In this briefing:
- CStone Pharma (基石药业) Post-IPO: Strong Debut but Lacks near Term Catalysts
- Futu Holdings Pre-IPO – FY18 Updates And Quick Thoughts on Valuation
- Yincheng Intl (银城国际) IPO Quick Note: A Highly Levered Nanjing Developer Bet
- ECM Weekly (23 February 2019) – Futu, CStone, Dexin, New Century, AB InBev, MabPharma
1. CStone Pharma (基石药业) Post-IPO: Strong Debut but Lacks near Term Catalysts
CStone Pharma’s IPO was priced at HKD 12.00/share and started trading today. In this insight, we summarize the allocation, the use of proceeds and recap our view on our valuation. We also look at past few biotech listings and discuss our thoughts on the market sentiments. We are of the view that despite a strong debut performance, CStone lacks near term catalysts that can continue to drive performance after the first day.
Our Previous Coverage of CStone
- CStone Pharma (基石药业) IPO: Strong Assembly and Backing (Part 1)
- CStone Pharma (基石药业) IPO: Thoughts on Valuation (Part 2)
2. Futu Holdings Pre-IPO – FY18 Updates And Quick Thoughts on Valuation
Futu Holdings Ltd (FHL US) plans to raise around US$300m in its US IPO. The company is backed by Tencent Holdings (700 HK) , Matrix Partners and Sequoia.
In my earlier insight, Futu Holdings Pre-IPO – Great Metrics but in a Commoditised Industry, I looked at the company’s background and past financial performance along with some of the other firms that are competing in the same space.
This insight covers the positive and negative takeaways from the FY18 updated filing and also includes our thoughts on valuation.
3. Yincheng Intl (银城国际) IPO Quick Note: A Highly Levered Nanjing Developer Bet
Yincheng International, a China Yangtze delta focused property developer, is raising up to USD 110 million to list on the Hong Kong Stock Exchange. In this note, we will cover the following topics:
- The company’s property portfolio
- Financial performance that concerns us
- Shareholders and use of proceeds
- Our view on the deal
4. ECM Weekly (23 February 2019) – Futu, CStone, Dexin, New Century, AB InBev, MabPharma
Aequitas Research puts out a weekly update on the deals that have been covered by Smartkarma Insight Providers recently, along with updates for upcoming IPOs.
Starting with listings in Hong Kong next week, CStone Pharma (2616 HK) and Dexin China Holdings (2019 HK) will list on the 26th of February. Dexin is said to have priced at the mid-point of its price range while CStone is priced above its mid-point.
We also heard that Haitong Unitrust International Leasing was given the green light by CSRC for its Hong Kong IPO. The company had previously re-filed its draft prospectus in September last year. Shanghai Dongzheng Automotive Finance has also received approval from CSRC for its IPO.
There had also been a small property developer, YinCheng, that had launched its US$100m IPO. Jinxin Fertility had also just filed its draft prospectus with the HKEX.
Back in the US, we are hearing that Futu Holdings Ltd (FHL US) could be starting its bookbuild as early as next week. Sumeet Singh had previously analyzed the company in his insight, Futu Holdings Pre-IPO – Great Metrics but in a Commoditised Industry, and he will be following up with another insight next week.
In Japan, there is an Aruhi Corp (7198 JP) placement in which Carlyle looking to sell their entire stake in the company. Sumeet Singh had covered in Aruhi Placement – Bigger than the IPO but Good Track Record and Price Performance Should Help. The placement would be more attractive if it corrects down over the next few days but the removal of overhang from Carlyle seemed to be very well received by the market and the share price had even traded up 13% on Wednesday this week.
Accuracy Rate:
Our overall accuracy rate is 72.1% for IPOs and 63.7% for Placements
(Performance measurement criteria is explained at the end of the note)
New IPO filings
- Jinxin Fertility Group (US$600m, Hong Kong)
Below is a snippet of our IPO tool showing upcoming events for the next week. The 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.
News on Upcoming IPOs
- Fund Companies Ask Hong Kong to Relax IPO Investment Rules
- Chinese Tech Giants Seek Further IPO Rule Changes in Hong Kong
- Sembcorp could delay India energy IPO due to market conditions
- PNB Metlife IPO likely next fiscal
Smartkarma Community’s this week Analysis on Upcoming IPO
- New Century Hotel Mgmt IPO Preview: Two-Speed Businesses
- New Century Hotel (浙江開元酒店) Pre-IPO – Improved Profitability Not Driven by Underlying Operations
- Ab InBev Asia Pre-IPO – Quick Note – More like CR Beer Rather than Tsingtao
- MabPharma (迈博医药) IPO: Assembled for a Trade?
- Hyundai Autoever IPO Preview
- Hyundai Autoever IPO Pricing: Likely to Be a Dull Event Given No Growth Story & Glovis Merger
- HLX02: Innovation Could Overtake
Get Straight to the Source on Smartkarma
Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.