APAC IPOs & Placements, Aequitas Research

Clarence Chu

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%.

APAC IPOs & Placements

Dongguan Rural Commercial Bank IPO - Mind the Valuation Gap

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

Dongguan Rural Commercial Bank / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/dongguan-rural-commercial-bank" target="_blank" data-smartkarma-citation="entities:34248:1" rel="noopener">Dongguan Rural Commercial Bank (9889 HK)</a> raised US$1.14bn at HKD7.92 per share, at the bottom-end of its IPO price range.Dongguan Rural Commercial Bank (DRCB) is the fifth largest rural commercial bank in China by total assets as of Dec 2020, as per China Banking Association in 2021. At the indicated price. valuation is expensive as DRCB comes in at 8.1x FY22E P/E and 0.79x FY22E P/B, well ahead of its peer set. Given our underlying assumptions, the bank needs to trade 65% lower or 49.2% lower (excluding China Everbright and China Minsheng) to trade inline with peers.Our previous coverage of the IPO:<ul><li>
<a href="https://www.smartkarma.com/insights/dongguan-rural-commercial-bank-ipo-mind-the-valuation-gap" target="_blank" data-smartkarma-citation="insights:57797" rel="noopener">Dongguan Rural Commercial Bank IPO - Mind the Valuation Gap</a> </li></ul>

Dongguan Rural Commercial Bank (9889 HK) raised US$1.14bn at HKD7.92 per share, at the bottom-end of its IPO price range.Dongguan Rural Commercial Bank (DRCB) is the fifth largest rural commercial bank in China by total assets as of Dec 2020, as per China Banking Association in 2021. At the indicated price. valuation is expensive as DRCB comes in at 8.1x FY22E P/E and 0.79x FY22E P/B, well ahead of its peer set. Given our underlying assumptions, the bank needs to trade 65% lower or 49.2% lower (excluding China Everbright and China Minsheng) to trade inline with peers.Our previous coverage of the IPO:
Dongguan Rural Commercial Bank IPO - Mind the Valuation Gap 

Dongguan Rural Commercial Bank IPO Trading -Needs to Correct at Least 50% to Trade Inline with Peers