ECM Weekly (10 May 2020) - Kingsoft Cloud, NetEase, Central China New Life, Peijia Medical, Kintor,

As Australia deal flows subside for now, we get more activity in the U.S. and Hong Kong. Starting in Hong Kong, Central China New Life (9983 HK) and Peijia Medical (9996 HK) will both start trading on the 15th of May. News reported that Peijia's book was well oversubscribed and retail tranche was about 1000x covered while Central China New Life's book, at the time of IPO, was said have been covered during bookbuild. We will cover more details on price levels, valuation and deal dynamics before the listing.

• Central China New Life (建业新生活) IPO - More than Just a Property Management Service Provider
• Peijia Medical (沛嘉医疗) IPO: Hot Deal at Discount

There were also news of other deals coming to market. Kintor Pharmaceutical (1762178D CH) was said to be planning to begin bookbuilding next week while NetEase Inc (NTES US) is said to be planning its Hong Kong secondary listing that may potentially raise US$1 - 2 bn, following the path of JD.com which was earlier said to have filed confidentially.

• Kintor Pharma (开拓药业) Pre-IPO: Post Hearing Updates and Efficacy of Reference Products
• JD.com HK Listing - Early Look - Getting the Ball Rolling
• NetEase HK Listing - Early Look - Follow the Leader

Other Hong Kong IPOs and deals we covered this week:

• Nongfu Spring Pre-IPO - The Negatives - Doesn't Need to List or Expand Production Facilities
• Nongfu Spring Pre-IPO - The Positives - Leaves One Thirsty for More
• Haidilao Placement: Concerted Founders' Sell Down at Right Time?
• China Yuhua Edu Placement: Quality Higher Education Play at a Premium

In the U.S., Kingsoft Cloud (KC US) had a strong debut on Friday, closing 40% above deal price. Interestingly, even though the deal was upsized, there seemed to be valuation sensitivity, given that the deal was priced in the midpoint. As such, at IPO price, Ke Yan, CFA, FRM thought that valuation was undemanding. He shared his thoughts and analysis in:

• Kingsoft Cloud (金山云) IPO Trading: Impact of GSX Short Report & Buy Level
• Kingsoft Cloud (金山云) IPO: Bargain Price for China Cloud Service Leader

In India, there was a mega deal launched by GlaxoSmithKline PLC (GSK LN), selling down its US$3.6bn stake in Hindustan Unilever (HUVR IN). The deal is trading well post-placement despite its the massive deal size, representing 35 days ADV. Sumeet covered the deal well in advance and during launch:

• Hindustan Unilever Placement - As Expected, Doing It Right
• Hindustan Unilever Prospective Placement - Early Look - The US$3.6bn Overhang

In Thailand, PTT Oil and Retail (PTTOR TB) filed its draft prospectus with SET in April and the company is still looking to list this year. We covered the brief background on the company in:

• PTT Oil and Retail IPO - F&B Business Is the Profit Driver