ECM Weekly (1 Dec 2019) - Venus Medtech, Alphamab, CMC REIT, XD, BAM

It has been a fairly busy week for us. In Hong Kong, five IPOs launched their bookbuilding this week, namely, Alphamab Co Ltd (9966 HK), Venus MedTech (2500 HK), CMC Reit (CMCREIT HK), JY Grandmark (2231 HK), and XD Inc. (2400 HK). Out of them, JY Grandmark and Venus Medtech's books were said to be covered. For our thoughts on valuation, read these notes:

• Venus Medtech (启明医疗) IPO: Valuation Still OK at the High End
• JY Grandmark (景業名邦) IPO - New Player but Probably Doesn’t Deserve a Premium
• Alphamab (康宁杰瑞) IPO: You Will Likely Be Zeroed
• XD Inc. (心动有限公司) IPO - Has Better Disclosure of Data but It Probably Won’t Help
• CMC REIT IPO - Yield Will Fall Short once the Commitment Is Over

In any case, Hong Kong's IPOs are set to continue their streak as Alibaba Group (9988 HK) and Pharmaron Beijing Co Ltd-H (3759 HK)'s decent debut performances probably bode well for remaining IPOs coming in the last month of Q4.

As for pipeline IPOs, there were news reports that Nongfu Spring, one of China’s biggest bottled water and beverage companies, might look to Hong Kong for an IPO that could raise at least US$1bn.

The IPO situation in India is looking up lately as well. Three companies filed their draft prospectus recently, namely SBI Cards (~US$1.3bn), Puranik Builders (re-file), and Home First Finance (~US$209m). Ujjivan Small Finance Bank (USFB IN) also launched its IPO this week and Sumeet Singh shared his thoughts on the deal dynamics and financial performance in:

• Ujjivan SFB IPO - Might Not Be as Good as the Previous Listing but It Has an Alternative as Well

In Australia, Tyro Payments' IPO is already looking solid despite the numerous IPOs cancelled this year. The company increased its IPO deal size to US$195m, from about US$170m ahead of its book open date on 3rd December. The deal will price on 5th December and trade on the next day, 6th December.

Even Singapore's lull IPO market is set to turn for the better as there had been news reporting that Thai Beverage (THBEV SP) is likely to list some of its regional beer assets that could raise about US$2 - 3bn next year February. Far East Consortium International Ltd (35 HK) is also planning to spin-off its hospitality assets and it will likely to come to SGX. We are also expecting more REITs to come to the market, such as Elite Partners Capital's sterling-denominated REIT, UOB Hampshire REIT, and MapleTree Group's student accommodation REIT.

In Thailand, Central Retail is starting its pre-marketing of its IPO next week but will likely only list next year. Closer to home, U Mobile, fourth-biggest mobile operator, is planning to raise about US$500m next year.