ECM Weekly (13 December 2020) - Vesync, Sino-Ocean, Jacobio, Netjoy, Sea, Xpeng, NIO, and More!

Hong Kong ECM space is still getting a few small IPOs as we get closer to end of year. This week, Sino-Ocean Service (6677 HK), Vesync (2148 HK) and Jacobio Pharmaceuticals (1167 HK) launched their bookbuilds on Monday. Books of the former two IPOs were said to be covered and, specifically, Vesync closed its books slightly ahead of its stipulated schedule. Netjoy (2131 HK) is expected to list in the coming week too, along with Sino-Ocean and Vesync. We also heard that Stawbear Entertainment will launch its bookbuild next week.

• Sino-Ocean Services (远洋服务) IPO - Fairly Valued, at Best
• Vesync IPO - The Tale of Valuation Dichotomy
• Netjoy (云想科技) IPO: Alarming 1H2020, Avoid
• Netjoy (云想科技) Pre-IPO: Growth Stalled for the Short Video Marketer
• Jacobio (加科思药业) IPO: Faith on Founder

IPO debuts this week have done well in general too. It is probably fair to say that JD Health (6618 HK), China Resources Mixc Lifestyle Services (1209 HK), and POP MART (9992 HK) exceeded expectations. US listings like Airbnb Inc (ABNB US) and DoorDash Inc (DASH US) have trade strong as well. Though there were a few that traded poorly, these were in-line with our expectations, namely, Harbour Biomed (2142 HK) and Dalrymple Bay Infrastructure (DBI AT).

• JD Health (京东健康) IPO Trading - Looking to Be a Solid Debut
• JD Health (京东健康) Quick Note - Index Inclusions, Weights, and Valuation Update
• Pop Mart IPO Trading - Set for a Pop but We Won't Be Chasing
• CR Mixc Lifestyle Services (华润万象生活) IPO Trading - Better Demand than Recent Peers' IPOs
• Airbnb IPO - Peer Comparison and Valuation - Smaller but Nimbler, Possible COVID Winner
• Dalrymple Bay Infrastructure IPO Trading - Yield Limits Downside, for Now
• HBM (和铂医药) IPO Trading: The Retail Retreat and the Vaccine News

In Thailand, Kerry Express Thailand launched its bookbuild and it is expected to start trading on Christmas eve. The deal saw the participation of various reputable international long-only investors which should bode well for sentiment. Aside from that growth has been stupendous and the company offers indirect exposure to e-commerce.

• Kerry Express Thailand IPO - Time for Delivery

Lastly, Burger King India (BKI IN) is listing on Monday. Bookbuild demand was strong and it is set to debut well.

• Burger King India IPO Trading - Can Probably Double from IPO Price

Besides the IPO rush, companies were rushing to raise money too, a continuation from last week. With NIO Inc (NIO US)'s follow-on offering, all major EV players in China listed in the US have completed their respective fund raising. Sea Ltd (SE US) also took advantage of its recent digital banking license win to lock in some cash.

Last but not least, in Hong Kong, Country Garden Services Holdings (6098 HK) primary placement saw participation from existing heavyweight investors whereas Tsingtao Brewery Co Ltd H (168 HK)'s odd Friday selldown by Fosun is probably not going to be the last one it is doing.

• Xpeng Motors (小鹏汽车) Placement - Level the Playing Field
• NIO (蔚来) Placement - As Expected. Now, You Choose.
• SEA Ltd Placement - New Business Needs New Money
• Country Garden Services Placement - Opportunistic but Will Probably Use It for Acquisition
• Cansino Biologics Placement - Past Deal Didn't Do Well, Losing the Vaccine Race
• Tsingtao Brewery Placement - Friday Evening Is Always a Good Time for a Beer, Maybe Not This One
• IGO Placement - Going for EV Gold, Delayed Earnings Gratification for Shareholders