ECM Weekly (12 Jan 2020) - Jiumaojiu, I-Mab, Phoenix Tree, Burger King India

We are back! 2020 Q1 is already busier than expected. This week we put out our 2019 Hong Kong IPO Analytics note for readers to get a quick overview on brokers and sectors' performance. Feel free to drop us a message if you want a more granular breakdown or look through of the data.

• 2019 Hong Kong IPO Analytics: Highlight of Brokers’ and Sectors’ Performance

Starting from end of December 2019, two IPOs, Jiumaojiu (9922 HK) and Huijing Holdings Co Ltd (9968 HK), launched in Hong Kong which will trade this coming Wednesday and Thursday, respectively. Jiumaojiu's retail book was reported to be about 600x oversubscribed and will be the one to look out for. There were also a handful of new IPO filings which we will look to analyze them over the next few weeks.

There were also chatter of more secondary listings coming to Hong Kong after Alibaba Group Holding (BABA US)'s strong performance. Companies that were said to be considering are Trip.com (TCOM US), NetEase Inc (NTES US), and Baidu (BIDU US).

• Jiumaojiu (九毛九) IPO - Tai Er’s Strength Shines Through
• Huijing (汇景控股) IPO - Dongguan-Focused Property Developer

In India, the pipeline of IPOs is already looking stronger than last year as we are expecting a few interesting IPOs to launch such as SBI Cards, Burger King India. There were also more IPOs filed including ESAF SFB, UTI AMC, CAMS (Computer Age Management Service).

• Burger King India Pre-IPO - Peer Comparison Yields Interesting Nuggets on Profitability and Capex

In the U.S, Phoenix Tree Holdings (DNK US) and I-Mab (IMAB US) launched their respective US$175m and US$111m IPO bookbuild. Both companies will trade this Friday.

• Phoenix Tree (Danke) IPO - Far from Being Ready for Listing
• I-Mab (天境生物) IPO: Everest Deal a Valuation Booster

Placements activity was busy as well with Luckin Coffee (LK US)'s follow-on and convertible note combo leading the charge. Share price gained about 20% (from pre-announcement) between launch to pricing and was still holding up well as of Friday.

• Luckin Coffee (瑞幸咖啡) Placement - Doubling Down on Momentum

Sunac China Holdings (1918 HK) and Wuxi Biologics (Cayman) Inc (2269 HK) also launched their respective US$922m and US$672m placements, taking advantage of the strong performance in equities since December. There were also Xinyi Solar Holdings (968 HK) US$235m placement, sold by a few shareholders, accounting for 4.3% of total outstanding shares. As of Friday, all placements held above their deal price.

• Sunac China Placement - Small Deal Unlikely to Move the Debt Needle by Much
• Wuxi Biologics Placement: Almost All of the past Deals Have Done Well, Would Bid near the Bottom End
• Xinyi Solar Placement - Share Price Run-Up and past Deals Indicate that Discount Might Not Be Enough

Last but not least, in Japan, there are two long-dated placements underway, Itochu Advance Logistics Inv (3493 JP) and Mitsui Fudosan (8801 JP), which Sumeet Singh have analyzed his two notes:

• ITOCHU Advance Logistics Placement - Accretive but Big Deal to Digest
• Mitsui Fudosan Logistics Park Placement - Less Dilutive and More Accretive than the Previous Deal