ECM Weekly (13 September 2020) - Ant Group, Joy Spreader, Chindata, Huazhu Secondary, Converge ICT

Hong Kong IPO activity is still looking busy. Joy Spreader Interactive Technology (6988 HK) and Huazhu Group (HTHT US) launched their respective US$225m and US$900m bookbuilds this week.

• Huazhu HK Secondary Listing - Needs the Money but Looks Toppish
• Joy Spreader (乐享互动) Pre-IPO - Found a Niche in Games but Still Just a Middleman
• Joy Spreader (乐享互动) IPO - Fairly Valued at Best

On top of that, there were news reports that ZTO Express, Zai Lab and Baozun, Ming Yuan Cloud Group, and, Genor Biopharma, have gotten approval from HKEx. The first three names are secondary listings and, out of them, two have already filed their PHIP with HKEx as of Friday. We are also hearing that Genor Biopharma (0883276D CH) is looking to kickstart pre-marketing next week for its US$300m IPO.

• Genor (嘉和生物) Pre-IPO: Slow R&D Progress in the past but that Might Change
• Ming Yuan Cloud (明源云) Pre-IPO - Leaning on Regional Partners for Growth but Hefty Commissions Paid

We continued our coverage of Ant Group. This week, Sumeet Singh looked into implications of dual listing on index inclusion. There were also news reporting that Temasek and GIC are looking to participate in Ant Group's IPO.

• Ant Group (蚂蚁集团) Pre-IPO: Dual Listing Makes Early Index Inclusion Tricky

In other parts of Asia, there seemed to be a wave of IPOs coming. We continue to look at Converge ICT Solutions Inc (ITC PM), this time, comparing the company with established peers in the Philippines.

• Converge ICT Pre-IPO - Peer Comparison - Not a Clear Cut Winner

We are also hearing that, in India, UTI Asset Management (UTIAMC IN) and Computer Age Management Services (CAMS IN) are looking to launch their IPO next week. We have earlier covered the companies in:

• UTI Asset Management Company Pre-IPO - Well past Its Remote Glory Days
• Computer Age Management Services Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance

Last, but not least, there were a handful of China ADR filings with the SEC. We took a look at Bain Capital-backed Chindata (CD US)'s potential US$400m IPO.

• Chindata Group Holdings Pre-IPO - Patchy Data but Is Growing Fast in a Hot Sector

Also, as mentioned last week, MR D.I.Y. Group (1706769D MK) is returning to market and it was pre-marketing during the week, likely to seek up to US$400m and, in Thailand, there were reports that SCG Packaging (SCGP TB) is targeting to launch its US$1.5bn IPO next month.

• Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia
• Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition
• Mr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share
• Mr D.I.Y. Pre-IPO - Assumptions and Thoughts on Valuation
• SCG Packaging Pre-IPO - Shift to Packaging Has Been Aiding Margins but Acquisition Drove up Leverage

For placements, we share updates on Softbank Corp (9434 JP)'s mega selldown by Softbank Group (9984 JP) which is looking to price on Monday.

• Softbank Corp Placement - Quick Update - Wide Discount from Undisturbed but Don't Expect Much