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/yunkang-group" target="_blank" data-smartkarma-citation="entities:35631:1" rel="noopener">Yunkang Group (2325 HK)</a> was listed on 18th May 2022, with its six month lockup expiring on 17th November 2022.</li>
<li>Yunkang Group is a medical operation service provider in China and as per F&amp;S, had a market share of 3.7% in China’s medical operation service market as per 2020 revenue. </li>
<li>Coming up for six-month lockup expiry are the controlling shareholders and cornerstones. With protracted lockdowns underway in China, this stock has continued to benefit, currently trading 86.3% above IPO price. </li>
</ul>



Yunkang Group (2325 HK) was listed on 18th May 2022, with its six month lockup expiring on 17th November 2022.
Yunkang Group is a medical operation service provider in China and as per F&amp;S, had a market share of 3.7% in China’s medical operation service market as per 2020 revenue. 
Coming up for six-month lockup expiry are the controlling shareholders and cornerstones. With protracted lockdowns underway in China, this stock has continued to benefit, currently trading 86.3% above IPO price. 


Yungkang Group Lock-Up - Shares Benefited from a Protracted Lockdown.  Shareholders Could Monetise

Lygend Resources & Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lygend-resources-technology" target="_blank" data-smartkarma-citation="entities:36493:1" rel="noopener">Lygend Resources &amp; Technology (LR HK)</a> is looking to raise about US$600m in its upcoming Hong Kong IPO.</li>
<li>Lygend Resources &amp; Technology (Lygend) is a nickel trading and production firm with a portfolio covering multiple areas across the nickel industry value chain.</li>
<li>In this note, we look at peers and undertake a peer comparison.</li>
</ul>



Lygend Resources &amp; Technology (LR HK) is looking to raise about US$600m in its upcoming Hong Kong IPO.
Lygend Resources &amp; Technology (Lygend) is a nickel trading and production firm with a portfolio covering multiple areas across the nickel industry value chain.
In this note, we look at peers and undertake a peer comparison.


Lygend Resources & Technology Pre-IPO Peer Comp - Peers Have Underperformed over the past Year

<ul>
<li>
<a href="https://www.smartkarma.com/entities/deewin-tianxia" target="_blank" data-smartkarma-citation="entities:36075:1" rel="noopener">Deewin Tianxia (2418 HK)</a> raised around US$123m in its Hong Kong IPO.</li>
<li>DT’s subscription rates had been lackluster with weak coverage on the institutional tranche and the retail portion being undersubscribed.</li>
<li>Given its smaller size, in our view, the firm should come in at a discount to its peer average.</li>
</ul>



Deewin Tianxia (2418 HK) raised around US$123m in its Hong Kong IPO.
DT’s subscription rates had been lackluster with weak coverage on the institutional tranche and the retail portion being undersubscribed.
Given its smaller size, in our view, the firm should come in at a discount to its peer average.


Deewin Tianxia IPO Trading - Weak Subscription Rates, Retail Portion Undersubscribed

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>We see 28 potential inclusions to the HSCI in September, plus another 9 stocks that are close to the inclusion cutoff. Some stocks are already a part of Stock Connect.</li>
<li>There could be 22 deletions from the index on market cap, liquidity and prolonged suspension. Most of the deletions would be moved to the 'sell-only' Southbound Stock Connect list.</li>
<li>Some of the stocks that remain in the HSCI could move to the 'sell-only' Southbound Stock Connect list since their average market cap drops below HKD 5bn.</li>
</ul>


We see 28 potential inclusions to the HSCI in September, plus another 9 stocks that are close to the inclusion cutoff. Some stocks are already a part of Stock Connect.
There could be 22 deletions from the index on market cap, liquidity and prolonged suspension. Most of the deletions would be moved to the 'sell-only' Southbound Stock Connect list.
Some of the stocks that remain in the HSCI could move to the 'sell-only' Southbound Stock Connect list since their average market cap drops below HKD 5bn.


HSCI Index Rebalance and Stock Connect: Potential Changes in September

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>Shanghai Municipal Medical Insurance Bureau issued a policy that TAVR consumables would be reimbursed according to surgery performance, breaking the bottleneck of low demand due to the expensive TAVR surgery.</li>
<li>The COVID nucleic acid testing industry faces the problem of exit, because it is very difficult to find a corresponding scale of replacement business for these huge capacity accumulated.</li>
<li>In terms of the internationalization prospects of China biotech companies, we prefer to pick RemeGen. The same logic also applies to Keymed.</li>
</ul>


Shanghai Municipal Medical Insurance Bureau issued a policy that TAVR consumables would be reimbursed according to surgery performance, breaking the bottleneck of low demand due to the expensive TAVR surgery.
The COVID nucleic acid testing industry faces the problem of exit, because it is very difficult to find a corresponding scale of replacement business for these huge capacity accumulated.
In terms of the internationalization prospects of China biotech companies, we prefer to pick RemeGen. The same logic also applies to Keymed.


China Healthcare Weekly (May.27) - New TAVR Policy, Exiting Issue of COVID Testing, RemeGen/Keymed

China

Yunkang Group Limited operates as a medical operation service provider. The Company provides diagnostic outsourcing services, diagnostic testing, and other services. Yunkang Group provides its services throughout China.

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Yunkang Group (2325 HK)

Yungkang Group Lock-Up - Shares Benefited from a Protracted Lockdown. Shareholders Could Monetise

Yunkang Group (2325 HK) was listed on 18th May 2022, with its six month lockup expiring on 17th November 2022. Yunkang Group is a medical operation...

Clarence Chu

Lygend Resources & Technology Pre-IPO Peer Comp - Peers Have Underperformed over the past Year

Lygend Resources & Technology (LR HK) is looking to raise about US$600m in its upcoming Hong Kong IPO. In this note, we look at peers and undertake...

Clarence Chu

Deewin Tianxia IPO Trading - Weak Subscription Rates, Retail Portion Undersubscribed

Deewin Tianxia (2418 HK) raised around US$123m in its Hong Kong IPO. DT’s subscription rates had been lackluster with weak coverage on the...

Clarence Chu

HSCI Index Rebalance and Stock Connect: Potential Changes in September

We see 28 potential adds and 9 close adds for the HSCI in September. There are 22 potential deletes on market cap, liquidity and prolonged...

Brian Freitas

China Healthcare Weekly (May.27) - New TAVR Policy, Exiting Issue of COVID Testing, RemeGen/Keymed

New TAVR policy will break the low demand bottleneck due to high cost; COVID testing industry faces the problem of exit; Remegen/Keymed may have...

Xinyao (Criss) Wang

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