ECM Weekly (10 Aug 2019) - 9F, Huali University, AllHome, Topsports

544 Views10 Aug 2019 13:58

SUMMARY

Aequitas Research puts out a weekly update on the deals that have been covered by Smartkarma Insight Providers recently, along with updates for upcoming IPOs.

Happy belated birthday to Singapore!

Capital markets in Asia have been fairly quiet. We have two new filings in Hong Kong, Venus Medtech and Poly Property Development, to keep us busy for the time being. This week, we penned down our thoughts on Huali University Group (HUG HK) which we heard is launching its IPO this month.

Huali University (华立大学) IPO Early Thoughts - Risks Abound

We also shared our two-part report of 1H 2019 analytics on Hong Kong IPOs.

In India, however, the two upcoming IPOs are not looking up based on their respective subscription rate. Spandana Sphoorty Financial (SSFL IN) was only 1.05x covered while Sterling & Wilson Solar (SWSL IN) did not get enough demand for its book. The latter's institutional tranche was only subscribed 1.02x, the high-net-worth investor tranche 89% and the retail portion 30%.

In the US, AMTD International (HKIB US)'s debut was strong despite of the corporate governance issues that we have pointed out earlier. We think that the float is tightly held as shown through the poor liquidity after its debut.

9F Inc (JFG US) launched its bookbuild on Friday and Ke Yan, CFA, FRM has already covered the IPO in:

Accuracy Rate:

Our overall accuracy rate is 72.4% for IPOs and 64.4% for Placements

(Performance measurement criteria is explained at the end of the note)

New IPO filings this week

Venus Medtech (Hangzhou) (Hong Kong, ~US$300m)
Poly Property Development (Hong Kong, ~US$500m)

Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.

Source: Aequitas Research, Smartkarma

News on Upcoming IPOs

Analysis on Upcoming IPOs

Name	Insight
Hong Kong
Alibaba	Alibaba IPO/Secondary Listing - The Real IPO Only Begins on the 11th Day Post Listing
Alphamab	Alphamab (康宁杰瑞) IPO: Strong R&D Capability and Innovative Platforms
Ascentage	Ascentage Pharma (亚盛医药) IPO: Too Early for an IPO
Ascentage	Ascentage Pharma (亚盛医药) IPO: Updates and Thoughts on HQP1351 (3rd Gen Bcr-Abl TKI)
Ant Financial	Ant Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
ByteDance	ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)
ByteDance	ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)
Clarity	Clarity Medical (清晰医疗) IPO: Proxy to HK SMILE Surgery Demand
China Feihe	China Feihe (中国飞鹤) IPO: New Numbers, New Red Flag, and Demographic Risk
Helenbergh	Helenbergh (海伦堡) Early Thoughts - The Usual Red Flag - Related Party Transactions
Home Credit	Home Credit Pre-IPO (Part I) - The Positives - Lots to Like
Home Credit	Home Credit Pre-IPO (Part II) - The Negatives - A Lot More to Dislike
Huali	Huali University (华立大学) IPO Early Thoughts - Risks Abound
Hut Chi-Med	Hutchison-China Med (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities
JS Global	JS Global Lifestyle (JS 环球生活) Early Thoughts - Declaring US$470m Dividend Before IPO
MicuRx	MicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
Renrui	Renrui Human Resources (人瑞人才) Pre-IPO Review - Riding on China's Unicorns
SH Henlius	Shanghai Henlius (复宏汉霖) IPO: Not an Impressive Biosimilar Portfolio
SH Henlius	Shanghai Henlius (复宏汉霖) IPO: Valuation of Four Biosimilars
SinoMab	SinoMab (中国抗体): Pipeline Concentrated on Autoimmune Therapy
Tasly	Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
Topsports	Topsports International Holdings Pre-IPO - Performing Well but All Proceeds Will Likely Go to Belle
Topsports	Topsports Pre-IPO - Quick Take - Nike & Adidas Data Throws up Some Interesting Nuggets
Topsports	Topsports Pre-IPO - Way Ahead of Its Peer on Most Counts
TOT Bio	TOT Biopharm (东曜药业) IPO: An Unimpressive Pipeline
Tubatu	Tubatu Group Pre-IPO - Performing Better than Qeeka but Growing Much Slower, US$1bn a Stretch
Tubatu	Tubatu Group Pre-IPO - Online -> Online + Offline -> Online -> ?
India
ASK	ASK Investment Managers Pre-IPO - Riding on a Wave of Wealth
Aakash Edu	Aakash Education Pre-IPO - Fast Growth in an Attractive Sector
Anmol Ind	Anmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders
Bharat Hotels	Bharat Hotels Pre-IPO - Catching up with Peers
CMS Info	CMS Info Systems Pre-IPO - When a PE Sells to Another PE... Only One Gets the Timing Right
Crystal Crop	Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers
Flemingo	Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country
Emami Cem	Emami Cement Pre-IPO - Still in Ramp Up Phase but Emami Shares Pledge Might Lead to an Early IPO
NSE	NSE IPO Preview- Not Only Fast..its Risky and Expensive
NSE	National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some
Mazagon	Mazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mrs. Bector	Mrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta
Lodha	Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
Lodha	Lodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
Penna Cem	Penna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid
PNB Met	PNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers
Sterling	Sterling and Wilson Solar Pre-IPO - Potentially India's Largest IPO This Year - Ain't No Sunshine
Malaysia
QSR	QSR Brands Pre-IPO - As Healthy as Fast Food
The U.S
CloudMinds	CloudMinds Inc Early Thoughts - Still Nascent
Meten	Meten International Edu (美联国际教育) Early Thoughts - Unclear Strategies