ECM Weekly (11 October 2020) - Excellence Comm, MR DIY, Converge ICT, Simcere, SciClone, JW Thera
Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
This week we got a good mix of ECM deals across Asia. Starting with the usual, Hong Kong saw Excellence Commercial Property (1611267D CH) launch its bookbuild which we covered in:
For upcoming IPOs, there were news of Shimao Services Holdings (SSH HK) and KWG Living Group (KLG HK) seeking listing approval from Hong Kong Exchange and likely to premarket soon. Simcere Pharmaceutical Group (SIMCERE HK) has already gotten approval and its PHIP has been filed already. Bookbuild of these IPOs will likely launch soon and we covered them in:
- Shimao Services (世茂服务) Pre-IPO - Community VAS Segment Is the Star
- KWG Living (合景悠活) Pre-IPO - Strong Growth and Margin Expansion but Overly Reliant on KWG Group
- Simcere (先声制药) Pre-IPO: PHIP Updates and Peer Comparison
HK biotech IPOs are still looking strong. JHBP (Genor) (6998 HK) and Everest Medicines (1952 HK) listings this week did well which should continue bode well for sentiment for subsequent deals to come. Ke Yan, CFA, FRM continued his coverage of upcoming biotech IPOs:
- SciClone Pharma (赛生药业) Pre-IPO: Rejuvenation of Old Drugs
- JW Therapeutics (药明巨诺) Pre-IPO: CAR-T Leader in China
In the U.S, MINISO (名创优品) IPO - Reasonable Towards the Low-End launched its bookbuild just about two weeks after its F-1 filing. Our valuation and earlier coverage is as follows:
- MINISO (名创优品) IPO - Reasonable Towards the Low-End
- MINISO (名创优品) Pre-IPO - Store Walkthrough - Co-Branding Allows for Stronger Pricing
- MINISO (名创优品) Pre-IPO - Asset-Light and Fairly Resilient Despite COVID
In other parts of Asia, starting with the Philippines, Converge ICT Solutions Inc (ITC PM) launched its bookbuild and was said to price towards the low-end of the price range. In Malaysia, MR D.I.Y. Group (MRDIY MK), on the other hand, counted a long list of institutional investors as cornerstone, leaving little for others.
- Converge ICT IPO - More Customers, Lower ARPU
- MR DIY IPO - Store Expansion Still Going Strong, Undemanding Valuation
There hasn't been a whole lot of placement activities in Hong Kong but Japan saw Danone SA (DANOY US) selling down its remaining stake in Yakult Honsha (2267 JP).
IPOs debuting this coming week:
Accuracy Rate:
Our overall accuracy rate is 73.3% for IPOs and 66.5% for Placements
(Performance measurement criteria is explained at the end of the note)
New IPO filings this week
- Dida Inc (US$500m, Hong Kong)
- Lufax (US$2bn, the U.S.)
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.
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- ECM Weekly (1 November 2020) - Ant Group, Sunac Services, New Oriental HK, Bio-Thera01 Nov 2020
- ECM Weekly (25 October 2020) - Ant Group, Lufax, JW Thera, Shimao Svcs, GDS Secondary, Nanofilm25 Oct 2020
- ECM Weekly (18 October 2020) - Lufax, Simcere, KWG Living, GDS, Jacobio18 Oct 2020
- Simcere (先声制药) Pre-IPO: PHIP Updates and Peer Comparison08 Oct 2020
- Converge ICT IPO - More Customers, Lower ARPU06 Oct 2020
- ECM Weekly (4 October 2020) - JD Health, MINISO, Everest Med, Weihai Comm Bank, JD Digits04 Oct 2020