Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of IPO & Placements for Aequitas Research. At Aequitas we cover all IPOs and placements across Asia-Pac with a deal size of at least US$100m. 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%. 
Prior to Aequitas. I was heading Content Strategy for Smartkarma, along with covering IPOs & Placement. In an earlier life I have covered ASEAN property and the banking space in India.

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

China Railway Signal & Communication / Equity Capital Markets

China Railway Signal & Communication (3969 HK)

China Rail Signal &amp; Communication (CRSC) plans to raise US$1.4-2.0bn through issuance of primary shares.At the outset the past and projected growth for the company looks appealing and the book already being covered by the cornerstone and anchor investors makes the IPO a sure shot to float despite the turbulent markets. However, valuation leaves much to be desired as there are larger and also cheaper stocks available to invest in the same overall theme. In addition, future growth for CRSC is expected to come from a lot of segments other than the core business of new high speed rail (HSR) orders, which in itself raises concerns on the company's ability to deliver the projected growth. Moreover, the company's involvement in the 2011 accident, should lead to it trading at a discount to other rail related stocks and not at a premium, in our view.We would avoid the deal.

China Rail Signal &amp; Communication (CRSC) plans to raise US$1.4-2.0bn through issuance of primary shares.At the outset the past and projected growth for the company looks appealing and the book already being covered by the cornerstone and anchor investors makes the IPO a sure shot to float despite the turbulent markets. However, valuation leaves much to be desired as there are larger and also cheaper stocks available to invest in the same overall theme. In addition, future growth for CRSC is expected to come from a lot of segments other than the core business of new high speed rail (HSR) orders, which in itself raises concerns on the company's ability to deliver the projected growth. Moreover, the company's involvement in the 2011 accident, should lead to it trading at a discount to other rail related stocks and not at a premium, in our view.We would avoid the deal.

Banking on One Belt, One Road and non-core segments for growth. We don't see a green signal