ECM Weekly (11th April 2021) - Tencent Block, WeDoctor, YiShengBio, Trip HK, Visional, Macrotech Dev

Despite a short week in Hong Kong, there were three new filings, Anjuke Group, Brii Biosciences, and Keymed Biosciences. Other notable filings include Harp Holdings in Malaysia, Onion Global in the US, and NHAI InvIT in India.

But the talk of the town was the second biggest block globally to ever trade. Prosus NV (PROSY US) finally sold a 2% stake (US$14bn) in Tencent (700 HK). Despite the large deal size, it was done with relative ease and was said to be 4x covered, as per media reports. We have been covering the potential sell down leading up to lock-up expiry since February.

• Tencent Placement Lock-Up Expiry - US$10bn+ Block and Buyback Linked Holdco Trade

• Tencent Placement Lock-Up Expiry - Block and Buyback Linked Holdco Trade Update

• Tencent Placement - Another Reluctant but Well-Flagged Sell Down, Lifting the US$14.5bn Overhang

• Tencent Placement and the Holdco Implications - Deal Almost Done, Now What?

In Hong Kong, Linklogis (9959 HK) raised US$1bn at the mid-point of its price range. Linklogis struggled in the grey market but managed to close 9.9% higher on its Friday debut.

• Linklogis Pre-IPO - The Positives - Fast Growing Blockchain Driven Supply Chain Financier,

• Linklogis Pre-IPO - The Negatives - Inconsistent Growth and Margins, Well Funded Competitors, and

• Linklogis Pre-IPO - Earnings Forecast, Peer Comparison and First Stab at Valuation

• Linklogis Pre-IPO - PHIP Updates - Nothing to Complain About

• Linklogis IPO - Pricey for a Reason

• Linklogis IPO Trading - Decent but Not Hot Demand

We continued our coverage of WeDoctor and shared our thoughts on the business. We had also covered the company's background and app walkthrough earlier in:

• WeDoctor (微医) Pre-IPO - A More Focused Online Medical Service Provider than Ping An Good Doctor

• WeDoctor (微医) Pre-IPO - Background and App Walk Through - The Online Medical Directory and More

• We Doctor Pre-IPO (微医) - Remedying Pain Points

We initiated coverage on YishengBio (1872307D HK). In our note, we covered their main product, the PIKA based rabies vaccine, and shared our thoughts on the management team. We also published a follow-up on Zhaoke Ophthalmic (ZKO HK) and discussed its valuation:

• YishengBio (依生生物) Pre-IPO: Need a Faithful Bet in PIKA

• Zhaoke Ophthalmic (兆科眼科): Could Be Over-Valued for Pre-IPO Round

• Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Thoughts on Valuation

Trip.com's Hong Kong secondary listing was approved and launched last week. We looked at the deal terms and shared our thoughts on deal dynamics.

• Trip.com Secondary Listing - Probably Needs to Correct

• Trip.com Secondary Listing Quick Take - Doing the Bare Minimum - Needs Some More Correction

In Japan, we looked at Visional Inc’s (4194 JP) IPO, which closed its books on Friday. We shared our thoughts on the business, our forecast and thoughts on valuation in:

• Visional Inc IPO - Good Vision Muddled by Dilution and Selling Shareholders

• Visional Inc IPO - Pricey Hire

In India, Macrotech developers (LODHA IN) closed its bookbuild on Friday with a 1.37x subscription rate. We shared our thoughts on valuation earlier this week.

• Macrotech (Lodha) Developers Pre-IPO - New Name but up to Some of the Same Old Tricks

• Macrotech (Lodha) Developers IPO - One Too Many Issues

In other parts of ASEAN, we covered Ngern Tid Lor and ThaiBev BeerCo’s upcoming IPO which are likely to come to market soon.

• Ngern Tid Lor Pre-IPO - Pre-COVID Growth Track Record Has Been Very Strong
• ThaiBev BeerCo Pre-IPO - Valuation Updates and Crystallizing Growth Potential for BeerCo

Credits to Clarence Chu for helping out with the Weekly Update.