In this briefing:
- ESR Cayman Pre-IPO – A Giant in the Making
- China Gas Placement – Larger Deals Traded Flat but Good Track Record Should Help
- Yingcheng Intl (银城国际) – Quick Post-IPO Trading Update
- January Chip Revenues Down 15.6% Year-On-Year
1. ESR Cayman Pre-IPO – A Giant in the Making
ESR Cayman (ESR HK) aims to raise up to US$1.5bn in its planned Hong Kong listing, as per media reports. The company is backed by Warburg Pincus and counts APG, the Netherlands’ largest pension provider, as one of its main investors.
ESR operates an end-to-end model starting from development of the asset to divesting it to one of its private funds and/or REITs. It operates in China, Japan, South Korea, Australia, Singapore and India. AUM has grown rapidly over the past few years as the company has undertaken a number of acquisitions in the recent past.
In this insight, I’ll touch upon the company’s business model and provide an overview of its operations.
2. China Gas Placement – Larger Deals Traded Flat but Good Track Record Should Help
A shareholder of China Gas Holdings (384 HK) is looking to sell about 142m shares worth approximatel US$443m. This is a clean-up trade.
The deal scores well on our framework owing to its pristine track record of outperformance and decent earnings momentum. It is also a clean-up trade, hence, no overhang on its share price.
However, the performance of prev deals show that placements larger than HK$3bn tend to perform flat over one-month period whereas placements with smaller deal size did well.
3. Yingcheng Intl (银城国际) – Quick Post-IPO Trading Update
Yincheng International Holdi (1902 HK) raised US$100m in at HK$2.38 per share, at the mid-point of its IPO price range. We have previously covered the IPO in:
In this insight, we will update on the deal dynamics, implied valuation, and include a valuation sensitivity table.
4. January Chip Revenues Down 15.6% Year-On-Year
The Semiconductor Industry Association in the US released the latest WSTS figures for January chip revenues. Monthly revenues are down 15.6% from January of 2018. While this is not a surprise to our clients it is frightening to those who anticipated that 2019 would be a continuation of the bonanza enjoyed in 2018.
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