Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
Asia IPOs were not spared from the volatile global markets this week.
China Bright Culture Group (1859 HK) crashed to HK$1.75 per share (-22.6% from IPO) on its Friday trading debut before bouncing back to close at HK$2.10 per share (-7%).\
United Hampshire US REIT (UHUS SP) didn't get the same support. It debuted on Thursday, bounced briefly but continue to trade lower the next day and closed at SGD0.62 per share, about 22.5% below its IPO price. At the level, the selling seemed a tad overdone as FY2020 yield without top-up is above 7.5% and with top-up is around 9%,as per Sumeet Singh in this trading note. Also. there are about 14m greenshoe shares available for support and so far, it has traded about 14m shares over the last two days but there didn't seem to be any end of day ramp up support in share price. Some support could come in over the next week if and when Aisa markets can sustain US' markets relief rally on Friday.
The upcoming IPO to keep look out for is SBI Cards (SBICARDS IN) as it will be listing on Monday. As per Sumeet Singh's trading update note, the unofficial grey market for the IPO had already cooled off from a high of INR335/share (44% above the IPO price) to INR150/share (20% above IPO price) by the end of book building but some are now reporting about INR-50/share, indicating a listing below the IPO price.
The IPO that have braved the market is InnoCare Pharma Ltd (9969 HK) which is expected to close its books on Monday and will list the following Monday (23rd March). Ke Yan, CFA, FRM updated his thoughts on the IPO.
Our other early IPO coverage this week:
Our overall accuracy rate is 73.6% for IPOs and 65.2% for Placements
(Performance measurement criteria is explained at the end of the note)
Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.
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