ECM Weekly (10 January 2021) - RLX Technology, Roiserv, Yidu Tech, and Placements

To kickstart the new year, we shared Aequitas 2020 IPOs and Placements results. 2020 marked our second full year of operations as an Independent Research Company, and our fifth year covering Equity Capital Markets (ECM). Even though ECM started off on a precarious note, it ended with very strong momentum.

• Aequitas 2020 IPOs and Placements Performance - IPOs in the Limelight but Placements Stole the Show

Hong Kong ECM kicked off the year on a strong note with Yidu Tech Inc (2158 HK) closing its bookbuild a day earlier than stipulated. The deal was launched on the last day of 2020. Roiserv Lifestyle Services (2146 HK), the property management arm of Risesun Real Estate Devel A (002146 CH), also launched its bookbuild on the same day.

• Yidu Tech (医渡云) IPO - Expensive but It's Still Justifiable
• Roiserv Lifestyle (荣万家) IPO - Small, Expensive, and Parent Dependent

There are a few IPOs looking to launch their IPOs soon such as Beijing Kuaishou Technology Co Ltd (1496219D CH), MicroPort CardioFlow (1844972D HK), and New Horizon Health (NHH HK). There is also another wave of secondary listings. We heard that Baidu (BIDU US), Autohome Inc (Adr) (ATHM US), and Bilibili Inc (BILI US) will likely come to market soon.

Other than IPOs, Hong Kong companies/shareholders were eager to sell to lock in some cash. Shareholders of Wuxi Biologics (2269 HK) was back on the market, ahead of lock-up to sell again whereas Haidilao (6862 HK)'s cofounders, Shi Yonghong and Li Haiyan, sold about 1.4% stake in the company and locked in US$600m in cash on Friday.

• Wuxi Biologics Placement - Well Ahead of Lock-Up, Again
• Haidilao (海底捞) Placement - Founders Back to Sell More
• Akeso (康方生物) Placement - Prepping for Commercialization
• Jinxin Fertility (锦欣生殖) Placement - Only Warburg Selling This Time

There was also a big block in Korea, sold by the ten shareholders of Doosan Fuel Cell Co Ltd (336260 KS) who had earlier failed to sell their entire shareholding last year. Hence, this was likely an expected selldown.

• Doosan Fuel Cell - The Expected Return Of The Remaining Big Block

In the US, despite the uncertainty surrounding China ADRs as evidenced from the deletion of the three Chinese telcos from MSCI and FTSE, RLX Technology Inc (RLX US) is looking to raise about US$1bn from its IPO. The company was said to be premarketing its IPO.

• RLX Technology Pre-IPO - The Positives - Fast Growth, Low Penetration
• RLX Technology Pre-IPO - The Negatives - Limited Track Record, and Missing International Ops

In Thailand, market will likely see more deals coming their way after Kerry Express Thailand (KEX TB) strong debut towards the end of 2020. We are hearing that PTT Oil and Retail (PTTOR TB) will likely launch its bookbuild early next week.

• Kerry Express Thailand IPO Trading - Delivering a Christmas Present