Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

Canaan (嘉楠耘智) IPO Quick Take: Beware that ASIC Is a Different Ball Game

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. 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%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

After a failed IPO attempt to list its shares in Hong Kong, Canaan launched book building to raise up to USD 110 million to list on NASDAQ.In our earlier note, we discussed that the company’s ambition to transition into an AI chip player will be faced with challenges that investors should not underestimate. In this note, we will look at the company’s latest financials and operating data. Thanks to a strong momentum of Bitcoin prices, the company reported a strong 3Q results, but has not been successful in the sales of its AI chip after the launch a year ago. In addition to that, as we examine the numbers, we note that the company’s performance is exposed to  the boom and bust cycle of Bitcoin. While the company expects decent earnings in the near term, we think the company will not return to the past peak margins. We value the company at USD 988 million and would not participate in the IPO.

After a failed IPO attempt to list its shares in Hong Kong, Canaan launched book building to raise up to USD 110 million to list on NASDAQ.In our earlier note, we discussed that the company’s ambition to transition into an AI chip player will be faced with challenges that investors should not underestimate. In this note, we will look at the company’s latest financials and operating data. Thanks to a strong momentum of Bitcoin prices, the company reported a strong 3Q results, but has not been successful in the sales of its AI chip after the launch a year ago. In addition to that, as we examine the numbers, we note that the company’s performance is exposed to  the boom and bust cycle of Bitcoin. While the company expects decent earnings in the near term, we think the company will not return to the past peak margins. We value the company at USD 988 million and would not participate in the IPO.

Canaan (嘉楠耘智) IPO - Listing Ahead of the Peak Earnings

Canaan Inc.

Canaan (嘉楠耘智) IPO - Listing Ahead of the Peak Earnings