ECM Weekly (16 Nov 2019) - Alibaba, Freee, Megvii, Pharmaron, Canaan, XD

Even as tensions rise in Hong Kong, Alibaba Group Holding (BABA US) is pushing ahead with its listing in Hong Kong. We heard the deal is already covered just one day after books were opened. Fundamentally, the deal is unlikely to change anything for the company and even in terms of trading dynamics, the deal size is small considering its market cap, the number of shares that will be issued, and the deal size versus average daily volume. Sumeet Singh covered the details and flows from passive buying in his previous insights. Books will close on 19th and price on the 20th of November (before US opens).

• Alibaba IPO/​​Secondary Listing - Not Good for the ADR, Should Have Put a Price Range to It
• Alibaba IPO/​Secondary Listing - What to Do with the US ADR While Waiting for the HK Listing?

• Alibaba IPO/​Secondary Listing - The Real IPO Only Begins on the 11th Day Post Listing

• Alibaba IPO/​Secondary Listing - Proposed Stock Connect Changes Might Throw a Spanner in the Works

Other ongoing bookbuilds include Pharmaron Beijing Co Ltd-H (3759 HK), Huali University Group (1756 HK) and Heaven-Sent Gold (1342 HK) and their bookbuilds will close on the 21st, 19th, and 18th of November next week respectively. Out of which, we heard that Pharmaron's books have already been covered. We also heard that China Merchants Commercial (CMC) REIT is pre-marketing its US$400m IPO.

• Pharmaron (康龙化成) A+H: Decent H/A Discount and Cornerstone Line-Up
• Huali University (华立大学) IPO - Unattractive Valuation
• China Merchants Commercial REIT Pre-IPO - Not a Very Steady past Performance

In the U.S., OneConnect Financial Technology (OCFT US)'s IPO filing is finally made public while CDP Holdings, a China-based firm providing human resources, outsourcing and consulting services, has also filed with an expected deal size of US$100m. Canaan Inc. (CAN US) also launched its bookbuild with a much smaller deal size of up to US$110, down from US$400m.

• Canaan (嘉楠耘智) IPO - Listing Ahead of the Peak Earnings

In India, State Bank Of India (SBIN IN)'s board has approved the sale of SBI Cards shares in an IPO. SBI Cards is targeting to launch its IPO in January 2020 and it will be the first IPO by a credit card company in India. The other upcoming IPO in India is Ujjivan Small Finance Bank plans to launch its IPO towards end November or early Decemberas per news reports.

• Ujjivan Small Finance Bank Pre-IPO - Shouldn't Be Forced to List

In Thailand, we heard that Bangkok Commercial Asset Management (BAM) is premarketing its US$700m IPO and will be targeting to launch its bookbuild towards the end of the month.