IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

KWG Living Group / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/kwg-living-group" target="_blank" data-smartkarma-citation="entities:29231:1" rel="noopener">KWG Living Group (3913 HK)</a> is a property management service provider in China. KWG accounted for 0.09% of the total GFA under management in the China property management market in 2019, according to JLL. <a href="https://www.smartkarma.com/entities/kwg-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:12601:1" rel="noopener">Kwg Property Holding (1813 HK)</a>, the parent, has launched the spin-off and Hong Kong IPO of KWG to raise up to $400 million. </p><div class="content-highlight"><p>KWG offers not only property management service for both residential and commercial properties, but also commercial operational service. The commercial property management and operational service are still at the early development stage with fewer participants, compared with residential property management, which presents more headroom for KWG to expand. Also, KWG has a strong presence in the Greater Bay Area and ranked tenth among the leading property management companies in the Greater Bay Area, according to the CIA. Overall, KWG’s fundamentals over the track record period are attractive, in our view.</p></div>

KWG Living Group (3913 HK) is a property management service provider in China. KWG accounted for 0.09% of the total GFA under management in the China property management market in 2019, according to JLL. Kwg Property Holding (1813 HK), the parent, has launched the spin-off and Hong Kong IPO of KWG to raise up to $400 million. KWG offers not only property management service for both residential and commercial properties, but also commercial operational service. The commercial property management and operational service are still at the early development stage with fewer participants, compared with residential property management, which presents more headroom for KWG to expand. Also, KWG has a strong presence in the Greater Bay Area and ranked tenth among the leading property management companies in the Greater Bay Area, according to the CIA. Overall, KWG’s fundamentals over the track record period are attractive, in our view.

KWG Living Group IPO Initiation: Urban Living

Shimao Services Holdings Limited / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/shimao-services-holdings-limited" target="_blank" data-smartkarma-citation="entities:29199:1" rel="noopener">Shimao Services Holdings (SSH HK)</a> is a Chinese property management company which is a subsidiary of <a href="https://www.smartkarma.com/entities/shimao-property-holdings-limited" target="_blank" data-smartkarma-citation="entities:8375:1" rel="noopener">Shimao Property Holdings (813 HK)</a> and backed by Sequoia China and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>. Shimao ranked third among the Top 20 Property Management Companies in China as measured by the revenue growth rate in 2019, according to China Index Academy. Shimao Group, the parent, will shortly launch the spin-off and Hong Kong IPO of Shimao to raise up to $1 billion, according to press reports. </p><div class="content-highlight"><p>Property management IPOs are popular due to the strong post-IPO share price performance of recent listings. The property management sector has a long-term recurring business model and is capital-light. Overall, Shimao’s fundamentals over the track record period are attractive, in our view.</p></div>

Shimao Services Holdings (SSH HK) is a Chinese property management company which is a subsidiary of Shimao Property Holdings (813 HK) and backed by Sequoia China and Tencent Holdings (700 HK). Shimao ranked third among the Top 20 Property Management Companies in China as measured by the revenue growth rate in 2019, according to China Index Academy. Shimao Group, the parent, will shortly launch the spin-off and Hong Kong IPO of Shimao to raise up to $1 billion, according to press reports. Property management IPOs are popular due to the strong post-IPO share price performance of recent listings. The property management sector has a long-term recurring business model and is capital-light. Overall, Shimao’s fundamentals over the track record period are attractive, in our view.

Shimao Services IPO Initiation: At Your Service

Excellence Commercial Property & Facilities Management / Equity Capital Markets

Excellence Commercial Property & Facilities Management

<div><p><a href="https://www.smartkarma.com/entities/excellence-commercial-property-facilities-management" target="_blank" data-smartkarma-citation="entities:29249:1" rel="noopener">Excellence Commercial Property (1611267D CH)</a> is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. At the proposed IPO price range of HK$9.30-10.68 per share, Excellence will have a market cap of HK$11,160.0-12,816.0 million ($1.4-1.7 billion).</p></div><div><p>Nine cornerstone investors will subscribe for 38.79% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a>, China Southern Asset Management, Snow Lake Capital, 3W Fund, OP Capital, Orient Asset Management, J-Stone Capital and Matthews Funds. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/excellence-commercial-property-facilities-mgmt-ipo-initiation-facilities-facilitate" target="_blank" rel="noopener">our initiation note</a>, we highlighted that Excellence’s fundamentals over the track record period are attractive. Overall, we think that an attractive valuation and solid cornerstone support makes Excellence tempting at the proposed pricing range. </p></div></div></div>

Excellence Commercial Property (1611267D CH) is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. At the proposed IPO price range of HK$9.30-10.68 per share, Excellence will have a market cap of HK$11,160.0-12,816.0 million ($1.4-1.7 billion).Nine cornerstone investors will subscribe for 38.79% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Tencent Holdings (700 HK), JD.com Inc (ADR) (JD US), China Southern Asset Management, Snow Lake Capital, 3W Fund, OP Capital, Orient Asset Management, J-Stone Capital and Matthews Funds. In our initiation note, we highlighted that Excellence’s fundamentals over the track record period are attractive. Overall, we think that an attractive valuation and solid cornerstone support makes Excellence tempting at the proposed pricing range. 

