ECM Weekly (12 Apr 2020) - Akesobio, Auckland Intl Airport, Oil Search, Flight Centre and More

Our focus this week remained mostly in Australia (and New Zealand) as there had been more than a handful of equity raises to shore up balance sheet. All the placements have held well above their deal price. Flight Centre did the best among all, trading 60% above deal price after more than a 70% drop in share price (to just before halt) since beginning of February 2020.

Read more of our coverage in:

• Reece Limited Placement - Fixing a Leak
• Auckland Intl Airport Placement - Enough Runway but Uncertain if It Could Take Off
• Flight Centre Equity Raise - Cost Cutting Measures in Place but Doubts Will Probably Linger On
• Oil Search Placement - Worth Exploring but I Wouldn't Pump Too Much into It
• SCA Property Group Placement - Going on the Offensive

In Korea, Celltrion Healthcare's block was back on the market after Temasek's selldown alst week as One Equity Partners took advantage of the strong share price momentum too. CJ ENM (035760 KS) did the same, paring down their stake in Studio Dragon, mostly because it had been trading relatively well in amidst the global market correction.

• Celltrion Healthcare Placement - One Equity Partners Back on the Market Again After Temasek
• Studio Dragon Placement - Long Awaited Selldown by CJ ENM

Temasek, after selling Celltrion and Celltrion Healthcare, came back to the equity market for an Intouch Holdings (INTUCH TB) selldown. This is not the first time Temasek is selling but the timing is peculiar since the company is trading at a record wide discount to NAV.

• Intouch Placement - Wide Discount to NAV but Could Be Held Back by Overhang

We are also hearing that we might finally get a Hong Kong IPO again soon as Akeso Biopharma Inc (1495016D CH) looking to seeking approval from HKEX to launch their US$300m IPO. Ke Yan, CFA, FRM has been covering the IPO since its draft prospectus filing:

• Akesobio (康方生物) Pre-IPO: Clinical Trial Updates from PHIP

There had also been a US$76m secondary placement in CanSino Biologics Inc (6185 HK) which had done exceptionally well since this year on the back of the Covid-19 hype.

• CanSino Biologics Placement: Liquidity Permits a Trade but Beware of COVID-19 Hype

Other upcoming deals include potential placement from forced selling of margin loans in Luckin Coffee (LK US) shares pledged. The ADR is still halted pending news. Amidst the Chinese ADR turmoil, Xpeng Motors is braving the storm as it is said to have picked banks of a US$500m IPO in the US. There were also news reporting that Luckin scandal had cost Credit Suisse of their role in WeDoctor's IPO and the bank was replaced by Citi.