Brief IPOs & Placements: CStone Pharma (基石药业) Post-IPO: Strong Debut but Lacks near Term Catalysts and more

In this briefing:

1. CStone Pharma (基石药业) Post-IPO: Strong Debut but Lacks near Term Catalysts
2. Futu Holdings Pre-IPO – FY18 Updates And Quick Thoughts on Valuation
3. Yincheng Intl (银城国际) IPO Quick Note: A Highly Levered Nanjing Developer Bet

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