology, the firm researches and develops diagnostic reagent products.</li>
<li>Bionote has been gradually expanding its product portfolio and is vertically integrated covering the entire lifecycle from R&amp;D, raw material procurement, production and distribution.</li>
</ul>



Bionote (377740 KS) is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown.
Bionote is an integrated producer of diagnostics test products and biocontent products. Based on its unique recombinant antigen and antibody manufacturing technology, the firm researches and develops diagnostic reagent products.
Bionote has been gradually expanding its product portfolio and is vertically integrated covering the entire lifecycle from R&amp;D, raw material procurement, production and distribution.


Bionote Pre-IPO - The Positives - Expanding Product Portfolio and Vertically Integrated

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Our base case valuation is target price of 16,182 won per share, which is 10% lower than the low end of the IPO price range. </li>
<li>We estimate BioNote to generate sales of 535.2 billion won (down 14% YoY) in 2022 and 349 billion won (down 34.8% YoY) in 2023. </li>
<li>Given the downside risk relative to the IPO price range, we have a Negative View of the BioNote IPO. </li>
</ul>


Our base case valuation is target price of 16,182 won per share, which is 10% lower than the low end of the IPO price range. 
We estimate BioNote to generate sales of 535.2 billion won (down 14% YoY) in 2022 and 349 billion won (down 34.8% YoY) in 2023. 
Given the downside risk relative to the IPO price range, we have a Negative View of the BioNote IPO. 


Equity Bottom-Up

<ul>
<li>In July 2022, <a href="https://www.smartkarma.com/entities/sd-biosensor-inc" target="_blank" data-smartkarma-citation="entities:33333:1" rel="noopener">SD Biosensor (137310 KS)</a> in partnership with SJL Partners signed a definitive merger agreement to acquire <a href="https://www.smartkarma.com/entities/meridian-bioscience-inc" target="_blank" data-smartkarma-citation="entities:1559:1" rel="noopener">Meridian Bioscience (VIVO US)</a>  for approximately KRW800 billion (~$1.5 billion).</li>
<li>The acquisition will strengthen SD Biosensos’s IVD platform to navigate the decline in COVID-19 testing demand and accelerate its U.S. market entry.</li>
<li>In September 2021, SD Biosensor acquired ~22% stake in UXN, which aims to launch mini continuous blood glucose meter in domestic market in 2024.</li>
</ul>


In July 2022, SD Biosensor (137310 KS) in partnership with SJL Partners signed a definitive merger agreement to acquire Meridian Bioscience (VIVO US)  for approximately KRW800 billion (~$1.5 billion).
The acquisition will strengthen SD Biosensos’s IVD platform to navigate the decline in COVID-19 testing demand and accelerate its U.S. market entry.
In September 2021, SD Biosensor acquired ~22% stake in UXN, which aims to launch mini continuous blood glucose meter in domestic market in 2024.


SD Biosensor (137310 KS): Aggressively Investing Windfall Gain From COVID; Adding New Growth Engines

South Korea

SD Biosensor, INC. operates medical device manufacturing businesses. The Company produces electric medical instruments and other products. SD Biosensor conducts businesses across worldwide.

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SD Biosensor (137310 KS)

Bionote Pre-IPO Peer Comp - Larger Segment Leads in Margins, but Trend Could Be Reversing

Bionote is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown. In this note,...

Clarence Chu

Global Medtech Trends: Readouts from Early Birds of Q3 Earnings Season- Positives and Negatives

Q3 results of large U.S. medtech companies recorded procedure volume growth. However, macroeconomic headwinds are expected to prevail. Similar...

Tina Banerjee

Bionote Pre-IPO - The Positives - Expanding Product Portfolio and Vertically Integrated

Bionote (377740 KS) is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown.

Clarence Chu

BioNote IPO Valuation Analysis

Our base case valuation is target price of 16,182 won per share, which is 10% lower than the low end of the IPO price range.

Douglas Kim

SD Biosensor (137310 KS): Aggressively Investing Windfall Gain From COVID; Adding New Growth Engines

SD Biosensor is pursuing inorganic route to add new business opportunities to navigate the decline in COVID-19 testing demand. Acquisition of...

Tina Banerjee

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