Excellence Commercial Property & Facilities Mgmt IPO: Valuation Insights

<p><a href="https://www.smartkarma.com/entities/excellence-commercial-property-facilities-management" target="_blank" data-smartkarma-citation="entities:29249:1" rel="noopener">Excellence Commercial Property (1611267D CH)</a> is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. It has launched a Hong Kong IPO to raise up to HK$3.2 billion ($410 million), according to press reports. </p><div class="content-highlight"><p>Property management IPOs are popular as the property management sector is asset-light and has a long-term recurring business model. Overall, Excellence’s fundamentals over the track record period are attractive, in our view.</p></div>

Excellence Commercial Property (1611267D CH) is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. It has launched a Hong Kong IPO to raise up to HK$3.2 billion ($410 million), according to press reports. Property management IPOs are popular as the property management sector is asset-light and has a long-term recurring business model. Overall, Excellence’s fundamentals over the track record period are attractive, in our view.

Excellence Commercial Property & Facilities Mgmt IPO Initiation: Facilities Facilitate

Sunac Services Holdings / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/sunac-services-holdings" target="_blank" data-smartkarma-citation="entities:29239:1" rel="noopener">Sunac Services Holdings (1820476D HK)</a> is a Chinese property management company. Sunac is the fastest-growing large-scale property management service provider in China, according to China Index Academy. On 6 August, <a href="https://www.smartkarma.com/entities/sunac-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:240:1" rel="noopener">Sunac China Holdings (1918 HK)</a>, the controlling shareholder, announced the proposed spin-off and listing of Sunac on the HKEX. Post the IPO, Sunac China will have an interest of not less than 50% in Sunac and Sunac will remain a subsidiary of Sunac China. Sunac is seeking to raise $1 billion, according to press reports.</p><div class="content-highlight"><p>A key attraction of the property management sector is its asset-light and long-term recurring business model. Also, IPOs in the property management sector has been red-hot this year with <a href="https://www.smartkarma.com/entities/central-china-new-life" target="_blank" data-smartkarma-citation="entities:28953:1" rel="noopener">Central China New Life (9983 HK)</a> and <a href="https://www.smartkarma.com/entities/zhenro-services-group" target="_blank" data-smartkarma-citation="entities:28869:1" rel="noopener">Zhenro Services (6958 HK)</a> trading 52% and 46% above their IPO price, respectively. Overall, we believe that Sunac is a worthy addition to this group as its fundamentals over the track record period are attractive, in our view.</p></div>

Sunac Services Holdings (1820476D HK) is a Chinese property management company. Sunac is the fastest-growing large-scale property management service provider in China, according to China Index Academy. On 6 August, Sunac China Holdings (1918 HK), the controlling shareholder, announced the proposed spin-off and listing of Sunac on the HKEX. Post the IPO, Sunac China will have an interest of not less than 50% in Sunac and Sunac will remain a subsidiary of Sunac China. Sunac is seeking to raise $1 billion, according to press reports.A key attraction of the property management sector is its asset-light and long-term recurring business model. Also, IPOs in the property management sector has been red-hot this year with Central China New Life (9983 HK) and Zhenro Services (6958 HK) trading 52% and 46% above their IPO price, respectively. Overall, we believe that Sunac is a worthy addition to this group as its fundamentals over the track record period are attractive, in our view.

Sunac Services IPO Initiation: Next in Line

China

Zhenro Services Group is a property management service provider in China. As of September 30, 2019, the company operated in four major regions in China, the Yangtze River Delta Region, Western Straits Region, Midwest Region, and Bohai Rim Region. 

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Zhenro Services Group (6958 HK)

KWG Living Group IPO Initiation: Urban Living

KWG offers not only property mgmt service for residential and commercial properties, but also commercial operational service. Overall, KWG’s...

Arun George

Shimao Services IPO Initiation: At Your Service

Property management IPOs are popular due to the strong post-IPO share price performance of recent listings. Overall, Shimao’s fundamentals over the...

Arun George

Excellence Commercial Property & Facilities Mgmt IPO: Valuation Insights

Converge ICT Solutions Inc (ITC PM) is the only major pure-play fixed broadband provider, with an exclusive focus on serving the Philippine fixed...

Arun George

Excellence Commercial Property & Facilities Mgmt IPO Initiation: Facilities Facilitate

Excellence is a leading commercial operational service provider in China and ranked fourth among the commercial property management service...

Arun George

Sunac Services IPO Initiation: Next in Line

Sunac Services Holdings (1820476D HK) is a Chinese property management company. Sunac is the fastest-growing large-scale property management...

Arun George

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