IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

China Bohai Bank IPO Initiation: The Bucks Stop Here

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

China Bohai Bank   / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/china-bohai-bank" target="_blank" data-smartkarma-citation="entities:29034:1" rel="noopener">China Bohai Bank (9668 HK)</a> is the youngest nationwide joint-stock commercial bank in China. In 2005, Bohai was established and became the only nationwide joint-stock commercial bank in China that has a foreign bank, <a href="https://www.smartkarma.com/entities/standard-chartered-plc" target="_blank" data-smartkarma-citation="entities:193:1" rel="noopener">Standard Chartered (STAN LN)</a>, as its promoter and founder. Bohai will commence trading on Thursday, 16 July. Bohai priced its IPO at HK$4.80 per share, towards the bottom end of the indicative price range of HK$4.75-4.98 per share. Bohai raised net proceeds of HK$13,470.6 million ($1.7 billion).</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/china-bohai-bank-ipo-initiation-the-bucks-stop-here" target="_blank" rel="noopener">our initiation note</a>, we stated that our analysis suggests that Bohai’s fundamentals are attractive as the positives (loan book growth, improving operating metrics) far outweigh the negatives (high NPL ratio). Despite the improving sentiment towards Chinese online game companies (based on the recent multiple expansion), we continue to believe that Bohai is fully valued at the IPO price.</p></div></div></div>

China Bohai Bank (9668 HK) is the youngest nationwide joint-stock commercial bank in China. In 2005, Bohai was established and became the only nationwide joint-stock commercial bank in China that has a foreign bank, Standard Chartered (STAN LN), as its promoter and founder. Bohai will commence trading on Thursday, 16 July. Bohai priced its IPO at HK$4.80 per share, towards the bottom end of the indicative price range of HK$4.75-4.98 per share. Bohai raised net proceeds of HK$13,470.6 million ($1.7 billion).In our initiation note, we stated that our analysis suggests that Bohai’s fundamentals are attractive as the positives (loan book growth, improving operating metrics) far outweigh the negatives (high NPL ratio). Despite the improving sentiment towards Chinese online game companies (based on the recent multiple expansion), we continue to believe that Bohai is fully valued at the IPO price.

Shanghai Pudong Development Bank Co. (600000 CH)

China Bohai Bank

China Bohai Bank IPO: Trading Debut