ECM Weekly (1 November 2020) - Ant Group, Sunac Services, New Oriental HK, Bio-Thera

Ant Group (6688 HK) debuts this coming Thursday. It had a massive US$35bn (A+H) deal size and proportionately humongous demand of US$3 trillion (mostly from the STAR board tranche) from retail investors. Hong Kong books were also said to have been covered an hour after launch with multiple investors placing more than US$1bn of order. This week, we look at valuation at IPO price, index inclusion impacts, STAR board trading stats, and A/H spread.

• Ant Group IPO - Index Inclusion Quick Note: Now HSCEI Wants to Gate Crash the Party
• Ant Group IPO: STAR Market Trading Stats, A/H Spread
• Ant Group IPO: Final Say. Strategics, Index Impact
• Ant Group Pre-IPO: Updated Valuation. It’s Going Higher.

For other upcoming IPOs, Remegen Ltd (1788976D CH) launched its IPO bookbuild this week and it is expected to list the week after, on November 9. The IPO boasts a long list of reputable, long-only cornerstone investors. Books closed early and were reported to be multiple times covered. As for secondary listings, New Oriental Education (EDU US) filed its PHIP and launched its US$1.44bn bookbuild. It will start trading on the 9th of November whereas GDS Holdings (ADR) (GDS US) which launched last week, will trade tomorrow.

• RemeGen (荣昌生物) IPO: Pricing the R&D Leadership
• New Oriental Hong Kong Secondary - Might Be Relatively Small
• GDS Holdings HK Secondary Trading- Strong Coverage but No Discount and Volatile Markets Won't Help

This week's Property Management Services listings had been disappointing. They will likely set a weak tone for other upcoming IPOs, Jinke Smart Services (JKS HK) and Sunac Services Holdings (1820476D HK), which have both filed their PHIP with HKEX. Hopefully, we get to see the deals launch at more palatable valuation.

• Sunac Services (融创服务) Pre-IPO - Peer Comparison and PHIP Updates
• Jinke Smart Services (金科智慧服务) Pre-IPO - Peer Comparison and Early Thoughts on Valuation

We also heard that Kuaishou will file its draft prospectus on HKEX in this week and Antengene (ANGENE HK) is looking to premarket its IPO next week.

• Antengene (德琪医药) Pre-IPO: Proven R&D Track Record by Founder Matters

For pipeline IPOs, there had been news reporting that PCCW Ltd (8 HK)'s Viu International OTT is working towards a US listing that could raise about US$200m. In Malaysia, Smart Glove hired banks to work towards a potential US$200 IPO whereas, in India, Gland Pharma plans to launch its US$900m in November.

For other listings this week, Singapore finally got a win (considering a sea of red in global markets on Friday) with Nanofilm Technologies International (NANO SP) closing 12% above IPO price on its trading debut. Lufax Holdings (LU US), on the hand, closed 4% below IPO price.

• Nanofilm Technologies IPO Trading - May Just Be the One that Stands Out
• Lufax IPO Trading - Possible FTSE Inclusion Might Help in the Short-Term